It’s no wonder that in a recent British Franchise Association survey, four out of five surveyed say being part of the franchise model offers them a competitive advantage over similar businesses that aren’t
(PRWEB) July 31, 2011
According to a recent survey from "New Business" magazine, more than 30% of the UK’s working population have a desire to start their own businesses. Yet 49% of these have no immediate plans to embark upon that dream, with only 14% claiming this year is a better time than last to take the plunge.
In the end, it is estimated that only 5.9% of all those people that want to start their own business will actually take the leap into self employment. So what is it that’s stopping people and how can we remove the barriers? Nathan Siekierski of Jasper's Franchise Ltd believes franchising has the answers:
Nathan says: "I’ve been there. Starting a business from scratch is a significant risk and commitment, but there is an alternative way. If we look at the top four reasons why people don’t start their own business, we find that, in each of these reasons, franchising can remove the barriers."
The top four areas are:
The most common reason that people don't or can't start a business is cash – or lack of it. Without the necessary start-up capital, many great business ideas never get off the ground.
Nathan says: "An experienced franchisor will have good relationships with top lending institutions because of the proven success of their franchise model. There are 897 different franchise systems in the UK – everything from a few thousand pounds investment to millions of pounds. Financing a new franchise is something a franchisor can help and advise with, and the banks much prefer a solid, proven franchise over an independent start-up."
The thought of losing the security of a steady income and benefits keeps many would-be entrepreneurs in the corporate world.
Nathan says: "Having a franchise puts someone in charge of their own ship in a fleet. They are no longer just an employee at the mercy of managers, HR departments or efficiency savings. Job security these days is not what it was, yet even in tough times, good franchise models are thriving. Since 2006, the sector’s turnover, and number of franchise systems, have both grown by 15%, despite a UK GDP growth rate of only 9.4% in the same period."
Ideas of "building a better mousetrap" can bring out the entrepreneurial spirit in some. Others may find their idea already exists and they’re not sure how they can differentiate themselves or successfully compete in the same market. Therefore they quickly give up on an idea.
Nathan says: "There is no race if there is no competition. A proven franchise model should be at the cutting edge of the market, outperforming the competition. A franchisee invests in proven business systems that put them ahead of the competition. It’s no wonder that in a recent British Franchise Association survey, four out of five surveyed say being part of the franchise model offers them a competitive advantage over similar businesses that aren’t."
4. Lack of Ideas
Some people want to be their own boss but haven't a clue what to do. This leads to confusion, fear and ultimately giving up on a business dream.
But as Nathan says: "It’s not good ideas that make a business successful, it’s the application and people that count. That’s what franchising is all about – taking a proven product or service and following a successful franchise model that is working in all parts of the UK."
Nathan advises that the first step for those interested in running their own franchise should be to think about their skills and interests, and the kind of investment they’re comfortable making. Then they should look for franchisors that, like Jasper’s, are members of the British Franchise Association (BFA), have Investor In People status and have good relationships the banks. Then go on Discovery Sessions and get talking to existing franchisees.
Above all, Nathan says: "Remember, we only have one life! So whilst we’re here we should chase and live our dreams."
About Jasper’s Franchise Ltd
Nathan Siekierski is the founder and owner of Jasper’s Corporate Catering - providing office catering for business events as well as vending and workplace canteens. Jasper’s Corporate Catering now has 10 franchises across the UK, with more planned. Visit http://www.jaspers-franchise.co.uk