As a result of the ongoing cost of living crisis, many people are experiencing financial worries and, if you're one of them, launching a business is probably the last thing on your mind.
However, if you've ever considered joining the franchise industry, here are a few reasons why doing so today could actually be a smart idea.
It's a Reliable Business Model
Franchisors enable franchisees to operate under an established brand with an existing customer base. This means that buying a franchise is both comparatively low-risk and, with 93% of franchisees in the UK running at a profit, potentially lucrative.
Needless to say that, during a cost of living crisis, these are two of the most desirable characteristics a new business venture can possibly have.
You Receive Training and Support
By investing in a franchise instead of starting your own business, you will receive all the necessary training from the franchisor before your business opens, as well as access to ongoing support from the franchisor and other franchisees.
When you start your own business, you're essentially on your own, so having your franchisor's expert advice and experience to help you become established and deal with any issues further down the line is invaluable and increases the likelihood of your franchise being successful.
It's Easier to get Funding
In the eyes of the banks, franchises are generally considered to be a less risky route to business ownership, even when the economy is suffering. This means that, so long as you have a robust business plan in place, receiving the funding you need to get your franchise up and running can be reasonably straightforward.
There's Less Competition
When the economy is booming, more people are emboldened to take a risk on a new business venture. However, when finances are being squeezed, people are much less likely to take the plunge. This means that if you decide now is the right time for you to buy a franchise, you'll be competing with far fewer other new businesses than you would be than if the economy was booming, increasing your chances of cornering the market in your chosen industry.
Consumers Aren't Going Anywhere
Even with a significant proportion of the population currently having less disposable income, there are certain products and services that people just can't do without. This means that, as long as you do your research and pick a franchise that operates in an industry which consumers regard as essential, there will be a guaranteed market for you to tap into.
You're Motivated
If the cost of living crisis is negatively impacting you, you'll naturally be more careful with your money and investments so, if you decide now is the time to buy a franchise, you'll have an incentive and be even more motivated to make sure it's a success.
Cafe2U Franchise Opportunities
Our CEO, Martyn Ward, gives his thoughts on why investing in a Cafe2U franchise could be right for you despite the cost of living crisis.
"At Cafe2U, we have a robust and proven business model. We do everything possible to equip new franchisees with all the tools they need to make their business a success, from training and support, to organising networking events with other franchisees, providing them with exclusive areas in which to operate and helping them advertise their business to drum up interest before it launches and ensure it gets off to the best possible start.
"What's more, we know for certain how effective our approach is - despite the UK's financial issues, our mobile vans set a new sales record just last week! For anyone questioning whether a business such as ours would continue to be profitable in the current climate - there's your answer.
"Consumers love good coffee come rain or shine and it is becoming increasingly apparent that there is still a large market for it despite the cost of living crisis - where people might previously have treated themselves to a pair of shoes or a new jacket, they're now treating themselves to a top-quality coffee instead to reduce their outgoings while still getting a well-deserved pick-me-up.”
If you're interested in investing in a Cafe2U franchise, click here for more information.