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FRA EWS An IFA Newsletter
N
From the Chairman's Desk Entrepreneurs Raising Funds : Points to Check on02 03
05
09
In this issue, you will find:
1.Hot Opportunity of the Month: Fran Recruit 07Fran Buzz
Exclusive Interview Hot Opportunity of the Month: IFA Membership 11
OCT & NOV2012
ISSUE
ENTREPRENEURS RAISING FUNDS
POINTS TO CHECK ON!
06Fran Events
08Case Study
FROM THE CHAIRMAN'S DESK
Gaurav Marya
Since last one year IFA's Newsletter- Fra(n)ews is trying to
serve you at its best by bringing out new and updated
insights of the franchising industry. With Fra(n)ews, we aim
to bring forth the latest developments taking place in the
franchise sector, thereby increasing awareness in the
franchise community. This newsletter would also act as a
platform for all the start-ups as well as established brands,
to showcase the business potential and seek potential
franchisee's attention.
It would be the great pleasure of Fra(n)ews in successfully
disseminating franchise knowledge to the entire franchise
fraternity. In addition, I strongly believe that it would assist
franchisors in reaching out to their potential investors, and
in turn aid the aspiring entrepreneurs to get their desired
brands.
Gaurav Marya | Chairman
Indian Franchise Association (IFA)
02
Dear Friends
ENTREPRENEURS RAISING FUNDSPOINTS TO CHECK ON!
03
It is not about the biggest armies but
the best shots that made wheel of
fortune turn to ones favour. Likewise,
in the arena of entrepreneurship, its
not the money a company raises that
helps them succeed. It is but the
perfect shot, created out of a blend of
some extremely essential elements
which ushers the growth path of a
company. Along with money, the
other essentials are the opportunity,
team and the mysterious alchemy
between those two called "fit". There
are five ways for entrepreneurs to
prepare for the brutal and usually
humbling process of raising
institutional money.
Of course reality is dif ferent from plans; but plan you
must. The business plan must define the problem
you are trying to solve, the solution that you have
identified; your target consumers. The resources
you need in terms of people and capital. You will not
get a second chance to make a first impression, so
work on the plan.
THE PLAN Write and re-write it!
Five-point checklist
for entrepreneurs on the
road to raising funds
The need for growth gaining importance over
refining the business model can lead to poor
decisions. But if you raise too little, you risk being
constantly in the market for funds and not being able
to pursue opportunities. The optimal amount will get
you through finding out who are your consumers,
where will you find them, how much they will pay,
and what your costs will be.
No amount of money can make a bad business
model good. The clock on returns starts ticking the
moment you raise funds. So even if the business
model is good, raising more money than needed
increases the pressure to grow fast because only
growth provides returns.
MONEY, MONEY Strike The Right Amount
04
Most entrepreneurs, even the successful ones, say the fundraising process is exasperating and humiliating. Don't take rejection personally.
Fundraising is simultaneously exasperating (when investors don't seem to get your idea), humbling (when investors don't buy into your passion), exhilarating (when an investor does buy into your idea) and enriching (when an investor gives you the money to build your idea). The most interesting entrepreneurs recognise that fundraising is part art and part science. They target the right investors, strike a careful balance between business plan ambition and realism and focus on execution rather than valuation. Finally, they also realise that they were lucky to be at the right place at the right time.
DON'T TAKE IT PERSONALLY
Valuation is important but should not be the only criteria for closing or choosing one investor over another. If you raise money at a high valuation at an early stage, then the pressure amplifies to provide greater returns. In seed or early rounds, when the business model is still being refined, the colour of money is more important than the quantum.
funding
VALUATION Don't Chase it too hard
Make a short list of investors based on their track
record, investee companies, investment thesis and
fund size. There is no point in pitching a $10-million
funding round to an investor whose fund size is $50
million. Do your homework; study their websites and
ar ticles, talk to entrepreneurs and investee
companies. Look for chemistry. The investor-
company relationship is like a marriage: look for
how the investor deals with you during your
interactions with them. Does he spend time
understanding your business? Does it sound like he
will be fair? Will he bat with you or against you? Does
he understand the roller-coaster ride of an
entrepreneurial journey?
DON'T SPRAY AND PRAY
05
French Furniture major plans expansion in India via Franchise route
Its pan India expansion plan on the anvil for Lulu Forex Pvt. Ltd.
FRAN BUZZ
Ebony Gautier, the five year old franchisee of French furniture giant, Gautier, which has already spread six stores across Noida, Gurgaon, Bangalore, Chennai, Hyderabad and Faridabad are now looking into opening 8-9 more stores before the end financial year, 2012.
