Always wanted to run your own business, but don’t know where to start? Maybe you're fed up with the corporate rat race and want to take your future into your own hands.
Franchising could be the answer, giving you a brand and structure to operate within, as well as training and support to help you build a successful business, for yourself but not by yourself.
To help you understand what is the right franchise for you, you should consider the different types of franchise that are available:
These owner-operator franchises are usually home based, which keeps overheads down to a minimum. The franchisee is the key driver of the business, although as the business grows, it may be possible to take on staff and step back a bit from the ‘day to day’.
Costs are often at the lower end of the franchise range so these are a good opportunity to get into business without having to take on any property leases or other high financial commitments at the outset.
There is a wide range of opportunities in this lower cost bracket, including children’s activities, window cleaning, oven cleaning, van-based sales and delivery franchises.
The franchisee manages the business operations, typically with employees carrying out the work involved. These will often be in the business to business (B2B) sectors. Your leadership and organisational skills will be relevant to this type of franchise as you will need to drive the business forward and manage your team.
You will often need higher levels of working capital and office premises could be required.
Typical franchises in this category could be in the care sector, expense reduction franchises, commercial cleaning or the franchises where you will be managing a team of people delivering the services you offer.
Revive! is a management franchise.
Retail / Fast Food Franchise
This type of franchise needs a much higher investment level at the outset, as premises will be required, normally in good locations so that there is plenty of footfall to generate sales.
Many of these franchises will expect their franchisees to run multiple outlets and sometimes a development agreement will be signed, committing the franchisee to opening an agreed number of outlets within a set period of time.
This type of franchise needs a significant amount of financial investment and the franchisee will not normally expect to be working in the business on a ‘day to day’ basis. An example of this type of operation could be large hotel chains where the franchisee is a corporate investor who already has an executive team who can take on the business operations.
Although buying a franchise should reduce the risk of going it alone, it will still involve lots of hard work and commitment on your part to ensure that you are successful. Therefore, you need to ensure that the business is one that you will enjoy and can see yourself doing day to day, so make sure you do your research at the outset.
This article was written by Cathryn Hayes, Franchise Director at Revive! UK and originally appeared in her column in What Franchise magazine.