There is a huge latent demand in the UK for people looking to run their own businesses.
However, research has shown that setting up your own business from scratch can be a high risk strategy.
The bfa NatWest annual survey regularly shows that 4 in 5 new start-ups fail in the first two years whilst over 90% of franchisees are still in business.
But, franchising is not an easy road to riches.
Yes the rewards can be significant but building any business – be it a franchise or not – requires determination, hard work, ambition and dedication and self-employment does not suit everybody.
However, what franchising offers people who are self-motivated, ambitious and determined to be successful are a number of key advantages
- A tried and tested system:
You get access to a proven and well-established business structure/process/format.
My old boss – Moshe Gerstenhaber (founder of Kall Kwik) – actually called this process SYSTEM LEASING
His rationale being that the franchisee buys a licence to duplicate an existing and successful system from the franchisor for a specified period. What’s more, good franchisors continually develop and refine their business system to match changing market conditions and opportunities.
- Corporate backup:
If you started up your own business YOU are responsible for ABSOLUTELY EVERYTHING from selling and marketing, to researching and developing new products to sourcing the best suppliers to doing the accounts, chasing debt etc, etc, etc
In my experience it is often not the business idea that causes start-ups to fail but the sheer enormity of the task of running the business.
In a franchise the franchisor provides the franchisee with experience, business know-how, operational methods, marketing tools, sales training, procurement advice and of course ON-GOING SUPPORT as well as a proven business system, trademarks and use of the brand.
- Dedicated partner:
Franchising is a marriage and the success of the franchisor is as much reliant on the franchisee as the franchisee is reliant on the franchisor.
A franchisor is looking to grow the number of its franchisees.
Rest assured it is far easier to do this if the franchisor can show success and if existing franchisees are positive about their relationship with the franchisor.
To this end a good franchisor should have expectations of the franchisee greater than those expectations the franchisee will have of themselves.
Consequently, a good franchisor should be constantly speaking with franchisees, helping them to implement activities, assisting with their business planning as well as regularly introducing new business tools for franchisees to use.
- High chance of success:
The 2015 NatWest/British Franchise Association Survey highlighted the following about UK franchising
- Market turnover in excess of £15.0 billion
- Over 560,000 people employed (more than the armed forces!)
- Approximately 40,000 non-dairy franchise units in UK
- 900 plus active franchise systems
So, if you are looking to get into business for yourself, franchising offers an increasingly attractive lifestyle and career option for people from all walks of life.