Franchise Focus Business News…

We’ve all heard the statistics about how the franchising industry in the UK is flourishing! And that gave us some insight into the fact that redundancies can lead people to start their own businesses or franchises. This is proving to be true, all across the UK.

According to research conducted by the GetSet for Business consultancy, 40% of business owners say their fear of losing financial security prompted them to start their own business.  Of course, other factors that drew people to start their own business include flexible hours and working from home, as well as being your own boss.

In fact, many of the success stories from franchisees have stemmed from a redundancy, which made the individual then consider going into business for themselves. Instead of considering redundancy as a doomed life sentence, it can be a great opportunity to do what you’ve always wanted to do!

People who have been made redundant were often in jobs where they gained much knowledge and skill. Franchisors are often looking for people with experience in certain fields and marketable skills (although training is provided in many franchises), as well as a track record of success and the funds to draw from to start the franchise.

One of the most important things to consider if you become unemployed is whether or not you have the capital to open up your own business. This could be a turning point in your future. Instead of rushing into job search mode, you may want to think about the following:

• Am I currently happy in the field I am in, or do I want to change sectors?
• Do I want more flexibility and freedom in my work week?
• Do I want to try something new?
• Am I wanting to work for myself and be my own boss?

Consider your answer to these questions, and think about a franchise: after all, 9 out of 10 franchises succeed, whilst 4 out of 5 independent businesses fail within the first two years of business. Then consider looking for a franchise that could be your dream job!

Owning and operating a successful business can be a very satisfying way to earn a living. But are you prepared for the responsibilities associated with owning a business? You should carefully consider the self assessment checklist below before starting your own business. It lists the personal attributes and factors which increase your chances of success.

Personal Qualities

I am prepared to work hard and give full-time commitment to the business.

I have the necessary persistence and tenacity to stick with the business through thick and thin.

I have a strong desire to be self-reliant.

I believe that I will be successful through my own efforts.

I am physically and emotionally resilient.

I can work independently.

Your Attitude to Risk

I am prepared to risk my own money and assets in the business.

I recognise the importance of professional advice and guidance before I invest my money in the business and during and after business start up.

Your Family

I have the full support of my family.

My family will cope with the demands of the business on my time.

Business Skills and Know-How

I have a clear market focus with a specialized service or product that fills an ongoing need.

I have specific skills or know how in the product or service area I am contemplating.

I have previous hands-on business experience in business.

I am well organized and efficient.

I have a basic knowledge of accounting and cash flow management.

I feel comfortable selling to people.

I can organize and motivate others to get things done.

Finance

I can raise the funds required  to get a business off the ground and survive the initial start-up phase.

I have sufficient reserves of working capital should the business be slower to grow than expected.

When you start your new franchise, you’ll find that there are certain accounting and tax responsibilities that follow. Whether you’re an accounting whiz or not, you will need to find a way to figure out what kind of taxes your new business owes, and whether or not you need to register for VAT.

This may get even more complicated for franchisees when the basic tax threshold is raised later this year. There will be an increase in personal allowances, enabling all basic-rate tax payers to earn £600 more this year before they have to pay taxes on their income.

If your franchise has employees, then you as the employer must ensure that your employees’ September pay packet shows the difference, because these changes are backdated. This may get confusing or difficult for some of the small business owners and franchisees that do the payroll themselves.

Check out Business Link’s helpful guide on Taxes, returns and payroll. This may help walk you through some of your responsibilities. Also check with your accountant to see if he/she can help walk you through the tax changes.

If you’re still unsure of what to do, look at Franchise Direct’s directory of franchise consultants that. There’s a list of banks and consultancies that can provide financial assistance that might be of help to you, whether you are borrowing money or seeking accounting, taxation and business advice.

The most common reason small business owners and franchisees set up their own business is in order to achieve a better work-life balance. This has been proven time and time again, in polls by SmallBusiness.co.uk and in a recent study by the Franchise Relationships Institute.

