Do you want to start a business of your own?
Do you dream of leaving your day job and starting your own business?
Do you want to earn money even if you are at home taking care of your kids?
Do you wish to achieve financial freedom and independence?
Let’s face it. We all want money minus the hassle of going to the office everyday. We want to earn and save money for our children’s future without sacrificing our quality time with them. We can only do this if we develop the mindset of an entrepreneur.
Franchising/Food Cart Business
Let’s talk business. When we talk of business the first thing that probably comes to mind is franchising or a food cart business. Many Filipinos are into food cart business. A franchised food cart business has several advantages. It has small capitalization and easy to establish. Everything is there already - the name, the product, the strategy. It is a very simple business to establish.
Downsides to Franchising/Food Cart Business
There are several disadvantages to putting up a food cart business. The first is that the franchising business should comply with all the labor, tax registration and other commercial requirements under the law.
The second is management problem. When you enter into a franchising agreement to get a food cart you either manage it yourself or you hire people to manage this business. When you manage this business on your own you have to stay inside the mall where the food cart business is located. You need to prepare everything and ensure availability of supplies which could be very difficult if you do it alone. Unless you hire employees you will be trapped in your own business.
Even if you hire employees to help, you need to make sure that they are reliable and trustworthy. You need to make sure that everything is accounted for at the end of the day. I have seen several food cart businesses get mismanaged because of employees who steal money from their employers.
The third problem is income. Since you can only charge so much for the cost of your product, you income is very limited as well. In general, foot cart business owners earn an average income of P500 to P1000 a day.
The fourth problem is that you have to be on the lookout for new trends in the industry and new competitors. Some businesses are very seasonal and some are just fads. You need to make sure that your business has legs so you will continue to earn even after the craze or fad is gone.
Lastly, before you enter in a franchising agreement you need to conduct due diligence and find out whom you are dealing with.
We are not against franchising or the food cart business. We acknowledge that this is the fastest growing business in the Philippines. However, the reality is that the returns on your investment is not substantial. Sometimes the income may not suffice for the effort you will be need to exert to maintain the food cart business. Needless to state, this is not the kind of business you may want if you want to gain financial freedom and complete control of your life.
What am I suggesting?
See my next blog post