We explore some of the great reasons you might consider when looking to buy into a franchise.
The product, the supply chain, the route to market, the staff systems, the pay structures, the legal frameworks, the warranties, the guarantees, the operating systems, technologies and relationships… Think about everything that goes in to making and running a successful business, now think of what happens when one of those factors changes or does not work effectively? A franchise is a PROVEN business model that has all these existing structures in place, frameworks that are efficient and quite simply work!
These result driven modes of operation are usually hard found, through costly trial and error – by the time a franchisee comes on board the systems are in place, mistakes have been learned from and the franchisee does not have to take the expensive risks the initial business owners did.
One of the most difficult parts of starting a business is the available funding and cash flow. It is extremely hard to correctly predict accurate forecasts, cash flows and sales figures – unless of course you are a business with a history of doing it before and replicating it time and again. This is why banks are far more likely to lend on franchises than start-ups. This, and the fact that a franchise is 5x more likely to hit the three year success mark than a start up!
This also gives you realistic goals, targets and cash-flow projections, which can be a big help when making strategic business decisions.
A brand, what is in a brand? We discuss this in detail in our ‘choosing the right brand’ article, in short a brand is everything associated with a business, demonstrated and portrayed through their marketing, products and service. What do I mean? Well think of British Airways and you don’t just think of a logo, you think of their service, their destinations, their lifestyle – compare this to say Ryanair and the feelings you imagine will probably differ. Both brands have their merits of course and both sit nicely within their sector, but everything you associate with them is their ‘brand identity’.
Both brands mentioned above KNOW what works for them, Ryanair is unlikely to advertise in Harrods, while British airways are unlikely to advertise in Poundland, they know their niche, they have perfected their business and know their target market so every £ spent connecting with them is a £ spent in the RIGHT place. Just ask Just Shutters about radio advertising!! When we started out we wanted to shout from the rooftops about our great brand, trouble was we hadn’t fully appreciated the very visual impact of our brand, the connection between the heart of the buyer with our beautiful shutter images, as well as the aspirations we were selling, so £10,000 later, we knew more about our brand and refined it as necessary, now our franchisees are £10,000 worth of experience better off for our mistake early on.
Reputation is one of the key factors in a long-lasting business. Anyone with enough money and good marketing can tell the world how great their product or service is, but if this is not backed up by quality, people will not only not use you again, they will ensure no-one they know does either. Make a customer happy and they will sing your praises – and in this digital age their voices can be heard by many more people than ever before!
Just Shutters reviews from well over a thousand delighted customers, are one of the first things people see when they research our company. Now, instead of hearing praise from our marketing team, they hear it from our customers – a much higher praise indeed! This brings us in new business AND gains us a very large percentage of re-orders.
This is not to be underestimated. James Caan of Dragon’s Den fame discussed franchising recently and was quoted as saying that ‘the two major reasons start-ups fail are cash-flow and lack of mentorship from experienced professionals’, in contrast these are just two of the main reasons franchises succeed in many cases where start-ups do not.
We give full training and ongoing support to all or franchisees, not only initial product and systems training, but also sales training and ongoing business support.
One way a franchisor will often help a franchisee is by providing huge marketing benefits, there are three ways they can help: joint marketing pots, which mean you pay a small amount toward large campaigns or marketing management fees, existing knowledge of the brand and reputation, and a marketing launch that will usually encompass a web presence as well as digital and traditional marketing.
One of the most expensive parts of starting a new business will be marketing, with a franchise you will have much more bang for your buck, not only will these things often be cheaper, the money will be spent in all the right places.
With Just Shutters you benefit from all of these and we generate ongoing leads for you on top of your own marketing.
There are many reasons to franchise, but whatever your reasons are, talk them over with potential franchisors, never be afraid to ask questions, ask for references, talk to existing franchisees and staff. We at Just Shutters are delighted to answer any questions you may have, please call us on 01202 233744 or fill in the form on this page.