More people than ever are self employed or franchise owners in the UK – myself included. Part of me thinks this is because so many people have complicated lives. This may make the traditional 9-5 is logistically (or financially) impossible for them. Before my kids were in school, I would have had to earn £30,000 to break even after paying for 2x full time nursery places.
Not everyone has kids, but some people don’t want the long commute, have sick or elderly relatives to care for, or health problems which make the 9-5 difficult to manage.
In many respects, being self employed isn’t necessarily easier. When you’re sick or take time off, you won’t earn any money. That puts a lot of pressure on you – especially if you have a mortgage to pay. Borrowing from Peter to pay Paul is an ongoing theme for many self employed people.
Why Choose A Franchise?
Franchises are a bit more stable. You still get to be our own boss, BUT you don’t have to build your reputation and brand from scratch. Many UK companies offer franchise opportunities – including McDonalds, Cash Generator, Subway, Costa Coffee and Greggs. All of these require a large capital investment to become a franchise business partner though.
There are Franchise opportunities available in many sectors. Including finance, oven cleaning, gardening and even specialist cleaning and disaster recovery with Rainbow Franchise.
What are the pros?
There are definitely plenty of pros for considering a franchise opportunity… Franchises have a higher rate of success than start-up businesses… Just 1 in 5 start ups are likely to still be operating after 5 years, while 4 in 5 franchises will still be operational. Franchise business owners are more likely to be approved for finance than those setting a business from scratch. You don’t necessarily need to have business experience to run one, either. Franchisors will usually provide the training you need to operate their business model.
Any Cons To Consider?
That doesn’t mean it’ll all be smooth sailing though – Buying a franchise means you are entering into a formal agreement with the franchisor. This means they can dictate how you run your business. You will be sharing your profit with the franchisor – permanently. Poor performances by other franchisees may affect your own business’ reputation.
Setting up any business requires a lot of thought and planning. Before making a decision, it’s worth getting some independent financial advice and researching similar businesses operating in your area. Ask people in the area if they’d use your business. Speak to other franchise owners within the company you’re considering. Above all else, make sure the business is something you believe in and can see yourself enjoying. Love your job, and you’ll never work a day in your life.
Would you consider purchasing a franchise business? Which area would you love to work in?