Signs of the times

There is a light at the end of the tunnel. Even though the main concern at the moment is the current economic climate, franchising is a safer bet, especially in the competitive world of signage and printing.

"Starting a stand-alone business means starting from scratch and brings with it high levels of risk," says Tony Marsh, sales and marketing director at Signs Express. "The bonus of a franchise means an already tried and tested business model; established brand recognition; support and training at the end of the phone whenever and however often needed (a staff of 20 at head office); and past experience of problems in the economy."

Printing franchises should do well since their customers need to work even harder to bring in business. "It has become more and more vital for companies to stand out from the crowd," says Mr Marsh. "It's therefore important for their signage to work harder in order to attract the level of custom required to survive."

Signage franchises need to work hard is to adapt with the times. Garth Allison, managing director of Fastsigns, says: "There are lots of opportunities to take advantage of developing technology to reduce costs, but produce better results. The risk to sign companies is being left behind by not moving with the times and taking these opportunities. At Fastsigns, we are always working hard to recognise and utilise these opportunities."

He says that newer technology will be a more common element of signage and printing franchises. "Digital signage will continue to expand as more businesses recognise the advantage of being able to tailor these messages and offers on a daily basis. Fastsigns franchisees will continue to be at the forefront of technology and electronic signage."

He agrees that franchising is an advisable route to take, instead of starting up a business from scratch. "Buying a franchise is often a safer bet as there is a proven business system in place and you will benefit from the marketing, sales and operational support offered by the franchisor and of course gain from an already established brand/name."

Keith Davidson, head of marketing at Prontaprint, agrees. "In the current economic climate, choosing the franchise route is a great way for people who are looking to become their own boss but don't want the risk of setting up a new business from scratch," he says. Investing in an established franchise means potential clients will have a clear understanding of the offered product from day one, he says. "This is as well as giving you access to an established brand and lifetime support in the key areas of commercial intelligence, marketing, business development, technical, IT and purchasing support."

Mr Davidson identifies five key market trends for the print on demand market. These are:
l Improved quality: "Clients are seeking higher quality for all their business communications in an increasingly competitive and tough economic environment in order to differentiate their business."
l Faster turnaround: "In today's fast paced and rapidly changing business environment clients want to take their ideas from 'mind to market' quicker than ever before. Prontaprint is ideally placed to offer 'near real time' solutions to clients and help them to maximise local, regional and national opportunities ahead of their competition."
l Proliferation of digital: "Whether it is the cutting edge technology we use to produce the very best results or the client supplied materials, digital developments are at the heart of our industry. This is most evident in the areas of print placement, personalisation and distribution whether web-based or via our network of 150 centres in the UK and Ireland."
l Shorter-runs: "Clients not only want a great job, on time, every time, they want the flexibility to order their print in increasingly smaller volumes at an affordable price. Whether the client wants oversize posters or a small run of special offer leaflets in full-colour, we can supply it quickly and efficiently within budget eliminating wastage and potential obsolescence."
l More colour: "Clients want more impact with their documents, especially in today's challenging business environment, and Prontaprint has helped drive the proliferation of colour by offering clients high quality, affordable short-run full colour."

One of the key elements in franchising is avoiding the risk in believing that business will simply walk-in through the door. "Print franchises must now proactively sell and market their business on an ongoing basis," says Mr Davidson. "Businesses must go out and meet clients face to face and build 'lifetime' relationships with them."

Recognition and brand awareness are also essential elements for any business to succeed and thrive. Mike Dewsbury, managing director of Kall Kwik, says that this poses a distinctive advantage in franchising. "Investing in an established franchise sets you streets ahead of an unknown start up company from day one. Potential clients will already have a clear understanding of your product and service offering, as well as the confidence that your business has a well-established track record."

Most importantly, within the current economic climate, choosing the franchisee route will mean less risk. It is possible to make profit calculations based on historical performance across a network of franchises, giving a good idea of any returns on investment.

