Many aspiring entrepreneurs dream of becoming their own boss, but often find a reason to stop themselves taking the next step. If this sounds all too familiar, in today’s article we address the most common excuses for not starting a franchise and explain why they hold no ground.
Starting a franchise is a big decision and in no means should it be taken lightly. However, if you’ve been considering a career change for some time but keep making excuses for taking the franchise route, we believe that reading this article will completely change your mindset.
Franchises are considered to have a higher success rate than independent start-up businesses and it is often easier to secure finance. In fact, there are countless benefits of starting a franchise, some of which we will now draw on while debunking the eight most common excuses for not giving the go ahead.
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Before we get started, we thought it would be helpful to provide a quick summary of the UK franchise industry. According to the British Franchise Association/2018 NatWest Franchise Survey, franchising employs over 710,000 people in the UK. There are approximately 48,600 franchised units contributing over £17 billion to the economy, which is an increase of 4,400 since 2015. The franchising industry is booming and many entrepreneurs in the UK are choosing the franchise model to reach their ambitious business goals.
Most common (but unfounded) excuses for not starting a franchise
1. I don't know where to start.
If the thought of starting a business from scratch fills you with dread, starting a franchise is a fantastic idea.
When you become a franchisee, a significant amount of the groundwork, preparation and planning has already been done for you. The franchisor will have spent years developing and improving the franchise system so that you don’t have to.
You don’t have to reinvent the wheel. There’s no need to come up with a unique business concept or develop new processes and systems. As a franchisee, you’ll get to be your own boss with the added benefit of being part of an established brand with a proven track record of success. So, franchising is less risky and less stressful – what’s not to love?
2. I can’t afford to buy a franchise.
There are over 900 franchised brands operating in the UK, many of which have low investment costs. Yes, investing in a huge global franchise brand like McDonald’s can be quite costly. However, there is an abundance of franchise opportunites out there that are very affordable.
The good news is that, because many lenders view the franchise business model as much less of a risk than an independent business start-up, it is often much easier to secure funding.
Why not browse the top low-cost franchises to consider in 2020? You might be surprised by how many brilliant franchise brands there are asking for an investment within your price range. You can also have a read of ‘Mythbusters: You have to Make a Huge Investment’.
3. I want the security of a monthly pay cheque.
Losing the security of a monthly pay cheque can be scary, but believing in your abilities and proving to yourself that you can do it is incredibly rewarding. By taking a leap of faith, you can have an incredibly profitable career as a franchisee. And, with six in 10 franchise units turning over more than £250,000, you might even wish you’d gone for it sooner.
Franchises are also thought to be more recession-proof than businesses that haven’t adopted the franchise model, as franchisors often have fewer overheads and debts. With today’s economic climate, this added security is more important than ever.
>> 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
4. I don't have the right skills.
Perhaps one of the most significant benefits of becoming a franchisee is that in return for paying the franchise fee, you’ll get access to a comprehensive training programme. For most franchise opportunities, you don’t need any previous experience in the industry you’ve chosen; neither do you need a background in business ownership.
It’s in the franchisor’s best interests that you have all the support you need to become a successful franchisee. Their success relies on your success, so offering an extensive franchise training package is beneficial to them as well as you.
This means that you can invest in a franchise confident that you’ll receive all the technical training and business know-how you’ll need to own and operate your business. Once your initial training is complete, you’ll continue to receive ongoing support as and when you need it. You can draw on their wealth of experience and expertise throughout your franchising journey, not just in the set-up stage.
Read more in ‘Mybusters: You Need to Be an Expert.’
5. It's not the right time.
If you waited for the right time to start your own business, it would probably never happen. You need to be honest with yourself and work out whether a genuine reason drives your excuses for it not being the right time or if it’s just fear setting in.
If you have the necessary funds to become a franchisee and you have the support and backing of your family and friends, then there is nothing holding you back. But whenever you do decide to make your business ownership dreams come true, you need to do your homework. The importance of performing thorough due diligence is key to the success of your new business venture.
If your plans to start a franchise have been knocked back because of the COVID-19 crisis, you might be interested in six reasons why starting a franchise is a smart idea during a recession.
Starting a franchise can be the best decision you ever made
Remember, whatever barriers you envisage on your route to business ownership can appear overwhelming at first, but with a positive attitude and self-confidence, anything is possible.
You need to make franchising work for you and your individual circumstances. If you feel like you can’t afford a franchise, then wait till you are financially stable, conduct thorough research and pick a low-cost franchise opportunity. Or, if you feel like you don’t have the right skills, choose a franchise where you can take more of a managerial role and recruit experts in the field to operate the franchise from day to day.
To continue your reading on this subject, head to ‘Mythbusters: Franchising Isn’t a Legitimate Business Opportunity.’ If you’re still not sure, take a look at five more reasons why investing in a franchise makes solid business sense.
Becky Martin, Point Franchise ©