Franchise Business Guide

BEP stands for Break Even Point, which is the point at which total production costs equal total sales revenue. BEP is also known as the break-even point. Every business owner desires to achieve profits quickly. This is, after all, the ultimate goal of business/entrepreneurship. Therefore, one of the questions prospective franchisees often ask about before purchasing a franchise is how long it will take for the business to reach BEP. This is a reasonable question, as every entrepreneur shares the same motivation: profit. Franchisees should, as far as possible, determine when they will reach BEP.

All businesses and franchise outlets have the potential to reach BEP quickly.

There are two stages to consider

Steps to Consider for Starting a Franchise Business
The first stage is when you choose a franchise. This stage is crucial. If you make a mistake, your dreams of achieving significant profits could be dashed. To avoid making mistakes in this initial stage, the following must be done:

Observe the feasibility of the business you’re choosing. Determine whether it will continue to grow. In this regard, we must carefully examine the business model or parent company. Furthermore, we must also understand the franchisor’s Break-Even Point (BEP) origin. The franchisor’s BEP must be derived from product performance, not from franchise sales. If the franchisor’s BEP is derived from franchise sales, that doesn’t necessarily indicate a promising business.
You must observe the franchisor’s outlets on a daily basis. This is useful for observing how they—the franchisor—sell their products and also for measuring their sales. Don’t just look at product sales performance on paper. Also, pay attention to the business or product trends over the past three years.
Observe the marketing system. A good and proven franchise business has a strong and busy growth trajectory when it starts. It’s stable because the business already has a robust system in place to immediately impact the market upon opening.
The second stage is after you’ve purchased the franchise. At this stage, we have become a franchise, so we must strive to achieve a quick BEP. So, the focus is how to achieve a quick BEP?

To achieve a quick BEP, there are several methods recommended by Mr. Tung Desem Waringin, a marketing expert in Indonesia.

First, a marketing revolution. This first step aims to ensure that the franchise business we are pursuing is in high demand by customers. In carrying out a marketing revolution, business owners must focus on three things, simplified into USPs:

Unlimited advantages (added value), which can include low prices, free parking, and other things that can pique consumer curiosity.

Sensational offers, which are more tempting offers to encourage consumers to make a purchase. Examples of sensational offers include gifts, discounts, or limits.

Powerful promises, for this method, we can do four things. First, provide an extraordinary guarantee. Second, provide an offer that consumers can’t refuse. Third, copywriting that resonates with the target market. Fourth, employ 12 highly effective market-focused strategies: press releases, publicity, references, endorsements, and barter advertising, direct sales, direct agents, direct mail, house beneficiaries, telemarketing, joint ventures, canvassing (exhibitions), and seminars.

Essentially, accelerating BEP is not difficult. Business owners must possess sales skills that adhere to the marketing revolution concept. The key lies in marketing, control, and human resources. These three elements work together. Human resources can be measured by their productivity, which is directly related to revenue. This can be applied to any business category without exception. However, if the product is not supported, the marketing system is not effective, and the sales force lacks passion, it will be an obstacle to achieving BEP quickly.ukung, sistem marketing tidak jalan dan salesnya tidak punya passion, akan menjadi kendala meraih BEP cepat.

  waralaba