Franchises in the education sector continue to be popular with investors. With opportunities ranging from owner-operator to multi-unit and management style, there really is something for everyone.
The first point to recognise is the sheer demand for such services: the industry is experiencing record growth – and has been for a number of years. According to the latest IBIS World UK market Research report, turnover figures for the education industry in the UK are currently £122.7bn, with a 2.5% growth forecast over the next five years. A key step in any due diligence process is to assess the heath of the marketplace you intend to enter and its prospects for the future. With statistics like this, it’s safe to say education is a safe bet!
Another reason why it is now, and to be fair, always will be – a great time to invest, is because the need for supplemental education will never go away. Education will always be a constant in our lifetimes and there will always be a demand for it. Increasing numbers of people are recognising the longevity of the industry, the potential for growth and, in many cases, the ability to make a very real difference in children’s lives. Ultimately, it means there will be a steady flow of business, income and satisfaction once your business is up and running.
Battling low unemployment
Unemployment rates in England are at an all-time low – reported at just 3.7% in April 2019. Unlike many other businesses, which are often severely affected and struggle to find staff in these periods, low rates of unemployment often don’t have the same impact in the education sector. For a lot of education brands in the franchising industry, it’s crucial to have a team of learning-based staff, for example tutors or teaching assistants. And whilst it might seem like they will be hard to come by, in actual fact, they are often existing workers looking for extra income, students needing flexible, part time hours and even professionals looking to give back to the community. The ability to offer flexible, convenient work to local people is a significant advantage of franchisees operating in the education space.
It’s not often that there’s an ‘ideal time’ to launch a new business but in the education sector you have the distinct advantage of being able to leverage term-times in your favour. The start of the school year brings new challenges and priorities for both parents and students, so there really is no better time for you to provide a solution to their problems. For anyone thinking of investing now, and launching in the Autumn, you can reap all of the benefits of the back-to-school buzz and really hit the ground running with your business.
Pick ‘n’ mix options
In some cases, education-based franchises offer the opportunity to continue in your existing employed position whilst your business picks up. Then, once your franchise revenue starts to increase, you can leave your job and come into the business full time and grow it from there. Such schemes are often referred to as ‘executive’ or ‘semi-absentee’ models. For some prospects, the opportunity to maintain a degree of security throughout the launch the franchise is too good to miss, as it’s perceived that there’s even less risk involved.
By now it should come as no surprise that more and more brands, let alone franchisees, are entering the education sector right now. The sheer size of the market and the demand for the services alone should be enough to seal the deal but looking at other aspects including the time of the year and the ways in which the franchise works around you are other highlights. It’s very clearly a lucrative industry that is worth investing in, that can also give you immense satisfaction by changing the lives and futures of children.
This article comes courtesy of Tutor Doctor, the world’s fastest growing in-home tutoring franchise. Since launching in the UK in 2009, they brand has welcome over 70 franchisees to its UK network.