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| Solid franchises work through the recessional fear |
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21/10/09
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| The severity of a recession is often measured by the toll it takes on our pay packet even though the change it renders on our mindset can be a lot more damaging. |
| However, those that are strong enough to push ahead with good business ideas will be rewarded for their efforts.Speak to anyone today about setting up a new business or striking out on their own and immediately the conversation turns to fears about funding, worries about customer demand and a plain lack of confidence in the economic environment. However, good business models are just as strong today as they were yesterday and there are even a number of advantages that the present climate offers in making them a success for the future. Today’s commercial climate may not support a less-than-perfect business plan as it might have done in the past, but there is still a demand for solid, well-run businesses that cater for their clients properly and service their needs effectively. This is why the franchise market is worth investigation for those seeking to start up their own business, but keen to employ a tried and tested formula and receive the requisite help and support to get them off on the right foot. Taking on a franchise, and especially one accredited by the British Franchise Association, allows people to take control of their own career and provide a proven service or product. Having spent the last nine years growing the business, Nailzone now has three bustling nailbars in Glasgow with a training academy that has been accredited by the Scottish Qualifications Authority and the British Association of Beauty Therapy & Cosmetology. It now plans to spread its wings in Scotland’s Central Belt before taking its proposition to the UK more generally. To do this it has established a franchise scheme. Nailzone has seen numerous rivals come in and then fall out of the market over the last decade and believes its enduring success is down to the training it provides to staff, the service it offers customers and the friendly and professional environment it creates in its shops. Backed by the Nailzone brand, the Nailzone products and the Nailzone training, the firm believes that franchisees will have an excellent chance to create a thriving business for themselves in a sector that offers significant flexibility in the way they work. As with any franchise scheme, suitable applicants need to be motivated and commercially minded. In Nailzone’s particular case, having retail experience and some knowledge of the beauty industry is an advantage, but it is not a prerequisite. Running a franchise is not just about being able to do people’s nails. It is also about managing a business. How much contact people have with clients will depend on how quickly they grow the business and how many people they take on to do the work. Although many worry about the cost of taking on a franchise, there is significant help available and some individuals will have access to government and charitable grants. In Nailzone’s case, the company also has an arrangement in place with Royal Bank of Scotland to provide funding to cover up to 70% of the start up costs in certain cases. This means that even though somewhere in the region of £50,000 will be required to set up a franchise, individuals may have to find less than £10,000 of that themselves. These figures will alter for different franchise schemes, but it is worth remembering that help is available. Even in these credit-crunched times. Indeed one benefit of today’s difficult commercial environment is that finding a location and agreeing a suitable rent for the premises is likely to be a lot easier and more affordable than in previous years. The country may be in recession, but this shouldn’t affect our desire to succeed or dissolve our confidence in what’s possible. More difficult times simply demand more stringent preparations and the groundwork that successful franchise firms have already laid, makes life for future franchisees a lot easier. |
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