Franchising Advantages: 3 Pro's of Buying a Franchise in 2017Posted on: Friday, 29 September 2017 11:07 am
The Franchise market within the UK economy is bigger than ever, with over 900 individual opportunities available across the country.
Such huge choice presents a high likelihood there’s a franchise that aligns well with your skill set and interests. From private teaching to fast food outlets, gyms to accountants, there are a wealth of opportunities available with varying investments ranging from £5k-£250k.
Read on to find out 3 key advantages going into business with a franchise has over the typical start-up business:
Advantage #1 –
A proven business format
The nature of franchising opens the prospect of a career change into self-employment even if you’re not from an entrepreneurial background, as the franchise model is demonstrably proven to offer a return on investment and viability within the marketplace.
A good Franchise opportunity will most likely require a degree of investment, however the business model will demonstrate the viability of the business within your area based on population, demographics and past results from similar franchise areas and allow you to forecast for future expansion and profitability, allowing you to make a balanced decision on whether the opportunity is right for you.
Economies of scale lend themselves well to franchises, replicating the range of required materials and stock in multiple franchise areas, reducing your on-going expenses compared to the typical start-up.
Finally, if your potential franchise investment has a recognisable image and branding, increasing the likelihood of hitting the ground running with potential enquiries and customers.
Tip: Make sure to capitalise on the potential to generate a buzz that the recognisable brand will soon be available to the people within the town or city you’re going to operate in!
Advantage #2 –
In business for yourself, not by yourself
All of the benefits of being your own boss apply to Franchising. You’re in control of your success, and your determination and acumen will be the key factor to success. The difference you’ll find with a Franchise is the assistance of a support team who have experienced the struggles many small business owners face, and the willingness to work together with a common goal to overcome them.
Aside from the day to day operation of any small business, there is accounting, work procedures, marketing, PR & advertising to contend with. The collective nature of the Franchise model means you’ll find support in these areas to concentrate on what you do best, and reduce the necessity to recruit your own support staff for these purposes by using the main office’s existing work practices and access to national PR and advertising.
Tip: If you’re considering a Franchise as your first business, it’s worth knowing that franchises statistically have higher rates of success than start-up businesses. According to a British Franchising Association Study, around 90% of all UK franchisees reported profitability over the previous 12 months.
Advantage #3 –
Accessible franchise funding and finance
You may find accessing funding to purchase and operate your franchise to be more accessible than launching a similar business yourself. The established nature of Franchises means they’re able to confidently forecast future returns and market potential based on real results in other franchisee locations and research, making your business a more viable prospect to lenders as opposed to starting your own business from scratch. They’ll likely have facilities to assist you in producing business plans and demonstrating viability.
Several high street banks employ teams of franchise units with BFA accreditation, and can provide specialist advice and services related to franchising. These include HSBC, NatWest and more. You can find a full list of BFA accredited banks here.
The franchise you’re entering to business will also be able to assist you in producing your business plan and guide you through the financing process.