Franchising is a booming business in the Philippines today. Among all the franchising business, the food cart franchise business has the fastest growth. Main reason that food cart franchise businesses flourish today because the capital is not that big that even employees with regular pay could afford and most of the time, low capital businesses have faster return of investment compared to high capital businesses. Another reason is that it is still in the food sector. Food business has always has a fair share in the market.
What is good about franchising is that you do not need to make your own products and formulate a new business system. However, there are things to consider in choosing the best food cart business for you. Things you need to consider are as follows:
1) Evaluate how prepared are you to do business. You must be decided to take risks and be a good boss of your food cart franchise business.
2) Your maximum budget
Capital is the primary factor to consider in choosing a food cart franchise business. Calculated risks are vital to increase the rate of your business success. Make sure to set an allowance to your budget or set aside certain amount of money for emergencies and plan B. Yes, you should always have plan B. Always make sure that the food cart franchise cost alone will not occupy most of your capital. For example, your budget to start a business is 100,000 PHP, the best food cart franchise cost should only range from 30,000 PHP to 50,000 PHP. The rest of it will be allotted for your rent, additional crew uniform, product supplies, freezer (if your freezer at home is not enough to store your product supplies), tables and chairs for your costumers & others that are not included to your food cart package. Speaking about renting a space where to place your food cart business, lessors have different conditions with regards to payment but the most common is the 1 month advance and 2 months deposit scheme. Meaning, if your monthly space rental 8,000 PHP, a 1 month advance and two months deposit is required to rent he place, your total cash-out is 24,000 PHP.
It is important to write everything down in a paper for you to anticipate your soon-to-be business cost and compare it with your maximum budget. You don't wanna end up in debt at the beginning of your business venture. Remember that it takes weeks, months and even years to stabilize a business in the market.
3) Find a reputable franchise company
The success of the franchiser does not mean success of all the franchisee. But, a stable franchising company can surely back up your success. Here are questions you need to ask in choosing a franchising company:
A) company's legalities- you would not want to partner with fly- by-night franchising companies
B) How long has it been operating? A company that is operating for at least 10 years is a better option.
C) Where does this company get their product supplies? find a company who manufacture their own product so you would not have the issue of poor product availability every time you order.
D) What does the support the franchise company gives to its franchisees.
4) Find a good location. It is best to find a location near where you are living or where your chosen manager is residing so that it will be easy and accessible for you to check on your food cart franchise business. The closer the food cart location to your place, the closer the product source will be since all the products will be stored in your freezer. if your food cart location is in a commercial area, it's best to use chest cooler instead of a freezer to reduce electric consumption.
These are just basic factors to consider in starting a food cart franchise business but every business is unique, so as preparations.
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