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THE TIME IS RIGHT TO STEP INTO THE FRANCHISING SPACE

The pandemic has created situations that no one would ever dreamt they would encounter. While it might seem counterintuitive, this is the right time to consider taking the plunge into the franchising space. Many established franchise companies have already started to see a slight rise in sales. This trend is all set to rise in the coming months. It’s a proven fact that these sales rise when specific factors are in place. The three factors are:

• Incredibly high levels of unemployment at the upper end of the salary market.
• Easy access to loans and other forms of financing at lower interest rates.
• Many Australians have access to savings in various forms such as personal savings, retirement accounts and home equity as the country has had a healthy economy over the past decade.

Unfortunately, the COVID-19 pandemic has put a large section of the population out of work within a very short period. There are many people with excellent business skills or with high competency levels in their respective industries. This has created a pool of well-qualified prospective franchisees and even potential franchisors that can expand their businesses and create business opportunities for the former.

Advantages of Becoming a Franchisee During The Pandemic

The franchise model has always been a conducive business option as people can thrive under a well-established brand while collaborating successfully with other franchisees in the network. Credible companies have the infrastructure, setup and expertise required to support new franchisees. They help with everything from planning and launching your franchise to training and operations.

Many of these companies are proactive with providing their franchisees with growth opportunities as well. They will also have set marketing processes and proprietary technology in place to the operation you are planning to pursue. It means you can succeed in your business venture much faster than if you tried to set up one from scratch.

It can be quite risky to set up a business from scratch, especially in these uncertain times. However, when you decide to buy a franchise, you can be you own boss, while benefiting from a supportive franchisor with things like:

• You get pre-opening support, as the franchisor will assist with selecting the site, accounting, software, capital resources, as well as various operational needs.
• They will also help with training operations, which helps you maintain consistency in your business processes. When you are able to be consistent with providing services and goods, it helps to strengthen your reputation in the market and can benefit from returning customers.
• The franchisor will also provide post launch support to help you streamline your business and expand your operations. They can also coach you on service and personnel changes.
• When you become a franchisee, you become part of a much bigger picture. The customers recognise you as a branded business that provides consistent products and services. You can use all recognizable factors such as logos, designs etc.
• The risks of running a franchise business are far lower than starting on one yourself. When you have more experienced leaders guiding you, it increases your chances of success.
• Smaller businesses find it challenging to design promotional opportunities. It is also difficult for them to be consistent with marketing efforts and the amount of capital they pour into it. When you are part of a larger organization, you can promote your business with professional designs and consistent marketing campaigns.
• You own a business that functions on a proven model and that allows you to expand your capabilities while you learn from your franchisor and get their support.
• Whether you buyout a franchise or start afresh, you have much better chances of succeeding in this space rather than going it alone.

As you decide what your next steps should be, know that as a franchisee, you would be able to make your own decisions, while getting guidance and support from your franchisor when you need it. The current economic challenges that the pandemic has presented might just make franchising a smart choice for you to achieve your entrepreneurial goals.

If you want any more information, contact the experts at The Franchise Institute. You can call us on 1300 855 435 or fill-in this contact us form, and one of our experts will contact you as soon as we can.

Thanks for reading,
The Franchise Institute Team
1300 855 435