There are many different statistics that suggest why franchises are such a popular option in the UK for aspiring entrepreneurs and have higher success rates than running your own independent business. In fact, according to What-Franchise 80% of new franchise businesses are still running after their first five years. However, with so many to choose from, how do you know which one will be right for you? You can learn more about why franchises have much higher success rates below and also where you can find the best franchises for sale in the UK.
Why are franchises more successful than other business opportunities?
Buying a franchise is one of the safest ways to run a business. There are many reasons why franchises are more successful than other business opportunities, such as buying a company for sale or starting up your own business from scratch, but today in this article, we will list the five main reasons franchises tend to have such high success rates in the UK.
Franchises are supported by a proven system.
When you buy a franchise, you’re buying into someone else’s proven system. Franchises are tried and true, which means they already know what works and what doesn’t—so that can save you a lot of time and money. For example, when buying a franchise, don’t try to reinvent any wheels; accept what is working for them and change only things that won’t disrupt their growth. It might seem obvious, but many entrepreneurs try to do things their own way—which means it can take twice as long to get going, or the chance of failure can dramatically increase when you buy a franchise. You don’t have to worry about this since all you need to do is successfully replicate the proven system to get customers through your door as early as possible.
Some franchises offer pre-built marketing tools.
Franchises give you access to brand-name products that may already be market-tested. In some cases, like Subway or McDonald’s, these brands are easy to recognize and well known by consumers. You’ll also have access to a company-branded marketing kit that can get you started with your advertising efforts immediately. To help ensure franchise success, many franchisors take a hands-on approach with new owners and offer lots of training and support during the first year of business. This is in addition to any experience you may gain while working at a franchise location part-time before purchasing it full-time.
Franchises are usually cheaper to start than independent businesses.
Starting a new business costs a lot of money, and most small businesses operate on thin margins. Franchises can offer their start-up packages at relatively low prices because they already have equipment and employees. This doesn’t mean that franchising is cheap; however, it can help you save money when compared to starting your own operation from scratch. The average franchise for sale in the UK usually costs around £10,000 to £55,000. However, every franchise is different, and you need to remember not all franchises are created equal each one is different. For example, some franchises might be very expensive depending on their brand recognition and location, but there are some low-cost franchise investment opportunities that usually cost £1,000 to £10,000. The bottom line is every franchise is different. This is why it’s crucial to do research before investing.
Franchises save time and money upfront.
You’re not on your own when you buy a franchise. The company that owns it will help you get started, offering training, business planning, and marketing support. All of those things cost money—and require time—but when you buy a franchise, you don’t need to worry about spending either. That gives you more time and money to focus on building your business into something profitable. In many cases, a franchise can also help new owners land their first customers since they already have brand recognition in their community or market segment.
It’s easier to get access to funding with a franchise.
You’ll be able to get access to funding easier with a franchise, mainly because there are support networks behind your franchisor. Also, banks are more likely to provide loans to someone who has invested in a proven system rather than starting their own business from scratch. Many franchises will provide you with advice on applying for financing and give you tips on what types of businesses work best with their brands. And if things don’t go as planned, many will offer help in finding investors or other capital sources should you need it down the road. In short, franchise owners are somewhat protected from market fluctuations and competition—and can focus more on doing what they do best: making money for themselves and their franchise brand.