But whether or not maths was your favourite subject, the reality is that figures play a central role in adult life, particularly if you’re considering running a business.
In fact, numeracy challenges are widespread. Research from National Numeracy (supported by KPMG UK) has highlighted that a large proportion of adults feel uneasy when dealing with mathematical tasks. It’s a reminder that even the most capable, hardworking people sometimes struggle with financial confidence.
And it’s not just everyday people who feel this way. Richard Branson, founder of Virgin Group, famously admitted that he struggles with numbers and prefers to focus on big-picture ideas rather than detailed financial analysis. Yet, despite his discomfort, he built a global empire.
This honesty from high-achieving individuals shows something important: you don’t have to love numbers, but you do have to be willing to engage with them, especially if franchising is on your horizon.
Buying a franchise means getting familiar with the figures
If you’re considering buying a franchise, the numbers aren’t optional, they’re the foundation of your success. Even if you hire a bookkeeper or accountant (and you should), you still need to understand how your business makes money and where it spends it.
One of the biggest advantages of franchising is that you’re not alone. Your franchisor will provide guidance, templates, and support to help you navigate the financial side. But you’ll still need to do your homework as ultimately, it’s your business, and knowing how it earns, spends, and grows will determine your success.
One of the greatest advantages of franchising is that you’re not starting from a blank page. You gain access to tried-and-tested systems, established brand power, and structured support. But franchising still requires informed decision-making and that begins with understanding your numbers.
The essential role of a business plan
Before you join a franchise network, you’ll need to prepare a business plan. This document isn’t just a formality, it’s the backbone of your launch. Lenders will expect it, franchisors will guide you through it, and you’ll rely on it as a roadmap for your first months and beyond.
Without this planning, it’s easy to underestimate costs or overestimate performance and that can derail even the strongest franchise model.
Understanding different franchise cost structures
A small, owner-operator franchise might have straightforward projections, especially if customers pay immediately and no premises or staff are needed. But larger management franchises involve more moving parts: wages, premises, vehicles, insurance, stock, marketing, licences, and more.
This is where being comfortable with the figures becomes essential. You’ll need to understand details including, for instance, how many customers you need each week and how long it could take to build volume. Be aware of which costs you can control, as well as those fixed overheads you can’t necessarily reduce if sales are lower than planned. What would a quiet month look like, and can your cash flow cope with that?
Your franchisor should explain how the business grows over time and how revenue typically flows. But your job is to understand that pattern well enough to manage it confidently.
Looking at your figures doesn’t stop at launch. You’ll need to monitor the key numbers on an ongoing basis to keep your business healthy. Your franchisor should help you identify the most important metrics and may even provide bookkeeping support or recommend trusted providers.
Will your customers pay you up front or will you need to issue invoices and wait for payment? If so, you’ll need to implement a strong invoicing and credit control process to ensure that your customers pay you on time, as late payments can strangle an otherwise healthy business. Cash flow is the lifeblood of your business, so ignore it at your peril!
Bottom line
You don’t need to become a maths genius to succeed in franchising. But you do need to understand the basics. Use the support available from your franchisor and fellow franchisees.
Don’t let old school-day anxieties hold you back. Numbers aren’t the enemy; they’re the roadmap to building a thriving franchise!
