Starting a Computer Based Franchise Business
Nick Strong, MD - Select Your Franchise
When considering a franchise business involving computers you might first want to consider the broader technology industry to see what type of computer based business best suits you.
You can start your research from a range of computer franchises and look to see which ones appeal to you and think about the current marketplace as to which might be most suitable for you to run. You can also identify any basic personal requirements or skills that might be required, though fortunately most franchises provide a level of training and support so many do not require any specific experience in IT or computing.
Here are a few of the popular areas which you might consider:-
PC Maintenance
Computer maintenance franchises make available computer support services to companies or consumers. PC’s, whether for personal use or business, are prone to breaking down and so a business based on providing repair or technical help and support is always in demand.
Ink Cartridge Recycling
‘Green’ businesses have gained a higher profile in recent years and franchising has a substantial part to play in this market. Legislation imposed by the government can help to cultivate the recycle marketplace as companies become accountable for environmentally friendly policies and obligations. Ink cartridge recycling franchises involve refilling and reselling of old printer ink cartridges which helps to minimise waste so helping the environment aswell as you with a business.
Online Advertising
Online marketing is a real growth area, especially with the demise of traditional hard copy directories. An increasing number of individuals now gravitate to the internet by means of local searches in the major search engines to locate valued local services to purchase. Local online directory franchises provide an advertising platform for local businesses to reach their community and also provide you with a potentially lucrative franchise business.
Numerous computer franchises for sale don’t necessitate technical skill as training is provided as part of the franchise system package. Internet Advertising franchises for example generally require simply that you have plain skills to operate a computer and the world wide web. While ink cartridge and hardware type franchises rely more on sales skills.
After thinking about which computer business opportunity you might be interested in you should take some time to bear in mind the franchise cost and charges. Furthermore, talk to the franchisees and get their opinions on the franchise business and the backing made available by the franchisor. This is valuable as they can usually furnish you with beneficial insight into how the franchise opportunity operates and also performs in support of them on a every day basis.
Next, its about time to set up a meeting with your bank for guidance and also get their opinion about the franchise opportunity you are thinking about investing in. Its also worth contacting the franchise association in your country for added advice.
When everything is decided, sign up, get trained up and dedicate yourself to the brand’s proven system actively for the highest return on your time and outlay.
Why doing your homework is so important when choosing a Franchise
Joel Caws - Technical Director, Select Your Franchise
It might seem like choosing a franchise is a simple choice of picking one out from the hundreds of opportunities you can find on a franchise directory website, in a franchise magazine or at an exhibition. However, it’s important to give some careful consideration to the business you are making an investment in. Why might this be?
- You might end up working in a business that doesn’t suit you or you don’t enjoy.
- Poor support or training could hamper your chances of business success.
- You might end up with a business formula that hasn’t been proven over time or that you can’t work effectively.
To help minimise the risk of the scenarios above, here are a few suggestions for doing a little initial ‘homework’ when considering a franchise business:-
- What kind of reputation does the franchisor have? Search for them online and find out what is being said about them and their brand.
- How long has the franchisor actually been in business? You can often get this information from the Companies House website.
- What trade organisations and/or franchise associations are they members of? Connections to organisations such as the British Franchise Association may give you some extra peace of mind as to their standing in the franchise community.
- What do their franchisees say about them? If you are seriously considering a specific franchise, it won’t be a difficult job to get a few references from the franchisor themselves that you can then contact to ask for their feedback on how the franchise works for them.
Even armed with the best research ever, no investment is entirely without risk and starting up a franchise business is no different. You can minimise your risk as much as you can by making sure you have done the homework above and using appropriate professional services along the way, but the bottom line will come down to how commited you are and how hard you are prepared to work to make your business a success.
I didn’t intend the above to be an exhaustive list but to prompt some thought to starting a research process when thinking about investing in a franchise business. If you think of any more good research ideas please feel free to comment below.
Franchise Finance Focus: Banks set to meet lending targets
Carl Reader, Dennis & Turnbull Ltd
If you are considering buying a franchise, then obtaining funding in orde to start up your new franchise business will be high on your agenda. Over the past number of years there has been much talk about obtaining finance from banks becoming more difficult due to more stringent criteria in order to meet borrowing requirements.
The good news is that the UK’s major banks look likely to meet their small business lending targets as agreed with the Government.
According to the British Bankers’ Association (BBA), the main five high street banks (Barclays, HSBC, Lloyds, RBS and Santander) loaned £37.4 billion to SMEs in the first six months of the year.
Under the terms of Project Merlin, to which the banks signed up as part of Government plans to boost the levels of credit and finance available to smaller firms, the target for the whole of 2011 is £76 billion.
A spokesperson for the Merlin banks said: “The first half year performance demonstrates the banks’ commitment to providing businesses with the financial support they need to invest and grow and the significant progress made this year.
“The banks’ efforts to encourage customers to come forward with borrowing proposals are set against the overall economic environment which remains challenging and business demand for credit which remains weak.”
Carl Reader is the head of franchising at franchise accountants Dennis & Turnbull, a leading firm of accountants in the franchise industry.
The above information is provided as general advice and no liability is accepted by the author, Dennis & Turnbull or Select Your Franchise in respect of individuals or businesses acting on the above. Independent advice should be sought in all circumstances.
