Richard Pakey of Lime Licensing Group believes the time is ripe to become a franchisee and perhaps one who can work from home.
For anyone keen on being self-employed or becoming their own boss, they should certainly think about purchasing a franchise. And there’s no better time to do that than now. This is because history has shown that franchising has generally performed well after all economic resets, whether caused by an out-and-out recession, Brexit or an epidemic.
It’s still too soon to forecast what will happen following the Coronavirus pandemic, but the early signs are extremely positive. Talk to any franchising consultant right now and, without exception, they will tell you how busy they are. Businesses of all shapes and sizes need to adapt their own models to remain competitive post-lockdown, as we all attempt to forge a future in this Covid-19 ravaged world. Many individuals are facing the threat of potential redundancy, which appears to be imminent in a number of badly-affected industries.
So this is where franchising comes in. Select the right franchise and you can start your own business from home, with a ready-made market and minimal overheads. The power of the internet allows you to do some of your marketing online, with limited costs. Although franchises are not risk-free, they are certainly less hazardous than starting out on your own without any support. With a franchise you can always call up head office for advice. In some cases, you can even start a franchise by working part-time in another job – until the new business takes off financially.
Let me take you through some of the key stats. The franchise sector is reportedly worth in excess of £17bn to the UK economy. It may also surprise you to learn there are only approximately 1,000 franchised systems currently in operation. This means plenty of room for growth. While not all franchises can be run from the comfort of your own home, it’s probably fair to say there are many existing businesses which could reduce some of their overheads by transferring some of their work to a home-based office.
Minimising expenditure is the key. If you reduce the amount of space you need to rent, for purposes of housing stock, machinery or staff, therefore the greater your profits. The more which can be accommodated from home the better. In turn, this reduces travelling time and thus reduces petrol costs or rail fares.
If you are based at home, then the odd meeting you may need to attend should not cause too much of a problem – and may even offer some slight relief if you get fed up being confined to your own four walls. The good news is that these types of businesses often enjoy a high net profit. Even if part of your business requires a small rented room for storage purposes, it’s still possible – providing you do your homework – to find a good deal.
There’s nothing more satisfying than running your own business from home, while trading with customers and other companies online – locally, nationally or perhaps even globally.
But, of course, some businesses do not have the option to operate from a ‘back bedroom turned office‘. Some need to be visible, with perhaps a high street presence. Once again, better to take the franchise route, where you can tap into a tried and trusted format, and perhaps with a company that is already a well-known brand name too.
These types of franchises require bricks and mortar but they are usually more successful than their stand-alone start-up counterparts which also require plenty of launch capital to cover rental and storage costs. It is always better to launch with the help of a household name, than going it alone, because customers tend to trust well-known brands more than fledgling businesses – even if the latter appear to offer better value for money.
Franchising is not only reserved for the big players with deep pockets. But if you do choose a well-known brand as your franchise business, the company’s marketing and advertising power will help you get noticed, even if your initial licensing fee is quite a chunk. So whatever route you take, the option to become a franchise is usually a good one. It is one that may eventually lead to you running your own business and becoming ‘self-employed.’
And with the world the way it is now, with more and more people working from home, I see the franchising route becoming more popular than ever.
