As a franchisee, what would you do if you didn’t have to worry about money – expand the business, invest in other profit-making strategies or simply take more holidays?
As threats come at business owners from all angles, in every shape and size, it’s imperative for them to have multiple income streams to increase their chances of success. Then, in the event that one of those streams gets compromised, it’s much simpler to shift focus to alternative streams to maintain a sustainable level of income.
With many businesses introducing new ways to generate income, here’s my advice on why this element should be a key consideration for prospective franchisees.
Just like we’ve seen with the COVID-19 pandemic, there’s no prediction for when something can come along and impact our business. What savvy entrepreneurs can do, however, is be clever with their choices. There are many reasons why a franchise with multiple income streams is advantageous for franchisees – not just for survival, but growth too.
1. Less risk, more control
Your business will be less exposed to financial risk. When there’s more than one strategy for generating income – customers buying in-store, online and by phone – the ability to change tack quickly is much more achievable, meaning you can continue booking in business through other methods should one come under threat.
2. Tried-and-tested markets
Before the model was established, the service was tried and tested by the franchisor with a pilot franchise. This will have allowed them to create an operations manual, much like the one you receive when you purchase the latest tech gadget. This comprehensive guide on how to operate your franchise, along with your initial training programme, will outline the best possible people or businesses to direct your marketing budget towards.
At PACK & SEND, we’ve committed to building lasting relationships with specific markets to ensure our franchisees have similar opportunities to create connections too – for example, we have created bespoke logistics solutions for airlines, hotel chains, hostels, auction houses and museums, assisting them in servicing their customers. We focus on these major players so franchisees don’t have to, giving them various potential income streams at their fingertips.
3. Increased flexibility
Once the business is established, many franchise models encourage franchisees to employ a manager, allowing them to enjoy the freedom of not having to be too heavily involved in the day-to-day operations. Whether this means taking time out or concentrating your energy into other aspects such as scaling up the business or expanding into a neighbouring territory, you will have the flexibility to do such things. With your business operating in the background, if you’re looking to reduce your time spent in the business, you’ll have even more confidence that it’s producing an income that helps you live your desired lifestyle.
4. Room to grow
There’s no limit to the number of income streams you can have. Franchisors will equip you with the tools, systems and support that allow you to approach their ‘typical’ customers but it’s then up to you whether you want to branch out further. If you identify a local niche and you’re not sure whether it will be profitable, you have your franchisor and your network of fellow franchisees to talk it through with. Each territory is different, with varying customer and business demographics, so search for potential opportunities within your area and work in tandem with your franchisor to maximise your business potential.
What would you do if you didn’t have to worry about money – expand the business, invest in other profit-making strategies or simply take more holidays? Whatever it is, the benefits of investing in a franchise that offers multiple income streams from various markets are undeniable for any prospective franchisee.
Mike Ryan is the UK CEO of global logistics franchise PACK & SEND.