Starting a financial franchise business
The financial services market has been expanding in the UK, contributing to 7.6% of the UK’s total Gross Domestic Product (GDP). With financial services growing 5.7% over the past decade, the market is ripe for investment by enterprising entrepreneurs.
There are many options to choose from when entering into the financial and accountancy franchise industry, such as business cost management consulting franchises, accountancy franchises, tax preparation franchises, financial advising franchises, loan franchises and mortgage franchises.
Entry into this industry is fairly simple and straightforward, and financial services franchises usually have high earning potential, as many of their clients are businesses. When you decide to invest in a financial services franchise, consider the following:
- Do you want to invest in a franchise? Franchises are particularly appealing to those who want to utilise their financial or accountancy skills and have automatic brand name recognition and support that helps build a successful business from the start. People who have an entrepreneurial spirit and are attracted to the financial sector but don’t have experience are also great candidates, as franchises provide them with training on how to run the business as well as providing crucial information on the financial market itself.
- Is this the right industry for you? Make sure you’re convinced the financial services and accountancy industry is for you.
- What are your franchise options? Browse through Franchise Direct’s comprehensive directory of financial franchises. Attend franchise exhibitions and discovery days to get in depth information about the franchises and discover the one that suits your requirements best.
Once you decide on a franchise that matches your interests, make sure to enquire about important details such as:
- Investment: Ask how much is the initial investment, do they help you obtain capital and do you have enough working capital on hand for your personal expenses during the initial months of starting the franchised business.
- Earning Potential: Enquire about projected earnings as well as actual earnings results from their other franchisees, which will give you a realistic idea of what you can expect to make.
- Training & Support: Find out about what kind of initial training and set-up assistance they provide, as well as what kind of ongoing training and support they will provide. Most franchises will teach you about the business itself, how to run it, how to use any products or perform any services the business offers, how to hire and manage employees and how to market your business. Make sure you can expect ongoing telephone support and a way to communicate and network with fellow franchisees.
- Resale: When you are ready to sell your franchise, you want to know your options. Find out how long your contract lasts and if there are any specific rules to when and how you can sell a franchise.
Learning about the franchise through a website, visiting the franchise director and support staff at headquarters and discovery days can be helpful, but you still want to speak with current franchisees to get a feel for what the financial franchise is really like. They will give you the inside scoop on what they do on a daily basis, how much support the franchisor really provides, what kind of problems they have run into and the actual earnings for the franchise.
Armed with this crucial information, you can decide whether the financial franchise in question is the right one for you. Since starting a new business is a big decision, take your time and make sure to get good answers to all your questions so you can make the best decision for your future.