James Vincent has been a key member of the UK...
Small Businesses can learn a lot from Franchises
There has been much discussion and debate around whether a national qualification for company directors should exist.
Some of those participating in the discussion believed it was a bureaucratic idea that may stifle market competition. Others felt that a qualification would help individuals understand how to navigate the daily complexities of corporate life from the top and may even prevent business from going into the red in the future.
Fortunately for those looking to purchase a franchise, there is a lot of support and training available from the franchisors in order to help the business become a success. In franchising, the business has to some degree already been established which means that a franchisee is able to learn from experiences already gained. The business has already been proven to work and the brand is already known. There is a template in place for running the business successfully, and Franchisees don’t have to go through the trial and error phase that other new small business owners’ do, which can often prove expensive. Further to this, a franchisee would usually receive training to help them set up and run the business. So in essence, a franchisee is getting much of the training and support that many new business owners don’t have, much to their detriment.
John Davies, Director of Just Cash Flow PLC gives his thoughts on the subject, based on personal experience, as well as considering the cases he sees referred to Just Cash Flow PLC seeking funding.
John says “I have followed with great interest the debate caused by my call for a national, University led qualification for potential directors. I suggested it should cover a range of topics including finance, employer responsibilities, sales/marketing and planning.
“I believe this for two main reasons. Firstly, Just Cashflow sees a lot of applicants that are totally on top of their business, KPIs and their future investment plans. However, too many don't appear to grasp the basic business fundamentals and, as I said in the original article, alarm bells start to ring when someone doesn't know the difference between a cash flow forecast and a P&L. Those that don't inspire confidence are going to struggle to raise finance.”
John then explained that this opinion sprouts from his own personal experiences.
“When I first started out in business I fell into the trap of not knowing what I didn't know. If I had studied for the type of qualification I am proposing I would have been able to avoid a number of costly mistakes.
“I have great empathy with one of the postings the article prompted with a lady remembering shortly after she started work seeing the heartbreak caused by her employer going into administration and the redundancies that followed. Too many small businesses don't survive
“I wasn't calling for more bureaucracy that would stifle small businesses and the next generation of entrepreneurs. Quite the opposite - let's give creative talent the foundations to build tomorrow's successful businesses.
“No matter how creative you are, enthusiastic, hardworking or bloody minded – you need to have an accurate plan and know to adjust it if the desired result is not forthcoming. Basics matter and learning this before starting your business will be a great investment.”
Fortunately for a franchisee much of these business fundamentals will be shared with them at the outset, putting them on a very good footing to grow and develop their business. If their business is well run, they will also be better placed and more likely to receive funding when it is required to support their business at times of growth.
And how can Just Cash Flow PLC support you?
Just Cash Flow PLC is well positioned to be a Franchise funding partner. When you get the excellent news your Franchise application has been approved you can rapidly put our revolving credit facility in place. This will enable your new Franchise to be up and running and not waiting for the many weeks or months it can take to put a longer term finance solution in place.
The funding is an alternative to a bank overdraft or business loan. It puts businesses in charge of their day to day finance requirements so you can concentrate on running your business and now on how you finance it. We also partner with other lenders finding the optimum solution for your business. We understand that every business is different so we offer tailored financial solutions to meet requirements.
Applying for funding is straightforward. A prompt funding decision is made by an experience and professional team of underwriters. They have a personal approach and you can apply over the phone.
To find out more, go to http://www.franchiseexpo.co.uk/franchises/just-cash-flow-plc and someone will contact you to understand your business requirements for funding.