Abhijeet Mitra, chief executive officer of Ebony Gautier said, “We are looking at eight to nine stores before this financial year is over and at another four to five during the next year, subject to availability of the right place at the right rental.” Mr. Mitra further added that they would look into the profitability and viability of the store and a core market which they can service and support.
The company is likely to open stores in Mumbai and Amritsar; it is also evaluating locations in Pune, Lucknow, Jaipur and Kolkata. These could spread across 7,000 to 11,000 sq f t. The company's entire collection is imported from Gautier in France. The Gautier group needs to sell furniture worth Rs 7 crore a day to its partner shops. They have a frame of 80 shops worldwide, based on the franchise system.
Lulu Forex Pvt. Ltd., the foreign currency exchange business arm of Dubai-based Lulu Group, will open three more branches within December 2012, said Shibu Mohammed, head of its Kerala operations.
"The next branch will be in Bangalore and is due for opening in early November,2012. By mid-November, we will launch our Goa branch, followed by one at Kanhangad," Mohammed said. The company, with fourteen licenses, will also open one at Edappally Lulu Mall in Kochi.
CarTrade.com Launches Store in Western IndiaCarTrade.com is a leading auto e-commerce portal and helps consumers to buy and sell new and used cars. CarTade.com announced the launch of its first CarTrade.com Franchisee of used car Store in Thane. The franchisee partner is Globus Motors.
Commenting on the company's latest initiative, Mr. Vinay Sanghi, Founder & CEO, CarTrade.com said, “The CarTrade.com Franchise Store is an innovative offering which now allows our customers to not only get the information and help they need on our web-site, but also an opportunity to interact with well-trained staff, to get the best choice of cars and deals in the market. We are confident that this initiative will further enhance our customer's car buying and selling experience. This is a significant milestone for us. We have aggressive expansion plans to launch 100 stores across India in the next 10 to 12 months”.
CarTrade.com helps customers who are looking to buy or sell new or used cars and want to remain up-to-date with the latest automobile news, expert reviews and car prices. All this information, along with a host of research tools, price information and a growing dealer network, is available just a click away with CarTrade.com. It also offers a wide variety of good quality used cars backed in many cases by a Condition Check Report. Also, the benefit of car warranty can be availed on selected cars at the CarTrade.com Franchisee Stores.
Mr. Pradeep Kourani, Partner in CarTrade.com Franchisee, Thane said, “I am glad and honoured to be associated with the CarTrade.com brand. The innovative products and services which CarTrade.com offers to its customers are truly delightful and exciting. This will help bring in many new customers to our store”.
EVENTS
06
Franchise India 2012, the 10th edition of Asia's Biggest Franchise, Retail & Small Business show commenced at Pragati Maidan, New Delhi on November 3rd with a lamp lighting ceremony by Mr. Gaurav Marya - President, Franchise India. The event was presented by Naturals, Burg Watches, Greentrends, Aura, Club City, Safexpress, Mahur Thalis and Chabbra 555 with the support of Indian Franchise Association. Whether one is looking to grow their franchise network in the Indian market, collaborate with International business concepts, take their concept internationally or supply to the franchise, retail and small business community, the first day of the show of fered enormous opportunity encompassing all facets of Franchising, Retailing and Licensing.
Alongside the presence of leading franchise companies at the exhibition, the platform also featured 4 conferences on both days of the show, bringing together over 100 speakers with about 30 plus international speakers. These were namely the Entrepreneurship Summit, Franchise Knowledge Series, Brand Licensing 2012 and Retail Knowledge Series. The first day witnessed an inaugural session on creating an entrepreneurial scene in India by Mr.Vikram Bakshi (McDonalds), Mr.Charles Riotto (LIMA), Mr. C K Kumaravel (Naturals), and Mr. Momir Popovic (Rainbow Worldwide). Dr. Rashid Al Leem (Sharjah Department of Seaports and Customs and Sharjah Free Zones Authorities (Hamriyah Free Zone Authority), Mr. Vikaas Gutgutia (Ferns n Petals) and Mr. P. Krishnan (Mom & Me (Mahindra Retail) held forth on the New Age Franchise Entrepreneur Balancing Skills & Entrepreneurship as a franchise
and its challenges. They elaborated on creating an omni channel, the move to form a franchise and marketing game plan.
Mr. Akshay Bector (Cremica), Mr. Naveed Dowlatshahi, Mr. Gaurav Ahuja (Red Ginger Hospitality), Mr. Marco Schärf (Schärf Coffeeshop GmbH, Austria), Mr. Vikram Kamat (Kamat Hotels), Mr. Hitesh Patel (Primifoods) and Mr. Vijay Abhimanyu (Born South) discussed building a food empire via franchising.
