The team at ActionCOACH outline the reasons why franchising provides the best route into business for those starting out on their own.
Franchising is one of the most overlooked sectors of the business world. And the reason for this is that few people ever consider taking on a franchise as a business. When people think about starting a business of their own, franchising rarely enters their heads. Perhaps, at times, the franchising community fail to publicise themselves properly, although there are many people who are completely unaware if a franchise exists in their chosen speciality.
So what are the nuts and bolts of a franchising business? In simple terms, it is the overall business owner, or a chief executive installed by the owner, who works in partnership with a number of franchisees. These franchisees sign up to run a copy of this business model in their local region or chosen area. Franchising allows franchisees to start-up in business by using a ready-built system, which has often been tried, tested, trusted and tweaked over many years.
New franchisees pay a fee and sign a contract, which gives them access to training, and on-going support throughout the life of the franchise agreement. They will hopefully enjoy a strong long-lasting relationship with the franchisor, as well as benefit from trading as a well-known and well-respected brand. And there are many reasons why owing a franchise is often better than starting up your own independent business.
There is a staggering difference in success rates between franchised and non-franchised businesses. According to research by the Daily Telegraph, 60% of independent start-ups close within three years. Compare this to franchising where only 5% stop trading by the end of the fifth year – according to the British Franchise Association. Franchising is a growing industry and contributes over £17bn (2018 figures) to the UK economy every year.
But why is it a safer option? Traditionally, franchises adapt and respond to demand much quicker than stand-alone businesses. This is largely due to the support structure franchisees generally enjoy from their own community, and which helps them to scale up faster.
At ActionCOACH, the company’s ‘Global Support Team’ created a wealth of resources for its network of 1,000 franchisees to use during the pandemic. These resources enabled its franchisees to continue trading, while preventing these individual business partners from incurring huge losses.
In the UK alone, there are hundreds of coaches within the ActionCOACH community, all readily available to assist other members of this expanding business. They all provide a wealth of knowledge to tap into, should any of the franchisees require help.
ActionCOACH exists to help business owners build a profitable company. Its business model gives franchisees great flexibility, and the opportunity to develop a good work-life balance. Many coaches only work with clients two or three days a week.
All coaches have access to thousands of strategies and tactics, which they learn and then pass on to their clients. Each of these strategies has been successfully employed many times over by businesses around the world. But before coaches start trading, they undergo an intensive training programme, backed by rigorous support, which is focused on making certain all franchisees operate to the highest of standards.
However, this article gives you just a brief explanation of why franchising is possibly the best route for anyone wishing to start their own business. For more information about an ActionCOACH franchise opportunity, please click here.
This article comes courtesy of ActionCOACH. If you’d like some help selecting and implementing the most powerful accelerated innovation strategies for your business, then reach out to us.
