Has your business got the potential to be a Franchise?

This question has been asked by a number of clients in recent months, so I thought I would share with you some insights into what is required if you are looking into this.

Questions to ask yourself.

Does your business make a reasonable profit?

Do your products or services meet a ready need in the market?

Could your business work in other locations?

Could others be trained to run a business in the same way as yours?

Are you keen to grow but concerned about losing key personnel?

Does it interest you to help others become successful in their own right?

Are you keen to grow whilst minimising the risk?

Are you keen to grow whilst minimising financial outlay?

Would you like to multiply your profits over the next few years?

Would you like to generate a substantial passive income stream?

If you are saying yes to most of these questions, then your business could have franchise potential. We have the contacts to hand who can assist you through this important phase.

Some of which are:-

Having a sound financial model with excellent documented processes will put you on the right road to make your business a viable option for others. Most networks look at a business being able to run at a turnover of more than £1,000,000 a year, as this has proven that the model is working and that you as owners are seeing success in your own right. That doesn’t mean that as a smaller business that this idea is pie in the sky, but it does make a difference on your selling price and advertising potential of the franchise.

We have found that by being able to at the push of the button knowing exactly where you are financially, you can plan for any number of opportunities. The important thing to remember is that whilst you are passionate about your product or service, others will follow suit. Keeping the motivation is a big part of these successful brands. Training and recruitment, and controlled growth and support. It doesn’t matter what type of industry either, we have seen the food industry, manufacturing and accountancy to name a few take on the franchise idea and make a big success. It is a faster way of getting your name out and improving branding and enables you to distribute on a national, multi national scale, and of course profitable. If you would like to hear more, come and book an appointment with us.

This blog is intended for information purposes only advice from past experiences, you may have your own suggestions.  It is not intended to be used for all of your business decisions, but used as a guide only.

Self Employment Vs Employed

I get asked questions about subcontractors on a regular basis, so I thought I would share a few tips with you.

Employed

You will need to register for PAYE all employed staff regardless of the number of hours they work for you.    You need to keep personal information for example.  Name, address, national insurance, date of birth, hours worked and start and finish dates.   Keep a personnel file of any discussions or grievances too.

All employees require an employment contract, this can be simply done see the business link website for a template.

Business Link Template

Or you can use a registered HR Company to prepare one for you.

It describes the employee job title, description, hours of pay.  Rights to holiday entitlement, grievance procedures and sick and maternity leave.  Confirmation of start date and a job description, along with company rules and procedures.

You as the employer allocate work as required and set the hours of work to that employee, these are likely to consistent.  They do not have the responsibility of hiring or dismissing your staff.

You will need to keep employment records and records of salary paid, and you are responsible for their national insurance and income tax contributions.  You will also pay Employers National insurance on top of their salary, after the tax free allowances are taken into account.   Normally applying to full time time or part time after earning gross pay of £625 per calendar month. 2012/13 rates.

Self Employed or Contractors

Self employed staff or sub contractors are normally used on a temporary basis, the hours can be sporadic, and they have other customers besides yourself.

They would either be set up as a Limited Company, ie they are the employees of that company  or your supplier.   Or set up for self assessment.   They have the right to take or refuse a contract offered to them.  They also have the right hire and dismiss their own staff.

They have no entitlement to holiday pay, or sick pay through yourselves, or minimum wage.  But will normally charge for work