Mumbai: Reversing the normal practice of industrialists chasing funds, a clutch of investors have come together in Mumbai to catch entrepreneurs with an offer of finance and brand to team with individuals wanting to do any business, be it setting up an eatery or academic institutions.
Under a consortium called ‘Team India Managers Ltd’, the investors seek to capitalize on the purchasing power of the middle-class and global acceptability of franchising.
Promoted by founders of domestic boutique investment bank Keynote Group and ad firm Concept Communications, TIM seeks to harness business opportunities for entrepreneurs and investors by offering the business model of franchisers.
According to TIM managing director Suraj Saraogi, also MD of Keynote Capitals Ltd, the fast-growing retail sector had enough space for new players and they decided to tap this opportunity by offering a “complete business model” to budding businessmen.
The offerings include bringing together the entrepreneur, investor and brand, assisting in setting up the establishment and then running the retail venture.
The model is aimed at fostering the spirit of entrepreneurship in the country and helping overcome the teething problems many new ventures face.
Saraogi said the idea came out when he helped his friend Ravi Gupta set up the MAAC Animation Academy, an institute for teaching graphic and animation technology, where he extended financing and business model assistance and the two opened their first franchise outlet in Indore, Madhya Pradesh.
“Despite limited understanding of the animation technicalities, a big milestone was reached when the venture recovered its starting capital in 18 months,“ Saraogi said.
Subsequently, they opened three more outlets together within a year and today about a dozen operations are running successfully under TIM’s umbrella.
Saraogi said TIM was readily accessible to anybody willing to ask for assistance, unlike venture capitalists or financial institutions where the entrepreneurs have to conform to stringent criteria to obtain consulting services.
Explaining why it is more relevant than venture capital, TIM says it offers not only financial assistance, but also extends its knowledge and understanding of the market to critical capital intensive decisions that affect the business.
Explaining the model, he said that the first step is to look for a reputed franchiser and a passionate entrepreneur, followed by seeking out investors to meet the financial needs.
The sectors that TIM is currently catering to include food, apparel, entertainment, health, medicine, petroleum, malls, retail, training and education and travel and tourism.
“Our business plan demands a pan-India aspiring entrepreneur bank to short-list persons to manage the many franchise options available from franchisers -- already present as well as those planning to commence operations in India,” he said.
Besides, TIM constantly maps the property market as the location is of prime importance for any retail outlet.
“Using continuous research and mapping as a tool to know of any new development in the property market, we are able to help our franchisers acquire the best locations at reasonable rates,” he said.