Are You Interested In Owning A Business Overseas?
I read a statistic the other day about iPhone repair shops. The statistics stated that iPhone repair shops owners can charge about $60 to repair your iPhone (sometimes it can be higher) and if you repair 10 phones a week than you can earn $600. If you think about the math, you can make over $2,400 a month without having to pay storefront fees such as a rental lease, lighting bill, maintenance and so on.
A steady income stream is something that you will need either at home or abroad. The great thing about iPhones, Samsung, LG, phones are their uniformity.
I want to explore a little further into another opportunity for opening a business overseas and that’s owning a franchise. A franchise is defined in the Merriam-Webster dictionary as “The right or license granted to an individual or group to market a company’s goods or services in a particular territory.”
We visit franchise stores all the time because it’s representing a larger well-known brand and that brand has built-in integrity and trust with its consumers. While I will admit this is not a complete list of all of the benefits, features, and drawbacks, for any business decision, best practices should always involve speaking with licensed professionals, that and a whole lot of research.
Listed below are the pros and cons of opening each type of business.
Mobile Phone Repair
- Requires very little startup funding to begin business
- Pay for additional parts for phone repairs $100-500
- Tool repair kit = $50
- Can advertise same day common repairs (replace the screen, battery, camera or charging port)
- Recurring business comes from word of mouth customers
- If you make a mistake customers can lose important data (practice repairs costs money)
- Deal with supplier & shipping companies to purchase quality repair parts
Competition with companies who have been in business longer
Cyber Cafe or PC Bang
- Start off with a smaller number of newer computer units
- Fast internet connection needed (South Korea specific)
- Small staff (tech and business savvy) – *no gamers*
- Be aware of games that gamers want to play (know your audience)
- Mouse & Keyboard requires regular maintenance/upgrades
- Clearing gaming caches
- Fixing compatibility problems (patches) with games after software release date
- Cleaning of desks/chairs around computer station
- Marketing to keep your customers up to date (Facebook, Posters, etc.)
- Brand name and recognition
- Training on how to run a small business
- Assistance with ordering stocks & supplies
- Open 24/7 days a week
- Initial franchise fees vary by location, inventory, and cash register fees. (There’s a financing program that provides financial assistance for qualified applicants)
- 3 to 6 months to open a store (application, credit check, background check, evaluations, training)
Yoga, Dance or Fitness Center
- Teach a class and enjoy a great workout
- Can sale additional products such as bottles of water, workout apparel, and yoga mats
- Charge monthly membership fees and group discounts
- Need to obtain a teaching certificate in Yoga, dance or fitness
- Operating expenses (rental location, electricity, instructors, etc.)
- Familiar with locals hangout, meetups, and social media to advertise effectively
These are only a few businesses that you can own either in the United States or overseas. I’m sure there are a lot more Global Franchises out there (Paris Baguette, Eye Level Learning Center, McDonald’s) that I haven’t listed.
However, with these ideas, I wanted to know how one would go about opening a franchise. To further explore opening a franchise I read the book, “How To Buy A Franchise” by James A. Meaney (Attorney at Law) 202 pp. Sphinx Publishing.
Meaney introduces the reader with a word of caution about falling victim to franchise scams. He recounts a story of a couple who sought to become business owners through purchasing vending machines and was scammed by the vending machine sellers.
Overall, the book is a great how-to guide to understand the initial process of buying a franchise. It provides in-depth chapters on; Disclosure Laws and Statements, Understanding and Negotiating The Franchise Agreement and Investigating Existing Franchises.” It’s definitely worth checking out if you’re considering buying a franchise.
Lastly, I wanted to mention two very useful resources that can assist you with your research in opening a franchise overseas.
International Franchise Association
The association has great resources that include an international toolkit, a listing of international franchising opportunities, and a franchising 101 section to help you get started on your journey to owning your own business.
The event is captioned as “Korea’s Largest International Franchise Show” this annual event aims to provide the latest trends, investors, and networking opportunities for exhibitors and attendees. This event is a great resource for anyone looking to specifically open a franchise in South Korea.
Do you have any other book suggestions you feel will be beneficial to opening a small business? Leave your message in the comments below.
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If you like reading this post please check out my other posts about A List Of Websites Great For Conducting Research and Black Business Owner In Korea Interview