Business Management Skills

In considering whether a franchise or franchise opportunity is the right business choice it is worth considering just how the franchise market is set out. Here in the UK the idea of a franchise for sale somehow has less kudos than an opportunity to invest in a privately owned business.

There is a level of erudition in the Franchise market that usually is not understood. A couple of hours investigating the range of business opportunities available shows that the market is segmented into a number of different offerings. In a sector that is apparently worth ten billion pounds and employs 360,000 the complexity should not be undervalued.

At the top of the market the huge well know high street brands such as McDonalds (probably the most well known franchise operation) offer an very successful business model and brand. A Franchise Opportunity with these sorts of market leaders is not for the faint hearted, a considerable personal investment will be required, extensive training and exposure to the companies established brand and behaviours are required. In return for the large financial and professional commitment the business model is rock solid and the business and marketing plans should be well established and easily implemented.

Of course with such a heavy investment and relatively low risk, returns are likely to be lower than other opportunities.

The second type offers less investment, the prospect to be flexible within the definite product or service and typically lower investment. These opportunities are unlikely to be well know high street brands but may occupy the secondary pitches in the central business district or even we see some internet businesses falling into this category. As with the top category there will be an established brand and offer to be adopted but there may be opportunity for a little “self–expression” as the profile of the organisation is likely to be lower and the market may well be regional in nature. Franchises like Monkey Music and 0800 Handyman would fall into this class, they are very successful franchises in their own rights but not hugely visible on the high street.

The final class is that of start-up franchises which offer the potential entrepreneur the opportunity to get in at the base level. These business ideas when offered as a Franchise For Sale are the innovative ideas that do carry a higher level of risk, in that the sales proposal, and even the management of the holding company may be not yet fully organised. The infrastructure will be in place of course but the firms are likely to be quite new. Depending on the franchisee’s feelings to business these cheaper opportunities may well be the most appealing as they do allow for a degree of development and flexibility, some will even enthusiastically encourage the brand development from within the membership. If you’re seeking an opportunity to form the franchise then getting in at the cheaper end of the market may well be a good move.

fundamentally the franchise market is many layered, complex and offers a number of opportunities dependant on the investors available investment, attitude to risk and medium to long term targets.