Monthly Archives: December 2008

Franchising Drives UK Small Business Sector

In the UK 98% of businesses are classified as ‘small’ business (i.e. anything from sole proprietor to 49 employees) and employ a mighty 10.8 million people. That’s pretty impressive, considering that most of the perceived ‘big shakers’ in the business marketplace are the corporate big boys who employ over 250 employees (each), and actually only represent 2% of UK enterprises. Of course, when looking at gross UK business turnover, the small sector brings in £1.04 billion and the large sector brings in £1.35 billion…again quite impressive for small business!

What does this mean for franchising? Franchising relies on small business thats what! Now as we face an economic slowdown…and noticably, its the big boys who are falling faster than elephants out of a low flying aeroplane, it becomes increasingly clear that small business and, by association franchising, is important for economic survival.

The media likes to drone on about the fact that there are more and more unemployed individuals out there – and to be honest…its fantastic news for franchising! Before the end of 2007, the pool of good franchisees was diminishing…now we have an influx of skilled prospective franchisees out there just looking for the right business opportunity. Who wants to go back to employment and face having the rug pulled from under you a second or third time? No-one…that’s who.

What are you doing to capitalise on this time in the market place?

  • If you are unemployed…have you considered going into business for yourself? Franchising is the perfect solution for someone looking for a less risky option (of course you need to do your homework though!)
  • If you are a franchisor – when was the last time you revisited your franchisee profile? Could there be a benefit to you looking at who would  be perfect for entry into your network right now?
  • If you are  a business owner looking to grow your business – have you considered franchising as an option? 2009 might just be the year for you!
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2009 – Franchise Hot Spots

How do you work out which franchise areas will be hot for investment in 2009?

Well, look at what’s happening in the economy, what people’s buying behaviour is and even how the demographics of the country change.

Examples:
Senior care
Look at the demographics for the UK in terms of seniors. The National Statistics show that the population over state pensionable age has increased and this is partly due to the number of women born in the immediate post WWII baby boom who reached state pensionable age in 2007. These women were born in 1947, the men born in the same year will reach state pensionable age in 2012.

So, interestingly, the fastest growing age group in the population are those aged 80 years and over who currently constitute 4.5 per cent (2,749,507) of the total population. The Statitics released show that this age group has increased by over 1.1 million between 1981 and 2007 (1,572,160 to 2,749,507). This is mainly a result of improvements in mortality at older ages over the second half of the 20th century.

What does that mean for business? Well…there are a variety of franchise opportunities that will tap into the needs that arise with this age group. Have a look at these:

Motivational classes for the elderly, disabled and impaired: http://www.motivation-and-co.com
Domiciliary Care at Home: http://www.bluebirdcare.co.uk
Temporary Nursing and Care Staff to a Variety of Organisations, Companies and Individuals
http://www.prestigenursing.co.uk

Children’s Services
On the other side of the scale…in the UK the number of live births has been steadily increasing since 2001. in 2007 there were 690,013, which was a 3% increase from 2006. Interestingly, the age of mothers has increased as well…with the marked change being in the ladies over 40 (the figure doubled in 2007, from 2006). What this says to me, is that there will be an upward trend of needs for child care, entertainment, clothing, etc etc. Savvy investors should be looking at how these needs can be satisfied – bearing in mind the age of the mothers who probably have to get back into the workforce because of the level of their careers at the point of birth.

Have a look at these:

Child Care Recruitment: http://www.tinies.com
Help Develop Children’s Physical Skills: http://www.tumbletots.com
Music Classes for Kids between 6 months and 4 years old: http://www.musicbugs.co.uk

So – keep your eyes peeled for those opportunities in 2009 – times are changing and you just never know what will turn out to be magical for you.

E-Book Launched!

My new ebook that basically answers all those questions most people ask me when they meet me…is out now! For the first 100 copies, I am going to sell them at a special reduced price in celebration of finally getting it out.

The ebook is called: “Understand Franchising in 30 minutes” and its for any business owner who is contemplating growth or shifting their business to the next level and is curious about the franchise business model.

My ethos at the end of the day is to properly educate business owners and entrepreneurs alike on the franchise business model, so that they can be fully informed before making a decision on whether its something for them or not.

Honesty is the best policy long term and you the truth is franchising may well not be for you…but then…if it is, and it is done correctly, its a fantastically clever way to grow your business.

Check out the ebook – it may answers those niggling questions you have:
http://www.expertfranchiseguide.com/ebook