The Olympic dream

It is now four years to go until the London 2012 Olympic and Paralympic Games. With a major procurement effort already underway, businesses looking to enter the race for contracts will rely on the support of their advisors to ensure they are fit enough to win.

Lloyds TSB estimates that the events will generate £21 billion nationally - equivalent to a 0.25% increase in GDP, spread from 2007 to 2012. The opportunities are not just limited to businesses based in London and the South East. Because of the number and diversity of projects required to support the Games, firms no matter what size need to be aware of the opportunities it presents.

The London 2012 Games offers one of the biggest business opportunities this country has ever seen and franchisees up and down the country will play a crucial role in helping to deliver in 2012. Regardless of size, industry or location, it provides a golden opportunity for UK franchisees to reach new customers. 

Whilst the current focus has been on the large-scale buildings and infrastructure projects, rapidly the reach of the Games is extending and a variety of industry sectors are beginning to benefit from the ripple effect. In many cases, with existing networks in place, franchises are often better placed to deliver than small independent businesses.

According to research, franchising is outstripping the UK economy with growth, which demonstrates that franchises are already identifying and benefiting from potentially lucrative opportunities. This growth will stand the franchising sector in good stead when reviewing the potential of the 2012 Games.

When considering such an internationally high profile event, it's natural to assume that there won't be a place for smaller enterprises. Most of the opportunities for small and medium-sized enterprises are likely to filter down the supply chains. Sub contracting and supplier opportunities will be plentiful and smaller businesses, including franchises, should think about forging partnerships to better pursue these lucrative opportunities.

Lloyds TSB has launched the Official Business Guide for London 2012. The guide has been designed to assist companies, seize the massive commercial opportunities being created by the London 2012 Olympic and Paralympic Games. The 2012 Games may still seem a long way off however franchises that plan ahead will be the ones best placed to reap the benefits. Now is the time for franchisees to be speaking with their franchisor to ensure that they are reviewing the potential opportunities available to their network.

The guide offers advice on how to get 'fit to supply', explaining every aspect of the supply chain including the unique procurement policies involved. It also covers useful sources of support such as the London 2012 Business Network, and practical financial advice. The information contained in the guide is based on interviews with dozens of experts, including officials from the Olympic Delivery Authority (ODA) and the London Organising Committee for the Olympic Games and Paralympic Games (LOCOG), Lloyds TSB, regional development agencies - and businesses with Olympic and Paralympic Games supply chain experience.

The challenge for franchises is to begin thinking about how they and their network of franchisees will turn these opportunities into more sustainable business growth ideas and although the opening ceremony is four years away, businesses need to take action now in order to grab a piece of the pie.

Delivering a project on the scale of the London 2012 Olympic and Paralympic Games to a fixed deadline will put pressure on firms right throughout the supply chain. Alongside their project management and human resources skills, companies need to pay particular attention to their payment capabilities and finances if they want to be successful. The London 2012 Games aim to be "cashless", so any firm looking to get involved, even only in peripheral opportunities, should ensure its payment systems are up-to-date.

To download a free copy of the Lloyds TSB Official Business Guide for London 2012, visit, www.lloydstsb.com/london2012business. For further information on how to get your franchise into the best possible shape for the 2012 Games opportunity visit www.lloydstsb.com/franchising.