Looking East – the changing face of World Business
Cathryn Hayes - HSBC Head of Franchising
Just 14% of businesses in the UK recognise that Asia could drive future opportunities for business, yet a new report commissioned by HSBC identifies that there is huge potential for companies to prosper from the new markets in the East.
Noel Quinn, Group General Manager for HSBC Commercial Banking UK, said: “The UK is no longer looking at when West meets East, but at how the East will redefine the West and the way we do business. By understanding this fundamental and fast-paced change,
British businesses can ensure they are in a position to respond swiftly and effectively; and it is the thinking business that acts now. There is still a high volume of UK firms that just perceive the East as a traditional ‘low cost’ production and labour destination, but there needs to be a shift change in attitude as Asia and the Middle East become the brightest prospects on the global landscape“.
“There is also a massive opportunity for British exporters, Asia is largely positive about British brands and the consumer market is growing rapidly, giving UK businesses a platform to increase their trade. At HSBC, we are seeing export balances up by 45% compared to this time last year, which is hugely encouraging and demonstrates where some of the real opportunities for business growth lie. We have, and will continue to help businesses with the financial tools to take advantage of the opportunities in the East through our unrivalled on the ground presence, knowledge and local expertise.”
‘Looking East: The changing face of world business’ is the first report which identifies the most influential current and future trends in ‘the East’ – and interprets these to define practical implications and opportunities for companies in Europe. It highlights that ‘thinking businesses’ in the UK can proposer by factoring Asia into their strategic thinking, actively addressing how to capitalise on its diverse consumer base, skilled workforce and advances in Research and Development, while mitigating the risks posed by the macro-economic climate.
The research also reveals that many UK companies already doing business internationally are recognising the potential; it shows they are significantly more likely to see the East as a market with an increasingly highly skilled workforce than their non-international counterparts. And international traders are twice as likely to view the East as being a hub for increasingly sophisticated innovation methods.
These opportunities also apply to franchising and we have seen a number of larger companies looking to expand into Asia using the franchising route. One specific example is Mama’s & Papa’s who were recently featured in HSBC’s 100 Thoughts campaign. Their initial decision to expand abroad came from the fact that so many companies were contacting them about a franchise, many after seeing their flagship Regent Street store.
If you feel this is an area you can consider for your franchise, please email HSBC Franchise Unit at franchiseunit@hsbc.com for a free copy of the Looking East report.
Tips how to write a franchise business plan
- Nick Strong – Franchise recruitment advisor
The leading franchise banks have all declared in recent British Franchise Association (BFA) meetings, I have attended, that they have money to lend to franchise business.
In addition the banks are making much use of the governments Enterprise Finance Guarantee (EFG) scheme. The EFG is designed to provide government underwriting of small business development funding up to £1,000,000.
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Careful research of the franchise of choice
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Clear understanding and concordance with the franchise contract
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In-depth local market analysis by the prospective or exiting local franchise owner
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Local competitor analysis and how that may affect sales and profit predictions
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Declaration of available investment capital
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Personal assets to use as security against the loan
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A good credit history with no CCJ’s
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A commitment to follow the franchisor’s proven system
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Backing from your family in the commitment of franchise business building
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The bank recognise your chosen franchise as efficient and effective from its own indpendent research.
Against the above items the bank will decide the level of funding it will provide to the business builder.
Visit the following links for free business planning software -
http://www.hsbc.co.uk/1/2/business/info/resources
http://www.rbs.co.uk/business/banking/g2/planning.ashx
Visit – www.SelectYourFranchise.com and www.Franchises.UK.com for information about franchises for sale in the UK.
Franchise business plan inclusions
Tips for finding the right franchise for you
- Nick Strong – Franchise recruitment advisor
In these times of economic change many people are considering what they might do with their futures.
Below are some tips for finding the right franchise for you. The tips will also help you determine if in-fact franchising is right for you or not.
Tips for finding the right franchise for you
2. Speak to your family and explain your thoughts about wanting to build your own business. Make sure that the people that will be most affected by any change in your employment status understand your motives. Make sure that your family will support you emotionally and if possible financially.
3. Recognise that business is hard work and can have its ups and downs. Happily franchise business is all about replicating proven best practise so this minimises the downs and maximises the ups. It is vital therefore that you want to FOLLOW a proven system.
4. Visit information rich sources such as www.SelectYourFranchise.com and franchise exhibitions where you can research information about franchising and genuine franchise business options that are of interest to you.
5. Arrange to visit the franchise systems that are of most interest to you. Meet the key people that would train and support you. Do you like them? Could you work with them? Does the visit create confidence in you?
6. Ask for contact details of their franchisees. Speak to the franchisees and ask about their experiences. You could ask questions like, are you happy with the franchise? Are your profitable? What support do you get? How has the recession effected your sales and profit? Knowing what you know, if you were me would you buy the franchise?
7. After you have completed your research identify which franchise opportunities are of genuine interest to you. Make a short list.
8. It is vital now to speak to your bank. Ask the bank for a report of what they know about the franchise systems of interest to you. The banks keep their own records of all franchise busiensses known to them. From this information you can gain an independent report about the bank’s view of your preferred options.
9. If you need to borrow money banks will often lend up to 70% for a proven franchise concept. This is because over 90% of UK franchisees run profitable businesses according to the British Franchise Association National Franchise Survey which gives the banks a lot of confidence to lend to first time franchise business owners.
10. Finally you will need to look closely at the franchise contract from the system you have identified to move forward with. This document governs the trading agreement between you and the franchisor. A British Franchise Association accredited lawyer should be consulted.
When you have completed the above steps you will be in a position to decide what franchise is right for you. It will then fall to you and the franchisor to sign contracts, pay fees and set up training and your franchise business launch programme.
Take your time, find the right franchise for you and work with the franchisor and your customers to build your own successful business.
Tags: banks, borrowing, British Franchise Association, franchise business, lawyer, lending, nick strong
