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Franchising vs. entrepreneurship: how to reap the benefits without the added risks

Written by Frank Milner on Monday, 08 November 2021. Posted in Analysis

It’s become somewhat of a well-documented notion that going into franchising is not an example of entrepreneurship.

Franchising vs. entrepreneurship: how to reap the benefits without the added risks

It’s become somewhat of a well-documented notion that going into franchising is not an example of entrepreneurship, and that by removing the risk factor that would be present with a new start-up, you no longer have the right to call yourself a true ‘entrepreneur’. However, the British Library defines an entrepreneur as passionate, innovative, persistent, resourceful, disciplined and prepared to take risks. It is because of these characteristics that I strongly believe you can maintain your entrepreneurial flair in the franchising world, and in fact entrepreneurs can flourish when operating in a franchise model.

Success for franchisees is only possible so long as the characteristics that define an entrepreneur are displayed. Franchisees have taken the risk of buying into a franchise because they are looking for the challenge of running their own business and are ready to embrace the demands and responsibilities that that involves. But what sets successful franchisees apart from their unsuccessful counterparts is the passion, determination, discipline, and organisation they instil into the operations of their business. And that’s what often gets forgotten; franchisees are absolutely still business owners, and they have committed a large financial sum to achieve their dream. The only difference is franchisees buy into an existing, proven brand with a trusted business model. 

Franchising can place motivated individuals with a strong business acumen in a position where they can reap all the benefits of starting a new business, without the added uncertainty. And there are further significant advantages to franchising, including: 

Capital gains

Franchising offers access to capital and traction that small businesses often never achieve. By using the resources of the network around an entrepreneur, they can grow their business organically with the added help from existing previous success. 

Increased profitability

Because of the organisational setup in the business and with the security of operating within a proven business model, franchises have the potential to achieve higher profits and make a return on investment much faster.

Recognised brand name and reputation

By its very nature, franchising reduces the risk for entrepreneurs. By investing in an established brand, with a good reputation, entrepreneurs have the security of a proven business model in their venture.  

Network support

Unlike when starting your own business, investing in a franchise gives you access to a wide network of industry professionals who have been in the exact same position. Being able to network and work closely with these people puts franchisees at an immediate advantage in moving their business forward as they are able to benefit from the advice and support given.

Leaner, more streamlined organisation

Since franchisees assume many of the responsibilities, there is still space for entrepreneurship to play a huge role in the success, innovation, and growth of the business. 

In fact, it is this entrepreneurial flair from the franchisees in our network that has made Tutor Doctor the successful brand it is today. It’s not uncommon for entrepreneurs to make the move from independent businesses to owning their own franchise. Many of our most successful Tutor Doctor franchisees have come from an entrepreneurial background and regularly contribute to streamlining and improving our own operations. From David Boddy at Tutor Doctor London Central and Southwest, to Rob Kerrison at Tutor Doctor Cambridge, our network is decorated with entrepreneurs from a diverse range of business-orientated backgrounds. 

Franchising gives entrepreneurs a platform so they can flourish and have a better chance at making their business venture a success. While widely believed, it’s a myth that those who go into franchising aren’t true entrepreneurs. Investing in a franchise, while the ‘safer’ option when starting a business, still heavily relies on you possessing the characteristics that make an entrepreneur.

And global businesses like Tutor Doctor in fact rely on the intervention of its franchisees. Through providing our network with the chance to use their abilities, we have been able to innovate, improve and grow. 

Having worked as a stockbroker, built a successful insurance business, acted as a sales coach and then taken on a vice president role at WSI, the digital marketing franchise, Milner has an impressive and varied background in business, franchising, sales and marketing. In his current role as president of Tutor Doctor, the private tutoring franchise, he's seen the company grow globally to include over 700 franchise territories spread across the globe, including the UK.

About the Author

Frank Milner

Frank Milner

Having worked as a stockbroker, built a successful insurance business, acted as a sales coach and then taken on a vice president role at WSI, the digital marketing franchise, Milner has an impressive and varied background in business, franchising, sales, and marketing. In his current role as President of Tutor Doctor, the private tutoring franchise, he's seen the company grow globally to include over 700 franchise territories spread across the globe, including the UK.

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