All in all, the coming year still holds considerable promise for the signs and printing franchise sector. Fastsigns' Mr Allison says that his business has enjoyed great success. "Our franchisees performed very well last year, so much so that some were designated 'Pacesetter Centres', which acknowledges their exceptional sales achievements, beating off competition from over 500 Fastsigns centres across the globe.

"We had some great news to tell last year and whilst we are not recession-proof, I am optimistic about the coming year. When companies cut their advertising budgets, as many are, they look for a more cost effective method of promoting their business - and signage is exactly that."

Signs Express

Signs Express was conceived in 1989 and is currently celebrating 20 years in business. The business model was developed by co-founders David Corbett and Franck Eliel when they saw a gap in the market for high quality signage, manufactured and delivered fast. The first centre (a pilot centre) was opened in Norwich followed by the first franchise opening its doors in 1992.

The 80-strong franchise network means that Signs Express has a nationwide presence. It prides itself on its quality products and customer service and has developed a reliable reputation in the industry. The training and support package is a big pull factor, making it much easier for its franchisees to be up and running effectively within a shorter period of time than as a standalone business.

The franchise package includes a four-week training programme at head office; ongoing support (including help and guidance with unit set up); established relationships with suppliers; access to national account clients; discounts through preferred suppliers, plus buying power as the country's largest sign company.

The aforementioned training and support comprises four weeks training at head office and covers all aspects of the franchise, including: accounts; sales and marketing; business development; human resources and IT. Following the initial training, ongoing training and support are available to franchisees, covering technical issues, business development and sales techniques, accounts packages and other topics which the franchisee may raise.

The total capital needed for a Signs Express franchise is £87,500, which covers both the franchise costs and the liquid capital required. Break it down into greater detail and the price pays for the premises, equipment, furniture, office equipment, vehicle, franchise licence and the business package.

No experience in signage is required to become a Signs Express franchisee - what is required is the drive and ambition to succeed as well as sales and management experience, commercial B2B awareness and a commitment and enthusiasm for hard work.

Fastsigns

Fastsigns' sign and graphics centres offer a full range of custom signs and graphic products to businesses, including banners, window and vehicle graphics, floor graphics, safety and identification signage, exhibition graphics and exterior signage. Founded in 1985, Fastsigns has been consistently recognised as the sign industry's leading franchise. The company's first UK franchise was launched in 1994, and there are now 23 centres throughout the UK and more than 500 centres worldwide.

Fastsigns offers an outstanding level of support, and coupled with access to the latest technology, makes it an attractive franchise proposition. Garth Allison, managing director, says: "It begins the moment a new franchisee signs up and continues throughout their time with the company. It's part of the package they've paid for and it's in everyone's interests to get it right."

Each franchisee gets two visits a year from a franchise business consultant, although head office is in regular communication, talking to its franchisees on a daily basis, continually providing advice and guidance. There is an online support system, which provides an outlet for franchisees to exchange ideas. There are also special training and incentive events each year, such as a 'Destination Success' sales training workshops, and an annual UK convention where the top performing franchises are rewarded for their hard work.

A minimum personal investment of £40,000 is required from new franchisees. The package includes initial intensive training in the US and the UK for key employees across the spectrum, from graphic designers to sales, and the franchisees themselves, so they are fully equipped to hit the ground running when they return to their centre.

Franchisees are helped on every aspect of starting and running their business, from finding the right premises and negotiating leases, to handling large tenders, with marketing, sales, human resources and bringing in new business.

Fastsigns is a business-to-business operation, located in high visibility, and high traffic flow areas. The benefits are proven as people are more likely to buy from a business that they can see. Mr Allison says: "If there is anyone out there who is looking to run their own business, and is self-motivated with some sales, marketing or operational experience, give us a call."

For more information, people are asked to call free on 0808 168 0145 or visit www.fastsignsfranchise.co.uk.

