Running your own business is not for the faint hearted. The failure rate for a standalone small business in the UK is high and although there are differing research figures, it is estimated that at least 20% of new businesses fail in their first year. And over 315,000 UK businesses stopped trading in 2023, according to the latest data from the Office for National Statistics.
It can be a tough life as a business owner. But this is where franchising comes into its own, with over 93% of franchisees advising that the y are profitable, and fewer than 1% of franchises closing due to commercial failure, according to the British Franchise Association.
Franchising is a great way to be able to start your own business, with support and training to help you succeed and being part of a network of fellow franchisees facing the same issues and challenges.
However, being a franchisee is not the ‘easy option’ by any means and in my view, there are some reasons why you should NOT buy a franchise!
If you want a job
Running your own business has never been part of your plan and the only reason you are looking at buying a franchise is because you really want a job with someone to tell you what to do. This is a terrible reason to go into business, whether it is through a franchise or on your own.
Plenty of people do find a new lease of life after years of corporate life and redundancy can be a great trigger to start a new chapter through franchising. But it must be something that you really want to do, as you need to make that mind-set change to take responsibility for your own future.
If you don’t like following instructions or taking advice
Buying a franchise means that you need to commit to following the blueprint and structure that your chosen franchisor has honed and developed over the years. If you come in and try to ‘reinvent the wheel’, you probably won’t be as successful. There is time for you to make suggestions about new things to try and help your network to continue to develop but right at the start of your journey you need to follow the guidelines and stay within the tracks. If that is not for you, then maybe a standalone business is worth the risk for you instead?
If you are easily influenced by glossy marketing
Don’t skimp on the research into the franchises you have your eye on. It isn’t just about who makes the best claims – are there pictures of yachts and flashy cars on the website or brochure? Your primary focus should be on understanding what you will be responsible for in your new franchise and how the support and training will help you to succeed. Franchising can provide lots of support but not if you just choose the one who promises the most, without looking into their claims. A good franchisor should want you to research and plan before you take on the commitment of a five or even 10-year contract. Make sure that it is something you really want to do as it will still involve hard work to make sure you succeed.
If you don’t get the right ‘vibes’ from the franchisor
As you go through the steps and process of finding out more about different franchises, you should be gaining more confidence about the type of business you are looking at. You should be hearing consistent messages from the people you are speaking to at the franchise, whether that is directors, the franchise recruitment team or members of the support team. So, if things are beginning to sound more confusing rather than clearer, or if you are getting conflicting messages, take the time to clarify your understanding. Don’t ‘push on through’ if you aren’t sure, or you have doubts or queries. Again, a good franchisor and their team will be happy to answer your questions. Speaking to some existing franchisees of the network might help too, what do they say about the support and training they received?
Franchising in the UK crosses a wide variety of industry sectors and has a range of types of business, from owner operator to investment franchise and everything in between. It also covers almost every investment level too, from a few thousand pounds for smaller franchises to multi-million-pound resales so you are spoilt for choice!
Make sure you give yourself the time and energy to research thoroughly and ensure that you are confident you have explored your options when you decide you are ready to leave employment and become a franchisee.
Buying the right franchise will provide the ingredients to help you build a successful business of your own, but without doubt, the key driver of your success is YOU, so ask yourself the right questions.
