2012 brings growth boost for Franchising?
Joel Caws - Technical Director, Select Your Franchise
I’m sure many would agree that 2011 has been a tough year. Rising unemployment, the Euro-zone crisis and the possibility of a double dip recession have become all too familiar topics in the media.
It seems nobody has been immune to the aftermath of the recession during 2011, but an interesting report commissioned by the International Franchise Association, has indicated that franchising looks to be on path for growth in 2012. Of course, these figures relate to franchising in the US, but could it also be a sign that franchising in the UK could be on target for a similar growth pattern?
The report indicates that personal services such as educational services and health-care will lead the way whilst even retail and property based franchises look set for growth in 2012. If a similar trend was to follow in the UK, it will make starting up a franchise business in 2012 a very attractive proposition, especially in the light of continued ‘doom and gloom’ speeches by the government at the turn of the new year.
Choosing a franchise business can present a great way to start up your own business without the ‘suck it and see’ of non-franchise self-employment. By building your business on an already proven business model, you can help to reduce some of the risk of starting up your own business. No business venture is without risk, but doing all you can to reduce the risk of failure wherever possible is just good business sense.
HSBC View: How the UK franchising sector has fared during 2011
Cathryn Hayes - HSBC Head of Franchising
There is no denying that 2011 has been a difficult year for UK businesses. The economic recession forced sweeping changes in strategy for many businesses – add to this the change in Government at last year’s general election, increased unemployment and reported lack of available credit and it’s not surprising many firms have struggled.
However, with significantly better success rates than other businesses, the franchise industry is key to promoting job creation, stimulating economic growth and encouraging new start-ups. This is mainly due to the wide spectrum of industries covered by franchised businesses, the strength of the business model and the support provided by franchisors and other franchisees within the same networks.
Nowhere is this success more evident than this year’s bfa HSBC Franchisee of the Year Awards. Financial stability, innovation, creativity and the relentless pursuit of success were just a few traits demonstrated by this year’s finalists.
The overall winners, Mike and Catharine Chalton from Home Instead Senior Care in Wirral, showed that their key success was providing excellent customer service which has resulted in their business going from strength to strength. They are a true credit to the franchising industry, and an inspiration to small businesses across the UK.
So what about finance? Put simply, there is still plenty of funding available for sound business propositions. Your franchisees are in a stronger position than a standalone start-up business because of the help and support available to them. Requests for funding are more likely to be agreed if franchisees present a professional and credible business plan.
This could be the time to think about switching your business. There is often a nervousness that surrounds ‘switching your bank’, for fear of disrupting vital transactions. The UK’s leading banks, including HSBC, have signed up to a banking industry code that means they must make account switching speedier and easier for customers who have made their mind up their mind to change.
We have consistently welcomed new franchise business, and we are confident that by the time 2011′s Christmas trees have been packed away HSBC Franchise Unit will have improved on our 2010 lending figures by 200%.
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
Tags: cathryn hayes, franchise industry, franchising, hsbc, uk economy
A new direction with a franchise business
Joel Caws - Technical Director, Select Your Franchise
At different points in our lives, we all need to take time to reflect on the direction we are going and the future. This can often be true of our work or job situation. Sometimes, it might be just to confirm that the employment path you are on is the right one for now, or it might be that you feel its time for a change or to move on to something new.
If you are one of those who are considering your career future, then one aspect you might be thinking about it the possiblity of working for yourself, or becoming self-employed. Many people consider self-employment as it provides flexibility and the freedom to manage time as you wish whilst also providing a platform for you to earn a living and build a business venture that is your own.
However, the challenge can be finding something to do that is going to work and that will prove to be profitable. If you are lucky enough to have some great ideas that could work then you may well decide to build you own business on those ideas. But if you are one of those that need a little help in the ideas department then a franchise business could be just what you are looking for.
Starting up a franchise business is basically starting up your own business venture using somebody elses proven business idea. The advantage of this is primarily the fact that you are starting out with a business model which has already been tried and tested, so you know that in practise it can be the foundation to building a profitable business. In addition, most franchisors provide relevant training and support so that you can make the most of the franchise business and drive it to its fullest potential.
If you think that a franchise business could be the answer for you, the first step will be to determine the right kind of business for you. There are literally hundreds of franchise business systems operating in the UK and so identifying the right one for you can seem like a challenge at first. Fortunately, the advent of the Internet has helped remove much of this by the fact there are a number of different franchise directory websites available. These websites provide helpful search tools that let you filter down the many opportunities available into a short list that can fit your preferences and budget.
So, if you are considering starting up your own business, a franchise business could be just the new direction you are looking for.
Tags: franchise, franchise business, franchising, joel caws