In fact, in the UK, employees are becoming burnt out from constantly being available for work. A new Standard Life study shows that 70% of people leave their phones on all night long, and 15% cut their workouts short so they can check their BlackBerrys. And the Trades Union Congress released figures that 3.3 million people in the UK work more than 48 hours a week.

However, new business owners fail to remember that starting up a new business is hard work … and can be very time consuming as well! That’s why we want to make sure you have realistic expectations about being your own boss, and that you take into account that your new business won’t necessarily be easy or less time-consuming.

You’ll have the perks of a more flexible lifestyle (working different hours, taking days off or vacations when you want, etc), but you will also be called to attend to the needs of the business and put in the effort required to generate the level of income you want.

So in order to take advantage of the flexible lifestyle and better work-life balance a franchise can bring, here are some tips to help achieve that elusive work-life balance we all want:

• Make yourself a daily routine. Try to wake up at the same time everyday and then schedule some working hours for yourself so you’re not stretching work out all day long.
• Schedule your work for the time of day when you’re most alert. That might mean the morning (for most people, as bleary-eyed as they may feel, it is!) or the afternoon, but if you can do work when you’re most alert and productive, you’ll get more done in less time.
• Take a lunch break. Even if you are overloaded with work, you need to eat! So take a break and grab something to eat with friends (that’s what flexibility is for, right?) or make something for yourself.
• Get out of the house if your franchise is home-based. It’s hard to get out of your pajamas sometimes, but try to make it out of the house at least once a day. Whether that means getting rid of your coffee maker and visiting a coffee shop or making a lunch appointment with friends, it’ll be good to see some friendly faces.
• Set aside time for your family. That might mean a nightly family dinner, or taking a walk and exercising together at night. Whatever you enjoy doing together, set aside some time to do it.
• Set aside time for yourself. You need some time to read a book, take a walk or do the things you love. Don’t forget to give yourself that “you” time as well!
• Turn off your computer at night. You might get the urge to check it when you wake up in the middle of the night, so make sure you turn it off when you are done with work for the day. There’s rarely something that can’t wait until the morning…
• Make one day a week a “technology-free day.” That might mean turning off your phone, your computer and TV for a day. But that will free up a lot of time for you to spend time with the ones you love, and concentrate on your wonderful life!

If you’re taking the plunge to become a business owner, enjoy the flexibility it affords you! But remember to try for a work-life balance you and your family can be happy with… after all, you’re the boss!

There’s been a lot of talk in recent years about climate change, and it’s increasing in public awareness. With this heightened sense of awareness, you might want to find out about your business’ carbon footprint!

One of the easiest ways to measure your impact on the environment is to find out how much your carbon footprint is, or the amount of greenhouse gases (GHGs) produced from all your business activity. The main sources of GHGs for business are generally:

1. transport emissions (e.g. business vehicles)
2.  energy consumption (e.g. how much gas and electricity you use)
3. how you dispose of waste (e.g. the incineration of waste can lead to methane release in landfills)
4. refrigerants (e.g. hydrofluorocarbon, or HFCs)

If you can figure out ways to improve these categories, your business will be emitting less (and this may even save you money, as lower energy consumption equals lower bills!). Check out The Carbon Trust’s carbon footprint calculator!

Also keep in mind that there may be tax breaks for those businesses that adopt environmentally-friendly practices. For instance, using sources of energy with less environmental impact can mean you get a reduction in the climate change levy, or use enhanced capital allowances (ECAs) to invest in vehicles for your franchise that have low carbon dioxide emissions. Another way to get a discount is if your vehicles use alternative fuels.

Another solution to your business’ carbon footprint is to calculate the GHGs your franchise emits and then purchase credits from an emission reduction project, such as renewable energy schemes, energy efficiency projects, capturing methane from landfills, planting trees to absorb carbon dioxide, etc. Check out the Defra website for more information on carbon offsetting.

Read up on more information about environmental regulations at NetRegs and find out about their significance to your franchise. With better informed consumers and environmentally conscious businesses, we can move the booming franchise industry further and further into a green future!