Why should you start an accountancy franchise?
The accountancy sector is worth big money, generating around £5.5 billion per year, and this is set to increase. Research conducted by IBIS World¹ shows that over the course of the last five years, the accountancy sector has grown by 3.5% and shows no signs of slowing. The sector also employees huge numbers of people, with more than 613,000 UK citizens in accounting roles in 2017, according to Oxford Economics and CCAB. But why should you start an accounting franchise?
Accounting franchises offer a very unique opportunity. In most cases, you do not require costly high-street premises, and to make good profit margins you do not need to find hundreds of customers. For many franchisees, having a small number of reliable, wealthy clients is enough to make a significant profit. White-collar franchises such as tax advisors, accounting firms, law firms, business consultancy firms and other financial businesses typically enjoy predictable and steady growth. The reason for this is that accountancy services are always needed, regardless of how the economy performs or whether other businesses have a good or bad year. In this post, we look at the three key reasons why starting an accounting franchise is an excellent choice for your next business move.
Demand will always be there for accounting and financial advice
One of the reasons so many people choose to work in the financial sector is that there will almost always be a demand for financial and accountancy services. The accountancy sector is lucrative too, with accountants, tax consultants and financial advisors making up some of the wealthiest business sectors in the UK. Even when the economy is suffering and in a recession, those in the finance and accounting sector still make money. As discussed earlier, the reason for this is straightforward – accounting services and financial advice is always needed. In fact, when times are hard, these services may even be in greater demand. All businesses need financial advice when they are performing well, and they need this even more so when they are performing poorly. Between 2014-2018, the accounting sector in the UK grew by 5%, much more than the overall growth rate of the UK economy as a whole.
Generally, people choose a trusted brand when it comes to accounting
There are around 5,500 auditing and accounting businesses in the UK. However, the average size of an accounting operation is ten people. This number would likely drop dramatically where we discount the ‘Big 4’ accounting firms. So what does this mean? Most accounting firms offer their services to small businesses and individuals who are local to them. The market is scattered, with lots of opportunities to capture and provide services to new clients. However, stand-alone accounting businesses may find it more challenging to find clients and bring them onboard.
When choosing an accounting firm, people and businesses want to choose a name they trust. This means choosing an established and recognised company, even where the cost of services may be more expensive. This is one of the biggest barriers to building and scaling a successful accounting firm, but opening an accountancy franchise can remove this barrier.
When you work as part of a franchise, you will be joining an established and successful accounting business. You will be able to overcome the uphill struggle of client acquisition, as well as many of the practical difficulties of starting out on your own.
Established practices, procedures and support from your franchisor
Your franchisor will want to ensure that your franchise unit is a success and that you can run a profitable business. As a result, they will generally be on hand to provide training and support from the outset, to ensure you make the most of this accountancy franchise opportunity.
When you go into an accountancy franchise, the business will already have established practices and procedures for carrying out a high level of service. You can take advantage of a business model that works, to ensure maximum efficiency and profitability. Although it may take some time to learn and implement the operational structure and procedures of the franchisor, ultimately you are ‘buying’ into an already-successful accounting business.
There are many reasons to start an accounting or other white collar franchises. With many franchise opportunities, you can also benefit from setting your own working hours, working part-time or working from home. Be sure to do your research thoroughly to find the best accountancy franchise opportunity for your circumstances and background. We have plenty of information here on our site, but you can also request further information from franchisors you are interested in.
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If you are looking to start your own accountancy firm, franchising is an excellent option. We have listed a number of white collar franchise opportunities for you to choose from, many of which offer part time or home based working. Find your next business opportunity today.