Why choose a franchise when opening a business

Before opening my own business it was a difficult decision of whether I should start a business from scratch, or look to invest in a franchise. By Liam Armstrong

Opening a new business is never easy. But, choosing a franchise when opening a business can make it easier. Self-employment has hit its biggest rise to date in the UK. In 2001 3.3 million people were registered as self-employed, now it has hit a staggering 4.8 million (this is according to the office of national statistics). Being self-employed brings many positive rewards, the key drivers being flexibility and financial stability, alongside a better quality of life.

The benefits of owning your own business can be appealing but building a business is never as easy as it seems. By choosing a franchise when opening a business, will take a little weight off your shoulders, making it easier for you. Franchising offers to help with the achievements of your dreams, without doing so alone. Franchising is becoming increasingly popular among aspiring business owners. Statistics show franchise-owned businesses have increased by 14% in the last 2 years.

Franchises have been tried and tested over many years resulting in higher success rates. Keep in mind that there are never any guarantees that your business will be a success when you first start. However, a franchise provides an effective “blue-print” for a successful business. However, do not join a franchise without finding out key details first, as they will give a little insight about the franchise and how successful it is. Always consider how long the franchise has been operating for and how financially strong the company is.

There are many great advantages of joining a franchise, many have been mentioned above, one of the main advantages that is the most enticing to new and upcoming business owners is that you have the independence of being a business owner without being alone. Franchises typically offer training, guidance and support to help build your business. How supportive franchises are differs, some are ultra supportive and some not. Most Franchises offer support in different areas, such as, marketing, IT and operations.

With the amount of budding entrepreneurs in the UK, almost half a million new start-ups launched each year. However, within the first year of business 8 out of 10 businesses fail. Often due to poor planning, support and unrealistic goals. In comparison to franchises, who have a higher success rate of 90%. This all ties back with the success being due to tried and tested schemes. With the correct support from a reputable franchise, alongside self-motivation and drive to succeed, your business could be within the 90% success rate. 

Franchised businesses typically expand quicker than company-run business, this again leads to the higher success rate. Franchising typically generates increased sales performance.