It is a widely recognised statistic that more than half of households in the UK have at least one pet. If you’re looking to get into business ownership, not many sectors can boast that half of your local audience are already prospective customers. And with many business opportunities available working with pets, you’re sure to find something that interests you.
If you’ve never been a business owner, the way forward can seem hazy. It’s not always obvious where to start, and in most cases your first checkpoint should be asking yourself whether you can afford it. Can you spare the time to run a business, either part time or full time? While many people jump straight into starting up a business themselves, there are other options and one of these is franchising.
What is franchising?
Where starting up a business is exactly that, franchising is where you set up a business but using an already established brand, business model and the rights to trade. A franchise is a business that has proved scalable and successful enough to be replicated in a business-format franchising manner. It is where third parties (the franchisee) purchase the rights to trade as the business from the intellectual property owner (the franchisor), to run the business in their own area. Products and services delivered through franchising are uniform. All franchisees use the same brand, deliver the same services and have the same goals.
Pros and Cons of Franchising and Startups
Let’s take a look at the pros and cons of each option; start up a business yourself, or go down the franchising route.
Starting up a Business Yourself
The biggest advantage of starting up a business is that you have full control over the direction the business takes. The branding, the nature of the business and the size of your trading area, it’s all up to you. You have full control over the pricing structure of your business and there are no ongoing royalty fees or monthly management fees to pay, as there would be with franchising. There are many helpful resources out there for you to use when starting up a business. The UK government also favour business start-ups and are often able to provide low interest finance to help you on your journey.
Compared to franchising, the failure rate for start-ups is somewhat higher. Where 25% of business start-ups fail within their first year, franchising statistics by FranNet report 92% of franchisees were still in business after 2 years, and 85% still in business after 5 years. This figure is backed up by a 2018 British Franchise Association survey that reported 95% of franchisees still in business after 5 years.
One of the negatives of starting up a business yourself is that it can end up more expensive, especially in the long run. While with franchising you’ve got access to franchisor’s partners and suppliers, with products and services at reduced cost thanks to group purchasing power, you’ll usually have no purchasing power as a new business owner. You’ll need to find products and services, like vehicle livery design and installation, shampoos – whatever it is you’re trading in, at a wholesale, trade price. If you’re buying products at public prices, either your prices will not beat competitors, or your profits will be next to none.
Investing in a Franchise
There are over 1,000 franchise opportunities in the UK. A fair handful are pet franchises. From cat sitting like The Cat Butler, to dog grooming, walking and mobile dog washing such as Dial a Dog Wash, the establishment of a brand through franchising enables the business to resonate and attract a greater reputation. Big name brands such as OSCAR Pet Foods and Husse Swedish Pet Food are all franchises. Their brand name is strong and they are able to demonstrate positivity wherever their franchisees establish themselves. This is one of the biggest benefits of franchising. Where with starting up a business, you’re on square one with brand story, franchising enables the use of an established brand. Franchising is not paid employment. You’re not paying for a job. The business is yours, you’re just using an already established brand.
A business in a box, franchising provides you with everything you need to get the business off the ground. For the initial investment, you get everything you need to start up the business. This includes equipment, marketing materials, vehicle livery and full training and support. Many franchises are utilising national media such as TV to promote their services, which in turn has a positive impact on the franchise network. The fact that you get full training and support is one of the reasons why many choose franchising as their first choice. There are many franchise opportunities for first time business owners, often a first choice for new entrepreneurs because of the high success rate. All franchisees deliver uniform products and services. Franchises are scaled seamlessly, all with the same goal in mind.
There are of course some disadvantages with franchising. You will need, in most cases, to pay ongoing fees. How much you pay depends on the franchise. Whilst these fees usually fund continued research and development to keep the franchise network up to date with the latest trends, many people immediately write this off as a negative. And it can be so, as some franchises tend to apply a percentage of turnover or sales to the franchisee as ongoing fees, so the more you earn, the more you end up paying. Take time to explore the franchise sector because it’s not all doom and gloom with ongoing fees. Some franchises only ask for a specific amount, giving franchisees the opportunity for unlimited earning potential.
Conclusion to Starting a Pet Business For Yourself
Both franchises and start-ups have a range of financial support available. Both are eligible for the government startup loan system, and there are many businesses and banks which favour franchising. Many banks, such as Barclays and NatWest, actively work within franchising and are members of the British Franchise Association (correct as of December 2023). The support available to franchisors and franchisees is endless and you should definitely explore the franchising sector before you make any sort of decision. While starting up a business yourself puts you in the driving seat, it’s a choice many of your competitors will have also made. Will you get lost in the crowd? Or will you have a brand name that stands out with part of a franchise network?
What will be your career goal in 2024? Will you be a business owner this time next year? Take a look around a franchise directory such as Franchise Planet, or take time to explore the British Franchise Association to learn more about the concept of franchising.