One solution to starting your own business when you have limited skills and capital is to open a franchise. Today, you can become a franchise partner with an investment of IDR 5 million. Even though these are low-cost franchises, the three key ‘Ps’ to success remain: passion, persistence, and profitability.
For those people who have never run a business, it can be difficult to work out where to start; however, franchise partnership opportunities make it easier to start a business in today’s competitive climate. During the pandemic, franchise businesses boomed, especially those in the hospitality industry; however, many franchise partnership opportunities are now available, making it easier to start a business, not only in food but other types of franchises.
The Indonesian Franchise Association has divided the various types of franchises into 12 categories, from travel agencies and real estate to automotive, consulting services to health and hospitality, et al. For those looking for an affordable franchise, you can judge by the capital required for the franchise partnership, with the lowest investment being less than IDR 20 million.
The following are six examples of cheap yet profitable franchises from these categories:
People will always need to eat and drink, with the food and beverage industry being one of the most resilient sectors in business today, managing to survive even though demand occasionally wanes due to fickle customers and reduced purchasing power. For those just starting out in business with limited capital, a food-based franchise is the most viable option and sustainable solution, with innumerable franchise options selling a variety of food, drinks, and services.
The following highlights a few of them:
Fried chicken franchises such as Sabana, D'Besto, and Ayam Goreng Crispy have been quite successful, with dishes such as Ayam Geprek (smashed fried chicken) and crispy duck.
The capital needed for these franchises is around IDR 20 million, with some even being more affordable.
Franchises offering drinks, such as Chatime, Dum Dum Thai Tea, Kopi Janji Jiwa, Teh Poci, King Boba, Sel Sel Tea, Raja Cendol, and Dalgona Coffee typically have a relatively low investment, ranging between IDR 5-10 million.
Indonesians like snacking on snacks such as Martabak (a stuffed pancake), kebabs, and fried tofu.
Affordable snack franchises include Kebab Baba Rafi, which requires around IDR 15 million in capital, or Tahu Jeletot (spicy fried tofu) or Tahu Gila (crazy tofu) with an investment of less than IDR 10 million.
Other cheaper snack options include fried bananas, takoyaki, grilled donuts, grilled sausages, meatball skewers (bakso pentol), crepes, etc.
These businesses typically require less than IDR 10 million in investment.
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Products that are always in demand and needed by many include fuel and bottled water. Popular franchises in this category include:
Pertamini has emerged as a franchise to meet the demand for fuel in remote areas. Galaxy Pertamini is a franchisor for mini gas stations that can be set up along roadsides or at an individual's home.
With a partnership investment of IDR 9 million, franchisees can get a 210-liter fuel drum, a 3.5-meter hose, and a measuring tool.
Air Minum Si Biru. is one distributor of refillable water in Indonesia, and there are no special requirements to become a franchise partner with Si Biru, however, the investment for this franchise is relatively high, reaching hundreds of millions of IDR.
Inviro offers a more affordable option, which provides franchise packages.
Inviro's offerings are divided into four packages:
A more affordable option is also available from Depot Air Minum Bening, with a franchise investment of IDR 10 million.
Indonesia’s demand for courier services dramatically increased during the pandemic, driven by lockdowns and the increase in online shopping. Subsequently, many courier companies opened up franchise opportunities to meet this demand, and choosing a well-known and reliable courier franchise could prove to be a great option.
The following are some of the well-established courier franchises available for investment:
There are several requirements to open a JNE outlet, including a location accessible to four-wheel vehicles, a minimum store size of 12 square meters, a permanent building, and office equipment such as a computer, printer, weighing scale, and an internet connection.
Investing in a JNE branch costs around IDR 7 million.
Opening a TIKI branch requires an investment of around IDR 17.5 million, with their franchise requirements, such as location and office equipment, similar to JNE.
TIKI has performance targets that are evaluated every six months.
Opening a Ninja Express branch is around IDR 15 million.
Ninja Express offers two partnership options: part-time and full-time. For full-time partners, the location must be in a larger commercial building. Other courier services that could also be considered include JET Express, with agent packages starting at IDR 5 million, as well as Antareja, Sicepat, and Wahana.
The investment for becoming a Wahana agent is around IDR 23 million.
To join the Lion Parcel franchise, the required fee is IDR 2.5 million, with a top-up balance requirement of IDR 50 million.
Franchises that offer services are businesses such as laundromats and salons; however, other services, such as pharmacies, tend to require higher capital investment.
Below are some franchises that offer various services, such as laundry, IT, and beauty:
Starting a laundry business usually requires a larger initial investment because you'll need to purchase equipment such as washing machines or dryers.
Typically, the startup capital ranges from IDR 5 million to IDR 15 million; however, laundry businesses generally have a quick return on investment.
Some laundry franchises include:
The franchise package for opening a Clothes Laundry or Bamboo Laundry starts from IDR 14.5 million.
This franchise specializes in shoe care services, including cleaning and restoring leather shoes and suede, as well as bags.
They offer partnerships starting from IDR 35 million.
Laundry franchises like Simply Fresh offer cooperation starting from IDR 35 million and above. Other well-known laundry franchises include LaundryKlin, Superwash, Melia Laundry, Clean Lite, and Dressed Laundry.
Franchises that offer salon services, such as beauty salons, are also available. Opening a salon is not particularly cheap, but ultimately, it depends on the founder's passion and vision for the business.
Some well-known salon franchises include:
My Salon offers a franchise partnership with a capital investment of IDR 77 million, or Beauty Jet Life Salon.
This unique franchise offers a nail art service, where customers can have designs printed on their nails. It is a flexible business model that can be operated in places like malls or even taken directly to customers. You can also collaborate with wedding organizers to set up a booth at wedding events.
With an investment of IDR 15 million, you can start this one-of-a-kind business.
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The need for information has created opportunities for entrepreneurs in information technology (IT) to start businesses, offering website development services. Another technology in high demand is printing.
One of the IT-related franchises is Multilink.
Multilink Indonesia operates in the IT sector, focusing on website development, software creation, online promotions, and more. Its benefits include a large base of loyal customers, national and global business partners, and stronger negotiating power due to its brand recognition.
The partnership requires an investment of IDR 18 million.
Snappy is one of the early players in the printing franchise industry in Indonesia. However, to collaborate with Snappy, a relatively high investment is required—about IDR 150 million for a 5-year agreement.
Today, the demand for digital printing is quite large, especially for printing machines, which typically cost around IDR 30 million. The printing business depends on the type of printing services and materials involved.
More affordable printing franchise packages, such as those for brochure printing, are available from companies like Brosur Murah, with a franchise investment of IDR 25 million.
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One of the growing sectors in the automotive industry is premium vehicle care services, including washing, detailing, and coating services for motorcycles. One company offering a motorcycle care franchise is PT Scuto Indonesia.
SCUTO, as the largest Nano Ceramic service company in Indonesia, has expanded its business line to include SCT Motodetailing, focusing on cleaning and applying nano ceramic coatings for motorcycles. The franchise investment for this service is IDR 10 million.
To help manage any business, you can use Youtap’s Business App, which is available for download on both the Google PlayStore and AppStore.
Fintech Youtap offers features like cashless payments with QRIS, making transactions easier and recording data automatically. Sales data can also be analyzed to determine the next marketing campaign and sales strategy.
So, take advantage of Youtap products and use Youtap to streamline your payments and help your business grow.
These are 6 types of affordable and profitable franchises. Are you interested in giving it a try? Hopefully, this information will be useful in starting your business and achieving profits soon! Let's start a business now!
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