As you go about your day, I doubt you often stop to think about how many franchises you interact with. There only 930 franchise systems in the UK, but in total there are 39,000 franchised businesses, whether that’s a coffee bar, a fashion store, a petrol station, a fast-food restaurant, a convenience store or even a recruitment business!
You might say so what, what difference does it make to me? Well personally I think it makes a lot of difference as it shows that you have a nation of entrepreneurs and a nation of individuals who all believe that they can do better. Franchisings contribution to GDP in the UK has grown by 20% to £13.7 billion per year over the past 5 years, while the overall economy has shrunk by 2.5% over the same period. It’s not just in the UK that franchising’s popularity has continued to increase, North America and Europe are seeing similar growth rates.
The mantra of franchising regarding “being in business for yourself and not by yourself” is a truism that many franchise owners find the benefit of. Of course some people go it alone and “do their own thing” but unless there is a new technological innovation most things have been tried, which makes breaking into the market that bit harder against more established players.
Franchising Has Great Benefits
Franchising aims to offer the best of both worlds - the ability to build your business where you are the owner manager, while providing you with a proven business format and infrastructure. Of course running any business is demanding and franchises require initial investment, but if you want to be successful there is a lot of reward and great ROI in buying into a franchise system with around 92% of UK franchisees reporting profitability over the last 12 months.
We are seeing more and more that great franchise systems are being recognised because of the great value and service they deliver to their audience, whether it is B2B businesses or B2C consumers. Franchisees have no time for complacency and know that if they do not deliver the right levels of service they may end up being out of business – so they strive for greatness, not mediocrity.
So What Are The Ingredients Of A Successful Franchisee?
You might think being lucky is something that happens to other people but you can make your own luck in franchising if you follow my L.U.C.K. acronym:
Labour – you have to work hard
Under – you have to know where you are working, working smart
Correct – you have to put the effort in the right place with the right people
Knowledge – follow the business format and use the infrastructure to your advantage
I am privileged to meet a lot of great people and when our beliefs align we recognise that working together is better than working apart. Coming together as Franchisor and Franchisee is a long-term commitment and relationship – see another of my blogs; Why Franchising is Like a Marriage – to learn a little more about franchising.
Considering franchise opportunities? Why don’t you download our prospectus where we give you an overview of what owning an Executives Online franchise is all about.