Start Small, Finish Big

Suffering from start-up jitters? CINDY TONG discovers how proven franchises offer newbie bosses a guide into the big league.


One way of starting your own business without the hassle of planning and organising everything lies in getting a franchise from an established and reliable name.

Because the franchisor has developed a proven way of running and managing the business, you, as a franchisee can duplicate this system in your operations.

Take your pick from a wide variety of established businesses that are offering franchises in Singapore. Some examples include Sins Choc Shoppe, Bee Cheng Hiang and O'Briens Irish Sandwich Bar.

Said Mr Daniel Wong, general manager of Bee Cheng Hiang: "We manage everything right down to the decoration of the shop interior. We have good business systems in place, and our franchisee only needs to concentrate on selling the product."

O'Briens even goes as far as to help its franchisees find suitable locations for their new shops. Most franchisors will put their franchisees in touch with suppliers, and settle the nitty-gritty of equipping your shop.

In return, the franchisee is required to pay the franchisor an initial fee. This is an upfront payment that the franchisee must make to the franchisor to obtain the rights to the business format and trademark for a specified period.

In addition, the franchisee must also make monthly payments to the franchisor. These payments are usually based on a percentage of the gross monthly sales the franchise makes.

While these fees can sometimes seem exorbitant, this is hardly money gone to waste. After all, your business as a franchise will hinge upon the success of reputable name. And when discerning consumers make choices, a familiar name is always the safer bet.

Successful franchisees are also given training by their franchisors. "You'll learn how to run a business and how to treat your staff, and in our case, how to be a bit Irish," said Mr Hoves-Cock, O'Brien's managing director for Asia.

When your store is finally up and running, your relationship with the franchisor continues.

At O'Briens, stores are subject to routine spot checks to ensure franchisees keep their shops in tip-top condition. Franchisees are even awarded points based on store hygiene and cleanliness.

At Bee Cheng Hiang, the company takes pains to interview potential franchisees. Said Mr Wong: "This takes time and effort. Even though we do take care of most aspects of the business, a lot of commitment will be required from the franchisee."

Mrs Susie Valsalan, 35, who owns an O'Briens store said franchisees have to do their own homework to succed.

"You have to study the market and find out what the latest trends are." Mrs Valsalan had spent 11 years in a Norwegian firm working in its human resource department. She decided to run her own store because she felt the flexible working hours would give her more time to spend with her children.

Said Mr Jeffrey Lo, a former banker who now runs the O'Briens outlet at Citylink Mall: "My life as a banker was just so routine. This gives me the satisfaction from running my own business and didn't want to work for others anymore. Today, I measure my own success from seeing how much I progress every day."

This article appeared in Straits Times Recruit on 29th September 2001.