Namibian HansaWorld partner Afresh Consult is introducing an innovative concept to the information technology environment, by establishing a franchise model for its business as it seeks to expand into southern Africa.
The Windhoek-based business is seeking to transcend the limitations of a very small domestic market by applying a concept proven in many other lines of business to extend its reach, drive revenue and create further employment opportunities in the south west African nation.
The company`s managing director Immo B"ohm explains: "The Namibian market is very small; our economy is just 3% of that of South Africa. There are only some 4 000 companies in the country, many of which are local representatives of businesses headquartered in South Africa or elsewhere."
The limitations for a company like Afresh Consult are therefore clear, B"ohm notes. However, he believes his organisation has what it takes to deliver effectively. "Over the last five years, we have won some 60 clients in our country, typically in the retail, distribution and hospitality industries as Namibia does not have a substantial manufacturing sector," he relates.
This success, B"ohm continues, begins with a sound underlying ERP solution. "It`s no coincidence that Enterprise by HansaWorld is the basis of our operation. In completing my MBA thesis some five years ago, using a selected company as a case study, it was clear that the organisation would benefit from a sound ERP solution. In my research, all the big-name ERP vendors were evaluated but came up wanting. It was then that I discovered HansaWorld and found their system that was not only affordable, but delivered far more in terms of functionality."
That MBA project directly led B"ohm to establish Afresh Consult. "What has made success of this business is the wide feature set offered by HansaWorld. With over 50 modules, it equips us as a reseller to deliver solutions to almost any kind of company."
Expanding on how he seeks to apply a franchise model, B"ohm says the notion came about when the company realised that in order to win business from South African headquartered companies doing business in Namibia, it would have to have a presence in its southern neighbour. "We know it is possible to grow our business as we have established the right processes and systems. However, as a small company seeking to grow aggressively, the franchise model is preferred rather than the more traditional approach of establishing our own offices in neighbouring countries."
Franchisees are required to field the right number of appropriately qualified staff while Afresh provides training. "We combine efforts to generate leads, while the Web is extensively used to facilitate collaboration. Afresh is geared to assist in everything from marketing, sales and implementation and support," B"ohm explains.
What is also required is a level of specialist expertise in the existing business of the franchisee, such as vertical market expertise (such as hospitality, retail, manufacturing) or in hardware areas such as point-of-sale, peripherals, networking or biometrics. "Partners are carefully selected to create an extensive network of non-competing skills and ability, which allows the exchange of expertise in support of the delivery of value to customers," B"ohm notes.
In effect, he says, franchisees act as a sales arm for Afresh. "However, since it is the franchisee`s own business, there is a real incentive to grow it without having the requirement for the implementation or support systems and skills. The model offers reduced risk and overhead for the franchisee to get into business, while at the same time reducing risk and cost overhead for Afresh as we seek to grow."
With six franchisees in place, he says the intention is to grow steadily and somewhat cautiously. "It is an unusual mode, definitely. However, we have the support of HansaWorld, and by choosing partners with already established businesses and the credibility of proven expertise, we believe it offers small companies an opportunity to grow while supporting our own growth ambitions."
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