Franchise vs Start up: The benefits of a franchise

If you’re thinking about a business venture there’s a good chance you’ve considered the Franchise vs start up debate.

“Start-up” and “Franchise” are two terms that are a match made in heaven! There are so many different types of businesses (over 900 different options in the UK) that people rarely associate with franchise opportunities – yes there are the well-known ones selling Burgers and Pizzas, but what about niche sectors like a Healthcare recruitment franchise?

There are lots of benefits to starting a franchise vs a new business model. If you’re new to franchising or considering your first franchise, here are the biggest benefits to look out for.

What are the benefits of starting a franchise?

An established brand name and reputation

Starting your own business, often means that you have sole responsibility for dozens of tasks. From marketing your idea, to developing it and then selling it. Franchising offers individuals who want to own their own business support, knowledge and the expertise of a trusted and experienced brand, from day one.

There is an immediate trust level that comes with name recognition, and starting a franchise allows you to be independent, while trading under an established brand name. At Safehands, we’ve built strong relationships with some of the biggest national healthcare providers in the UK, which will open doors for potential franchisee’s to enter.

Marketing and back office support

Your marketing is critical to the visibility of your new business venture. Without getting your business in front of the right people, it will be hard to scale and grow.

As a Safehands franchisee, your marketing will be part of our larger marketing strategy, allowing you to reach a wider audience than you could reach on your own. Word of mouth is a big driver of new business, so even if your Safehands branch is a new brand in the geographic area, our reputation can create the initial customer referrals. There is also the added bonus of having marketing collateral, such as business cards, posters, banners all taken care of.

As well as providing full training in our tried and tested processes and systems, we will provide you with all back-office services and support you as your business grows. So, everything from Invoicing, Credit Control, Payroll, Finance, IT and HR are provided – allowing you to focus on growing your business.

Reduced risk

Owning a business as part of a franchise model suits people who have an entrepreneurial mindset but are risk-averse, as the success rate for franchised businesses overall is extremely high. The latest survey by NatWest and the British Franchise Association showed that the commercial failure rate of franchised businesses was less than 1%. Compare that with the stats for independent start-ups where around 1:5 fail in year one and 50% won’t make it to 5 years.

The Recruiter Magazine ranked our group, as the fastest-growing, privately-owned recruiter in the FAST 50 2021.

Guidance with running your business

As a franchisee, you own and manage 100% of your business. However as part of a franchise you will have access to support and guidance of a much larger group.

You will gain insights into the latest innovations; emerging issues and remove the uncertainty of how to react to changes in the market. Making errors in dealing with change can be costly, so avoiding these errors will save you frustration, delays, and unnecessary expense. This includes changes to legislation, insurances and more.

As a franchisee Safehands will help you react to and comply with these changes quickly and efficiently. Our highly skilled leadership team are on hand to mentor you and help you develop your understanding of the Healthcare sector.

QuickStart with a high return

Financing and bankrolling a start-up can be extremely difficult especially in the first few months or even years. Start-ups have a significantly higher rate of failure as we have already mentioned – estimated to be around 35% failing in their first two years – mainly due to cash flow.

Banks are very supportive of franchised models and will typically lend up to 50% of the required funds including working capital. In addition, the Government backed Business Start-Up Loan Scheme allows you to borrow up to £25,000 (twice that if the business has two owners) without investing any personal funds.

Our FAQ’s give an insight into how much you can earn with a recruitment franchise through Safehands.

Scalability

Most franchises are easily scalable in several ways. Starting out as an owner-operator, in suitable office accommodation, you can take on and employ staff as your business grows.

Over time there will be opportunities to look into new markets and sectors, broadening your potential client base. Within a healthcare recruitment agency, this could be focusing on social care, alongside healthcare professions like nursing.

Once you have established a solid client base there is also the potential to grow your business by purchasing additional territory and expanding into new geographical locations. Safehands will support you with all the back-office services you require as your business develops.

The future of healthcare recruitment

There is and will continue to be, a perpetual need for healthcare services. This is one industry that is both future and recession-proof. With the post-pandemic “catch up” and recovery the country is seeing a surge in the demand for all types of care sector services.

Purchasing a recruitment franchise with Safehands is a great way to harness our knowledge and expertise of the care sector, giving you the chance to be your own boss and run your own business.

If you are interested in this exciting opportunity, then please schedule a call for more information. A more comprehensive Franchise Information Memorandum can be provided for you and your professional advisers.