Employing over half a million Australians and boasting a growth rate of 14% since 2002, franchising is becoming a popular, practical, financially possible option for more and more people willing to tackle small business ownership.
However, several distinct differences exist between independent small business and franchise ownership, the chief of which is risk.
“The failure rate of independent small businesses is substantially higher than that of franchise owners,” says Sussan McKaige, of Franchise Alliance.
“Only one in five SME’s is still operating after five years.”
Providing an educational and consulting service, Franchise Alliance offers information about the franchise industry, including lectures for the public, development of franchise systems and training seminars.
Sussan admits franchising in Australia is far more likely to succeed financially than any other small business enterprise.
“Franchising is considered a safer option when contemplating owning your own business. Ninety-four per cent of franchise owners are still in the franchise business after five years.”
She attributes the success of franchises to strong support networks in place between franchisor and franchisee, with a mutual objective of growth and development.
“Franchising provides branding, growth strategy, teamwork, support, proven business models and financial advantages.
“Franchisors should commit to maximise the franchisee’s development, as the franchisor’s income, through ongoing fees, depends upon the continuing growth and success of the franchise owners.”
However, the degree to which the franchisor commits to franchisee growth can vary greatly from franchise to franchise, and therefore it is important for a potential franchisee to assess the support systems in place before sealing the deal.
“A franchise culture must be created in order for the relationship to flourish. Both franchisor and franchisee must be sustainable to create a win-win environment.
“And the franchisee must apply dedicated resources to the business in order to succeed. Following the proven business model and systems is also extremely important, and staying focused is paramount.”
According to Sussan, the key advantages of owning a franchise in addition to the support network and likelihood of success, is the greater return on investment.
“The ROI is usually more attractive due to the growth of the entire franchise system they join. And franchisees are in business for themselves, not by themselves.”
This idea is one Ms Katrina Blayney knows well and appreciates wholeheartedly. Celebrating her first year as an
Award Bookkeeping Company franchisee, Katrina is grateful for the support and advice she has received from head office.
“I can’t tell you how great Award has been to me throughout my first year. The
bookkeeping franchise has just grown from strength to strength, and I haven’t even had the chance to beginning marketing it. My sister has had to help me out with all the work, and I’m already looking for another new employee!”
Acknowledged by BRW this year as one of Australia’s fastest growing franchises, Award Bookkeeping Company
accounting franchise has established a solid foundation to enable rapid growth. Its franchise system is a proven formula for individuals with the desire to ‘make business easier for business.’
Award Bookkeeping Company director Deb Shugg says her “human” approach to business, plus the support and training in franchise development she offers her franchisees, is a major drawcard.
“We try and involve all our franchisees in interactive ways that allow them to share their experiences with one-another, whilst establishing a communication network with colleagues on a national scale,” Deb said.
“My motivation behind the Award Bookkeeping Company is to help small business to do business easier and better. We’ve changed the usual ‘business 2 business’ philosophy to one of ‘business 4 business’, she said. Sussan recommends Award Bookkeeping Company as one of the premier Australian franchise options available, due to its dedicated commitment to franchisees.
“Award Bookkeeping has spent an incredible amount of time and money in establishing their Induction Training, Field Support Programme and ongoing development projects in order to provide the franchisees with the tools for success in their businesses.
“Dedicated Field Support staff are employed to provide marketing assistance, business analysis and growth strategies to the franchisees.
“Having worked in the Franchising Industry for some time, I have seen many systems. Comparatively Award Bookkeeping is providing outstanding training and support to their franchisees.
Award Bookkeeping Company consists of a varied group of small business owners with financial industry backgrounds, including former accountants, business owners and bankers who have chosen to provide their expertise at a foundational level for other business owners.
“One of the most attractive things to me about Award was their selection process,” said Katrina.
“I considered several franchises that weren’t bothered about having a background in bookkeeping; they would simply send those people on a course.
“Award is more selective with its franchisees. They only accept qualified and experienced business people who prove their ability and enthusiasm about providing a timely and accurate bookkeeping service.”
Katrina admits the possibility of her business receiving bad publicity due to an ill-performing colleague was an initial concern when first considering becoming a franchisee.
“Part of running a franchise is considering the implications of other franchisees within the group. It concerned me that my business might be held in negative regard if other inexperienced franchisees provided poor customer service. However, Award’s selection process provided me full piece of mind in this regard.”
“We’re very careful about recruitment,” said Deb. “This industry has so much potential and it’s important not to undermine it by populating it with bookkeepers who think this is something they can do. Business owners and accountants can spot unproven bookkeepers very quickly.”
Prior to Award, Katrina was the general manager for a medium sized international company, and sought a career change that would grant her greater freedom.
“As a franchisee, I have greater flexibility with my son and increased potential to develop my business.” Although so far, Katrina’s business has generated itself.
“As I haven’t yet begun marketing the business, I have been working from leads given to me from head office, which have produced other leads and it’s just flourished.”
Within three years, Award Bookkeeping Company has catapulted to establish 38 franchises to date, throughout Victoria, New South Wales, South Australia and Queensland and is now expanding into the rest of the country.
“By expanding the franchise system, we can only hope to further assist more and more businesses achieve their goals,” explains Deb.
Katrina considers the commitment and enthusiasm emanating from the Award Bookkeeping Company support office the key to the success of the franchise.
“Our clients are continually looking to us for scrutiny and support, and unless you give 100% to each client, they can be lead astray. Award understands this acutely and constantly provides professional yet positive advice to franchisees, which creates a great company experience.”
Award Bookkeeping Company
home based business service has a heavy national recruitment strategy in place for the coming months, and aims to have franchises in every state by the end of the year.
13-May-2008