Three key reasons to choose a franchise in 2019
Wednesday 21st November 2018
As the year draws to a close, many people focus on what the new year will hold for them. For some, it’s the beginning of a new chapter as they decide it’s time to become their own boss.
There are many reasons why people choose to go into business on their own, from the desire to pursue a passion, to wanting to provide a more rewarding future for themselves and their family.
With a franchise business offering increased prospects of business success compared to going it alone, more and more people are choosing franchising as a route to business ownership.
Enterprising individuals that come from all sorts of work backgrounds and have a wide range of aspirations will explore the lucrative world of franchising when they attend one of The Franchise Exhibitions in 2019.
Being able to meet with established franchise brands and gain specialist advice at these events is crucial to understanding why a franchise could the right career choice for you.
Here are three of the key reasons you should consider a franchise:
1. Blueprint for success
A franchise is a ‘business in a box’. The business model, product line, backend systems and sales and marketing strategies have all been established, proven and fine-tuned.
Time and effort has been put into placing the brand in the public’s consciousness, familiarity and trust has already been built. Consumers and clients and already pre-disposed to engaging with the company and, crucially, buying from them.
These milestones can take years to achieve for a brand new, stand alone business, but investment in a franchise short-cuts all these challenges. A franchise allows entrepreneurs to launch a business far more quickly than if they set out alone, and provides solid foundations to get them operational and earning an income from the outset
2. In business for yourself but not by yourself
Most people considering setting up their own business have come from, or are still in, an environment of employment. As an employee, even in a senior management or leadership role, you’ve been part of an organisation and a team where training and general support have been available.
Going it alone in business and having to wear all the hats demanded by an operational venture can be daunting - if not impossible. Franchisees, on the other
hand, benefit from initial training, ongoing support from the franchisor and a network of other franchisees who can offer guidance and moral support.
There is still someone to pick up the phone to, whether it’s head office or a peer running the same kind of business as you. This provides important reassurance, especially in the early months of operation.
It’s important to remember that even with all this support and a plan for success that a franchise provides, you are still in business for yourself. You are captain of your own ship that’s dictating your schedule and influencing how and when things get done.
You are building a business for yourself that you can grow to fulfil your own ambitions, and a business you can sell at the end of the term of your franchise license.
3. It’s easier to raise finance for investment in a franchise
It’s rare that a person will have all the capital needed to plan, launch and operate a business in the first year.
Due to the increased chances of a franchise still being in operation after five years compared to an independent venture, banks are better disposed towards lending to them.
High street names, including HSBC and NatWest, have teams dedicated to franchising and there are further sources of finance available from specialist funds. Banks will typically loan 50% of the investment amount needed and up to 70% for established franchises.
Rob Orme, Franchise Relationship Manager at Franchise Finance, who works with more than 150 franchisors and their franchisees in the UK, comments:
“Those new to franchising might not realise the financial options available to start and grow a franchise. Lenders love franchising because proven business concepts provide great confidence and reduce risk!”
Even with such compelling reasons to embark on being your own boss with a franchise, further investigation is essential so that you find the right business for you.
Explore the exciting opportunities on offer by visiting an exhibition – the first of the New Year are:
- The British & International Franchise Exhibition on 1 & 2 February at Olympia, London.
- The National Franchise Exhibition on 15 & 16 February at the NEC, Birmingham.
You’ll find more than 100 brands accredited by the British Franchise Association (bfa), and a plethora of professional advice on all aspects of franchising.
Watch the video below to see how you can take advantage of The Franchise Exhibitions:
The Franchise Exhibitions are held in exclusive partnership with the British Franchise Association (bfa). Find out more and book your free tickets today using promo code FID1 at FranchiseTickets.co.uk