In the country, there are franchises of all kinds, from restaurants, gas stations, gyms to courier services. And overall they have a relevant weight in the economy.
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3 min read
This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.
The opinions expressed by the entrepreneur's contributors are their own.
Entrepreneurs are constantly under pressure to come up with unique and innovative products or services, but on many occasions this mentality causes many of them to fail before the first year. However, it is not always necessary to start over to start a business. Franchises, for example, offer the opportunity to own a business on a model that has been publicly proven and recognized for years.
In the country, there are franchises of all kinds, from restaurants, gas stations, gyms to courier services. And overall they have a relevant weight in the economy. According to the Mexican Franchise Association, the 900 existing franchise brands in Mexico account for 4.2% of national GDP. that's 85,000 million pesos a year.
In addition, the franchise sector in Mexico recorded an average annual growth of 8% in 2019, which shows the solvency of this business model in the country. This last piece of information is especially relevant when considering the panorama of entrepreneurship and the life expectancy of businesses in the country.
According to the Center for Developing Business Competitiveness, 75% of Mexican SMEs fail in the first two years of their existence. The most common reasons include the lack of adequate income in the first two years of life, as well as the lack of clear indicators and goals of the company and / or the lack of comprehensive planning.
The franchise business model provides a reliable solution to some of these problems by transferring an operating model that includes planning, execution, and performance evaluation details to products that have previously been tested by thousands of similar companies, i.e. products that have survived. has been a process of "natural selection" of the market for years and even decades, along with brand awareness and a solid advertising strategy.
Franchises offer a sense of trust when a crisis arises / Image: Depositphtos.com
Franchises offer a sense of trust when a crisis arises. During this time when the pandemic put the world on hold and many companies had to turn their attention to the public, franchisees remained resilient and focused on supporting their franchisees and the company. They quickly transformed to meet the new needs of consumers. . Some brands offer this low-investment stability, such as Subway, one of the lowest in the industry, which allows you to customize business even in small spaces or in non-traditional locations.
As the world recovers from the crisis that the coronavirus is leaving behind, franchises can become an ally for those Mexicans looking to get involved in this new context, especially as the business gives them access to brands with market experience and a consolidated one Image enables. recognized by millions of people around the world.