Business Opportunities in Education were explored by Mr. Amit Guota (S Chand Harcour), Mr. Maurice Bryne (Jymka, Ireland) and Mr. Jayant Hari Har Lal (Sri Ram Schools). Mompreneurs in Business and addressing the possible growth of successful women entrepreneurs were prime areas that were looked at by Dr Rajnee Aggarwal (FIWE), Ms Rashmi Singh (NCRW, Ministry of Women and Child Development), Mr C K Kumaravel (Naturals) and Mr Alokendra Banerjee (NTC). The scope of specialty business was covered by Mr. Suresh Bhatia (5 aces), Mr Hitesh Kshatriya (Magic Holidays) and Mr Devendra Jain (Atishya Group). Technology Reducing cost and complexity in business was examined by Mr Siju Narayan (IBM) and Mr. Ambarish Gupta (Knowlarity).
Mr. Gaurav Marya, President, Franchise India commented, “The sessions amalgamated opportunity and expertise packed in an all exclusive conference program on varied subject matters of Small Business Franchise, Retail and Real estate, and licensing in a well rounded manner. The presence of multiple CEO Forums with franchise tycoons elucidating their views on the challenges faced in the global franchise industry led credibility to the whole initiative. The event has over the years successfully produced fantastic results for exhibitors, potential franchisees, visitors, speakers and the entire franchising industry – and that's what makes it so valuable.”
The sessions saw participation from both Indian and global brands to offer a pool of out-of-box business ideas and practices delivering India's biggest business exchange. Focused at the visiting investors, this was an open knowledge workshop for no charge, for visitors to understand the nitty-gritty of franchising, as a model.
Franchise India 2012 expounds on unexplored possibilities of Business Engagement
07
HOT OPPORTUNITY OF THE MONTH
Fran - FranRecruit Training
Salary structure after completion of 3 months courseRs.25000+Incentives on sales achieved (Minimum total of approx. Rs. 30,000)
Fee Structure:One time fee of Rs. 25,000
Venue:IFA campus, GK-1 , South Delhi
Course Duration:2 classes per week i.e. 24 classes in 3 months
Sagarika Buragohain
Contact No: 09654860991, 011-40665500/26
Email: bsagarika@franchiseindia.org
www.franchiseindia.org
BENEFITSæ Opportunity for Educated and unemployed individuals
æ Opportunity to first learn and then earn
æ Lifetime opportunity to join an Indian MNC
æ Direct Entry into the Management Cadre
æ 100% Job Guarantee after the completion of the course
Professional Certificate Course In Franchise Management
CASE STUDY
08
IBERIS INC Business Advisory
IBERIS INC was founded in 2005 by a group of industry experts with an aim to provide training, recruitment & Consulting to various companies and individuals. Capacity to serve all levels of Management through a team of Professional trainers / facilitators Contribution has been their forte and this has been recognized by campus and corporate giants. Their credibility lies in their pool of professionals who bring in enormous talents and experience to serve better.
IBERIS INC models customer's own commitment to development by sharing their development objectives and provides with proven solutions to help build the bench strength. IBERIS INC delivers the training programs which are dynamic, inspirational and cutting-edge that focuses on the Organization's business objectives. Evaluate organizational practices and individual skills to iden t i f y oppor tun i t i es fo r con t inuous improvement. The training specializes in the areas of management and staf f development, adjustment services and career planning. They also develop and deliver total upgrade packages for individuals and customized training modules to improve business performance facilitating change by creating environments that promote communication, risk-taking and collaboration.
Since its inception, IBERIS INC has focused on enhancing the productivity and profitability of its clients. They have served as an extension of each c l ient 's management group, prov id ing opportunities to recognize trends and set direction that will lead to the attainment of each firm's respective goals and the on-going achievement of targeted results. They work closely with each firm's principal(s) and key employees to learn about their respective internal operating systems and through this process develop a customized approach, develop innovative so lut ions, make recommendat ions for improvement and offer assistance with, or take full responsibility for the implementation of each activity.
As a complete one stop solution, their experienced / specialized consultants lend expertise in all HR related domains to help design and implement selection/assessment processes.
HR Due DiligenceHuman Resource Information SystemsHR Operational ImprovementHuman Resource OutsourcingPerformance & Rewards ManagementTax Help DeskPayroll OutsourcingLitigation Support
Their emphasis lies on working closely with clients to build innovative solutions by combining both the board-level and operational perspectives. “Quality in everything we do” approach help them achieve excellence all the above mentioned services they offer. For more information about their services, you can reach them at :
IMA HOUSE, F / F - 6, Diwaliba Apartment, Navarang Six Road, NR. Vimal House Road, Naranpura, Ahmedabad-380013, Phone : +91 079-40242526 Mobile : +91-9898796868, +91-9879207968E-mail : neetusingh@iberisinc.com ,
jobs@iberisinc.com Website : http://www.iberisinc.com
Staffing solutions comprise of four distinct components:• •• ••
HR Consulting comprise of services which are:Human Resource Strategy
••••••••
IBERIS INC
Permanent Staffing Executive SearchContract Staffing TrainingAssessments
SERVICES OFFERED
EXCLUSIVE INTERVIEW
09
1.First of all, I want to
appreciate your endeavour.
