Franchising could offer an answer to Job Insecurity
Nick Strong, MD - Select Your Franchise
In a recent report, many Brits are still concerned for their personal finances and job security.
“As many as 47 per cent of households in August expected their personal finances to worsen in the next 12 months, almost twice as many as the 25 per cent who forecast an improvement, according to the Markit/YouGov Household Finance Index”, reports FT.com
It’s clear that for many in the UK, and especially in the public sector, individuals are concerned that their jobs may not carry the level of security they have previously enjoyed. Of course, thoughts of being forced into taking a pay cut or losing a job will have a negative impact on their pocket which further compounds the above figures.
Despite the doom and gloom, there are breaks in what might seem like a rather murky cloud. Franchising continues to be a great way to get back on your feet when considering a self-employed business option. With around 90% of franchisees reporting they are trading profitably*, its no surprise that franchising is growing from strength to strength.
Just a few advantages of taking on a franchise are the chance to get back into business using a proven system, backup and support of the franchisor and brand recognition with potential customers.
If you are struggling with the doom and gloom of job insecurity, maybe its time you took a look at the franchise industry!
*Figures from 2010 NatWest/BFA Annual Franchise Survey
Franchising: a Good Choice for Business Growth
Joel Caws - Technical Director, Select Your Franchise
Franchising is still the main choice for restaurant chains when considering growth. In a news article from QSR Magazine, Technomic reports:
“A focus on growing the franchise system allows franchisors to spend less on restaurant-level operations and redirect capital toward systemwide marketing and brand initiatives”
Their findings included a 1.6 percent nominal growth across the top 400 restaurant franchisors for 2009, which considering the state of the economy at that time, speaks for itself.
It’s clear the franchise model works well when it comes to companies who are focused on growing their business outside the scope of company owned stores or outlets. Once a new franchise outlet is up and running, it effectively becomes a self-sustaining unit in terms of its own administration and management, leaving the franchisor free to focus its resources on repeating the growth cycle. Of course, restaurants lend themselves well to franchising due to their focus on repetitive systems which avoid the need for highly qualified staff. Anyone with a willingness and dedication to learn the system could in theory start up and run a successful franchise outlet.
And its not just restaurants that can take advantage of the franchise model but any other industry where the core business tasks and procedures can be identified, documented and carried out by another just by following the formula.
5 Good Reasons to Select a Franchise
Joel Caws - Technical Director, Select Your Franchise
Choosing a franchise to start up in business can be a great route to a successful business. Like everything, there are always two sides to an argument, but in this article I will look at 5 key benefits that a franchise can offer over and above a non-franchised business opportunity.
1. The Franchise Formula
The heart of any franchise business is its formula. This is primarily made up of the processes and procedures that make the business work and that make it successful. These form a core part of the franchise manual which should be provided to new franchisees as their business ‘bible’ to read and follow in order to replicate the success of the original franchise pilot businesses.
2. Proven Track Record
The good thing about a franchise is that you can often talk to other aspiring business people, just like yourself, who are already running the franchise you are considering as a business. The franchisor will usually be able to provide a list of franchisees that they are happy for you to contact which can act as references for the franchise. It can give you extra peace of mind to meet and speak to people who have already travelled the road you are on and have already taken on and are running the franchise.
3. Training & Support
Unlike starting up business for yourself, franchise opportunities are usually provided with a level of training and on going support. This is to enable you to run the business effectively and successfully by understanding the franchise formula and how to apply it to the day to day business activities.
4. Financing
The majority of the high street banks have franchise sections that specialise in funding franchise business start-ups. You will still need to prepare your business plan but having the weight of a franchise system behind you can give the bank some extra assurance that you are working with an already established and proven business concept.
5. Franchise Association Support
There is plenty of help and support offered to those considering franchising as a route to starting a business. In the UK, the British Franchise Association is an organisation of which many franchise businesses are members. The Association exists to promote ethical franchising in the UK and it can therefore give some extra peace of mind if the franchise system you select is a member. Additionally, the BFA can be a resource for any other help you might need such as pointing you in the right direction for franchise professional guidance for example legal and financal issues. Other countries have similar franchise organisations in place to hope promote franchising in their respective countries.
Finally, its worth bearing in mind that, a franchise is a business like any other. A willingness to work hard, be determined and dedicated to the franchise system, are all essential to give you the best possible chance of success. A franchise in itself is no guarantee of success, but it does give you the chance to get out of the starting blocks running.
Tags: franchise, franchise business, franchise opportunities, franchises in the uk, joel caws, uk franchises
