Who can own a franchise?

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Different types of entrepreneurs in franchising

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 French economist Jean-Baptiste Say in the 1700s, and is actually translated as adventurer. In todays world, an entrepreneur is used to describe a person who starts a new business venture.

Franchising and entrepreneurship

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, its understandable why franchisors and franchisees are often referred to as entrepreneurs. The franchisor expands their business using the capital of their 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. Its fair to say that both of these types of entrepreneurs see the opportunity in franchising and make a profit from it.

But in recent years, theres been an explosion of all other kinds of preneurs. Here are just a few and why franchising could be right for them.

Who can own a franchise?

Mumpreneur

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 for 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 your 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 suit their individual circumstances.

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.

Teenpreneur

A teenpreneur, or a young, aspiring entrepreneur, starts their career early and recognises that franchising offers a less risky route to business ownership. According to a 2016 Franchise Direct survey, only 22 percent of franchisees are under the age of 35, which means there are 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 bucketload and being passionate about starting a business means that they will be more dedicated and committed to making it a success.

Its 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.

Olderpreneur

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 percent of businesses started by people over 50 survive for at least five years, compared to only 28 percent of those initiated by the younger generation.

The secret to the success of the olderpreneur is that theyre 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 has 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.

Solopreneur

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 small 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.

So, as you can see, many different types of entrepreneurs can own a franchise. There is an abundance of benefits to taking the franchise route to business ownership that make it an attractive opportunity for mums, teenagers, the older generation and individuals.

We mentioned that solopreneurs are well suited to home-based and part-time franchise opportunities. Lets now take a look at home-based businesses in more detail, why you should start one and examples in our franchise network.

Home-based franchise

Why start a home-based franchise?

  1. Flexibility. Being your own boss doesnt always mean you can decide your schedule, especially in the early stages. For instance, if you operate a premises-based business you will have to open in times that are suitable for the customer. Until you are at the stage where you can hire a manger to be there at crucial times, your flexibility will be limited. When you operate a home-based business, you are free to run errands and attend appointments in the day, as you are able to make up for it in the evening. However, for your business to be successful, its a good idea to set a working day and keep to it. You can make running a home-based franchise work around your lifestyle. However, without being committed to your role and putting in enough hours, your business wont reach its full potential and could even fail.
  2. Fewer start-up costs and overheads. Working from home is considerably cheaper than renting a retail or office unit. With a home-based business, your main cost will be your utilities that are already part of your monthly outgoing costs. As well as saving money with lower start-up costs and working capital, operating a home-based business means you will save in areas like parking, fuel, train tickets etc.
  3. No dreaded commute. Whilst this might not always be an issue if you live a short walk or cycle from the office, for many, the commute to and from work is something they find stressful and a waste of valuable time. Apart from when you have to travel to events or meetings, the only daily work commute youll have to do is walking within your house. Its been found that not travelling to and from work gives people an extra two hours in their day, so you can spend your extra time on developing your business.
  4. Healthier work/life balance. Home-based businesses are a popular choice for parents with small children. You are free to take them and pick them up from school, which you might not have time for if running a premise-based business. Being able to be present at mealtimes, help them with their homework, attend school plays etc. should promote healthier and happier familial relationships. Then, you can put a couple more office hours in when the kids are in bed if you need to.

Remember

Working from home isnt suitable for every type of entrepreneur; you need to extremely organised, self-motived and ambitious. But if you think that you are dedicated enough to your business success and growth that you can enjoy freedom and flexibility of working from home, then why not go for it?

Top 3 home-based business ideas:

1. Tutoring franchise
2. Vending machine franchise
3. Consulting franchise

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