Making the most of franchising opportunities

Franchising provides a fantastic route to running your own business, says Steve Welsh, managing director of Kare Plus, who provides some pointers on choosing the right opportunity

The 2012 NatWest/British Franchise Association franchise survey makes positive reading for potential franchisees. Against a background of continued economic downturn and the ongoing threat of redundancy, the franchise industry undoubtedly offers an attractive alternative to employment.

In the past year alone the sector has generated 73,000 new jobs and has seen an increase of four per cent in the number of franchise units, with 29 new franchise systems coming into the marketplace. For would be franchisees, this means there is now a total of 929 different franchise opportunities on offer, which is great news - but where to start?

What’s right for you?
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With over 900 franchised businesses in the UK, the array of opportunities available can be bewildering, but the first question to ask yourself is: what do I really want to do? You may prefer to stay within a sector you know and build on your existing experience.

Alternatively, if you feel like a total change of direction, the beauty of franchising is that your franchisor already has the necessary experience, market knowledge and brand presence to help you succeed. So take time to reflect on what you want to achieve from your business and what you can see yourself doing, possibly for the rest of your working life. Making money is essential, but make sure you’re going to achieve satisfaction and fulfilment from your new business too.

Market potential
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To be successful your business will need to operate in a marketplace with plenty of potential customers and a proven demand for your product or service. Over and above that, you need to be sure that your market is sustainable - will your services continue to be in demand over the years ahead, for example?

Our franchisees often tell us that one reason they opted for Kare Plus is that health care is virtually a recession proof marketplace. Health is not a commodity or a one off purchase, but an ongoing priority. What’s more, with an ageing population in the UK the potential marketplace for care is growing and will continue to do so. My advice for would be franchisees is to look for a franchise with long term potential and a continually replenishing marketplace that can offer security as well as profitability.

Stand out from the crowd
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Once you settle on a sector that suits you and have checked out market potential, you will need to be sure you choose the best opportunity. Take a look at your potential competitors. In most markets there will be at least a few - if a franchisor tells you his service or product is unique and that there are no competitors, beware. If it’s a good marketplace it’s highly unlikely that others will have missed it.

Having said that, it’s important to stand out from the crowd - even in the busiest of marketplaces businesses find ways to differentiate themselves and increase their appeal to customers. Our unique sales point, for example, is that we provide nursing solutions and domiciliary solutions to hospitals and care homes, as well as to those at home. This differentiates us from most other care franchises and also sets us apart in the marketplace, giving our franchisees competitive advantage when speaking to customers. Whichever sector you choose, find the franchise that offers something a little different from the rest.

Training and support
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Check out training and support. Most franchisors provide an initial training course and, hopefully, ongoing support both to help you overcome any teething problems in the early days and to develop your business effectively as it grows. Franchising is a joint venture between the franchisor and the franchisee, so make sure your franchisor is committed to your long term success.

At Kare Plus, we have a national accounts team dedicated to securing contracts that directly benefit our franchisees, as well as a telesales operation to help open doors for franchisees and promote Kare Plus services. This level of support is relatively unusual and you should always bear in mind that, at the end of the day, as a franchisee it is your responsibility to build your own customer base and operate your business successfully.

Track record
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Every year new franchise concepts come and go. To be part of something new from the outset is very exciting, but taking the leap into self employment for the first time often means potential franchisees prefer the reassurance of a strong track record and evidence that the business model they have chosen has proved successful for others over a number of years.

It is important to visit your chosen franchisor and take a look at the operation at first hand, meet the management team and ask as many questions as possible. Also ask to speak with - and ideally visit - an established franchisee, so that you can glean a ‘warts and all’ picture of the franchise opportunity.

Track record in the marketplace is important too. When you invest in a franchise, one of the most significant benefits is that you are buying into a well respected and recognised brand. Make sure your franchise brand is known and has a strong reputation for quality of service, that way you can be sure of giving your business the best possible start. For example, Kare Plus is on the Preferred Supplier List of some of the largest hospital and nursing home groups in the UK and is also a licensed supplier to the NHS. In the health care sector, these are important indicators of a quality brand and provide franchisees with a strong platform to build their business.

Are you right for franchising?
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Franchising provides a fantastic route to running your own business. The failure rate for franchisees is significantly lower than for those starting their own business alone, however it is far from an easy option and it is certainly not for those seeking simply a ‘job’.

A franchise offers a business opportunity only; it is for the franchisee to take advantage of the benefits of brand, business model and the support of an experienced management team. Before you take the plunge, ask yourself whether you are temperamentally suited to the pressures of self employment and whether you have 100 per cent support for your decision from those closest to you.

Different franchises will require different skill sets and attributes. We look for business acumen, others may put a premium on practical skills, but all franchisors will expect commitment, tenacity and plenty of hard work on your part to make the partnership work. If you have the ambition and determination to succeed in business and have taken time to consider your options, there is nothing standing in your way and franchising will likely prove the perfect fit.