27 May Why franchising is a good idea part 1
As the fight against Covid-19 continues, South African business owners have had to reduce working hours or close their businesses in their entirety during the government mandated lockdown.
With restrictions slowly being lifted, the South African economy will need some help from the Small-and Medium-Size Enterprise (SME) sector. We see this when looking at countries such as South Korea and India, where it is evident that one of their key drivers to support economic growth is their SMEs
The question then, is, how do we help start to turn the country around? How do we create jobs and generate income-earning potential? How do we re-employ those who have been retrenched or laid off? One solution is to encourage the creation of small and medium businesses. However, starting a business is a risky endeavor during the course of a more normal economic cycle; during tough economic times, it is even more daunting.
The associated risks, and benefits, of starting a new business venture are heightened during the Covid-19 economic crisis. The economy is stuttering, consumers are tightening their belts, and cashflow is a bigger concern than ever. Having said which, wanting to start a business and be the “master of one’s own destiny” is increasingly appealing for the very same reasons. The real question then, is how to balance these two agendas?
In a single word: franchising.
Back in 1994, the post-apartheid economy was in a similar position as we find ourselves in today. Ratings agencies Standard and Poor’s and Fitch had the country at sub-investment grade, investors were nervous, and the economic was under pressure.
It was at this time when CEO Richard Mukheibir co-founded Cash Converters Southern Africa. “I did this because I held a deep belief and faith in South Africa’s potential,” he explains. Similarly, the brand remains invested in this country for the same reason.
When investing in a franchise business, for example, a Cash Converters store, a franchisee buys into an existing and proven business model. This is a way to remove some of the risks of putting life savings into a venture which later folds.
Cash Converters, as a reputable franchise business with a proven track record, is a viable opportunity. Through our expertise, years of hard work and experience, a sound business model, and the fine-tuning of processes, we have developed a business model that creates the opportunity for our franchisees to make a sustainable profit, regardless of the economic climate.
Alternatively, if you are interested in attending a webinar hosted by our CEO, Richard Mukheibir, where he unpacks our unique business model, please email Ilsé Murray at email@example.com to enquire about these.