If you’re looking into running a franchise, you’ve likely come across the term ‘B2B’. A B2B franchise is a business that provides services to other businesses and companies. These services can vary greatly, from IT support to commercial cleaning to marketing and signage. Read on, and discover all you need to know in order to jump into an investment and start your own B2B franchise.
Two of the most common terms you’ll come across in franchising are ‘B2B’ (which has been defined above) and ‘B2C’ (which means the opposite of the above - business to customer, rather than business to business). If you think you could thrive running a B2B franchise, you’re in the right place. This article will reveal what B2B businesses do, will explain how you can start one AND will offer you some examples of thriving B2B franchise networks. Who could ask for more?
What does a B2B business do?
As touched upon already, a B2B business works exclusively with other businesses/commercial entities. One company (your franchise) provides services to another company. If you’re interested in working B2B, that might mean producing and selling corporate merchandise with Recognition Express, or offering business consultancy services with Chrysalis Partners, or anything in between.
In short, the world of B2B franchising is vast and diverse though these investment opportunities all happen to fall under the same umbrella term. This means you’re highly likely to find the perfect investment option for you, but it also means you’ll need to do your research because your choices are many and various. Keep reading, and kickstart that research process now...
How to start a B2B franchise
1. Assess your skills and qualifications
The specifics of this step will largely depend on the type of B2B franchise you’re interested in running. As you can imagine, the skills and potential qualifications you’ll need in order to provide coaching services to businesses and managers will be different from the skills and potential qualifications you’ll need in order to provide estate agencies with signage services.
That said, you should note that in many cases, you won’t need prior industry experience in order to become a franchisee. You’ll instead need the transferable soft skills considered desirable by the franchise that you’d like to invest with. Usually, these skills will include traits such as resilience, time management, confidence and the ability to provide excellent customer service.
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2. Carefully consider costs
Having matched up your skills to the preferred skills of the franchise opportunities that interest you, it’ll then be time to carefully consider your financial situation (and the financial requirements of your narrowed-down list of potential investments). The average cost of starting a franchise, as of 2018, was £42,200 [British Franchise Association], but this figure can vary greatly depending on factors like industry of investment, type of franchise business and recognisability of attached brand name. Here are a few examples of costs associated with B2B franchise investments, to give you a better idea of what you’re working with:
- Business Sales Plus - You can become a Business Sales Plus franchisee for a minimum initial investment of £15,000.
- Minuteman Press - You can become a Minuteman Press franchisee for a minimum initial investment of £25,000, with a total investment cost of £50,000 and a royalty fee capped at 6%.
- Countrywide Signs - You can become a Countrywide Signs franchisee for a minimum initial investment of £10,000, with franchise fees of £22,950 and a total investment cost of £35,000.
3. Do your due diligence
Before you sign on the dotted line of a franchise agreement and fully commit to an investment, take the time to ensure you’ve done your due diligence. This means fully assessing a franchise opportunity, reviewing the franchise’s FDD, speaking with the franchisor and speaking with existing franchisees about their experiences. Do your due diligence, and you can be sure you get what you pay for when you invest - rather than an unknown quantity.
Potential franchisees need to know what they are committing to before they decide to buy a franchise. This homework is known as due diligence. It is the process of ensuring that investors get what they think they are buying - and that what they buy is actually worth what they pay.
- Lorelle Frazer and Jenny Buchan, The Conversation
Franchise opportunities in the B2B sector
eDivert is a B2B marketing franchise offering administrative support, customer service support and marketing support to companies up and down the UK. eDivert offers franchisees two different scaleable packages dependent on budget and ambition.
- Becoming an eDivert franchisee: Previous experience in customer service, sales, marketing or administration would be helpful. You should also be dedicated, passionate, driven and eager to learn.
- How much you need to invest: You’ll need to make a minimum initial investment of £9,500, with a total investment cost of £11,400.
- What you get for your investment: You’ll be able to work flexibly, and you’ll be onboarded via a programme of expert, personalised training, followed by access to plenty of ongoing franchisor support.
FASTSIGNS was first established in Dallas in 1985. The signage and communications franchise came to the UK in 1992, continues to offer a huge range of options to its customers, and has now opened over 675 centres in 10 countries across the globe.
- Becoming a FASTSIGNS franchisee: You don’t need any prior industry experience, but you will need an excellent work ethic, an understanding of what makes a successful team, and plenty of enthusiasm for the role.
- How much you need to invest: You’ll need to make a minimum initial investment of £36,000, with franchise fees of £21,000 and a total investment cost of £120,000.
- What you get for your investment: You’ll receive industry-leading training and pre-opening support. You’ll then have access to a mentoring programme, outside sales support and a dedicated business consultant.
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HOODZ is a specialist company that provides commercial clients with kitchen exhaust system cleaning services. Founded in the USA, HOODZ is now expanding into the UK and making a name for its world-class services across the pond.
- Becoming a HOODZ franchisee: You don’t need industry experience, but you do need communication skills, sales skills, confidence and passion for the work you’ll be conducting with HOODZ.
- How much you need to invest: You’ll need to make a minimum initial investment of £40,000, with franchise fees of £25,000 and a total investment cost of £57,736.
- What you get for your investment: You’ll receive two days of BESA training, eight days in the classroom, four days on the job and as much ongoing training and support as you need.
Become a franchisee today and find success running a B2B business
There are so many different advantages to starting a B2B franchise, and so many different options within the sector. If you know you’d love to work with other companies and commercial entities in some capacity, running your own business that works B2B is likely just your cup of tea. Browse Point Franchise’s full range of B2B franchise investment opportunities, and you’re sure to find your perfect fit in no time.
Lily Sweeney, Point Franchise ©