Buy a franchise and you’re more likely to stay in business too
Thinking about starting out in business, but nervous of the outcome? Don’t worry, you’re not alone. It’s perfectly normal to be worried when venturing into the unknown. Do take comfort in the fact that millions have gone before you, though. And that millions have succeeded too. But if you want to allay your fears even further, you should consider buying a franchise. Statistically, it’s the safest way to get into business for yourself. More importantly still, with a franchise you’re far more likely to stay in business for years to come.
The latest findings from a report commissioned by the British Franchise Association and NatWest prove that the franchise industry is in rude health. It’s an industry that generates £17.2billion to the UK economy and employs 710,000 people – up 14% in the last three years. The stand out numbers, though, are in the sustainability and long-term success of franchised businesses. An impressive 93% of franchisees claimed profitability in 2018, while just 1% close due to commercial failure. Compare that with the number of start-ups and independent businesses that fail – widely reported at 50 percent or more – and you can see why franchising is a far safer way to get into business.
Find out for yourself by visiting The International Franchise Show in London this week.
You get a head start when buying a franchise
So why is franchising so successful in comparison to starting a new business from scratch? There are several factors to take into account, but one of the most important is the speed in which franchisees gain traction from the outset. With a franchise you are fast-tracked through a programme that, when executed properly, gives you a real head start. Independent new businesses, on the other hand, often fail because they hit too many roadblocks in the early days. With a franchise, these hurdles have been overcome by both the franchisor, and those other franchisees, that have gone before you.
Franchising is safer because you have a model to follow
With a franchise you’re tapping into everything that has gone on before you joined. There will have been initial market research followed by more detailed product or service testing. That would have then led to pilot operations – possibly with both successes and failures – which resulted in positive adjustments being made. Then there’s ongoing research and development by the franchisor, with more measures taken to fine-tune a business system. All of which means that, when you come along as a new franchisee, you have a proven model to follow. Stick to it and you tread a well-worn, and ultimately, safer path into business for yourself.
You’re more likely to stay in business because you have support
Once you’ve started your new franchise, you won’t just be tapping into what’s gone on before you, you’ll also benefit from everybody around you. Whether that’s the franchisor or their support staff, you’ll have a wealth of guidance at your fingertips. Just as importantly, though, is the network of fellow franchisees you have around you too. To have like-minded peers – who aren’t your competition but are there to support you – is something that’s quite unique to franchising and another reason why it’s a safe way to get into business. There’s a well-known saying that states: ‘as a franchisee you’re in business for yourself, but not by yourself.’ Removing the isolation and so many of the risks associated with going it alone, there’s no doubt that franchises have the edge over fledgling start-ups.
How to find the right franchise for you
Choosing a franchise from 1,000-or-so systems in the UK might seem quite daunting. But there are a few simple tips to help you make the right decision. Taking a look at your finances, your skills and your expectations for the future are key ingredients. Getting the support of your family is absolutely essential. Visiting one of the many franchise exhibitions held throughout the UK will give you a valuable insight into the industry. Or there are plenty of helpful articles on Daltons Business, including this one that shows you how to buy a franchise business. Franchising is the safest way to get into business for yourself. But make sure you choose the right opportunity for you as, statistically, you’re more likely to make it work and be in that business for years to come!
Remember, The International Franchise Show in London opens at Excel, London this week.