And why is buying one better than going it alone?
Keeping it simple, a franchise is a business opportunity that allows the franchisee (possibly you) to start a business by legally using someone else’s (the franchisor’s) expertise, ideas, and processes.
The franchise industry now contributes over £15 billion pounds to the UK economy. You’ve probably heard of some big names franchises, such as McDonalds, Subway and Dominos. But there are thousands of franchise opportunities throughout the UK… so why is buying a franchise proving so popular?
One question many people ask is “why would I pay for a franchise, when I can just start my own business for free?” And it’s a great question, with an even better answer!
90% of franchises report profitability in the first 2 years, compared to 50% of independent businesses going bust in the first 2 years.
The beauty of a franchise is that the business model has already been tried, tested and proven. A reputable franchisor will be able to provide you with facts, figures and franchisee testimonials to confirm the profitability and sustainability of their franchise.
One of the most commonly reported issues entrepreneurs face when they start their own business from scratch is loneliness and pressure. Working for yourself can be a daunting prospect, but buying a franchise gives you the best of both worlds. Working for yourself, but not by yourself. Business owners starting out have to be experts in all fields (sales, marketing, customer service, development, strategy etc…) or they have to pay someone else to do it for them. The beauty of a franchise is that your franchisor is there to support you throughout and help you to achieve your goals quickly and efficiently.
Not only do you benefit from the franchisor support, but you also enjoy the support of the entire franchise network, which can be very reassuring when you’re a new entrepreneur!
The Benefit of an Established Brand
If you’re considering going it alone in an industry that already has some big brands dominating the scene, you should be asking yourself how you’re going to compete. And sometimes, the answer is simply ‘if you can’t beat them, join them!’
Buying a franchise from an established brand gives you a kickstart in the industry. The name of the company will already be synonymous with the service you’re offering, giving you the ability to hit the ground running.
Not only this, but having the backing of a well established brand can help secure funding for your venture. If you require financial assistance to purchase the franchise, banks and loan companies are more likely to lend to you if you’re pursuing a business with longevity and a history of profitable outcomes.
Work Life Balance
Getting a brand new business of the ground takes all of your time and attention. Profitability doesn’t happen overnight, and if you’re going it alone, the onus is on you to make it happen. So, if you’re looking to be your own boss in order to cultivate a better work life balance – starting from scratch probably isn’t the best idea.
A franchise – with its systems, structures, processes and reputation already in place – offers you a superior work life balance from day 1.
Recent surveys have shown that 91% of franchisees say they are satisfied with their business and 78% said they would recommend their franchise brand to others.
More than 50% of franchises now claim an annual turnover of over £250,000.
If you’ve been dreaming of being your own boss, maybe it’s time to consider buying a franchise…