Is a franchise safer than a start-up?

The Covid-19 pandemic has seen a boom in company creation. With changes to how we work along with a cost-of-living crisis pushing many to take on a more entrepreneurial approach when it comes to our careers.

Is a franchise safer than a start-up?

There’s no doubt that launching a start-up comes with its advantages which make it an attractive proposition – you’re investing in yourself, in your passion and igniting a sense of purpose, meaning and self-reliance. 

However, with recent figures stating that 20% of startups fail in their first year of business, and 60% not making it past 3 years of trading, the idea of a start-up certainly has its pitfalls. The bright idea you think you have for your start-up comes with no guarantee of success, no proven business model and no existing brand recognition, this all has to be created from scratch, taking up a lot of your time, energy and money.

The top two reasons why so many start-ups fail in their first few years of business are down to a lack of cash or failure to raise new capital, or there was just no market need for the product or service.

If this uncertainty is likely to lead to stress and sleepless nights, but you’re still looking for the opportunity to run your own business and gain all the benefits that come with doing so, franchising may be the option for you.

Last year, it was reported that around 97% of franchisees have seen a profit for more than 20 consecutive years, additionally, according to the most recent survey commissioned by the BFA and NatWest, there are more than 900 franchisor brands operating in the UK, with just over 44,000 franchisee outlets between them. The sector provides jobs for over 620,000 people and it turns over around £15.1bn a year.

A proven business model

Unlike start-ups, franchises follow a proven business model that works! Franchisees are part of an existing business where your success is important and has a direct impact.

With training, guidance and the reassurance that you’re part of an already successful business, the nagging sense of uncertainty that comes with a start-up is reduced.

An established brand

Creating a brand from scratch takes a lot of time and money to ensure you stand out from the crowd. Franchising does a lot of the work for you, providing you with the benefits of a recognisable name, an existing reputation and an established presence in the market.

A network to reach out to

A franchise also comes with a network of like-minded peers who have been there and done it all. Where you share the same ethos and support for one another throughout your journey as a franchisee and when the time comes, to retire and move on.

Franchise Resales

You might not be a start from scratch franchise owner either – a franchise resale provides an opportunity to take on an established franchise, where you pick up where the previous owner left and take the business to new heights using your management skills.

Luke Spellman, Franchise Development Manager at Home Care company, Home Instead, explained: “Franchising has huge benefits over launching a start-up and Home Instead provides the perfect opportunity to join an established business with an outstanding reputation, whether that’s as a new franchisee or through a franchise resale”.

The Home Instead franchise has 250+ local franchise owners operating in the UK, and globally over 1,800, providing outstanding care and fantastic results. There are a number of new franchisees coming on board early 2023 and the 80 strong national office provides a wealth of ongoing support from day one to help franchisees achieve success and grow their business.

This article comes courtesy of Home Instead, the UK’s number 1 home care franchise opportunity.

Home Instead have a growing network of franchises and a proven model for delivering outstanding care for clients and fantastic results for franchisees.

Specialising in caring for older people with a pioneering, relationship-led service that allows clients to remain in their own homes for as long as possible.

Their mission ‘To expand the world’s capacity to care’ informs everything that they do and puts people at the heart of their business.

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