Recession and franchising
Does the recession aid or harm franchising in the UK?
Perhaps surprisingly recession and franchising seem to compliment each other. Why is this?
When a loyal worker finds themselves in a position of redundancy, after years of highly performing in his or her work, he or she can start to think about taking their working life into their own hands. Some people have dreamed about building their own business for years, but have been to comfortable in work to take the risk. As a direct consequence of the recession franchising is now benefiting from new entrants that have been forced out of the traditional work place.
Is franchising good for the individual and the UK economy?
Firstly there is no such thing as a sure thing in business. However, the British Franchise Association/Nat West survey reveals over 90% of franchise owners/franchisees run profitable businesses. In addition, the last survey reveals that the franchise sector grew five time faster than that of the UK economy.
But is is this franchising business a winner during recession?
As with all areas of the UK economy some business sectors are doing better than others. For the would be business owner, that is considering franchising as their preferred way into business, there are a few considerations that have to be investigated thoroughly before final commitment.
- Identify that your family is behind when buying and building your franchise business.
- Look closely at your living costs. (How much do you need to live on each month and how long can you pay the bills before your new business starts bringing in money?)
- Investigate franchises for sale at www.SelectYourFranchise.com (Use the five minute matching service)
- Select opportunities that meet your interest and are within your capital and lending capabilities.
- Contact the franchise brand owners via the site.
- Read the literature you are forwarded, short list options and set up face to face meetings.
- SPEAK TO FRANCHISEES who operate the franchise in the field and ask them how they trading during recession.
- Decide, from what you discover, which franchise business is best for you and your family.
- Prepare your business plan using the franchise information and researching the local market.
- Approach the bank for business development finance if required (Banks are very favourable towards lending to franchise business due to it success. However you will need to present a well thought out business plan. The plan needs to show that you have given thought to the business sector you will enter. It must document the findings of your local research and demonstrate a clear case for your new franchise venture.
- Take the franchise contract to an accredited British Franchise Association lawyer for advice before signing.
- Once you enter your chosen franchise business system, enthusiastically follow the brand’s proven know-how to achieve best returns for your efforts.
During and after the last recession franchising grew significantly. Most of this growth was as a direct result of the recession and thousands of new franchise businesses where born. Many of these business have matured and have sold. Selling a successful franchise business can provide franchise owners with a positive rout out of recession and finally can lead to a well healed retirement.
Tags: franchising in the uk, recession
Value for money franchise consultants
For business owners in the UK considering how to expand their enterprise, the franchise route to business expansion can make perfect sense. Business format franchising can offer the growing business a proven avenue to expansion via the efforts and capital of third party self employed business owners.
Howarth franchising provides a network of professional British Franchise Association (BFA) accredited consultants that can help you turn your business into a franchise operation. Visit www.Franchise-Consultants.comfor further information.
A BFA accredited franchise consultant gives value for money assistance as he provides invaluable advice on how to set up your business for franchising. The consultant will want to meet with you and help you determine how suitable your business operations are for business format franchising.
A business that is suitable for franchise development will essentially be one that can be documented and replicated successfully by a third party. The business system will need to be documented to create the know-how or intellectual property of the franchise. The franchise will be built on this know-how platform.
Next the consultant will help the new franchior create training and support programmes for their franchisees. These are necessary to successfully transfer the know-how to the self employed franchisees. Legal documents will need to be drawn up, ideally by a BFA accredited franchise consultant. The legal agreement documents what the franchisor has to do for the franchisee and visa versa.
Finally you will need to consider how to recruit franchisees/buyers. www.SelectYourFranchise.com and www.Business-Opportunities.netare leading franchise recruitment websites in the UK and are recommended by Howarth Franchising and other leading UK franchise consultants.
Once trading, the franchise consultant will help you to prepare for BFA accreditation. BFA accreditation is helpful for recruitment of franchisees, networking and access to industry know-how and expert advise. The above process will not be cheap but will prepare you for the journey ahead which will save mcuh time and heartache in the future. For the business owner committed to expansion via franchising to BFA accredited franchise consultant represents excellent value for money.
Tags: Franchise consultants, money, value
Value for money franchise strategies for recessionary times
Smart companies perceive not just threats in a recession but also opportunities. Their goal is to grow so they can emerge stronger from the downturn. It is possible to grow by delivering products and services that enabled hard-hit consumers to do more with the their money.
Value for money has become a strategic imperative for franchise businesses during these recessionary times. Even before the slowdown began, there were signs that it ought to be a major consideration for all companies.
Franchise brand operatives called franchisees are trained to operate the proven business system by the brand owner called the franchisor. The franchisor has proven their system and helps the franchisee replicate it for their own customers. The goal is for all involved to benefit. The beneficiaries of the franchise system are therefore the customer, franchisee and finally the franchisor.
Value for money has more to do with quality of service than low price and discounting. Value for money is mostly about the customer receiving an outstanding service and having their expectations exceeded at an agreed win-win price. This is where UK franchise services focus their efforts.
UK franchise businesses have grown to a turnover of over £13 billion pounds and have exceeded the average United Kingdom’s GDP by over five fold. Over 90% of UK franchisees operate profitable businesses. This has all been achieved by the franchisor perfecting their system and transferring it to the franchisee who then delights their own customers with outstanding service and product provision.
Value for money creates loyalty in recessionary times, it helps to retained customers and gain referred customers. Whether you are a service purchaser or considering becoming self employed yourself, focusing on value for money service strategies for recessionary times via franchise business is well worth exploring.
For more information about franchises for sale in the UK visit www.SelectYourFranchise.com.
Tags: franchise, strategies, Value for money
