Why Franchising Works For All Kinds Of ‘Preneurs.'
The word entrepreneur is used almost synonymously with business owner in the world of franchising, but what does it actually mean? Well, the word was first created by a French economist Jean-Baptiste Say in the 1700’s, and is actually translated as ‘adventurer’. In today’s world, an entrepreneur is used to describe a person who starts a new business venture.
But, starting a business is not enough to be considered an entrepreneur. While it's true that every entrepreneur is a business owner, not every business owner is an entrepreneur. To have the title of entrepreneur bestowed upon you, you're expected to have a talent for recognising opportunities and then turning these opportunities into a profit.
So, it’s understandable why franchisors and franchisees are often referred to as entrepreneurs. The franchisor expands their business using the capital of its franchisees to fund growth that could not be achieved alone, and a franchisee benefits from a tried and tested franchise business model rather than starting a business from scratch. Fair to say, both of these types of entrepreneurs see the opportunity in franchising and make a profit from it.
But in recent years, there’s been an explosion of all other kinds of ‘preneurs’. Here are just a few and why franchising could be right for them.
As the name suggests, mumpreneurs are entrepreneurial women who have children under the age of 18. These inspirational women juggle being a full-time mother with owning a business. And they make a significant contribution to the economy too. By 2025, working mothers are projected to generate £9.5bn to the UK economy.
For many mumpreneurs, the flexibility that franchising offers is the main appeal. As well as being able to run a home-based or part-time franchise, being their own boss is also immensely satisfying. For this reason, more and more women are turning their back on their corporate careers, and are seeking the best franchises to own to meet their needs.
Being a franchisee enables many mumpreneurs to save money on childcare, spend more time with their family and achieve financial independence. It also helps women to accomplish a healthy work/life balance meaning that it's not just female franchisees that benefit from the franchise business model, but their families too.
A teenpreneur, or a young aspiring entrepreneur, start their careers early and recognise that franchising offers a less risky route to business ownership. According to a 2016 Franchise Direct survey, only 22% of franchisees are under the age of 35, which means there’s plenty of opportunities for younger franchisees to fill a gap in the market.
The franchise business model is actually very well suited to the younger generation. Because they are less likely to have extensive work experience, they will have picked up fewer ‘bad habits' and will find it easier to adhere to the rules of the franchise system. They are also used to learning and taking tests, so the training that is a big part of franchising will come easily to them. Finally, youth have enthusiasm by the bucket load and being passionate about starting a business means that they will be more dedicated and committed to making it a success.
It’s important to remember though, that this enthusiasm should not get in the way of performing due diligence to make sure that the franchise opportunity is one of the best franchises to own for a young entrepreneur. Considering a part-time franchise is also a good idea so that the teenpreneur can start small, learn on the job and increase the size of the business and commitment required to move to a full-time franchise as their confidence grows.
Increasing numbers of older people are deciding to go it alone and set up their own businesses with many seeing starting a franchise as an alternative to retirement. And with good reason. Age UK carried out research which found that more than 70% of businesses started by people over 50 survive for at least five years; compared to only 28% of those initiated by the younger generation.
The secret to the success of the olderpreneur is that they’re likely to have many years of work experience. This often means that they have more business skills, knowledge and contacts to draw on. They may also have the confidence to get them through the challenging times that a franchisee of the younger generation may not yet possess.
Finding the best franchises to own may also be more achievable for someone who is potentially retired or been made redundant in later life. They can use a combination of savings and redundancy payments to invest in their dream of becoming a business owner.
Making this dream a reality may help explain why older entrepreneurs tend to be more successful than those starting out younger. They have worked hard all their lives and so have a strong work ethic and appreciate the freedom and flexibility that being a franchisee can bring.
Not all entrepreneurs have ambitions of creating the biggest of businesses. A solopreneur is content with owning and operating their own business without the support of an army of employees.
This doesn't make them any less of an entrepreneur, and the franchise industry is full of home-based and part-time franchise opportunities that are ideally suited to this type of entrepreneur. Being able to limit their workload so that they can complete everything themselves without the assistance of others can be very empowering.
It also offers the chance to build a business around other commitments. As a solopreneur running a smaller sized company, they are more likely to be able to enjoy the benefits of being a franchisee, without jeopardising precious time with family, friends and loved ones.
The Editorial Team, Point Franchise ©
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