Franchising, in particular, can be an attractive option for entrepreneurs, as it combines the appeal of running your own business with the support and structure of an established brand.
Despite these advantages, many people hesitate to take the leap. Here we look at the top five factors that hold individuals back from starting their own business with a franchisor.
At GoodOaks, we take each of our prospective franchise partners through an in depth discovery process and work with each individual to reassure them that it is a worthwhile consideration.
Whether you’re contemplating a franchise or simply curious about the challenges involved, we hope this will offer insight to help you navigate the decision-making process.
Here are the top five:
1. Financial barriers
Initial investment: Launching a franchise can sometimes require a substantial upfront investment. Franchise fees can vary considerably depending on the brand and industry. In addition to this, costs for equipment and location setup (such as leasing office space, signage, etc) can quickly add up. For some people, these entry costs make franchising seem out of reach, especially if they don’t have significant savings or access to funding. However, many franchisors offer financing options, and banks are often more willing to lend to franchise businesses due to their proven models, making funding more accessible than it might initially seem.
Ongoing fees: Franchise agreements typically include ongoing fees, such as royalties and marketing levy’s. Royalties are often calculated as a percentage of revenue, meaning that even if profits are slim, franchise partners are still obligated to pay these fees. While these costs are unavoidable, they often come with valuable benefits, such as ongoing support, brand recognition, and national marketing efforts that can help drive business growth and long-term success.
2. Fear of failure
Uncertainty in success: For many prospective Franchise Partners, the unknowns about the business’s performance can be a source of anxiety. Many industries are highly competitive, and Franchise Partners worry about whether they can stand out, especially if competing against similar businesses or rival franchises in the area.
The homecare sector is widely considered recession-proof due to the ever-present and growing demand for quality care services. This makes homecare an essential service that remains resilient even during financial instability. GoodOaks is well-positioned to stand out in this competitive sector by leveraging our unique selling points. These include a strong commitment to high-quality, person-centered care and a robust training and support system for care professionals and Franchise Partners. We are also the only carbon neutral homecare provider in the UK and strive to protect our planet. We pride ourselves on attracting both quality clients and care professionals, reinforcing our position as a trusted provider in an industry that remains stable even in uncertain economic times.
Personal loss: The personal stakes involved in starting a franchise can feel overwhelming. Starting a franchise often demands full-time dedication and longer hours, especially during the initial stages. Rest assured, choosing the right franchisor with a proven model for success, combined with your own strong work ethic and drive to succeed, will give you the best possible chance of success.
- Lack of knowledge or experience
Industry-specific knowledge: While the lack of knowledge or experience can feel like a significant obstacle, it’s important to remember that franchising is designed to support individuals with little to no prior experience within their chosen sector. A lot of our franchise partners at GoodOaks have joined us with no background in care, our training programmes and ongoing support are designed in such a way that this doesn’t pose any issue, allowing them to learn as they go, with the right support in place.
- Control and autonomy concerns
Limited flexibility: When entering a franchise agreement, Franchise Partners must adhere to the franchisor’s established systems, procedures, and guidelines. While these structures are designed to maintain consistency and uphold the brand’s reputation, they can feel restrictive to individuals who value creative freedom or entrepreneurial independence. At GoodOaks, we work with our Franchise Partners, actively listening to their ideas and encouraging their feedback to ensure we build a strong network of like minded people.
- Time commitment and lifestyle changes
Work-life balance: Launching and managing a franchise can require an immense time commitment, particularly in the early stages. Franchise Partners are often responsible for overseeing daily operations, hiring and training staff, managing finances, and ensuring adherence to franchisor standards. Transitioning from the stability of a regular job to the uncertainty of running a franchise is a daunting prospect for many potential entrepreneurs.
Overcoming these barriers:
Buying a franchise is a huge decision and it’s really important that you do your research to ensure you fully understand what is involved. Take the time to fully understand the costs, risks, and support structure of the franchise you’re considering. Look into franchise disclosure documents, financial commitments, and market demand within your chosen territory. This will provide a clearer picture of what to expect and help mitigate uncertainties.
Learning and taking advice from those who’ve walked the path before you can be invaluable. Reach out to existing Franchise Partners within the network for insights on the day-to-day realities, strategies for success, and potential pitfalls. Their experience can help you make informed decisions and prepare for challenges.
Owning a homecare franchise requires financial investment, emotional resilience, and significant time commitments. Assess your readiness in these areas by considering your current resources, personal circumstances, and long-term goals. Ensure you have the support of family or business partners where needed.
Not all franchises are the same, so it’s essential to select one that aligns with your skills, values, and resources. Look for a franchise with a strong reputation, proven systems, and robust support for Franchise Partners. A franchise that shares your passion for delivering exceptional care will make the journey more fulfilling and manageable.
Why GoodOaks?
At GoodOaks, our partnership approach empowers our Franchise Partners to provide premium care in their local area. Our partners share our values of professionalism, respect, integrity, dedication and empathy. They are passionate about providing quality care, knowing that is key to sustainable business success. They have a shared set of characteristics that allow them to flourish in their local care market. Our Early Adopter Discount rewards individuals who join us earlier in our journey, enabling you to invest more in growth. Our support team have over 100 years of experience in care between them and are there to support you every step of the way.
To find out more about our unique franchising opportunities, contact us here.