Franchising- Be your own boss
As job security becomes a thing of the past and with the small business failure rate increasing, many people are opting for a business that offers them a proven, profitable platform to launch their business ownership career. In the past few years there has been an upward trend in franchising a business. According to a survey carried out in 2010 by NatWest and the British Franchise Association there were about 37.000 franchisee businesses in the UK. Together they were generating a turnover of GBP 12.4 billion and employing over half a million people. So why is it be a good idea to become a franchisee instead of a small business owner?
1. A proven business model
The franchisor has overcome any teething problems involved with the business model (and he will also be able to forecast profit margins). Therefore any costly mistakes will have already been made. Furthermore it is most likely the franchise has been operational for a number of years.
2. You don’t need experience
Training and support is provided when starting a franchise, which is very important. This is what gives most people the confidence to start a franchise. Also after the launch, ongoing support and training is provided through online support and one to one support.
3. Limiting risks
You tap into an existing business with a proven record of success. During the recession franchise businesses are more likely to thrive than an non-franchise business
4. Brand power
Why reinvent the wheel if you feel inspired by someone else’s business and brand? By using the same brand power you are centralising core activities such as marketing, accounting and reporting and you of course will benefit from cost efficiencies.
5. Increasing demand for part-time work
There is an upward trend in female franchise owners especially in franchises which can be run from home and done in your ‘own time’. 11% of UK franchise business owners are women.
6. Success can be guaranteed
In franchising the success of both the franchisee and franchisor is truly dependent on the success of each other. Through consistent training and coaching of the franchisees, they will strive to improve and increase the company’s value.
7. Easier access to finance
Banks and other lending institutions have long been in favour of putting up funding for franchise businesses over independent business owners. This is due to the former’s track record for success.
Although the above reasons for starting a franchise sound good, you should check that your franchisor is honest and has a good information management system in place. Also the franchise should show above average profit. Regular conferences should be held to keep you up to date with new trends and developments in the business.
Full of new ideas and wanting to find out more regarding franchising? Attend the franchise show 2012 at Earl’sCourt on 7th and 8th of September.www.thefranchiseshow.co.uk