The beginning of a new year and a new decade is also a time of new opportunities. Among the most attractive is the opportunity to run your own business in 2021. Franchising has proven to be one of the best ways to achieve this goal, with the added benefits of training and support from an experienced franchisor.
Here we consider the numerous benefits of franchising, and how this can be a means for someone to run their own business in 2021.
Four advantages to choosing Franchising
While franchises come in all shapes and sizes, at their core they should all offer the following advantages over setting up on your own:
- A proven business system
A significant reason to buy a franchise is that it reduces the risk of business failure. A good franchisor will have tried, tested and proven the concept. They may have made costly mistakes, learned from them and improved their operations so that these mistakes do not happen again. Research conducted by the British Franchise Association has shown that less than 7% of franchise owners fail within the first three years, compared to over 90% of new business start-ups generally.
2. Training
Good franchisors have effective training programmes designed to teach you how to run the business within a matter of weeks. Often you do not require any previous experience in that field. The franchisor will also provide you with an “Operations Manual” that guides you on how to operate the business on a day-to-day basis.
3. Support
Franchisors often have dedicated members of staff whose role it is to assist you with any challenges you encounter in the running of your business. You are not alone in franchising. The success of a franchisor depends on your success as a franchisee. Therefore, good franchisors will always be happy to support you and pass on their experience. As a franchisee, you are also part of a wider network of franchise owners, and thus are likely to benefit from their support and expertise.
4. Brand
By investing in a franchise you are often investing in a brand that has local, national or even international reach and customer or industry recognition. You will get the benefits of this instantly. You should also get the benefits that come with the purchasing power of a larger organisation and the competitive advantage that this brings. This may even include a number of clients/customers who have signed “national accounts” with the franchisor, which the franchisor needs you to deliver in your local area.
Doing your homework
These are just some of the advantages of buying a franchise over starting up on your own. However you should be aware that all franchise systems are different and some are better than others. Undertaking full diligence is essential when considering acquiring a franchise.
Franchising is not regulated in the UK and the onus is therefore on you, the franchisee, to make sure that you fully understand what the Franchisor is offering and research it thoroughly.