Today's aggressive ecommerce model is often modeled off American values. But don't count Egypt out just yet. With an exploding ecommerce backbone and massive corporations like Jumia Egypt growing like a weed, it's easy to see why global markets are turning their heads towards Cairo, Alexandria and other major Egyptian markets in 2014.
Tody, we take some advice from Jumia CEO Mattia Perroni, the mastermind behind many small and large startups.
The business plan
A perfect business plan can help you to reach your business goals by all means. There is no point of start any business without a perfect business plan. As like many other businesses, you need to develop and come up with a business plan for your franchising business, as well. There can be many different types of business, which comes with franchise option. It is hard to find one universal business plan, which will fit with every franchise businesses. Still, there are some common business issues, which come with equal importance as part of any business plan. You will get details about how to come with the best business plan for your franchise from the following discussion.
Know your purpose
Perroni agrees that without purpose behind your business plan, there is no point of doing business. You also have some purposes with your model of business. It is important to define these purposes clearly before you have engaged with other business issues. A set of clearly defined business purpose will make it easier to get financial assistance from a bank or other places than before. If you are not sure and clear about these purposes of your growing business, then you better take help from business consultant.
Management is the most important part of franchise business plan. You can develop a blueprint of your human resource hierarchy, and make a structural layout from there. Come up with a clearly defined job responsibility and job description in order to avoid any complications or confusion amongst your employees. No matter how big or small your franchise is, it's common practice to do this in order to confirm a smooth continuation of your business. It is recommended that new businesses maintain daily, weekly, and monthly job responsibility checklist for every employee, which can give you the performance measurement of your employee.
Because of aggressive entrepreneurial approach from savvy businesspeople like Perroni, the internet penetration of ecommerce in Egypt today is around 40% and is expected to reach 60% within the next two years. Credit a keen knowledge of marketing to that. Her advice on marketing strategies?
"You need to continue with a strong marketing strategy, even if you have taken ideas from any renowned or world famous brand. Name and logo have an impact on business, but within a certain domain. The market is competitive than ever, and you cannot expect to maximize your business growth without a perfect marketing plan. Infrastructural existence of your business will only let some people about your presence around them. This is not sufficient to reach the marketing goal of your booming business. You must have an idea about the locality where you have planned to start your business and prepare your marketing plan accordingly. Without knowing much about your competitors, you have a high risk to lose any potential market, which you have expected."
Financial planning (including payments)
According to Mattia Perroni, digital payments in Egypt have significantly developed during the last year alone - which is great news for businessmen. In fact, the main Telco operators have been investing on mobile payment solutions such as Mobi Cash (Mobinil). However, the impact of such investments is not visible yet. Mobile payment penetration, although growing at double digit rate, still represents a not significant percentage of the overall transactions. Also, most e-commerce companies are adapting to the cash-on-delivery model, which is still the preferred payment method in Egypt by far.
Maybe you are in a tight business budget, or you have more than enough money for your franchise business. You must have your own plan regarding different financial aspects of your business. You must kick start some mechanisms in order to get balance sheet, cash flow statements, and income statements of your business. Without these calculations, you can never project the future of your business. You must have a sharp eye on the operating cost, maintenance cost, cash in and cash out, which will give you an overall financial picture of your business.