What Does Further Delays To The Brexit Deal Mean For Franchisees?
Confused about Brexit? The sheer amount of news coverage, each vote seemingly blurring the lines between what’s been agreed, what’s been rejected and ultimately who is affected… It’s not surprising.
Most recently, the government has agreed to delay Article 50 while negotiations continue. As a ‘no-deal’ Brexit has been ruled out along with a second referendum, MPs are seemingly tasked with attempting to get yet another revised deal from the EU to win over the house. In the meantime, British businesses are left in the dark to determine whether or not further indecision will harm their operation.
However, franchise businesses remain a much safer bet throughout economic uncertainty. Here, we identify why choosing a franchise business during political instability offers more security than its alternatives.
There’s strength in numbers
The prospect of becoming self-employed at a time when newspapers are predicting recession is a daunting one. But the percentage of workers turning to self-employment is increasing steadily. It is clear that people are dissatisfied with working longer hours and are becoming increasingly conscious of the reduction in UK manual jobs – not to mention the fear of having their own role automated.
For those that are anxious to set up on their own but are uneasy in their current organisation, franchising offers an easy transition. It provides a model where you can lead and work in a manner that suits you, with the complete support of your franchisor – who will offer help and advice wherever possible. This network of peers and advisors will give you the comfort of taking on uncertainty as a team, while still enjoying the benefits of working for yourself.
Tried-and-tested methods are more secure
During uncertainty, it’s important not to dramatically increase or decrease your growth. Sustainable strategies to scaling up are imperative. Business owners need to make sure that, whatever their growth plans are for the year, they take on more clients (and subsequently employees) at a pace that they maintain. Likewise, they shouldn’t starve their growth in order to guarantee monetary safety.
We predict that, rather than trying to strike the balance themselves, a number of individuals will choose the path of franchising instead. Franchisors have proven methods for how to handle scaling up safely and without consequence to your model, giving the franchisee assurance where a regular business owner would be uncertain. Similarly, franchisees can take comfort in the fact that corporate clients will always value a service like specialist cleaning and restoration as a need, rather than a want – providing an organic growth strategy outlined for them.
Banks will be more cautious
Overly-ambitious business plans or commercial ideas that require a small amount of good faith are likely to be rejected by banks. Most small businesses usually fail before five years – with talk of a recession, banks and building societies are going to be even more careful when it comes to lending would-be entrepreneurs the finances to launch new ideas.
Banks have historically preferred business plans that have the backing of a reputable organisation. With the likes of Rainbow for instance, our team are able to help you outline the market and potential opportunities, and appropriately break down your finances. Consequently, we expect there to be an increase in franchise-related business plans as they have budget restraints based in reality with the added backing of a reputable industry leader.
Looking to become your own boss at a time where there is immense pressure on the self-employed? A franchise for sale could be your ideal opportunity. Franchise businesses allow freedom with added guidance; you can operate on your own terms along a path that is proven to be successful.
If you would like to speak to a member of our team, then book a call today and see what sets Rainbow apart from other franchises.