Take a leap! Charlie Dickson on why the time is right to jump into franchising
As another year dawns, it’s often the time we reflect on the past year, to look ahead and consider our goals and objectives for the year to come. For many people, once the festivities – and the sore heads! – are over, it’s time to set new year resolutions.
If this includes taking a hard look at your career and work/life balance, then possibly you are thinking about starting your own business in 2025? It might well have been your ambition for some time – hankering to be your own boss but never quite knowing where to start.
Is franchising right for you?
If that’s the case, then franchising could well offer the opportunity to realise your dreams and take the leap from employment to working for yourself – but importantly, not by yourself.
Being part of a network, having the support and guidance of the franchisor and fellow franchisees can prove to be invaluable assets as you grow a successful, profitable business. And franchising offers a whole host of benefits versus starting out on your own.
6 reasons franchising is great:
1. A franchise offers a tried-and-tested, proven business formula– a blueprint for operating a business – with systems, processes, technologies, marketing strategies, business support in place to help you grow your business from day one. Put simply, a franchise offers the opportunity to start your business and benefit from the franchisor’s know-how, expertise, and business knowledge. The mistakes that are often inherent in new, stand-alone start-ups will typically have been ironed out in a franchise system, meaning your business is up-and-running more quickly, and potentially more profitably than going it alone.
2. It gives you access to an industry or market sector that you have always wanted to work in, or that you have a genuine passion for, but don’t have the experience – or confidence – to set up a business. Many franchisors are comfortable recruiting new franchisees from outside their specific sector in the knowledge that their training programmes, and support structures, will help to ensure their franchise network will be successful. Training, access to resources, operating practices, marketing and support are invaluable – and not to be underestimated by prospective new franchise business owners.
3. It offers a comprehensive range of business support structures, such as initial training, start-up advice and guidance, and ongoing support based on the franchisor’s own experience and expertise in developing and growing the business.
4. It saves you time and money researching a market, developing a brand, the proposition, routes to market, marketing activities and choosing the best technologies, just to name a few factors to consider and plan when launching a new business venture. An established franchise will have all these factors in place from branding, a website, social media, technologies, recommended equipment, and know their target customers. Typically, franchisors support their franchisees with national and regional marketing, possibly introducing franchisees to national account customers, and working to build brand awareness and reputation. In turn, franchisees are often responsible for local marketing activities, building their customer base in their local community.
5. An established supply chain for products and services and importantly, in larger networks,
collective purchasing power and economies of scale can deliver higher gross and net margins for franchisees. Supply chain management will also result in consistency of product or service across the entire franchise network. This is often central to adding value to the franchise network.
6. Financially, franchising can also offer significant advantages over going it alone. The financial benefits include reduced risk as you’re working with a proven concept and brand. Research clearly shows that business failure rates are much lower in franchising. As franchise businesses come with a track record of success, they are often more attractive to lenders, so securing business finance can be more straightforward. In addition, and importantly, franchises will typically achieve profitability more quickly – your franchise business can be up-and-running faster with sales growth driven by the franchisor’s expertise in marketing, promoting and operating the business. Robust supply chains, and the resulting economies of scale, can also add to the financial well-being of your business.
Are you the right fit for the franchise?
Having the people and communications skills, together with determination and hard work ethic are often more important to a franchisor than previous related industry experience – so, look at the big picture and the opportunities that owning a franchise in a sector that really interests and excites you could deliver.
What are your next steps?
Of course, whilst there are many advantages in franchising, it also comes with obligations such as a legal agreement and paying upfront and ongoing management fees to the franchisor. Before taking the leap into a franchise, carefully research the business, its values and ethos, the marketplace, and competitors, expected longevity, and the opportunity. Consider your options, complete your due diligence, and carefully inspect the franchisor’s documentation, systems and processes.
Talk to existing franchisees and ask questions, for example – what’s the initial training, does the franchisor support the network, is the marketing activity effective? etc. And make sure the franchise is a good fit for your skills, aspirations, and long-term goals before you jump onboard with a particular franchise.
As is the case operating any business, it takes focus, hard work, and commitment to make it a success, but undoubtedly franchising can offer a range of invaluable, tangible benefits, support structures and business opportunities.
Charlie Dickson, BA MBA is franchise consultant at Ashtons Franchise Consulting
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