June recovery for retail sales could help boost Retail Franchise Businesses
Joel Caws - Technical Director, Select Your Franchise
In a news report published by the BBC today, retail sales for June showed a slight increase after the decline of the previous few months. Whilst there is scepticism over whether this is sustainable, mainly due to continued pressure on consumer spending, its good news for retailers that depend on retail shoppers for their livelihood.
For franchise businesses that focus on the retail market it will also come as good news that the downward trend has been, in the short term at least, stalled. However, much of the increase has been put down to retailers pushing early summer sales in a bid to attract customers. It will be interesting to see whether the positive trend can carry through into July and August. In the meantime, retail franchise businesses can make the most of the pick up.
Whether or not retail is the right choice for you as a franchise seeker, the franchise business model could help in terms of support and peace of mind in running a proven business system.
Most franchises started out as conventional single unit businesses whos business owners, after finding their business to be successful, looked for a way to expand and grow their business and start new outlets. For many, franchising their business was the ideal choice. As a potential franchisee, you can benefit from the experience of the franchisor in that they have tried and tested their business formula, learned from their mistakes and improved and refined the concept along the way. This differs from starting your own business from scratch where you may not know or understand the pitfalls or mistakes before its too late.
You can find out more about the range of retail franchises available by browsing one of the online franchise directory websites.
Franchising could help Unemployment Worries
Nick Strong, MD - Select Your Franchise
Unemployment fell in the 3 months to July 2010, a recent news article by the BBC reports. However, those out of work and receiving benefit actually rose indicating that finding a job is still a problem for many. There are also concerns that planned government cut backs will further fuel unemployment as public sector jobs are also likely to be hit.
Regardless of whether we as individuals are in or out of employment, an uncertain future is what many of us might have to deal with for some time yet.
This could prove challenging for those out of work and looking for a job, especially when many companies are sitting tight and not risking expansion of workforce for the time being. For those in employment, rumors of cutbacks and job uncertainty might be all too familiar topics.
The good news is that many franchise businesses are still experiencing profit and growth. There are many reasons why businesses built on the franchise model have been resilient to the affects of the recession over the past few years. Some of these reasons are:-
Franchisor Backing
Although a franchise can be effectively your own business, training and support is usually part of the package to give you the best possible chance of success.
Proven Franchise System
A franchise business is based upon a proven concept which means it has been proven to be profitable if operated correctly.
Resilient Industry Types
Some franchise opportunities are built upon provision of products and services which customers see as essential and so these tend to do well regardless of economic climate.
If unemployment worries are knocking at your door, maybe its time to take your future into your own hands and look into franchising as way to start up your own business.
Tags: careers, franchise, franchise opportunities, franchising, job losses, nick strong, uk economy, unemployment
Franchise Business: UK economy grows 1.1%
Nick Strong, MD - Select Your Franchise
The UK franchise business community is excited to hear news that the UK economy grew by a faster-than-expected 1.1% in the second quarter of the year, according to official data reports the BBC.
The figure – a preliminary estimate from the Office for National Statistics (ONS) – was almost double the 0.6% growth rate expected by economists.
It was the fastest quarterly expansion since 2006, and marked a sharp pick-up in pace from the 0.3% growth of the first three months of the year
Economic growth came from the key services sector
Within the services sector, which accounts for about three-quarters of the UK economy, business and finance posted its strongest rise in almost three years, rising by 1.3% over the quarter.
This good news for the UK franchise community which supports many service lead business. UK franchise business supports over 34,000 business outlets, providing employment for over 450,000 people and accounts for over £11 billion and just over 1% of UK GDP according to the latest BFA/NatWest Franchise Survey.
There was a big contribution from the construction industry, which grew at its fastest pace since 1963, in part because bad weather at the start of the year meant builders were catching up on work that should have taken place then.
The only sector to register a fall was transport and communications – down 0.7% on the quarter following the impact of Iceland’s volcanic ash cloud in April.
The ONS said the last time the UK had growth of more 1.1% in any quarter was in 1999.
The news has been greeted with cautious optimism by franchise business leaders and suppliers.
Tags: franchise, franchise business, nick strong, uk economy
