The benefits of investing in a franchise with multiple income streams

Nowadays, with threats coming at business owners from all angles, in every shape and size, it's imperative for them to have multiple income streams to improve their chances of success.

The benefits of investing in a franchise with multiple income streams

Nowadays, with threats coming at business owners from all angles, in every shape and size, it’s imperative for them to have multiple income streams to improve their chances of success. Then, in the eventuality that one of those streams is compromised, it’s much easier to shift focus to alternative streams to maintain a sustainable level of income. Although this is one of the greatest benefits of investing in a franchise with various market income streams, the list doesn’t end there.

Mike Ryan, UK CEO of global logistics franchise PACK & SEND, shares his advice on why multiple streams of income should be a key consideration for prospective franchisees. 

Less risk, more control

Firstly and perhaps most importantly, your business will be less exposed to financial risk. When there’s more than one strategy for generating income – i.e. when customers can buy in-store, online and by phone – the ability to change tack quickly is much more achievable, meaning you can continue booking in business through other methods should one come under threat. If you’re thinking of investing in a franchise, chances are that one of the reasons you chose franchising is the lower risk involved in a launching a business with a proven model. Similarly, your franchisor will have developed solid options for people to buy from you, allowing the business to grow at a much faster rate. 

Franchisors will also have research and development resources to develop new products and routes to markets, supporting franchisees who wouldn’t have the time or budget to do if they were going into business by themselves. In recent years, for example, PACK & SEND has developed an online ordering service and our GMx EPOS system which saves franchisees, on average, two days a month by calculating packaging and freight costs, comparing prices and storing customers’ information without the need for extra data input. 

Tried and tested markets

Before the franchise was established, the franchisor would have tried and tested the model with a pilot franchise. This will have allowed them to create an operations manual, much like the one you receive with your latest tech gadget. This comprehensive guide on how to operate your franchise, along with a programme of initial training, will outline the best possible people or businesses to direct your marketing budget towards. This will give you the kick start you need for generating an income. There’s no need to take unnecessary risks to find new customers in those first precious months as a new business owner. 

As a brand, we’ve committed to building lasting relationships with specific markets to ensure our franchisees have similar opportunities to create connections too – for example, we have created bespoke logistics solutions for airlines, hotel chains and hostels, assisting them in servicing their tourism customers. We focus on these major players so franchisees don’t have to. Our existing commercial relationships with auction houses, museums and the student community also prove valuable for franchisees as they can offer support with tailored packaging and shipping solutions – giving them various potential income streams at their fingertips. 

Increased flexibility

Once the business is established, many franchise models encourage franchisees to employ a manager, allowing them to enjoy the freedom of not having to be too heavily involved in the day-to-day operations. Whether this means taking time out or concentrating your energy into other aspects such as scaling up the business, expanding into a neighbouring territory or investing in a complementary franchise system, you will have the flexibility to do such things. With your business operating in the background, if you are looking to reduce your time spent in the business, you’ll have even more confidence that it’s producing an income to support your desired lifestyle. 

Room to grow 

There’s no limit to the number of income streams you can have. Franchisors will equip you with the tools, systems and support that allow you to approach their ‘typical’ customers but it’s then up to you on whether you want to branch out further. You’re the expert in your local area, so use that to your advantage and consider how your services can address the needs of your community.  

And if you identify a local niche which you’re not sure will be profitable, you have your franchisor and your network of fellow franchisees to talk it through with. Every single territory is different, with varying customer and business demographics, so discover the areas of opportunity within your area and work in tandem with your franchisor to maximise your business potential. 

Many people invest in a franchise as it offers relatively unlimited potential. You reap what you sow and there’s usually many different avenues that can lead towards creating a successful and profitable business. What would you do if you didn’t have to worry about money – expand the business, invest in other profit-making strategies or simply take more holidays? Whatever it is, the benefits of investing in a franchise that offers multiple income streams from various markets is advantageous for any prospective franchisee.

ABOUT THE AUTHOR
Mike Ryan
Mike Ryan
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