Becoming a Start-Up Franchisee: A Good or Bad Small Investment Business Idea?
If you want to find a small business for sale, but have come up short on the necessary funds, then you need to answer this question first – did you know that you can start a business with just £1000 by simply taking up a franchise business instead? Franchising opportunities have long been established as a staple small investment business all across the world, and plenty of Brits who found success as franchising partners did only start a business with £1000 UK money! However, since we are discussing start-ups rather than pre-established, multinational franchises such as Burger King or Tesco, does the same still apply?
It’s a difficult question to answer, but let’s get into the details next. We will briefly discuss the various aspects you should expect and prepare for if you are looking to join a franchising opportunity from a brand new, small investment business.
Home Based Operations are More Likely with Startups
Not that larger companies do not have home-based opportunities for franchising nowadays, because the pandemic has forced the work from home model on nearly everyone. However, you are much more likely to be able to work out an almost completely home-based schedule by discussing it with a smaller company that has just started out. In light of the present restrictions and also the critical need for social isolation, that is certainly an advantage to consider.
Convenience and Availability
The more popular a brand is, the less are your chances of getting a franchising opportunity with them.
The reasons behind this problem can be defined as follows:
•Unavailability: If we are discussing a big retail or fast food chain such as Tesco or McDonalds,
they have already saturated the popular areas
•Inconvenience: They might still have franchising opportunities, but they could very well be in a
different city, town or county altogether
•Competition: Established franchisee owners are the first to know about new opportunities, and
they have funds to gobble up those opportunities before anyone new can avail them
•Expense: larger businesses charge more money, which puts their franchising opportunities out
of the reach of many
On the other hand, if you go with a small investment business franchise that has only just started out,none of these problems are applicable. Pay a visit to Franchise Local and consider a small investment business from their long list of franchising opportunities available locally. If you would rather not take the risks that come with investing in a startup, Franchise Local should be able to help you find a top-rated franchise business for sale UK based.
Better Growth Opportunities
When your new franchise partner is prospective, you will grow along with their new company. You can become one of the first franchise holders for a business that could eventually grow to all new heights down the line. Besides, the YoY growth rate is much higher for franchisee owners of successful startups than those of established chains.
Future Purchasing and Partnership Opportunities
After holding the franchise for a while, you should be able to tell which way their business is going. If it feels like a prospective path, the franchising opportunity could turn into a heavier investment opportunity as well. You can ask if they are now approachable as a small business for sale, provided that you have the funds to buy it from them, of course.
You will not be able to buy Domino’s or Amazon, but smaller ventures often go on sale due to a lack of funding, providing even the smaller businessmen with the opportunity to make significant partnership investments in their franchisor’s business. It’s something worth considering, especially if you already have a background in buying, managing, and growing businesses.
Open Business Council offers resources, Trade Finance, business advice, SME Finance and a forum and directory for businesses! Improve your business and use the best digital, financial and funding tools to grow ROI – return on investment and ROA – return on attention!