What are the most pivotal
moments in your career
when you decided to come
up with "Cute Island"?
Answer: Robert L Ehrlich
says and I quote “Experts tell us that 90% of all
brain development occurs by the age of five. If we
don't begin thinking about education in the early
years, our children are at risk of falling behind by
the time they start Kindergarten.” I had seen my
kids going to various pre-schools and how
commercial those schools were. I was unhappy
with the quality of the education standards. I
always felt that education should be treated as
“service” and not as a business deal. Then it
occurred, why we can't setup school by providing
quality with no commercial aspects. I believe in
quality education, quality infrastructure with
affordable price and education should not be
treated as commercial earning tool. That is the
only reason we established Cute Island.
2. When and why did you opt for franchise
business model?
Answer: I do not want to compromise with the
quality of education at Cute Island. All the
branches of Cute Island Pre-schools ought to
have consistent quality of education. That can be
ensured only by opting for a franchise model. We
have also seen lot of franchise models, which they
just don't properly support but expect huge
amount of Royalty. Also our pre-school concept
would penetrate into the tier 2 and tier 3 cities
because even though parents of 2nd and 3rd
cities are aware of pre-school and early childhood
education, they don't have opportunity to send
their kids in good pre-schools. That is why I feel
franchise model is the best way of expansion.
3. What kind of training and support do you
offer to a franchisee?
Answer: Anyone who is passionate about
education and treat as “Service” can run this
school. We provide them with training aid to
faculties, center head as well as nannys. We also
provide them with operational plan: daily plans,
weekly plans. They just need to make sure
everything are as per the plan and what we asked
to deliver. We also provide day to day support on
how to take care and handle the kids and
understanding the psychological aspects of the
kids. We have success stories of taking care of 3
months and above kids. WE also train the
franchisee to make sure they well care of all the
kids. WE believe in WIN – WIN situation.
4. What are the attributes that you look forward
to in your franchisees?
Answer: Self Motivated, enthusiastic to service
the education field, passionate about kids and
hardworking.
An exclusive interview with the CEO
of Cute Island International Pre-School,
Mr. P. Vara Prasad
10
5. What is your company's expansion plan in
this fiscal year?
Answer: We have very concrete plan and we are
striving hard to achieve it. We are targeting to
create more than 20 franchisee units and also
plans to establish school upto 5th standard this
fiscal year.
6. What are the core competencies of your
brand that you feel will offer tough competition
to your competitors?
Answer: 1. Innovative curriculum which promotes
inquisitiveness besides the desire for learning.
2. Excellent support. We take care of complete
establishment of the unit and we feel that its our
as our own money invested and make sure they
get right profits.
3. Novel Style of teaching: Besides the traditional
books, discussions, novel methods like Audio –
video presentation, Television, activity based
etc.
4. Extra emphasis on co-curricular activities:
Craft, Dance and other activities will be given
special emphasis under the supervision of
expert teachers.
5. WE ensure that our students grow beyond mere
academics as the spotlight is on the over-all
development of our students. It is all about
enthusiasm and energy and we believe in
inculcating that lifestyle for a better outlook.
7. What is your mantra for success?Answer: We understand that values play a key
role in imparting education, and so we adhere to a
strict code of conduct and we believe leading from
the front, by setting an example.
Every success story has a starting point and
responsible parents know the importance of
quality education at the basic level. Indeed
tomorrow's future needs great care today, and at
Cuteisland, we not only focus on the
fundamentals, but also, we believe in extending
the line. Each day we endeavour to concentrate on
honing precious qualities like self -reliance,
curiosity, creativity and leadership in our students
therefore making them confident and responsible
individuals.
At Cuteisland, education is joy, learning is fun, and
the teaching innovative, thanks to our good panel
of teachers, we understand children's psychology
better. Emphasis is laid on conditioning the young
minds therefore nurturing talent and interest which
will help them cultivate focus and skills. We simply
love to take up the responsibility to ensure that
your children get conditioned with the right
thoughts and mental make-up, therefore laying a
springboard for the rest of their lives.
8. What is your contribution towards
“Corporate Social Responsibility”.
Answer: Our responsibility is make sure the
children recognize the value of education at their
early stage and that will make them part of the
responsible persons in the society when the
grown up.
11
ABOUT US
Membership form
Please contact: Sagarika Buragohain Contact No: 09654860991, 011-40665500/26Email: bsagarika@franchiseindia.org
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