04/10/2010
Franchising is the safest bet for anyone looking to set up a new business, according to the findings of a new report.
Startups cites research by Franchise Development Services (FDS), which found that 90% of new franchise owners are experiencing business success.
The FDS report also indicates that 1,500 established franchise brands are currently expanding across the UK, and that more than 250,000 people are seriously considering setting up their own franchise businesses.
Franchising has long been a popular stepping stone for ambitious employees looking to make a move into self employment. It allows them to become a 'franchisee' and work to the tried and trusted methods of an already established brand, known as the 'franchiser.'
While franchisees are required to work to the franchiser's standards and methods, they are nonetheless their own boss and are responsible for the day-to-day running of their own retail outlet.
Like any new business venture, becoming a franchisee can initially be expensive. However, by using services such as invoice discounting and factoring, franchisees can increase their cash flow and invest in the essentials to help their budding business grow.
Roy Seaman, managing director of the FDS, said that the thriving franchise industry offers an excellent opportunity for ambitious workers to experience the challenge of working for themselves.
"The franchise industry's good health is evident. So far this year, 146 new franchisers have entered the market in the UK providing increasing opportunities for people to own their own business," Franchise Magazine quoted Mr Seaman as saying.
"People who have been made redundant or have simply lost their job are exploring franchising as a proven business format for their skills, energies and ambitions," he added.
Joseph Jeffries