Are you thinking of going into business for yourself? Maybe you're frustrated by the daily grind, and want a new way of earning your keep? But, perhaps, you're concerned that you don't have the experience or expertise to run a company?
No problem.
You may think that franchises for well-known businesses are beyond your financial reach.
Think again.
Most of the companies listed in our Low-Cost Franchises section require an investment of just £10,000 or less.
For an affordable investment with an established brand, franchising is now within everyone's reach with Franchise Direct.
What is franchising? Franchising offers a unique opportunity to benefit from an established brand's hard-earned reputation - providing access to an existing customer base, an operational supply chain, and a consolidated marketing machine.
It all sounds hellishly expensive, of course. And, maybe, if you were pursuing a franchise with a multinational brand like McDonald's, then - sure - the upfront investment is BIG.
But if you're looking for small- and medium-sized franchise opportunities, you really are spoiled for choice.
Small-and Medium-sized Enterprises (SMEs) make up 99% of the UK business population, after all.
Why Franchise?
Starting up a new, independent company from scratch is a tall order for even the most experienced and savvy of business people.
And most of us feel that we're automatically excluded from becoming business owners because we don't have an innovative idea to develop. But this is where franchising swoops in to save the day.
Setting up an independent business is fraught with jeopardy. Unless your business idea is entirely unique - offering a service or product that nobody else can provide - you'll find yourself up against established competitors who have a head start within the marketplace.
Breaking through a saturated market is tricky, making your initial years of trading particularly challenging. This is why well over half of all independent companies go into receivership within their first five years - they simply fail to overcome the competition and collapse before they've broken even.
Franchising is different. And a low-cost franchise is particularly appealing.
Why Choose a Low-cost Franchise?
Franchises are booming businesses, often delivering unique services.
They choose to expand by offering franchise opportunities so that other people can benefit from the success and the growth experienced by the parent company.
Low-cost franchises require minimal investments - often under £10,000. And lower investment means lower financial risk.
But, critically, the risk is lower with a franchise because the business model has been tried, tested, and proven sustainable, profitable, and capable of expansion.
New businesses often make fatal mistakes right from the start. They offer what they THINK their customers want, and sometimes they hit the jackpot straight away. But all the others learn the hard way - they need to adapt their business model or risk collapse.
On the other hand, franchise businesses give you peace of mind that the product offering has gone through a proven development stage; creating a product range that clients really want and need.
Franchises Offer a Reduced Risk
There's a financial risk involved with all businesses and investments. But low-cost franchises can minimise that risk, offering a faster return on investment and profitability earlier in the business's life cycle (compared with independent companies who struggle to penetrate the market in the early days).
Low-cost franchises come complete with proof-of-concept and a robust business model. These proven foundations make low investment franchises a more attractive proposition for newcomers to business ownership.
Become an Expert
Most franchise businesses offer world-class training to ensure that you:
- Are brilliant at providing the product or service, and
- Can maintain the excellent reputation for service and quality the parent company has worked so hard to achieve.
It doesn't serve the parent company just to let go of their brand; they want to support you every step of the way. Effectively, it's in their interest to ensure that you're successful in your new business venture.
So, most low-cost franchise businesses become long-term partnerships.
Not only do most franchise partners offer ongoing training support to ensure expert status in their franchisees, but many offer administrative and HR support to make sure that all is above board and shipshape.
Economy of Scale
When you take on a low-cost franchise, you enjoy the benefits of economy of scale. In other words, you join an established supply chain that means you get better prices for all necessary supplies and materials.
This puts franchises at a significant advantage over indies who can only afford to buy in smaller batches; ultimately costing more.
Less Debt
Debt can be a death knell for new businesses. But - for the most part - debt is a necessary element of starting up.
There are always startup costs, and these need to be recouped before your business can turn around a profit.
Independent companies have to do everything from scratch. They have to:
- Develop their idea into a potential framework for the business
- Market research the idea to establish business viability
- Find startup collateral
- Invest in prototypes
- Establish a manufacturing/supply chain
- Develop the brand, including creating a website
- Find premises or a digital point-of-sale
And this is all before they open their doors to serve their first customer.
Low-cost franchises provide entry to an established brand. All of the Research & Development is done, meaning that you can just hit the ground running with your new business.
With a low initial investment and a faster approach towards profit, your low-cost franchise leaves you with far fewer debts.
And with fewer debts, profit comes more quickly.
How Do I Express My Interest in A Low-Cost Franchise?
We want to make your transition from employment to self-employment as straightforward as possible, so we’ve made our introduction to franchise partners as simple as we can.
Simply browse our excellent selection of low-cost franchises. Click on View Quick Facts to get the basic nitty-gritty, including the level of expected investment, available locations, the training possibilities, and other details that reinforce the acumen of the business.
Click on the individual franchise logos, and we'll take you to another page that explains how the investment opportunity works in greater depth.
And, if the opportunity sounds like one that might work for you, click on Request FREE info. Complete the contact details, and someone will be in touch very soon to get the ball rolling.
Simple. Genius. Your fresh start.
Franchises Under £10,000
Franchises can be costly in the UK, with the average selling price in the £50,000-£60,000 range, with some much higher. However, you can find affordable franchises under £10k.
How to Choose the Best Franchise for Under £10k in the UK
Choosing the right franchise for you, even if it's a low-cost franchise opportunity, requires careful consideration.
Your Budget
Your options largely depend on your budget. When considering the price of the business, factor in other costs that go along with buying a business, such as the initial franchise fees, marketing costs, royalties, working capital, and additional stock or equipment. While banks may finance a portion of the purchase, many require you, as the owner, to put down a minimum investment as a buy-in into the business.
Your Skills and Experience
While some franchises can operate with virtually anyone at the helm, some just can't. For instance, if you take over an accounting firm, you need a background in accounting.
Your Interests
You may not need the skills to be a successful franchise owner; you may simply need the desire to see the business succeed. In this case, it helps to have an interest in the business. For instance, a coffee franchise might be a good option if you love coffee.
Talk to Existing Franchisees
One of the best ways to learn about the franchise you're hoping to purchase is by talking to existing franchisees. Ask them questions about the business, its operations, how long it took to break even, and whether they're happy with the support received from the franchisor. There's no guarantee they'll answer fully, but at least you'll have a feel for the business.
Check the Franchise's Standing
There's no regulatory body over franchises, but the British Franchise Association carries some clout. It requires members to adhere to the European Code of Ethics for Franchising. If your chosen franchise isn't part of the association, you may want to move on.
How Franchise Direct Can Help You Find Your Next Franchise
Franchise Direct is the UK's top franchise marketplace. We bridge the gap between buyers and sellers, provide access to resources and education before buying into a franchise and
enable you to make direct contact with the seller through our site. Simply give us a call to schedule an appointment once you've found your ideal fit.