Festive franchising - 12 days of Christmas...
As Christmas approaches and the year draws to a close, it’s both a time for reflection and looking to the future. If...
The franchise industry is one of the fastest growing in the UK, and with good reason. There are many significant advantages to this increasingly popular business model, especially when compared to starting a business from scratch. While franchise opportunities can offer reduced risk, faster growth and increased profitability, they are certainly not for everyone. In this blog, we’re going to be discussing the basics of franchising in order to help you to decide if it’s right for you.
Franchising is a model that allows investors to open and operate their own business using an established name and brand, and to offer that organisation’s products and services within a given market. As a franchisee, you’ll be a self-employed business owner, but will need to adhere to the franchise guidelines and maintain certain standards. In exchange for an initial investment, you’ll be granted a license to trade under the established name and then given access to all the systems, training and marketing resources you’ll need to make the business a success.
While many people still associate the word ‘franchise’ with big brand food chains and coffee houses, the franchise model has become increasingly prevalent in the UK in recent years, and today spans an amazingly diverse range of industries. With options from accountancy and finance to travel and leisure, you’ll be sure to find an opportunity that suits you perfectly. If you’re passionate about helping people, you could invest in a care or children’s franchise. If you’re an animal lover, a pet franchise might be the perfect fit. Whatever your interest or experience, we’re confident you’ll find something that reflects them here at Start Your New Franchsie.
Once you’ve decided on a particular industry, you need to make sure that you research the specific franchise thoroughly before taking things any further. If it’s not a big brand name, be sure to find out how long they’ve been franchising and what type of success they’ve had thus far. Their finances will be a matter of public record so you can review these and perhaps even have an accountant look over them and offer some insight.
Given the amount of time and money you’ll likely be investing in your new venture, you’ll also want to make sure that you know exactly how much training and support will be provided by the franchisor. Take the time to review their brand guidelines and restrictions in detail as well so that you don’t discover too late that your own ideas for the business aren’t actually feasible.
We’ve already highlighted that franchising involves an initial investment, but what are the typical costs? In reality, there’s no such thing when it comes to franchise opportunities, and the level of investment required can range from as little as £5,000, to several million depending on the business. Generally speaking, the level of investment will be proportionate to the inherent value of the brand name and its associated products and systems.
Given that the majority of businesses fail due to insufficient capital, you need to be sure you have the necessary funds for both the initial investment and to maintain the business over time until it becomes profitable. While franchisors will be able to give a good indication of what those costs will be, much depends on individual circumstances, and it’s always advisable to have more capital than you think you’ll need.
Now you have a better idea of what franchising actually is and how you can evaluate a specific opportunity, it’s time to ask yourself if it’s actually right for you. While you don’t necessarily need to have any experience or qualifications to get started, there are certain qualities that you’ll need to make a franchised business successful in any industry. First of all, and perhaps most fundamentally, you need to be a people person. Building and maintain successful relationships with customers, staff and of course the franchisor is essential.
While you need to be a strong leader in order to motivate and inspire the people around you, you also need to be someone who is comfortable following set procedures and establish guidelines. Though you’ll have full support from the franchisor, you will still need to be determined, hard-working and tenacious in order to succeed.
So if you’re satisfied that you’ve got what it takes and are thinking about opening your own franchised business, take a look at some of the fantastic opportunities that we have to offer.