Thinking of starting a business? The start of a new year can be a great time to invest some energy into new projects, and becoming a business owner is one of the best ways to overcome some of the most common challenges most of us faced last year. For example, did you find yourself struggling to meet your financial goals, or spending too much time navigating difficult employers? Becoming your own boss allows you to create a more contended lifestyle that you can control; a great goal for 2022.

But where do you start when it comes to tackling this fruitful challenge? Well, franchising can be an excellent way to kick start a entrepreneurial lifestyle while also avoiding the many risks that come with starting a new business. The franchise industry contributes £15 billion to the UK economy every year, with a 46% increase in the past 10 years, so you wouldnt be alone in reaping the benefits of this route. Here, we take a look at the main benefits of this option, in the hope that we can inspire you to start out on the exciting journey into the world of business.

 

Building on a Brand

Perhaps the most obvious benefit of becoming a franchisee is that youre not starting from the bottom in building a business; you are able to take advantage of the hard work that has gone into a successful, existing brand. One of the most challenging aspects of starting your own business empire is creating a brand that can stand the test of time, including building a strong reputation, which can take years to solidify. When you open a franchise, this is given to you on a plate, all you have to do is make the most of it.

If you have the desire to become an entrepreneur but lack the confidence required, this is something to really focus on when making your decision, as it provides you with a solid base to work from. It sets in stone so many of the aspects of creating a successful start up that could otherwise trip you up; making the journey so much easier and the chances of success so much higher.

 

Marketing

Just one of the advantages of building on an existing brand is the fact that, in most cases, they will already have a successful marketing department that has laid the groundwork and will allow you to flourish in your endeavours. Marketing can be one of the most expensive aspects of running a business, so being able to make use of existing marketing strategies and resources is a huge plus. Not to mention the fact that successful marketing requires significant talent which would normally be tricky to find and nurture.

 

Assistance

Another key benefit to going into business this way is that there will always be help on hand when you need it. Part of the agreement with franchisees is that the franchise owner provides business support throughout the lifetime of their branches. This benefits both parties as the more successful each franchisee is, the better the reputation of the franchise becomes. Again, this is a huge plus for those lacking in confidence when it comes to starting their own business, as no matter what hurdle you come across, you can receive help and guidance on how to overcome it, from those with plenty of experience in running a successful business.

Additionally, if you manage to excel in the initial stages of running your franchise and would like to expand and open more, support will also be there to help you achieve these more demanding objectives. In fact, multi unit franchises own 53% of all franchises, which just goes to show how easy franchisees find building multiple businesses with the help that is on hand within this business model.

 

Training

Alongside the ongoing support you receive as a franchisee, you will also receive unprecedented levels of help and guidance during the initial stages of setting up your business. Many franchise owners provide training opportunities which mean that your hand will be held throughout your journey. This not only gives huge encouragement to those who are undecided when it comes to taking that leap, but also opens this lucrative door to those with very limited experience in business. Suddenly, becoming an entrepreneur is a realistic goal for anyone.

 

Customer Base

Another major plus when it comes to opening a branch of an established business and brand, is that you are able to tap into an existing customer base. Establishing your own set of customers is one of the main priorities and one of the most difficult things to achieve as a business owner, so to have that given to you from the outset allows you to hit the ground running as a franchisee. Dont be surprised if you have queues outside your door on opening day, something almost unheard of for most new businesses. And dont forget, when the franchise owner has a vested interest in your success, they are going to invest in marketing and public relations for your business; giving you a further boost during your initial few months.

 

Be your own boss without the risk

Many entrepreneurs go into business because they want to be their own boss, understandably, as there are endless benefits to achieving this goal. It gives you total control over not only how successful you are financially and within your career, but also over how you experience day to day life. Our occupations are what we all dedicate the vast majority of our time to, so to be able to decide exactly how that time will be spent is priceless. However, there is always a risk involved in going into business, which puts many people off this route.

Becoming a franchisee is how to get the best of both worlds, as it allows you to simply build on existing success. The proof is in the statistics, as franchisees have an 8% higher success rate than independent businesses. Furthermore, the risk of failure when going into business is heavy, as your entire livelihood is affected, but the survival rate of franchisees is also 6.3% higher than that of independent businesses, which is important to consider.

 

Small Business, Big Business Network

Everyone new to the world of business appreciates the opportunity to start off small while they find their feet, however if you open a franchise you will be able enjoy this while also taking advantage of the large business network established by the franchise owner. A business’ network is crucial to its success and would usually take years to establish. Furthermore, there would usually be risk involved, for example, giving new suppliers chance to prove themselves, whereas when opening a franchise you would have peace of mind relying upon those who are tried and tested.

The franchise owner, during their own business journey, will have discovered many of the potential pitfalls you would face were you going it alone, and created solutions. You can benefit from this experience in a big way. For example, they could have discovered that it was impossible to juggle customer interaction alongside providing a highly sought after service, and therefore made the decision to outsource to a third party communications supplier such as Cymphony. As well as learning how to fine tune this relationship to the point of success, they will have put in the research to find the best communication provider out there. This, in turn, allows you to preempt this issue and put the same solutions in place, rather than experiencing the challenge yourself.

 

Easier to Secure Finance

Anybody who has chosen to start a new business needs to have either saved a considerable amount of capital or, more often than not, secured funding from a lender. When opening a new independent business this process can be time-consuming and complex, requiring business plans, forecasts and so on, and rarely result in gaining financial backing. However, when asking for financial help to become a franchisee, lenders are far more likely to invest as they already have an understanding of how well the business is likely to do, meaning less risk for them.

 

Economies of Scale 

Staying on the subject of monetary gains, when you are part of a larger business model you can benefit from economies of scale. In other words, the franchise owner buys in bulk from suppliers on behalf of its branches, meaning that you are able to create higher profit margins. 6 in 10 franchised units turn over more than £250,000 per year, showing just how lucrative this business model can be.

 

Lower Upfront Costs

As well as being able to save money throughout the lifetime of your business, as a result of being a franchisee, you can also make significant savings in the initial stages of setting up your business. This is thanks to the fact that the franchise owner will have existing arrangements set up with equipment and product suppliers that you will be able to utilise. Furthermore, they will have invested considerable research into things like territories which you will also be able to benefit from as they will want you to be as profitable as possible.

As you can see, there is a a great multitude of benefits to choosing to start your business journey with the opening of a franchise. Not only do you have a the security of being able to build on an already existing and successful brand, you also get to benefit from their network, marketing strategies and customer base. Furthermore, you benefit from training and ongoing business support, as well as the financial benefits of being a franchisee. Is it time to become your own boss without the risk?

Next week we will be building on the topic of franchising by exploring the main priorities of franchisees, and how they can wear their many hats successfully.

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