10 Reasons To Take On A Franchise
Lots of Service-leavers toy with the idea of starting their own business. Franchising is a great way to become your own boss and maximise your chances of commercial success.
Here are 10 reasons why you should consider franchising:
It’s a great
idea Franchising is widely regarded as a smart way to set up in business. The franchisor allows a franchisee to run a small part of the already established business as their own, enabling them to ‘hit the ground running’ rather than having to work up their own reputation which takes time.
You’d be good at it
Franchisors are always enthusiastic about Service-leavers. They recognise the transferable skills and attributes that they could bring to the business such as initiative and discipline.
Franchisors understand Service-leavers
Just as in the Armed Forces, franchising has mission components and procedures. You’ve already got lots of experience in following directions towards successful outcomes and you’ll ﬁnd that franchising is similarly formulaic. The franchisor already has an effective business model and will show you the secret of their success.
You can choose from loads of options
Franchising overlaps with pretty much every sector you can imagine. It’s an opportunity to look at building on your existing skills or passions or to try something different entirely. It’s also scalable starting with options at a few thousand pounds up to larger opportunities requiring investment of tens of thousands.
Funding is straightforward
Banks like to lend to people/businesses that they feel are ‘safe’. You’ve got a lot going for you. While they’ll probably require you to put down some money straight away towards the initial franchise fee (as a sort of deposit) they’ll be reassured that the ‘brand’ can weather the economic climate.
You’re not starting from scratch
Businesses are at their weakest in their earliest days. There are lots of early outgoings and without plenty of business coming in, cash ﬂ ow can become a problem. Because the brand is already established customers will know exactly what to expect of you from day one.
Your franchisor wants you to succeed
If you’re a Service-leaver emerging after years of Service you might be concerned that you don’t know enough about business to make a go of it. This isn’t a problem since it’s all about the formula and in any case the franchisor will give you all the support you need since it’s in their best interest for your franchise to thrive because they’ll take an ongoing proﬁ t share (and a failed premises does the brand no favours at all).
How powerful is a brand? Well, if you know what a ‘Hoover’ is or a pint of ‘Magners’ is, you should take heart. Hoover make vacuum cleaners and Magners brew cider. These are examples of brands that have become household words.
Advice is available
Franchising is not a ‘get rich quick scheme’ and honestly, some franchise models are better than others. A good starting point for ﬁ nding out more about franchising and making the right choices is the British Franchise Association. Visit: www.thebfa.org
Better chance of success
There are plenty of reports and articles online that will anecdotally tell you that franchising is roughly three to ﬁ ve times more likely to succeed than starting a business from scratch – although many are by people involved in selling franchises and don’t fully describe what exactly ‘success’ looks like. The bottom line is likely to be a combination of your input, the quality of the franchise model you select and how well you’re able to follow the speciﬁc business formula. The bottom line is likely to be a combination of your input, the quality of the franchise model you select and how well you’re able to follow the speciﬁ c business formula.