Starting a business is both exciting and daunting, especially if you’re building a brand from scratch.
That’s where franchising comes in. Becoming a franchise owner is an incredible opportunity to run your own business with the backing of an established brand.
This is just one of many benefits to owning a franchise.
What are the advantages of a franchise business?
Buying a franchise business is an attractive proposition for many reasons. Here are some of the biggest advantages:
1. Higher Success Rate
Franchising is one of the safest ways to run your own business. Why? Because as a franchisee you are buying a proven business model that is often cheaper than starting an independent business, and usually includes marketing support. This offers franchisees a level of security that sole traders simply don’t have.
Sadly, one in five sole traders go bust in their first year and around 60% fail within five years. Compare that to research from the British Franchise Association which suggests 93% of franchisees are profitable while less than 1% close per year due to commercial failure, and it’s clear that reduced risk of failure is a major advantage of owning a franchise business.
2. Easier Access to Finance
Banks are often receptive to funding franchises because they are considered a safer option than a start-up business. An established franchisor may even help its franchisees secure finance and have very close relationships with chosen banks.
The annual NatWest/BFA survey suggests that franchisees of well structured franchised networks are five times more likely to stay in business over a given period than independent start-ups.
“Franchisees of a well structured, relatively proven franchise that is also a member of the BFA are often welcomed by the banks because they represent a much safer lending proposition.”
Brian Duckett, Former chairman of The Franchising Centre
3. Ongoing Business Support
As a franchisee you will benefit from the invaluable assistance of an industry expert and all the support which comes with that.
At Just Shutters, this includes marketing support, product training, your own dedicated webpage, customer management systems, admin training, and general ongoing business support. You will have your own sales kit, a fully branded van, and all the tools and merchandise you need to get selling from day one.
Compare this to small business owners who often have very little support or lack a support team with business acumen, and it’s clear why franchising is such an attractive option for aspiring entrepreneurs.
4. Brand Recognition
Buying a franchise allows you to benefit from the name and identity of an established brand with a proven business model. Operating under a nationally recognised and respected brand is a huge advantage compared to the obscurity of a start-up business. This accelerates local market uptake, boosts business development, and reduces customer acquisition costs.
Imagine starting a trainer company vs. buying a Nike franchise with all the associated benefits of brand recognition. There’s simply no contest here. Customers will be more confident making purchasing decisions with a brand known for reliability and good value.
5. Being Your Own Boss
Being your own boss is an advantage for many reasons. For one, there is a growing body of research suggesting that flexible work is beneficial for your mental health. Having control over when and where you work has been shown to create a more balanced, less stressful working environment, which in turn boosts productivity.
As a franchisee, you will have freedom and flexibility in addition to the support network of an already-successful business. This includes a peer network of fellow franchisees, allowing you to share your challenges and seek advice from others who have been in your shoes. Quite the combo if you ask us.
6. Business Efficiency
As a startup, there is a lot to consider to ensure your business runs smoothly. This includes resource challenges like product procurement, as well as managing your new brand and recruiting the right people.
Franchisees have the advantage of a relationship with an already established business. This can lower the cost of inventory and equipment, and makes forming contracts with external suppliers easier. A franchise business with a recognised name will also have greater recruiting power than an unknown business entity.
We should add that the need to buy stock/inventory will depend on the franchise opportunity. For instance, at Just Shutters, you place customer orders with our factory and everything arrives pre-assembled for you. The customer pays you a deposit when the sale has been agreed and you don’t have to pay for stock in advance. All you have to do is take the window measurements and fit the shutters into customers’ homes. If you can build Ikea furniture, you can run a Just Shutters franchise.
Check out a typical day in the life of a Just Shutters business owner.
7. Opportunities for Growth
Just as with any business, the more successful it is the more valuable it becomes. However, with a franchise the advantages don’t stop there.
Growing your franchise business will be a natural aspiration for you, but it is also in the interests of the franchisor that your business is financially healthy.
On top of this, good franchisors are always looking at what’s around the corner. This includes a keen eye on new technology and R&D, industry trends, and new business opportunities which can add significant value. In doing so, the franchisor creates equity for the franchisee by increasing the resale value.
8. Flexible Entry Levels
Most franchise opportunities will include a range of investment packages. This means you can operate within your financial means, starting small if you need to before expanding.
For example, we offer four franchise packages depending on the scale of your goals, budget level, and size of territory you want to occupy. Our entry level package starts from £17,550 + VAT and is based on one person working from home with a van in a designated territory.
We could use this from the brochure but maybe change the title from ‘Year Three Projections’ to ‘Franchise Packages vs. Potential Returns’. Also add in the ‘+VAT’ after the investment costs.
9. Market Expertise
As a franchisee you will benefit from the invaluable assistance of an industry expert. Franchisors who have been running their business for many years will have bucket loads of marketing knowledge and expertise to share with you. This allows you to hit the ground running and have confidence in the future of your new business.
Our founder Chris Rocker started the Just Shutters retail business in 2006 before creating the franchise model in 2009. Just Shutters has grown steadily over the past 15 years and now there is a Just Shutters franchise covering over 150 towns and cities in the UK. Check availability in your area today.
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So there you have it, and these are just some of the many advantages of a franchise business.
Honestly, we could talk to you all day about a Just Shutters franchise. If you are interested and would like to learn more, give us a call on 01202 233744 or email business@justshutters.co.uk.
It could be the best business decision you ever make.