Category: Franchising & Business Advice

It is with dismay that the Franchise Association of South Africa has learnt of the big risk of the return of load shedding predicted for late August or September which will once again have a devastating effect on small businesses. Just two days ago one of the most well known business-to-business brands in South Africa stated that the brand lost no less than R8m in sales pertaining to just one sector of their business due to load shedding in March this year. Says Vera Valasis, Executive Director of FASA “renewed load shedding could be the proverbial ‘last straw that breaks …

There is no question that franchising’s saving grace in a struggling economy is the fact that, by its very nature franchising is entrepreneurial, flexible and forward-thinking. Not only does it continue to be resilient, it offers, largely due to its strong business format and support system, a better chance of surviving the ups and downs. Thinking outside the box and looking for ways and means to cross-promote and reach new markets is a trait that many of FASA’s members do extremely well. They are the ones who find a ‘niche’ that sets them apart or, by default, thrive on the …

Do you remember the days when shopping for clothes was a group effort?  And I’m not just referring to have a number of BFF’s needed to help you decide which outfit to choose.  I’m talking about those engaging sales people who would be constantly at your side, ready to swop sizes, offer an alternate colour-way or simply BE THERE when you needed them? FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with specific focus on transformation. www.fasa.co.za …

Are you a budding entrepreneur with big ideas? Maybe you’ve started that small business and it’s going well and you think the time is right to take it a step further by maybe franchising it? You’ve made some enquiries and find out that, according to the Regulations of the Consumer Protection Act’s reference to franchise companies, you will need to have a franchise agreement, operations/procedures manual and disclosure document in place before you start franchising. But all this costs a lot of money if you use bona-fide lawyers and accredited franchise consultants and you’re tempted into cutting corners by using …

B.rain gives key factors for success that all franchisees should know and implement, in order to build and grow a compliant and profitable business. Franchises are often (mistakenly) perceived as companies that are well-established and would offer support for entrepreneurs who wish to start their own business, but are wary because of their own inexperience. While good franchisors may offer mentoring and training sessions on the brand and systems a franchise does not teach franchisees how to run a business. Without some basic business skills, novice business owners are bound to struggle. Investing in getting a formal education to understand …

Selling any business successfully takes preparation and knowledge in order to get the best result in the shortest time. Every business is different and therefore, deserves a different level of attention. There are several key issues that need to be considered not only to ensure a good sale but also a smooth transition for the new owner.  FASA member B.Rain gives their top tips to selling a business. Jackie SteinschadenWith an MBA degree and BCom Hons Management Accounting behind her, Jacqueline Steinschaden is an experienced Operations and Financial Manager in the food production and retail industries. She joined the team at …

We asked Vera Valasis, FASA’s Executive Director to give some tips to aspiring franchisors/franchisees – and this is what she advises… Potential franchisors Not every single business concept or idea is franchisable. Don’t franchise your business unless you have a good financial track record of the performance of the business in a number of different locations and markets i.e. locations in a high street, a shopping mall, in a city and rural applications. Test the business with a few franchisees in the early stages that are willing to be ‘test sites’ in order to hone and fine-tune every aspect of …

For those that attended the IFE Franchise & Entrepreneurs Expo in Durban this past weekend, being able to talk on a one-to-one basis with franchise personnel from the range of franchise businesses on offer was invaluable as a big part of the success of franchising is in the win-win business partnership between the franchisor and its franchisees. FASA, whose mandate in presenting franchise expos is to educate the public on this business format, cannot emphasise enough the importance of understanding exactly what franchising is and how it operates. FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising …

As leading franchise consultants, we have identified 13 lessons learnt from the franchise industry and current economic environment we find ourselves in. 1.Franchisees: Struggling in current economic environment In the current economy franchisors are experiencing an increase in franchisees who are struggling to make a profit. The marginal franchisees have actually gone into a loss-making situation.  Franchisors need to assess whether their business model and support structure is adequate to ensure that franchisees have the best chance of making a success of their business. Franchisors should implement an “intensive care program” for struggling and loss-making franchisees. Franchisors should never allow …

Your Business magazine and its digital issue at www.bizmag.co.za –  the go-to site for all things franchising – asked David Botha, Marketing & Sales Director of Retsol which owns the Corner Bakery brand for his top tips when looking to buy a franchise. cornerbakeryMarketing & Sales Director of Retsol owns the Corner Bakery www.cornerbakery.co.za …

Whether you run a business and employ staff or even use the services of a domestic worker or gardener, you need to adhere to the provisions of the National Minimum Wage Act (NMWA) which came into effect on 1 January 2019. Every worker is entitled to payment of a wage not less than the national minimum wage and employers will be obligated to pay workers this wage, which cannot be waived and overrides contrary provision in a contract, collective agreement, sectoral determination or law. Werksmans Attorneysby Jacques van Wyk, Director and labour law specialist at Werksmans Attorneys www.werksmans.com …

Very few industries are immune to the ups and downs of annual fluctuations, and most entrepreneurs have experienced the dread of a silent telephone or empty inbox as the lean season kicks in. As a natural part of business, it is not so much seasonality itself that is the problem, says Arnold February, area manager at Business Partners Limited, but the uncertainty that goes with it.   9 tips for entrepreneurs to come to grips with the seasonality of their business: FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in South Africa with …

In an economic environment where money is tight for consumers, retailers will have to go the extra mile to make sure they have a successful festive trading season. Every sale made will have to be hard fought and should include the following: 1.  Educate your staff If you want to get those sales, your staff have to be at the top of their game and it is up to you, the owner to make sure they are well-trained, fully briefed on the product range and above all are motivated to make those sales. Incentivize them with rewards for achieving record …

As we approach the festive season, the incidences of crime escalates and shoppers need to be aware of their safety – both physically and on-line. Penny Futter, Chief Information Officer at African Bank offers some helpful tips to making sure you are not a victim of phishing. She explains that phishing is when criminals use a form of electronic communication to try and extract sensitive information like usernames, passwords and credit card details. It is fast becoming one of the leading contributors of fraud. FASA Franchise Association South AfricaTo protect, lobby, promote and develop ethical franchising across all sectors in …

There is no reason why young entrepreneurs should feel discouraged from starting their own businesses. By following the five basic rules of entrepreneurship, they can make their journey to business success significantly less challenging.  This is according to Ben Bierman, a managing director at Business Partners Limited and a FASA member. “While it may be true that young entrepreneurs face many challenges – from financial limitations, to simply not being taken seriously by potential vendors, clients and funders who may not appreciate the value of young entrepreneurs – it is important to emphasise that entrepreneurs are self-reliant by definition. It means that even …