Low cost entry, flexible working conditions and business support – what’s not to like about investing in a financial services franchise?

Many would-be franchisees are drawn to the range of benefits offered by financial services brands. The most obvious is a relatively low cost of entry, with a typical purchase price of between $30,000 and $40,000.

There’s often an option of working from home so you can avoid office rental and fit-out costs. Many require little or no previous experience in the area. And, while there’s often enough flexibility to attract people with a family or other commitments, there are opportunities for growing a seriously large business.

JIM’S FINANCE PROFESSIONALS

When Jim Simos decided on a Jim’s Finance Professionals franchise he was also attracted by the brand.

“Jim’s is an iconic name in Australia,” he says. “Almost everyone you speak to has used Jim’s services in one way or another and I was excited to be part of that.

At the time, Jim’s Finance Professionals was quite new to the group and I also liked the idea of being in with a franchise from the beginning so I could be part of its growth.”

Whether it’s to buy a home, start a business or purchase a car, most people need finance more than once in their lives.

Simos helps his clients to sift through a potentially bewildering range of options so that they can feel confident they’ve made the right choice. He can also help clients to structure and finance an investment strategy.

“A background in finance isn’t essential but I was a bank manager before I bought the franchise and I’ve found that this experience has been a tremendous help,” he says.

Since a few rogue operators infiltrated the area some years ago the whole sector has been subject to very tight regulation. “Now everyone in the industry must be accredited and have the appropriate qualifications,” says Simos.

“Every Jim’s Finance Professionals franchisee is given specific industry training before going out into the workforce. And, as mortgage brokers, we also receive consistent and regular training through a number of channels including seminars and webinars to ensure that we’re always on top of any changes.

“Every franchisee that comes on board also has to go through three to four days of training at Jim’s head office where they get to know all about the brand and what it stands for.”

Simos started out working from home and, as with any new business, the early days were challenging.

“There’s no escaping the fact that the first few months will be tough as you get used to working on your own,” he says.

“But, if you’re 100 percent committed to the process and stick with it, it will come good. The Jim’s Group is always there to help but you do have to remember that you’re the owner of the business so you’re only going to get out what you put into it.”

Recently, Simos reached the stage where he needed to take the franchise to a new level.

“Moving into a brand new office was the next logical step,” he says. “It’s exciting and shows just how much growth we’ve achieved in a relatively short time frame of just over three years.”

Having the support of his family was important, particularly at the outset, but now they’re starting to enjoy seeing more of each other.

“I worked from 8am to 7pm most days at the bank so I really appreciate the flexibility I have now,” he says. “My two sons are aged five and nine and I’m able to be much more active in their lives than I would have as an employee.”

FIFO CAPITAL

Imad Maatouk has owned businesses for more than 20 years so he’s very familiar with the challenges that can bring.

“The most pressing is generally cash flow,” he says. “This can be particularly difficult when your business is growing. If you don’t have the resources to service new clients it can be almost impossible to expand efficiently. It’s also hard to focus on day-to-day business activities when you’re spending most of your time chasing money.”

Fifo Capital franchisees help their clients to smooth out their cash flow with what is known as single invoice financing. They purchase individual invoices from their clients and immediately advance 80 percent of the value then pay the balance, less a fee, when the client’s customer pays them.

“I was looking around for a new venture and, as soon as I saw Fifo, I loved the concept,” says Maatouk. “Single invoice financing was very appealing to me because I know how much businesses need this kind of service.”

Matouk is an experienced franchisee  – he has owned three different franchises in the past – and he was impressed by Fifo’s business model.

“I could see right away that this is a very fair and reasonable franchise,” he says. “The model hasn’t been developed solely for the benefit of the franchisor.”

When he bought his franchise in April this year he had no experience in financial services.

“The training provided all the skills and information I need,” he says. “All franchisees get three days’ training at head office, three months with a business coach and then a manager who provides ongoing help, advice and support.”

Like Matouk, other Fifo franchisees have found a background in business useful in that it helps them to relate to clients. A sound understanding of financial markets and the ability to quantify risk can also be valuable.

Franchisees can run the business from home and, depending on their goals, have the flexibility to work around family commitments and other interests.

When the business is established, much of the franchisee’s work involves repeat transactions for regular clients so they can work anywhere there is an internet connection.

For the future, Maatouk is committed to Fifo and continuing growth. “My plan is to bring on staff so I can work fewer hours but still enjoy a good income and the benefits of running my own business,” he says.