Motivation, success and benefits
We have all heard the pitch. An 80 per cent success rate on business format franchises, ability to follow a proven based model reducing risk, in business for yourself, but not by yourself …
However, when you delve beyond such encouraging words, what positives can franchising actually bring to the person who is:
Starting a business can be daunting! For some the risk, isolation, lack of experience and competition can all contribute. For others, confidence and capability are not a concern, but realising that elusive business idea and well-developed plan can be difficult.
People engage in franchise ventures for a variety of reasons, bringing with them knowledge and experience; for us at the National Franchise Centre (NFC), we have been uniquely privileged in taking that journey with people and learning the true value that this model has to offer. Let us explain four common motivations, which we encounter at our centre.
Realisation of a Dream For many, self-employment has been a long-standing dream irrespective of employee status. For such individuals, franchise systems tend to stimulate, motivate and inspire; allowing them to engage in self-employment but in a pragmatic, moderated way. The dream becomes a reality for these individuals and inertia, a thing of the past.
Particularly when individuals are made redundant. The franchise system allows these people to create opportunities for themselves, in the absence of (perceived) control. Starting a business and utilising the existing franchise landscape empowers people, whereby they are choosing a venture which is right for them. Followed by a comprehensive due diligence process, these individuals re-assert power over their working lives leading into franchise negotiations and ultimately control over their own franchise operation.
New venture, new start, new people. Franchise development can offer a clean slate and expedite the start-up process. For some it offers diversification, where people can operate businesses in areas where they have had no previous experience. Equally it can often provide a new outlook, perspective and team dynamic, while facilitating autonomy for the individual.
Starting a business can bring with it reservations, it would be unusual not to have concerns. However, franchise models also bring with them a degree of confidence, arising not only from a proven history but also the model itself, where one can identify with brand values, culture and ethos. It is a unique model which allows an entrepreneur to conduct due diligence on a live venture, enter knowingly into an agreement and determine clear expectations/ milestones at the outset. This coupled with a robust support structure (should issues arise), increases confidence.
At the NFC we have seen huge success amongst the individuals we have helped. People have chosen to take unit franchises, Master Franchise licences and grow their own businesses using the model.
PC Pal, Systems 10, Purifry, Argos Fire & Safety, Medical Mobility and The Zip Yard are but a few franchises, which have been established by NFC participants. The motivations dictate the search and success rests with the franchise system, franchisor and the promoter (franchisee). It is a symbiotic relationship which undoubtedly offers benefits far beyond that of an indigenous business start.