The franchise industry has experienced tremendous growth in recent years, increasing by 10% over a period of four years, reaching a record high. The expansion of franchises highlights their success not only on the economy but also on the franchise owners and employees who work for them. Presently, franchises contribute a staggering £15.1 billion to the economy and have increased employment in Britain by 70% over the last ten years.
The success of franchises may be attributed to various factors. Studies reveal banks are likely to lend more money to a startup franchise. Moreover, owning a franchise provides people with the opportunity to run their own business within a proven successful model. Unlike startups that are grounded on a single idea, owning a franchise allows for business development in an existing framework.
The franchise landscape has evolved significantly. Today, there are more options owned by diverse individuals, and the popularity of buying into a franchise is at an all-time high. Nevertheless, before venturing into any business venture, it is essential to consider vital factors that would contribute to a successful franchise investment.
Steve Witt, co-founder, and MD of The Travel Franchise, a franchise expert, provides five top pieces of advice to prospective franchise owners. These tips will help both new and existing franchise owners to ensure the growth and success of their franchise.
Firstly, conducting thorough market research is crucial. It is not a one-time activity done at the initial stages of setting up a business or purchasing a franchise. Demand and competition change over time, and the ability to adjust to any deviations is essential. Being on top of the game ensures success and satisfied customers.
Secondly, franchise owners must embrace a flexible and adaptable business plan. Franchises thrive when owners constantly generate new ideas and adopt fresh perspectives. As the industry changes, so should the franchise. While the initial idea may be brilliant, it is important to see it change and grow as the franchise takes off.
Thirdly, franchise owners should prioritize training and support. Most franchises provide training and support to franchisees, and this is essential to their success. In the event a franchise does not offer this support, it may need to be outsourced. The key to growing a successful franchise is to keep employees well-trained and supported.
Fourthly, franchise owners must delegate their workload wisely. For instance, a franchise owner’s strength may lie in sourcing the best ingredients. Still, the lack of expertise in other areas may require them to seek help from other individuals. It is essential to recognize areas where help is required to ensure the business performs optimally.
Lastly, franchise owners must know what the franchise can potentially offer them. Investing in a franchise is a chance to attain personal goals and ambitions. Selecting the right opportunity that aligns with an individual’s skills and personality increases the chances of success.
In conclusion, the franchise industry is experiencing unprecedented growth, and owning a franchise has become an attractive prospect for individuals wishing to start their business venture. However, it is vital to consider factors such as market research, adaptability, training, delegation, and aligning ambitions when starting or investing in a franchise.