Self-employment is becoming a more popular option across the UK as many people choose to become their own bosses and take control of their working lives. There are many upsides to becoming a business owner, but starting your own business from the ground up can be a challenging affair.
When building a company, the struggles some people experience mean many now lean towards a franchise model for owning a business. This is becoming an increasingly popular option in the UK, and here are some of the key benefits of franchising over building a company.
It Delivers a Tried and Tested Business Model
As a general rule, franchises have much lower failure rates than start-up companies. When an individual invests in a franchise, they don’t just acquire the trademark licensing but also get a business model that has been proven to work time and time again.
While there are no guarantees in business, having the power of a successful company and its strategies behind you gives you a much greater chance of success. This is especially true for those who do not have much experience in the business world and may need a bit more hand-holding than an experienced business person.
When looking at franchise opportunities, it is important to keep the franchisor’s business model in mind. Consider the levels of support that they offer to franchisees and whether you need this or a higher degree of freedom to manage your company how you like.
When you begin your own business, you effectively have to burden all the start-up costs (unless you get a loan, which you’ll have to pay back anyway). Once you factor in all of the running costs of a business, including insurance, licensing, stock and equipment, you will often face a substantial sum for investment.
While it isn’t guaranteed that the upfront cost is lower (it varies from business to business), you can search for franchises that require lower upfront costs. This can make franchising a more attractive option for those looking to get into business but might lack the capital to start their own.
Access to Further Funding
As any new business venture grows, you will likely require further investments to expand your operations and keep up with demand. Very often, if you are a self-starter, it can be challenging to find the funds for this, and you will either have to pay out of pocket or pitch to someone for investment.
However, franchises are supported by many major banks who often have detailed funding plans specifically for franchises. Therefore, it can be much easier to secure investments for a franchise than a business you have built from the ground up, making growth a bit easier.
In conclusion, while owning a franchise might feel constricting in some ways, in others it offers a greater sense of freedom to grow and manage your own business. Above are some of the crucial ways that franchises are superior to building your own company, but there are many more.