Business Opportunities

INTRODUCTION

The term ‘business opportunities‘ is used to encompass a range of business relationships including franchising and licensing, amongst others.

There are plenty of business opportunities offered by the franchise model, both here in the U.K. and on the global market.

So, whether you are thinking of buying into a franchise, or have a business you think might work for a franchise, read on. In this guide, we’re going to go through some of the options with you and outline their potential.

BUY INTO A FRANCHISE

First of all, let’s look at buying into a franchise. There are many business opportunities that describe themselves as franchise businesses that are not. It is the role of the British Franchise Association (BFA), a not-for-profit trade association, to identify which businesses are running realistic, sustainable and ethical franchise operations and are actually ‘business-format franchises’.

“Business format franchising is the granting of a licence by one person (the franchisor) to another (the franchisee) which entitles the franchisee to trade as their own business under the brand of the franchisor, following a proven business model.”

The British Franchise Association Buying into a franchise is the process of paying a fee to a franchisor that allows you to use their business name – it’s a license, in essence. There are hundreds of franchise business opportunities in the UK that cover a broad range of industries.

You can choose between fast food restaurants and home-based businesses, or fitness classes and gardening. There is no lack of choice out there – which makes it tough for some people to decide on a model of best fit. Take a look at the full range of franchises on offer in our franchise directory.

So, to understand which franchise opportunity is best for you, there are a few questions you need to ask yourself. First of all, how well do you know yourself? Be honest – what do you want to get out of this business opportunity, and what industry will propel you forward in the best way? If you have a passion for fishing, for example, then maybe a tackle and bait franchise would be a good fit.

But, there are alternatives that could be of interest. An outdoor adventure franchise could be an attractive choice or even a sports clothing business. Being a successful franchisee isn’t just about your passions, however. It’s also a lot to do with what you are good at. So, if you are good with people and can make them feel comfortable, maybe a restaurant franchise would be a good idea.

Do you make a great salesperson? If so, then perhaps a work-from-home type business selling beauty products could be a better fit. Another thing to think about is the money. You will need significant investment to buy into a successful franchise. At a minimum, you should be looking at around the £10,000 mark – but this can easily be lower, or much higher.

Some big franchises can even verge into the millions regarding your investment. Finally, it’s vital to spend some time researching the best franchise business opportunities in the UK and abroad. Once you have made the decision to plunge in head first, it can be difficult to get out of should things not be to your liking. Look carefully at the franchisor’s claims, and ask around other franchisees to hear about their thoughts.

Expertise doesn’t happen overnight, of course. But, you need to be sure that you make the right choice. If you can assure yourself of the qualities of the business, though, then it’s a sure sign that you are ready. And, when you tie that in for your passion for a particular industry, you have all the elements of potential success right there.

BUY AN EXISTING FRANCHISE BUSINESS

Another opportunity available to you is to buy an existing franchise. There are two ways of going about this.

The first is to buy an already successful franchise. As you can imagine, success costs money, so you will need significant investment to go down this route.

That said, while the franchise might be a success in small terms, you could see a lot more opportunity. For example, perhaps there is a small restaurant franchise in your county, and you can see the potential for going nationwide.

The other option is to buy a struggling franchise. This will be much cheaper for you – dependent on the franchise’s size, of course. But, there is a lot more risk. It will be down to you to turn the franchise’s fortunes around, and it could be an expensive mistake. But, as with all risky opportunities, if you can make it work, you can expect big returns on your investment. As you can see, there are many pros and cons of going down either route.

It’s important to find out a lot of vital information about the franchise before you make your decision. What are the seller’s motivations for putting it on the market? What is the financial situation of the franchise, and how have things been for the past couple of years? Are there any stories in the press that might affect the industry in the future? If you are happy with the answers or can spot a lot more potential, buying a franchise can be highly lucrative.

FRANCHISING YOUR OWN BUSINESS

 The final opportunity is turning your company into a franchise. Do it right, and you can turn your business into a major player in a small amount of time.

However, there are a few things you need to ask yourself before diving into becoming a franchisor. First of all, it’s vital that you know your business inside and out.

Everything you do in your business that makes it successful will have to be passed down to your franchisees. This can be difficult to do for independent business owners, as they tend to work on intuition. The trouble is, franchises are the complete opposite of working with intuition! It’s vital that you can pinpoint the hows and whys of your successes – and can outline those steps. There are also a lot of legal issues to deal with – and they can be complicated it the uninitiated.

There are strict rules in place about your responsibilities as a franchisor. And, it’s not something you should approach without professional help.

You’ll need to offer a lot of support to your franchisees, too. If you want your franchise to be a success, then it’s all down to you and how you lead from the top.

Make no mistake about it, though. If you can franchise your business successfully, it can have an enormous impact on your ability to expand.

You will get access to a diverse workforce, which can identify talent to help you build your business. And, of course, regarding expansion, it costs you far less than opening up in a whole bunch of bricks and mortar locations.

Your franchisees will pay to buy those outlets, which means less capital requirement on your behalf.

Finally, if your business model is sound, there is a lot of potential to earn high royalties. You could end up bringing in more money than you ever could by running those outlets alone.