Every day people leave behind their long and prosperous careers to pursue their dream of owning and managing their own business in which they call all the shots and have an opportunity to gain financial independence. For many, franchising is the way to realize their dream.
Another big reason why people are considering buying and running their new franchises UK is the economic uncertainty that has been affecting executives and managers working in the corporate sector for the past few years.
During the economic slump, large corporations that were struggling to cope had to downsize to stay afloat. Committed managers had to withstand the worst when they lost their jobs as large businesses tried to cut back on costs. After learning a harsh lesson, many opted for franchising as a lucrative and viable solution that had the potential to free them from corporate jobs and the 9 to 5 grind.
For those who are still on the fence about starting their franchise so they too can say goodbye to corporate life, the franchising experts at Franchise UK has shared some of the advantages and disadvantages of franchising:
Franchising Could Be Your Ticket to Financial Freedom as You Steer the Ship
The potential of gaining financial freedom and greater workplace independence are two of the most obvious benefits of running and owning your franchise. Corporate jobs have very little to no employee independence, regardless of their level of skill and knowledge they have to follow orders and answer to a head.
Similarly, in a corporate job, you will receive a check with the same amount month after month and sometimes year after year until you are promoted or receive a bonus.
In contrast, as the owner of a franchise, you will have more independence, liberty, and flexibility to make a lot of the choices for your business. By using their freedom as they run their own business, they can steer it towards growth and increased earnings.
Furthermore, with so many franchises to choose from nowadays, you can go for something that suits your needs, passions, and lifestyle such as home-based franchises, part-time franchises, and van-based franchises. Merely the thought of breaking away from the limitations of the 9 to 5 schedule is a great incentive for most people who desire more freedom in their professional lives.
You’ll Have a Road Map, and You Can Use Your Past Experience to Excel
For potential entrepreneurs leaving the corporate life to start their own business, they have two choices – start their own business or invest in a franchise. By buying a franchise, they will have the advantage of having the support of the franchisor and fellow franchisees, who will not only have a wealth of knowledge, but will also equip you with the business operating system, best practices and various other things that will set you up for success and lower your business risk tremendously.
People who decide to establish a new business have many odds stacked up against them. They are responsible for developing the system, the brand image and brand recognition from scratch, and they have to find suppliers, nurture strategic partnerships from the very basic level, whereas, most franchisees are given a roadmap that they could follow to achieve success while having the flexibility to call their own shots.
In combination with the support and business systems provided by the franchisor, you can use your skills and experience of your corporate job to excel as a franchise owner.
Having your franchise gives you the opportunity to combine three very powerful factors in your favour, your passion for what you are doing, your previous knowledge and skills and the franchisor’s support in the form of business processes and training. You will also have fellow franchisees to rely on for advice. They serve the same purpose as coaches who guide you through the problems and obstacles you may come across because most likely they have gone through the same hardships and have worked through them.
You, Will, Have the Advantage of Established Brand Recognition
Marketing and branding play essential roles in the success of any business, and as a franchise owner, one of your jobs would be to market your business, products and/or services incessantly. However, some of the work will already have been done for you by the franchisor and fellow franchisees by making the brand recognizable in the target market’s minds.
It is likely that your potential clients may have heard about the brand you own the franchise of, because the business has already established itself as a successful venture with proven national scalability by opening franchises in other locations and spent time, money and effort into building a positive image and association in the minds of its target market. You can then use this brand recognition in combination with your marketing efforts to achieve growth and success more quickly than a new business that no one knows about.
Disadvantages
No business venture is without its set of risk and challenges, and the life of a franchisee has its fair share of challenges. One of the biggest disadvantages of owning and running a franchise is the cost. Not only do you need the money to get the infrastructure for your franchise. You will also have to buy the rights to use the franchise’s name along with fees and service charges that are paid to the franchisor. Moreover, you will need to have funds to keep your franchise up and running before it starts earning profits.
Furthermore, although you will be provided support, training, and business operating systems, there is no guarantee that your franchise will be successful. All the backing from the franchisor and fellow franchisee can lower your business risks but the risks cannot be eliminated. There will still be a chance that your franchise could land you into some financial troubles.
Nonetheless, franchising is extremely exciting and rewarding that is something most corporate jobs out there lack, which is why you should consider leaping into franchising.