The franchising industry is thriving and expanding, welcoming people from all walks of life, of all ages. If you’re interested in becoming a franchisee, there’s a suitable opportunity out there for you. Here’s the four key reasons why you’re never too young to become a franchisee.
Many younger adults have the drive and determination to start their own business, but are fearful of the risks that come with business ownership, or don’t have the financial means to start from scratch. As a franchisee, your risk level will be considerably diminished, and your likelihood of seeing a profit will be much higher.
Who can start a franchise?
Who can be a franchisee? Anyone, young or old. In 2018, a substantial 18% of all franchisees were under the age of 30 [British Franchise Association], and this figure is on the rise. As a franchisee, you’ll be able to sidestep some common career obstacles such as lack of experience, as you’ll be given comprehensive expert training and support in your role. If you’re interested in building a fulfilling career early in your life, franchising might be the perfect fit.
Take your time, don’t let yourself be talked into anything you’re not 100% sure of and know your own strengths and weaknesses. I’m amazed more people don’t know about the opportunities out there, although hands off Wilkins Chimney Sweep Guildford, it’s mine!
—Pierre Goodwin, 23, the youngest Wilkins Chimney Sweep franchisee
Four reasons why you’re never too young to start a franchise
1. Your experience and qualification levels will matter less than your transferable skills and traits in the world of franchising
As a franchisee, you can use your transferable skills to capitalise on growing demand. Without sector-specific experience, you can thrive, thanks to a combination of your existing abilities and the training and support you’ll receive in return for your investment with a franchise operation. You’ll have so many chances, working with a franchisor, to learn and grow, following a proven business model all the way to success.
Failure rates among franchisees are low, with only 1% of franchises closing due to commercial failure in 2018 [British Franchise Association]. With the right traits, you can learn the rest. The skills and personality traits of the ideal franchisee would include:
- Reliability
- Leadership
- Communication
- Good judgment
- Willingness to learn
- Willingness to follow a proven business model
- Willingness to work hard
- Patience
- Passion for the sector
- Enjoys networking
- Financial awareness and business acumen
- Willingness to delegate
- Willingness to make use of available help and resources
>> Read more:
- 5 Advantages of Franchising for Young People
- 9 Things to Know Before Becoming a Franchisee
- Mythbusters: Common Misconceptions About What Makes a Successful Franchisee
- 5 Great Reasons to Become a Franchisee
- Franchising 101: Are You Ready to Become a Franchisee?
- Franchising 101: 6 Things to Know Before Becoming a Franchisee
2. You’ll be taking fewer risks with your money, and you’ll be able to access funding via multiple different channels
Starting your own business from scratch can be difficult, especially for young entrepreneurs, as it’s a costly process, and things can begin to add up very quickly. Though in franchising, an initial investment is required, and monthly fees might be deducted from revenue, the risk of financial loss is far lower, low-cost investment options are available, and you may well be able to secure funding support.
The size of your initial investment will depend on many factors, including the size of the franchise you’ve chosen to invest in, the name of the franchise, the location of the franchise, and the sector in which the franchise is operating. On average, however, the cost of establishing a franchise unit in the UK is £42,400 [British Franchise Association].
If you don’t have enough to make an outright investment, you can secure funding via traditional and non-traditional sources. Traditionally, most leading banks within the UK will loan you between 50-70% of start-up costs, providing you have a good credit history and the franchise you’re joining has been vetted. Non-traditionally, you could look at the different schemes available, including sector-specific opportunities and the government’s Start-Up Loans Scheme. Unlike a bank loan, this Scheme provides a 100% loan of up to £25,000, payable in up to five years.
3. You’ll receive a comprehensive training programme when you invest, along with ongoing training and support throughout your time as a franchisee
As touched upon in point one, you’ll receive high-quality training and support as a franchisee. Your franchisor will ensure that you have all the knowledge you need in order to succeed. To understand the specifics of what you’ll receive, which will of course differ from franchise to franchise, you can:
- ails within your franchise agreement
- Ask your franchisor
- Look for det
- Speak with existing franchisees to get a sense of what they’ve been offered
Generally speaking, your post-investment training and support will consist of help with the initial set-up, an onboarding training programme and support with advertising and marketing. On an ongoing basis, you’ll then be offered support when you need it, in the form of invitations to business events, access to expert help, and regular franchisor visits to your site.
Youth entrepreneurship creates decent work for young people, strengthens communities and drives inclusive economic growth.
—Youth Business International
4. You’ll have room to grow and develop with time, expanding your reach as your confidence expands
One of the best things about franchising is just how much room there is in the model to grow and expand. You could start out as a single-unit franchisee and then go on an exciting career journey that ends with ownership of multiple franchise units, or even with a step up into the world of master franchising.
As a young person, you’re likely changing and developing at a rapid pace, and you’ll want a career that can keep up with your personal growth and increasing confidence. As a franchisee, you can build your own career and shape your own adventure. You can carve out your own path, rather than following a predetermined one.
>> Read more:
- 5 Tips for Developing Your Employees into Future Franchisees
- Being a Successful Franchisee Means Adopting an Entrepreneur Mindset
- 7 Common Habits of Successful Franchisees
- Mythbusters: Common Misconceptions About What Makes a Successful Franchisee
- Five Tips for Boosting Your Self-Confidence as a Business Owner
- Traits of an entrepreneur
Running a franchise as a young franchisee can be incredibly rewarding
Now you know. If you’ve got the drive, and the willingness to learn and work hard, you’re never too young for franchising. Hopefully, this article has given you the confidence to start your existing journey. Become one of the new faces of franchising with a rewarding career in the industry.
Lily Sweeney, Point Franchise ©
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