Specialist advice

Franchise your business

Is now a good time to franchise your business? Clive Sawyer reveals

Now could be an excellent time to franchise your business, however it is dependent on the current state of your business. The whole essence of franchising is that franchisees replicate the proven successful business model of the franchisor, so if you are not successful then how can you expect your franchisees to be? If however your business is currently successful and predicated to continue to be, then now may be just the right time for you to look at franchising.

The economic climate in the last two years has resulted in the failure of many businesses. If your business has survived then you will probably be benefiting from less competition, and even though customer spend is generally down, it is also being spent with fewer companies. This may mean that if you franchise now, your franchisees may find it easier to establish themselves in their territory.

Traditionally there are three main types of people who have considered buying a franchise: 1) Those who have been made redundant and don't want to go back into mainstream employment: 2) Those in employment that have always wanted to have their own business but do not feel they could start one on their own: 3) People who need a second income for their family but can't or don't want to get a job.

The recent recession has had a dramatic impact on these three groups: Redundancies: There have been a large number of people that have been made redundant. Often the only real alternatives are to stay unemployed, start a business, or buy a franchise. Some in this group may lack the skills to start their own business and may well lack the confidence as well. Their only real alternative is to look to buy a franchise.

Current employees: With jobs for life becoming history, and company bonuses and pensions often reduced, there are many people in employment who are looking for a change - and for some, franchising can be the answer. The thought of being your own boss is very appealing, particularly where you directly benefit the more successful you are. In addition there is the appeal of no internal politics and no chance of being made redundant.

Second incomes: There has been growth in the last year with the number of people buying part-time franchises. Typically, these are bought by people who are unable to work full time, but need an additional income. This may be because their partner has been made redundant, or their family income has been reduced. With the competition in the part-time job market being so competitive, franchising can be the answer.

So if you have a good sound business and you want to franchise now really can be a good time to start. For further information click here. You can also talk to a member of the Business Options team on stand E40 at the National Franchise Exhibition in Birmingham on 1 & 2 October 2010 or listen to Clive Sawyer present at the British Franchise Association seminar on ‘Essential tips for franchising your business'.

Business Options are the only Franchise Consultancy accredited by all The British Franchise Association, The Irish Franchise Association, The Institute of Business Advisers and The Institute of Business Consulting.