Starting a business? Why not consider a franchise before you go it alone

Being in business for yourself – but not by yourself

The great resignation is what many people are calling this post-covid period as people don’t want to return to the corporate world and are looking for alternative ways of generating income and starting businesses. Before going it alone and trying to find that unique idea or gap in the market, have you considered franchising?

Pam Gordon, Franchise Consultant with The Franchising Centre and one of the Business & IP Centre Sussex’s Experts in Residence, started her own business under a franchise and this has given her the flexibility she wanted. So, we asked Pam about franchising and her journey into this business model:

What is franchising?

The term ‘franchise’ is used in many ways (film franchises, rail company franchises) – but what I mean is a ‘Business Format Franchise’ – which is the replication of a proven business model.  A franchisee buys a ‘business in a box’, i.e., a proven model and brand. By having the training and support of the original business owner and their team and by following the model, they should achieve the same success as the founder of the business.

Franchising can offer a safer route into business – buying into a brand that offers a structure, training and on-going support as well as a network of diverse business owners. 

What types of franchises are there?

There are all kinds of franchises – from one person van-based businesses like dent repair or lawn maintenance, management franchises in growing teams of people in sectors such as care, through to running multiple-site food businesses – so every sector will usually have a franchise within it.

Could it be for me – what do franchisors look for?

There are over 1,000 franchise brands in the UK, offering franchise business opportunities. They range across different sectors – from children’s activities to quick service restaurants, so franchisors will look for many different things – often they aren’t looking for industry knowledge or experience, they look for transferable skills and attitude. 

It’s often about someone coming in with a positive attitude, someone who wants to run and develop their own business but using someone else’s experience and brand and is comfortable with doing that – so not looking to reinvent the wheel.  A genuine desire to listen and learn the franchisors model, as well as vast amounts of self-motivation to develop the business.

How to research the opportunities?

There are lots of online directories and franchise exhibitions, such as: British Franchise Association, Encouraging Women Into Franchising, Franchise Direct, Franchise Local or Total Franchise.

But I always suggest the 5-step rule for research:

1.Investment – what money are you able to put in and what are you comfortable borrowing? This ‘level’ is your starting point, as there is no need then to research things you can’t afford.

2. Industry/Sector – you’ve got to be interested in learning about the sector and have the enthusiasm to research, which will help and ‘check’ the level of interest.

3. Family/Friends Support – making sure you have people backing your decisions, so talking about the plan and business and getting people to understand what you are doing next.

4. Professional Advice – talking to banks about investment, lawyers about legal agreements, local business support organisations, accountants – going in with your eyes open having taken advice.

5. Decision – knowing you are going to make the decision to become self-employed and start your own business.

How did you get into franchising?

My own background is in banking, having worked for HSBC Asset Finance in the late nineties. I was made redundant and found myself taking a job with a care franchise called Carewatch Care Service (founded in Brighton). So, learning two sectors – homecare and franchising.  

The care industry was moving into a more regulated sector so suited the structure of a franchise model, and many domiciliary care businesses still use franchise models for growth. I loved care but loved franchising more – seeing such passion in growing a brand and the amazing transformation in franchisees as they started and grew their businesses over the years.  I have then worked for many diverse types of franchisors in recruitment and support roles from businesses in logistics like Fastway Couriers to cost management consultancy, like ERA.  

Where did your journey take you next?

In 2014, I was looking myself for a way to work more flexibly around my daughter and decided to join The Franchising Centre and bring my experience under their brand and develop my own franchise consultancy.  So, now as a Franchise Consultant I advise businesses on their franchise development as well as supporting existing franchisors with their recruitment of franchisees. I enjoy helping businesses on their journey into franchising and supporting them at many points on that path.  

Have franchising meet your expectations?

Starting my own business under licence has definitely been the right step for me. I wanted to earn the right income for me and my family and enjoy the ability to choose my work-life balance – which I think is something many people are searching for, now, post-pandemic. I enjoy the benefit of things like walking my daughter to school, and never missing one of her plays or sports days, as I’m in control of my time. It’s true what they say: money can’t buy everything.

Why should others consider this business model?

Franchising has given me so much over the last 23 years and it would be great if more people considered it before starting something themselves. It can give you a structure and 

support when trying to start something on your own and give you the backup and network to talk to in what can be a stressful time. The benefits that many franchisees have found during Covid has been immeasurable and helped them to get through it financially and emotionally – by having people who fully understand what you are going through.

If you join a franchise, I’m sure you won’t regret your decision, as long as you go in with the right level of expectations, timeframe, and even with an exit plan. But, more importantly, a firm understanding of your ‘why’ – why you are doing it!

If you’d like to learn more about this business format, contact BIPC Sussex and book a one-to-one session with Pam Gordon. You can also join Pam’s webinar in July on the topic of Franchising. Find details on the BIPC Sussex Eventbrite page.

Visit www.brighton-hove.gov.uk/bipc or email bipc@brighton-hove.gov.uk