It’s completely natural to be nervous when it comes to running your own business. But starting a franchise unit can offer you the chance to own a business along with the security you’re after. Here’s why you should conquer your new business fears by starting a franchise unit instead.
A huge proportion of us want to set up our own business – 64 percent of the UK workforce, in fact. And 83 percent of 18-24-year-olds dream of being self-employed. But 43 percent of hopeful entrepreneurs don’t think they’ll ever achieve their goal. So, around two thirds of those who dream of opening their very own business lack the confidence, skills or motivation to actually do so.
Reasons people are afraid to start a business from scratch
What’s stopping potential business owners? We’ve created a whole article dedicated to this conundrum (read our top excuses for not starting a franchise), but here’s a quick rundown of the main points:
- They feel they don’t have the time, energy or motivation to do the high volume of work involved
- They don’t have industry/management experience
- They don’t have enough money
- They don’t know how to launch a marketing campaign
- They’re afraid of failure – not just for them, but for family, friends, employees and investors
Another possible factor is stress. It’s no secret – running your own business can be pretty stressful at times, and a quarter of would-be entrepreneurs are put off by this.
As you can see, there is a whole host of reasons why people are nervous about starting their own business – but don’t throw the baby out with the bathwater. A franchise can give you everything you’re looking for. We’re here to tell you how you can achieve your goals when you start a franchise unit.
>> Read more:
- Franchising 101: The Official Franchise Start Up Checklist (Part 1)
- Franchising 101: The Official Franchise Start Up Checklist (Part 2)
- New Year, New Career: No Better Time Than Now to Start a Franchise Today
- Franchising 101: 8 Signs You're Ready to Start a Franchise
- Starting a New Business Doesn't Always Lead to Immediate Success: Here Are 5 Ways to Change That
- It's Never Too Late to Start a New Business
Why starting a franchise is the solution
1. Much of the hard work has been done for you
The franchise model is often referred to as a ‘turn-key opportunity’. The best franchises will have everything in place ready for you to metaphorically turn the key in the door and start your new business. This saves you a lot of time, money and effort, as you won’t need to develop a business concept from scratch or build the necessary infrastructure for it to be successful.
2. You don't need any previous experience
This is one of the biggest reasons to start a franchise unit. In most cases, you don’t need any experience or expertise; instead, you’ll be enrolled onto a comprehensive training programme when you join. Depending on the company you choose, you'll receive technical training, as well as business-related skills as part of the franchise package. This makes the franchise model ideal for first-time business owners.
What’s more, the support you receive doesn’t stop after you’ve completed the initial training. You’ll have access to advice and guidance throughout your franchising journey, and the chance to refer to the franchisor, their support team and other franchisees when you have a question.
3. Funding a franchise is easier than you think
No matter the type of business you’re setting up, you’ll need to put some money in. Franchises are no different. From the initial fee to buying stock, kitting out your premises and funding ongoing operating costs, you’ll need to be prepared to invest capital. The good news is, there’s plenty of financial support available in the franchising world.
You may have savings or a redundancy pay-out to fund your franchise, but chances are you'll need a loan. When you’re part of a franchise, securing finance isn’t as tricky as you’d think. Many high street banks have specialist franchise departments with experienced staff who can support you as you work through your financial projections. And, as buying a franchise is considered safer than starting an independent business, banks are often happy to lend up to 70 percent of the initial investment cost.
4. You’ll get marketing support from the franchisor
Franchising is all about consistency across the board. Franchisors will want every business unit to promote itself in the same way, so customers can easily identify the brand and know what they’re getting.
For this reason, most franchises have a marketing fund and ask all franchisees to put a percentage of their revenue towards it. The franchisor then organises advertising campaigns on a national or even international level. Unless you’re the first ever franchisee to join the business, you’ll open your doors with a ready-made customer base and some level of brand awareness.
The best franchises will also support you in marketing your branch on a local level. Franchisors can make sure you achieve brand consistency by providing templates and guidelines for any promotional activity you carry out. This saves you time and effort, as you don’t have to develop anything new.
5. Franchising is less risky than starting an independent business
Every business comes with some element of risk – it’s unavoidable. But investing in a brand with a stable and secure franchise system can significantly limit the chances of your business failing. The system will be well-established, and you’ll get support from an experienced franchisor in all aspects of the business, from site selection to operational support, recruitment and marketing. With the backing and support of an industry expert, you’ll be in a great position to achieve your goals.
The success of the franchise industry is clear to see; in the UK, it generates £17 billion, and six in 10 franchise units turn over more than £250,000. Many franchisees are so profitable they’re able to open additional units. 36 percent of investors operate more than one franchise branch.
Advantages of conquering your fears
Don’t say goodbye to your dreams of becoming a business owner – start a franchise unit. Once you’ve done so, you’ll enjoy a wide variety of benefits. As a franchisee…
- You have a large amount of control over the business – You craft your own business plan and work with your franchisor to grow the unit over time. Any employees you hire will look to you as their leader.
- You’ll have financial independence – As a business owner, you can control how much money you bring in by working harder to boost your pay cheque.
- You’ll have control of your timetable – You can open a business with the opportunity to mould your work around your family commitments, so you’ll never miss your child’s nativity play again.
- You may be able to work from home – Many franchises can be operated from the comfort of your sofa, which means you can cut out the commute and improve your work-life balance.
- You’ll get personal fulfilment – No longer stuck in a dead-end, nine till five job, you’ll have the satisfaction of knowing you’re working hard and reaping the benefits. When you reach a business milestone, you can pat yourself on the back and enjoy the feeling of a job well done.
>> Read more:
- Franchising 101: The Complete Guide to Franchise Costs in the UK
- Franchising 101: 6 Top Contributors of Franchise Failure
- Franchising 101: How to Buy a Franchise Business in 10 Steps
- Franchising 101: The Official Franchise Start Up Checklist (Part 1)
- Franchising 101: Top 5 Qualities of a Franchisee
- Franchising 101: 6 Tips for Building Customer Loyalty Through Marketing
- Franchising 101: The Pros and Cons of Franchising Your Business
A franchisee testimonial
Jessica Andrews decided to launch her design and strategy company, Rabbit & Other Stories, back in 2015. Like most entrepreneurs, she was nervous about getting started, but now she’s encouraging other would-be business owners to take the leap.
“I was made redundant from my corporate role in 2015, which prompted me to take the plunge for the and give it a go. I had created a side hustle before, but never gone all in with a full-time biz. My biggest challenges so far have been managing my own imposter syndrome, and the itty bitty shitty committee in my head – mindset is a huge part of entrepreneurship, and managing the feast/famine cycle… The only regret I have is that I didn’t start sooner.”
Starting a franchise unit
Don’t let your fears of starting a new business get in the way of your ambition. Joining a franchise could be the key to running your own successful enterprise without the drawbacks of developing it from scratch.
If you’re ready to take the next step, read our six tips for starting a franchise in the UK.
Alice Tuffery, Point Franchise ©