 Franchise
for families
With "work-life balance" being the key phrase for the Noughties,
women are leaving high-powered jobs in droves. But we still want - or
have - to work. With Britain's largest franchise exhibition coming up,
now is an ideal time to see if franchising could offer the middle ground
your family life craves.
Why buy a franchise?
They appeal to many for offering the flexibility we are all searching
for. Lara Goodbody, who founded children's exercise classes YogaBugs,
believes that franchises are ideal for mums. "All but one of our franchisees
are women and about 90 per cent are mums," she says. "They are very high
powered women, such as barristers, bankers and HR managers, who wanted
to get out of the rat race."
YogaBugs franchisee Louise Guthrie, 32, agrees. "I was looking for an
activity for my son who is four and has asthma," she says. "We were told
he needed some gentle exercises and I thought YogaBugs was perfect. The
idea of being able to combine running my own business with doing something
I really believe in, and being able to fit this in around my family's
needs, seemed perfect."
How to find a franchise that suits you
 Research
is vital according to Rebecca Susca (pictured right) founder of Precious
Imp Prints, which captures babies' fingerprints in unique jewellery and
clay casts. "There are a lot of websites but franchise magazines are also
particularly useful for women," says Rebecca, who ran a successful business
in her twenties but wanted something more family-friendly after having
Thomas, now four.
Setting up
Once you've made the decision you must crack on with the legal stuff.
Setting up as a sole trader is the most obvious and easiest way to start
but you must be aware that you are personally liable for any debts your
business runs up. If you're not going to be providing a simple service
from your living room with minimal set-up costs, you might want to look
into setting up as a Limited company.
- As a sole trader you can trade under any name you wish but you must
register as self-employed within 3 months of starting up. Forms and
information are downloadable from HM
Revenue & Customs and they will also inform you of steps to take
regarding NI payments.
- If you're a one-woman-band you won't need an expensive accountant;
find yourself a good bookkeeper in your local paper (someone who works
out of their living room!) or by word-of-mouth and arrange to meet them
for a free chat. They will tell you what you need to do to keep your
incomings/outgoings up-to-date so that when the time comes for your
tax return, you will be able to hand everything over to them in order.
This will take them less time and cost you less money.
According to Beauty and the Bib founder and mum-of-four Lara Boyle, who
will give a keynote speech at the National Franchise Exhibition: "You
have to be passionate about what you are going to sell. Play devil's advocate
and test it. Any doubts will hold you back. And you have to enjoy what
you are doing." Louise Guthrie and Lara Goodbody agree. "I have no background
in yoga but YogaBugs sounded perfect as I genuinely believed in improving
the health of our children," says Louise. And Lara adds: "We can teach
business experience but passion is something you either have or you don't."
Pros
- Flexible hours. "The ability to work around your family is essential,"
says Rebecca.
- Good returns for the amount of hours worked.
- Great support. Louise says: "With the slightest problem I can
speak to them. We have annual reviews and six-monthly franchisee meetings.
We are not on our own."
Cons
- It's hard work! Louise admits: "It was probably harder than I thought
it would be - but you don't get anything easily."
- Finding a big lump sum at the start. Franchises will typically set
you back around £10,000 or more, followed by management fees or percentages
of your takings.
Money matters
So you've decided a franchise is for you - now it's time to crunch numbers
. A Precious Imp Prints franchise, for example, costs £8,495 and franchisees
also need a car and a computer (although, as Rebecca points out, most
people have those anyway). Precious Imp Prints also takes ten per cent
of gross sales. "After paying the franchise fee it takes between four
to six weeks to set up, from opening a bank account to doing the training
and printing literature," says Rebecca. "Then you can really hit the ground
running."
A YogaBugs franchise costs £9,900 plus VAT, with an ongoing management
fee of 12 per cent of gross sales. The initial fee covers intensive business
training, software and promotional merchandise. According to Lara, franchisees
working four hours a day tend to break even in the first year. "Others
are going hell bent for leather - one franchisee invoiced £8,000 in the
first month!" she says.
Many of us are daunted by accounts but, according to Rebecca: "Day to
day, it's very easy - just a book for income and a book for outgoings!"
Hiring an accountant is an option, but not essential. "At the beginning,
you can be blinded by the jargon but the key thing is to deal with each
issue on its own," says Lara Boyle. "Find out what it means and work your
way through step by step." HM Revenue and Customs also run free half-day
sessions on matters like tax and self assessment, so do take advantage
of any available help.
Tips from successful franchising mums
- Do your research. "Make sure you look at every option and don't go
for the first franchise you find," advises Rebecca. "Talk to people
and get advice. Show the product to family, friends and strangers and
see what response you get."
- Expect some lows. Says Louise: "It can be quite demoralising at first
but it's great when you get your first cheque."
- Have a contingency plan. "Whenever I'm about to take the next step,
I think: what's the worst that can happen?" says Lara Boyle. "Identify
the worst case scenario and work out if you could absorb the financial
loss. Don't put your family life on the line financially - make sure
the biggest risk is to your time if it goes wrong."
- Stick at it! "It's like pushing a car," says Lara. "You need an enormous
surge at the start but once you gather momentum it rolls on its own."
 How
Louise did it:
Mum-of-two Louise Guthrie, 32, became a Yogabugs franchisee in March.
She doesn't teach yoga but organises classes and commissions teachers.
She returned her job as a personnel manager after Logan, four, was born
but, as she explains: "After having my second little boy I didn't feel
I could successfully juggle returning to work with spending quality time
with him and being at the school gates for my older son. When I discovered
YogaBugs were offering franchise opportunities I jumped at the chance."
Louise used savings to buy her Devon franchise and is using IT equipment
she already owned until she can afford to buy new. Working between 15
and 20 hours a week - including one full day and the rest in the evenings
- she has not yet recouped her costs but expects to draw an income by
the end of her first year. "It is hard work," she says. "I often end up
catching up with emails in the evening when the children are in bed. But
with a number of classes starting this term in local schools and nurseries,
I know I have made the right decision."
by Rebecca Blunt
FREE FAST-TRACK ENTRY TO FRANCHISE EXHIBITION BABYWORLD
MEMBERS
Babyworld readers can gain FREE fast-track entry to the exhibition
simply by registering at www.franchiseinfo.co.uk
using the promo code BW1. If you are
unable to register online please present a print-out of this page on the
door of the exhibition for free entry.
The National Franchise Exhibition takes place at the NEC, Birmingham,
on October 3 and 4. It features more than 250 franchises accredited by
the British Franchise Association, as well as a Women in Franchise zone
and free seminars.
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