How Start-Up Businesses Can Benefit from a Franchise

by Startacus Admin

Entrepreneurs and start-ups enjoyed a record year in the UK for 2017, as there were more start-ups in that year than any year previously. Now, what's also interesting is the fact that there were no signs of this slowing down and if the numbers are correct, 2018 could be another record-breaking year for start-ups.

What this says is that people are feeling confident when it comes to opening their own businesses and taking the plunge, but confidence isn’t enough to guarantee success. Success is based on all kinds of factors that can also ebb and flow over time. For those looking to start a business of their own in 2018, a franchise may just be the way to go.

Again, this is another area where the UK is seeing growth, and franchises have proven to be recession proof. In the last four years alone, the UK franchise industry has enjoyed growth of 10%, which amounts to more than £15 billion pounds.

So, how exactly can you benefit from a franchise as a start-up business? Why would it make sense to go this route?

Let’s examine it a little closer...

Limit the Amount of Risk You Take On

It’s no secret that many new start-ups end up failing within the first couple of years. There are all kinds of reasons a business may not end up succeeding and ultimately fails, but the fact remains it’s tough to be an entrepreneur. If you’re looking for a way to at least limit the amount of risk you take on, then a franchise can be a great solution.

Branching out

If you’re the type that wants to do more than just own one business and you see yourself branching out into other avenues, such as property investment, then you need to know what it is that you will need to do. Taking courses on property investment, so you want to know you'll have the time, focus, and cash available to take it on, if this is an option, could be a good idea. With a franchise, you can find that many of the typical startup burdens can be lifted off your shoulders, which means you’ve got the ability to branch out into other business opportunities. 

The Branding is Taken Care Of

A big obstacle that start-up businesses face is creating their own brand and image, and then relaying that brand to the public. It's hard to start from scratch, make a name for yourself, create a loyal customer following, and earn trust.

When you opt for a franchise, the branding has already been taken care of either on a local or a national level. People will already be familiar with the company and its products and services, making it much easier for you to hit the ground running. Sure, you will still have to build your customer base, but you’ll be starting with that advantage.

You've Got Support Along the Way

Another issue that start-ups can face is that they need operational support either in those first few months or on a regular basis. When you purchase a franchise, operational support comes along with it. The franchise company has staff who look after all the support, providing you with the help you need when you need it. For many people, it’s a great way to own your own business, do your own thing, but not feel alone in the process.

What About Staff Training?

Most people are aware of just how important it is to find the right staff who can literally make or break the success of your company. With that said, finding the right staff isn’t enough; they also need to be provided with the correct kind of training.

This is where the franchise company comes in handy again. They have set training programs that will be put in place to ensure that your staff gets all the training they need to help the business succeed. Training can also include the distribution of training manuals and guides.

No Need to Build Your Purchasing Power

One of the struggles that new start-ups face is trying to build their purchasing power. A strong purchasing power means you'll be able to secure the best prices and deals from vendors and suppliers.

As a new start-up, you won’t yet have any sort of reputation or guarantee in the vendors’ and suppliers’ eyes, but if you are a franchise, then you’ve got instant purchasing power. This means you can start saving money right from the start and negotiating deals that work for you.

What Can be a Less Risky Option

At the end of the day, opting to buy a franchise as your own business can eliminate or at the very least help reduce many of the risks involved with a start-up. What this means is that it may just be the best solution that will help you achieve your goals.

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Published on: 28th June 2018