What Franchisors Don’t Want to Hear: Developing a Proof of Concept

Irwin See
Jun 14, 2024
3 min read

If you're running a small or medium-sized business in Southeast Asia and thinking about franchising, let's chat about something super important: building a proof of concept (POC) first. Trust me, it's a game-changer and will save you a ton of headaches down the road.

Why Bother with a Proof of Concept?

Think of a POC as a trial run for your business model. It's like test-driving a car before buying it. You want to make sure everything works smoothly and that people will actually buy what you're selling. Here’s why it’s essential:

1. Validate Your Business Model

You know your business idea is awesome, but does it work in the real world? A POC helps you find out. It’s your chance to test your products, services, and operations in a real market setting. You’ll learn what works, what doesn’t, and what needs tweaking. Better to figure this out now than after you’ve started franchising.

2. Minimize Risks

Franchising comes with risks. You’re essentially betting that your business can be replicated by others. A successful POC reduces these risks because you’ve already proven that your business model works. It’s like having a safety net that reassures both you and potential franchisees.

3. Smooth Out Operations

Running a POC gives you a chance to perfect your processes. You’ll develop standard operating procedures, training programs, and manuals that franchisees can follow. This ensures consistency across all locations, which is key to maintaining your brand’s reputation.

4. Attract Franchisees

When you can show that your business model is tried and tested, you’re more likely to attract franchisees. They’ll have more confidence in investing in your brand because they can see it works. A POC is like your business’s resume, proving you’ve got what it takes.

Steps to Building a Great Proof of Concept

So, how do you go about creating a POC? Here’s a roadmap to guide you:

1. Pinpoint Your Core Elements

Start by identifying the key parts of your business that you need to test. This includes your product or service, target market, pricing strategy, and operations. Be clear about what you want to prove.

2. Pick the Right Spot

Choose a location that represents your target market. This should be a place where you think your business has the best chance to thrive. Consider local demographics, market demand, and competition.

3. Make a Plan

Outline a detailed plan for your POC. What are your goals? What metrics will you use to measure success? How long will the test run? This plan is your roadmap, so make sure it’s thorough.

4. Execute and Observe

Launch your business in the chosen location and keep a close eye on everything. Track sales, customer feedback, and operational efficiency. This is where you gather the data you need.

5. Analyze and Adjust

Once you’ve collected enough data, take a step back and analyze it. What worked? What didn’t? Use these insights to refine your business model. Don’t be afraid to make changes – this is all part of the process.

6. Gear Up for Franchising

With a successful POC under your belt, start preparing for franchising. Create franchise agreements, marketing materials, and support systems for your future franchisees. Make sure everything is documented and easy to follow.

Building a proof of concept might sound like extra work, but it’s a crucial step for any SME in Southeast Asia looking to franchise. It validates your business model, minimizes risks, fine-tunes your operations, and attracts franchisees. Think of it as laying a solid foundation for your franchising journey.

So, take the time to get it right. Your future self – and your future franchisees – will thank you. Happy franchising!

ABOUT US

Curt & Co Pte Ltd is a consulting company started amongst a group of business owners who were looking for a consulting company themselves for advice !

Our offices and our focus markets are in Philippines, Indonesia, Singapore, Vietnam and Malaysia. With clients ranging from 1 man operating SMEs to listed companies, we are proud to have helped our clients across different industries gain market entry into the South East Asian region.