These are the five big benefits of buying a franchise with a proven concept
Buying a franchise is a big decision for anyone to make and there are a variety of motivators behind this momentous step. The latest British Franchise Association NatWest industry survey revealed that 64 per cent of new franchisees had previously been employed, so the majority had given up their job to invest in a franchise.
Here are five of the key reasons people buy a franchise:
1. Taking control of your destiny
This is often the primary driver of becoming self-employed. The daily commute is getting longer in the UK, with a two-hour daily journey becoming more common. Over time, this can reduce work satisfaction and add to costs.
In addition, as an employee, you may not have a great deal of control over your working environment or priorities. According to a study by AXA Business Insurance, almost eight out of 10 people say that ditching their boss is the main reason why they want to become self-employed, while 64 per cent cite achieving a better work-life balance.
2. Accessing expert training and support
One of the most compelling reasons to buy a franchise instead of starting your own business is the initial and ongoing training provided by a franchisor.
Franchising involves replicating a proven format that enables a new franchisee to learn from others’ mistakes. You should receive full training in how to operate your franchise and also have access to an ongoing programme of tuition and coaching to support you.
3. A greater chance of success
Franchising is a safer route into business than going it alone, with fewer than one per cent of franchise businesses per year closing due to commercial failure and 93 per cent of franchisees claiming profitability, according to the bfa NatWest survey. Not only do you have a tried and tested format and structure to follow, but you’re part of a network of fellow franchisees who will also be able to help you.
4. Making money
Money might not be your primary motivator for investing in a franchise, as a better lifestyle may be more important to you. However, it’s crucial to understand what you need from your new business and what value you’ll get in return.
You’ll need to be clear about your personal financial needs and ensure your chosen franchise can deliver the income you require.
5. Building an asset
Not everyone thinks about their exit route as they embark on a new venture, but it’s something that should be part of your decision-making process.
One of the benefits of joining an established franchise is having the opportunity to build a business into an asset you can sell when it’s time to retire or move on to something else. Working with your franchisor to grow your franchise and taking advantage of its help with business planning will help you maximise the value of your business.
Cathryn Hayes is franchise director at Revive! Auto Innovations