If you have an entrepreneur spirit and want to go into business, buying a franchise is indeed a great opportunity. Becoming a franchise is a career path becoming increasingly popular all over the world. Hence becoming a franchisee can be a life changing decision for you. A genuine entrepreneur spirit would yearn to get into business. However, he would come across two options namely starting your own business and buying a franchise. But it must be kept in the mind, that it’s not always feasible to start your company, create and shape a brand name from the scratch, and start an empire from the bottom. The major reasons are that it is difficult to acquire capital and credit as your business is in its earliest stages of development with no proven track record. Thus, buying a franchise and leveraging the existing brand goodwill is often an ideal choice. However, franchising business itself has plenty of options to invest in and Automotive franchising business is certainly one of the leading sectors. Here are some advantages and reasons to be considered to buy an automotive franchise business.
- Enormous Customer Base:
Automotive business industry has an enormous customer base which is far more than any other business sector. India has third largest road network in the world and the total number of vehicles in 2017 stood at 253 million. The numbers multiply every year. Most Indian families have at least one vehicle and most of them use their vehicles everyday. Also, lot has to be carried out from these vehicles and for the same, these vehicles require quite an amount of money for their services and care. Thus, the wideness of the customer base is unquestionable. There are very few sectors or probably none, which can match the customer base of Automotive Industry. Accountancy franchise, home cleaning franchise, skin care franchise and food franchise are some zones wherein customer base is considerable. However, before automobile industry they are nothing. The reason is that not everyone requires personal accountant, considerable population chooses to eat at home, some would choose to deck up at home over hitting a nearby salon but most people need a mechanic to get their vehicles serviced and repaired.
- Resistant to the Impact Of COVID-19.
COVID has not impacted health only but economy as well. It is palpable that countries have become captive to the pandemic and businesses are bearing the brunt of it. Almost all the sectors of the economy are facing uncertainty in terms of finance and liquidity. Even the food franchising business which used to be considered as one of the most recession-resistant sector also suffered tremendously because of the pandemic. No matter how big of a foodie we’re, we do create a second thought before entering a restaurant or ordering a food even from a reputed brand during these times. The economical statistics put the stamp on the fact that most of the businesses have suffered more than ever before. However, Automobile Industry stands out. People and Government has realized that we have to keep the ball rolling even during pandemic by following the health and hygiene related guidelines by the government. To carry out the daily activities like buying a grocery, reaching your workplace, dropping children to the school, etc. requires vehicles and when vehicles operate, they do need services. Hence, one has to hit the nearby Automotive shop to get his vehicle repaired or serviced. The flourishing of the sector is certain during times when economy is strong but even when the market is down, the sector cuts the mustard for consumers are more likely to hang onto their vehicles longer considering to pay for car repairs more economical than buying a new car.
- Not affected by E- Commerce or Amazon-Effect.
A large section of businessmen in India can be found whining upon the negative impact of E-Commerce and Amazon-effect on their businesses. It would take time for people to adapt with the changing dynamics of economics and shopping. Thus, scorching remarks are often heard among entrepreneurs running their businesses through age-old ways. However, when it comes to automotive sector the impact is negligible. Online services cannot substitute the services provided by the Auto-repair shops. One will have to hit the nearby Auto-repair shop for the servicing of the vehicle. Thus, the customers have no alternative. The role of Internet in Automobile Industry does exist but primarily in Marketing and Advertisement. In a nutshell, the industry need not worry about the negative impact of e-commerce.
- Mechanical Skill is Not Indispensable:
No doubts that vehicles are to be repaired in an auto-repair shops but being a franchisee of an auto-repair shops, you need not be an expert in the mechanical skills. The competent employees in the workplace are more than enough to maintain the momentum of the services provided by the customers. To run a successful business or franchise, on the part of you what all is required includes management skills, Delegation skills and networking skills. So even if you are least to not at all trained in auto mechanics, it shouldn’t be a hurdle to you.
- The Automotive Industry is Growing:
“After the devastating effects of the COVID-19 pandemic, it is expected that the auto industry will see stronger growth in 2021-22.” Ashim Sharma, partner and group head (business performance improvement consulting- auto, engineering and logistics.) at NRI Consulting and Solutions India, said. The Global automotive aftermarket is expected to reach a value of $1 trillion USD by 2022 and $1.4 trillion USD by 2024. The number of vehicles in use increase with the increase in population. This implies that the market is growing and way more business is predicted to come to auto repair shops.
As long as there are vehicles, the need for repairs, maintenance, inspections, tune-ups and part replacements will be there. If you’re an auto-enthusiast, the automotive niche could be the right choice for you. However, starting your own automotive franchise business can be baffling to you. But franchising is a godsend to assist you for starting and running the business. Also, a franchise with a reputed brand name can help you get customers from the let go. Franchise Insider offers wide variety of automotive franchise opportunities to run a successful Automotive franchise business. When you consult us, you can expect the Best!
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