Starting up an Automotive Franchise Business
Nick Strong, MD - Select Your Franchise
If you have an interest in cars then a franchise business in the automotive trade might be something you consider.
With over 34 million cars on the roads of Great Britain, a business that deals with the automotive industry can have provide huge growth potential. It’s a staggering statistic which of course rises with each passing year and and clearly indicates a growing demand for services such as car valeting, repairs and leasing.
One of the benefits of a franchise enterprise is that you don’t necessarily need to be a car expert or have previous experience in the automotive field. This is because franchisors typically present full training and support for his or her franchisees so as to provide them with all the know how they need to fulfil all of the duties required by the business.
So what are some of the franchise businesses available in the automotive industry:-
S.M.A.R.T. Car Repair Franchise Business
S.M.A.R.T. is an acronym for Small to Medium Space Restore Technology. A franchise business specialising in S.M.A.R.T. repairs is one which makes good scratches and small dents which occur on many vehicles through normal wear and tear. It’s most commonly a van based franchise business which lets you visit and attend to customers requirements at their own houses or in different locations as requested.
Leasing Franchise Business
Car leasing franchises concentrate on providing leased vehicles to both individuals and businesses that have a preference to leasing rather than buying. Usually can often be a retail type business option requiring a store frontage.
Valeting Franchise Business
Cars get dirty, inside and out, and cleaning it is something many people find a real chore. Valeting services provide a solution to get your car back in tip top condition and so a business providing such services when there are so many cars on the road can be a good option.
Automotive Tools Franchise
This is usually a B2B franchise opportunity which specialises in provision of tools and equipment to automotive workshops and garages. These are primarily van based franchises which allows you to get out on the road and visit existing customers and, in addition, go to talk to new potential customers about using your services.
Whichever automotive franchise business choice you decide on its always best to do your homework; validate the franchisors claims by checking their background, talking to existing franchisees and researching them online. As with any investment, buying a franchise is not something to be taken flippantly and you will need to consider carefully the choice you make.
A franchise can form the basis for establishing an effective and profitable business, but be prepared to commit yourself to the franchise system and work hard at it to achieve the best results.
If you are interested in finding out more about some of the franchises described above, check out our directory of automotive franchises.
Looking for a Low Cost Franchise Opportunity?
Nick Strong, MD - Select Your Franchise
In the light of the economic turbulence of recent years, people are taking more care over the cash they have available, and trying to make it stretch further. In spite of this, our website www.selectyourfranchise.com is as busy as ever with many people searching for a the right franchise business to bring about a change in their job direction or maybe to invest available capital into a new business venture. But how does one go about finding a franchise that’s low cost?
There are literally hundreds of franchise opportunities available in the UK and the obvious answer to what is ‘low cost’ depends entirely on the scale of capital or funding that you have available to invest. It’s also important to bear in mind that a low initial franchisee might not be the end of the story. What additional start up costs are required? What will the ongoing franchise management fees be?
The franchise fee for buying a franchise can range significantly from as little as a couple of thousand pounds up to hundreds of thousands for some top end retail type franchises.
Considering Low Cost Franchise opportunities
When considering a low cost franchise, it’s worth noting that although a low initial risk may appear an attractive option it may also be a restrictive factor. Well known and reputable franchise businesses, may command a larger initial investment partly as a result of the additional benefits that their brand presents to likely buyers. Take some of the high street fast food restuarant chains for example; part of the business benefit is instant recognition and awareness of the brand and what to expect in the way of service and quality. This benefit cannot be underestimated.
Many of the more affordable franchises, when it comes to a low investment level, are typically home based franchises. This is primarily down to the fact that expensive business premises leasing or rental is not normally required. This naturally saves greatly on overheads. In addition, a great number of these type of franchise opportunities require less than £10,000 investment fee to get started. For a variety of affordable options you might start by flicking through the low cost franchises section or work at home franchises section of some of the internet franchise directories.
New Year review tips for your franchise from HSBC
Cathryn Hayes - HSBC Head of Franchising
2012 is set to be another challenging year, with growth seen as a major concern for all of us.
The beginning of a New Year is a time when we think of changes that we hope will make our business leaner, more productive and more profitable. Here are our 2012 tips to consider for your franchise.
Maintain healthy cashflow
Effective cashflow management begins with minimising cost. Only buy what you need and bargain hard with suppliers. Aim to maximise your margins and sales. Ensure your invoices are sent out promptly and chase when due. Request deposits on order or cash on delivery for high-value sales and consider discounts for early payment. Get into the cashflow forecasting habit. It can help you identify potential cashflow crises in advance — and act to avoid them.
Read advice about cashflow management.
Stop doing things that don’t work
Sometimes in franchising, as in life, things don’t succeed — whether it’s a product that isn’t selling well, or a way of doing something that doesn’t have the desired effect. Sometimes it’s better to accept defeat and find a better way. It’s a New Year, so ‘out with the old and in with the new’. Doing things differently or stopping something can often materially affect profitability.
Find out how to increase profitability.
Strengthen your brand
Successful franchises are built on strong brands. Does yours need improving, or maybe even a total overhaul? And we’re not just talking about your logo, website, leaflets and stationery. ‘Brand’ means the entire customer experience, including how you answer the phone. Your brand is your personality; it’s what you stand for. How can you take it to new heights?
Learn how to create a strong brand.
Win new customers (and hang on to your old ones)
Inevitably you will lose customers, often through no fault of your own. So even if you just want to remain where you are now, you must win new franchisees, and that requires investing time, effort and usually money. But you also need to stay close to your existing customers and keep them happy if they are going to stay with you. Where possible, find ways to sell more to your existing customers.
Find out how to build customer loyalty.
Try something different
Trying something new can prove shrewd, perhaps by developing or introducing a new product or service, which could enable you to outflank your competitors. You might try to target a new market or diversify within an existing territory.
Get advice on new product development.
Harness the power of online social media
If you haven’t done so already, why not make 2012 the year your business finally embraces the marketing potential of Facebook, Twitter and LinkedIn? It takes time to build relationships and reputation, but such sites can deliver many more visitors to your website and drive sales. For more information on Internet Marketing Strategies contact Nick Strong at Select your Franchise
Learn how to make the most out of online social media.
Revisit your business plan
A well-produced, regularly updated business plan can keep you focused on your development strategy and key business goals. And while you’re at it, why not revamp your marketing plan?
Get advice about writing business plans.
Work more on your business — and less in it
Allowing yourself to get bogged down in the daily demands of running your business is a common mistake, but it can mean your business fails to develop — at least in the way you want it to. Try to make regular time when you can step back from the daily grind to focus on the bigger picture and help your franchisees to do the same thing.
Find out how other businesses plan to achieve growth.
Good luck!
Posting from the monthly HSBC Connections newsletter. For more information or to get on the mailing list for the newsletter please email franchiseunit@hsbc.com
