This is a guest blog post by the UK’s Financial Management Centre.
Many people would really like to start a business for themselves but are uncertain about where to start. With high failure rates in new businesses, more and more people are looking to franchising as an opportunity to grow a successful business.
This article offers an explanation on the concept of franchising, focusing on a business format franchise, the accounting franchise.
In a business franchise model, a franchisor licenses the rights to a proven and tested business model, trade name and trademarks to a franchisee. The British Franchise Association (BFA) defines franchising as the following:
“Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trade mark/trade name of the franchisor and to make use of an entire package, comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance, on a predetermined basis.”
The Financial Management Centre offers a proven and tested business model and support for qualified and experienced accountants. These accountants/financial controllers will then deliver bookkeeping and management accounting service to businesses within their exclusive geographic territory while growing a successful business.
A franchise arrangement offered by a franchisor that has a proven rate of success offers more safety than going into business independently for several reasons.
- An increased chance of success – Since you will become part of a brand and business model which has already been established by the franchisor;
- A strong support structure – The franchisor’s high level of experience, entrepreneurial spirit and willingness to help guarantee greater success for your business;
- Fast rates of growth – Franchises will have proven methods to acquire and retain clients;
- Access to national accounts – Franchisors often have relationships with many national organizations that refer business to their franchisees;
- Attracting the best people – Any service business is only as good as the people it employs and most employees would be attracted to work with an established brand with a good reputation than a relatively unknown local business;
- Holiday or sick leave – Franchisors usually provide all their franchisees with cover during sickness and holiday and this helps ensure client retention;
- An established brand – You would benefit from being part of an established brand that will already have come into contact and built relationships with your target market;
- Mistakes cost money – When you set up in business, there are limited funds available. Can you afford to make mistakes? The experience of an established franchisor ensures you don’t need to worry about this.
The Financial Management Centre (TFMC) is one of the leading, financial management consultancies in the UK. They specialize in operational finance within small to medium-sized businesses. Please visit http://www.accounting-franchise.co.uk for more information.