Weathering the Economic Storm with Franchising
Joel Caws - Technical Director, Select Your Franchise
With the Prime Minister warning that the economic storm may not yet be over and with the Budget just a few weeks away its still a difficult time for many. Although reports show that the UK’s emergence from the recession has been a little stronger than previously thought, it might be little comfort for those still struggling to find work or feeling the pinch of wage cuts or unrealised bonuses.
In spite of this, franchising in the UK still appears to be a growth area. Interest in franchising still remains active with new franchise business start ups. Some of this growth could be attributed to the following factors:-
Proven Business Model
Franchise opportunities should be based upon an already proven business model. This makes it an attractive proposition for those interested in start up their own business since they know its been tried and tested.
Franchising has a great track record
Historically, around 90% of UK franchise businesses trading in any given year are profitable according to annual BFA/NatWest National franchise surveys.
Financing
Banks can tend to look favourably on a franchise business start up since it offers more security than a conventional self-employment. This is often down to:
- The fact that a franchise business should be based on an already proven business model (as mentioned above).
- The bank may have prior knowledge of the franchise and have lent already to other franchisees which it can seen have been successful.
It appears we are not out of the woods yet; you only have to read the latest financial and business news to see that. However, there are still ways to ‘weather the storm’ and franchising may well present just such an opportunity for many.
Tags: Economic recovery, franchise business, franchise opportunities, franchising, joel caws, recession
