The franchise industry is growing fast and currently stands at a record high, having increased by 10% in four years. The rapid acceleration and increasing emergence of these franchises demonstrates the success they are having upon not only the economy, but the owners and employees who work for them. Currently, franchises contribute £15.1 billion to the economy and have increased employment in Britain by 70% over the last ten years.
So, what owes to their success?
It has been recorded that banks are more likely to lend money to a startup franchise and in terms of people, 88% were found to enjoy running their own business. Unlike those who start up a company off the back of a single idea, people have found owning a franchise enables them to develop their own business within a proven successful model.
The word franchise no longer only brings to mind major US brands such as McDonalds. Today, there are many options owned by a variety of people. Buying into a franchise is more popular than ever, but as with any business venture, before you do this there are a few vital factors to consider.
Steve Witt, franchise expert, MD and co-founder of The Travel Franchise, offers up five top pieces of advice:
Be prepared to keep up your market research
This isn’t just something to do only when launching a business or first buying into a franchise. Demand constantly changes and so does the competition, so keeping up to date with any deviations is essential. Customers will be quick to find someone else who is offering a better product or service, so staying on top of your game will ensure that success continues.
Consider how your business plan might have to adapt
Franchises succeed when owners keep their ideas fresh and up to date. When you first start or buy into a franchise, your idea might be brilliant at the time, but might not be so relevant a year later, so you need to think about how your business can evolve. Although your original idea might be something you are passionate about, make sure you are comfortable with seeing it change and grow as your business develops.
Most franchises include training and support to their franchisees, if your franchise doesn’t or cannot, then you may need to consider outsourcing. Keeping ongoing support will also be important to your team and employees, increasing the success and profitability of your business.
Think about how you will delegate the workload
Your business might begin because you have a passion for, for example, food, but you might lack expertise in other areas. You might be able to source the best ingredients, but need others to help you deliver the best service. Recognising what you are good at and what you will need help with will get your business off to a good start and allow it to flourish.
Know what has the best potential for you
At the end of the day, you are buying into or starting a franchise to get something out of it for yourself. Knowing what your end goal and ambitions are will help you start out with the right mindset. Selecting the right opportunity that suits your skills and personality gives you a much greater chance of success.