Prontaprint

Prontaprint enjoyed a particularly successful 2008, securing the accolade for 'Best Brand Management' in the Franchise Marketing Awards as a direct result of the introduction of its distinctive new brand and co-ordinated repositioning strategy to attract higher value business clients. The company was also awarded 'Business Superbrand' status for the sixth consecutive year.

The year also saw Prontaprint invest £250,000 to transform its London Mayfair branch into a centre of excellence to provide essential training and support to its network of franchises. Prontaprint Mayfair continues to operate as a fully performing print and design centre but, as of September 2008, the permanent team of six are now regularly be joined by colleagues from across the Prontaprint group who work at the centre to benefit from hands-on training.

Founders Edwin Thirlwell and Ken Clement opened their first Prontaprint centre back in 1971 based on a simple idea - to make high-quality design, print and copying available to everyone. Prontaprint now has a network of just under 150 franchised centres across the UK and Ireland - many with a turnover of well over £1 million a year.

Sales are growing five times greater year-on-year across repositioned centres compared to the rest of the network - news that in today's moribund economic climate, is encouragingly refreshing.

An initial investment of £30,000 is required to become a Prontaprint franchisee. Support for those looking to gain the equity they need to invest is also stronger than ever before as the Small Firms Loan Guarantee Scheme has been extended to cover those looking to enter the franchise marketplace, including re-sales of exiting franchises.

Prontaprint franchisees will receive valuable ongoing business support, including site selection, training, marketing, IT, technical, purchasing, estates, field based business planning and commercial support. 

Prontaprint says it is looking for dynamic, enterprising, IT savvy people with the entrepreneurial skills to build a winning team and business.

Although existing Prontaprint franchisees have joined the business from a variety of industries, the franchisor is increasingly welcoming new franchisees from the print sector. The company offers four routes into the network, which include investing in a new Prontaprint centre, taking over an existing centre, re-branding an existing independent print and design business or joining an existing Prontaprint centre as a senior sales employee, with a view to acquiring the business later on with a management buy-in.

Kall Kwik

In 2008, Kall Kwik celebrated 30 years of service within the UK and the company was also awarded Business Superbrand status for its sixth consecutive year.

2008 was another good year for Kall Kwik, and saw the company launch its first standalone kdesigngroup agency following the success of its existing network of more than 35 design studios, which currently operate alongside Kall Kwik centres across the UK.

kdesigngroup, a sub brand of Kall Kwik, offers a host of business communication services including brand development, design, marketing, advertising, multi media and web design. 

Last year, Kall Kwik also launched a promotional gifts service - allowing Kall Kwik clients to purchase branded and personalised merchandise through local centre websites for the first time.

The service, which launched in August, is being trialled in seven centres throughout the country (Chester, Salford, Doncaster, Tamworth, Woking, Guilford and Chiswick), with a full network roll-out planned for 2009.

The business was founded in the UK in 1978 by Moshe Gerstenhaber, who bought the master franchise from the US Kwik Kopy organisation, and opened the first centre in Pall Mall, London in 1979. Kall Kwik is now the single biggest player in the print-on-demand industry, with a market share of 7% and a network of more than 130 centres.

In a challenging and rapidly changing market, Kall Kwik has evolved and grown through strategic diversification. Its integrated service package described simply as 'Design to Delivery' has seen the company effectively expand outside the boundaries of copy and print to offer complete marketing solutions from brand management to design and direct mail including e-marketing campaigns.

Kall Kwik's award-winning franchise-based business model is based on providing intensive marketing, training and operational support to its franchisees to ensure that all products and services are delivered to a consistently high standard to protect the brand.

An initial investment of approximately £100,000 is required to set up a Kall Kwik franchise.

Kall Kwik says it is looking for franchisees who are committed to putting their own stamp on their business and implementing their own ideas and strategies, safe in the knowledge that they have the strength of an established brand behind them. This formula has allowed Kall Kwik to evolve and grow over the last 30 years and will support continued success well into the future.