Franchise Articles

As a financially sound person knows, if money is sitting in a bank account not working, then it’s being wasted. Interest is a slow form of accruing wealth, which in most non-risk investment opportunities barely keeps up with inflation. The next safest thing that most people choose to turn to is real estate. Purchasing a home and either renovating and re-selling, or renting is another type of investment that has a relatively low risk-to-reward factor; or at least it used to. The one thing that used to be reliable was that money put into a home was going to grow. A survey by the Royal Institution of Chartered Surveyors, however, said the rising interest rates across the continent have caused the housing market to slow sharply in the second half of 2007. This trend is continuing, and while it doesn’t look to be headed in as dreadful of a direction as the housing market crisis of the 1990’s, homeowners could be in for another hard hit as interest rates look primed to rise again in 2008. In Ireland housing prices actually fell over the latter part of 2007 by 7%.

The solution to investing in the housing market might be simpler than you think. While there are always houses for sale, the UK is experiencing a surge of business opportunities with lower initial investments than a property purchase and higher income potential. Many franchise opportunities and small businesses for sale can be purchased without an extensive understanding of the business. Franchises offer proven business plans, full training and support. With hundreds of franchise opportunities currently available in the UK, the prices of franchises and business potential for a return on your investment offer some highly attractive financial returns as opposed to the stagnant housing market current available.

While there are obvious procedures that have existed for many years that assist in the financing of real estate, some people are surprised to learn that there are dedicated programmes at financial institutions designed to help small business and franchise owners as well. In 1984 the Royal Bank of Scotland set up their dedicated team to provide banking services to both franchisors and franchisees, and they remain the clear market leader today. Each year the RBS facilitates the lending of many millions of pounds to help people start their own franchised businesses through a network of specialist franchise managers.

There is also, unlike the housing market, a wide variety of price ranges to cover the investment of a franchise business. There are internet, work-at-home, and service-based franchise options that can start as low as £5,000. The other great thing about a franchise opportunity vs. a housing opportunity is that there is a constant flow of return on the investment. Where money will sit in a property for years trying to accrue wealth, money invested into a franchise begins to provide return on the investment almost instantly. The franchise owner not only receives constant cash flow from running their business, but when it’s time to sell or move on to a new business opportunity, the initial investment can also grow in that area as well.

The hesitation for many people in comparing a business opportunity with a housing opportunity is the amount of work and effort that they will have to put into running their own business. If investors are honest with themselves however, they will notice that the amount of effort and time that goes into a housing investment is not minimal either. While it’s true that running any business takes a lot of work, there are many franchise opportunities that can be run as a completely work-at-home franchise option. The housing market requires constant repair, continued investment with no immediate return, and can involve dealing with difficult tenants. Many franchise opportunities allow the owner to choose what level of involvement and interaction they desire with what types of people. Whether it is a direct-to-customer, business-to-business, or internet-only franchise, there are many types of businesses for sale that can be custom fit to the investor.

In the current market situation it would be wise for potential investors to give a look to the franchise market and see what businesses are for sale. The prime reason that many investors are choosing the franchise market over the real estate market - beyond the income potential and return - is the simple fact that franchises offer support. Most franchises offer complete training, support, and ongoing service to their franchise owners. The franchisor wants to see each franchise be successful and works hard to ensure that each franchise owner receives everything they need to achieve that end. What property will give an investor that kind of support and assistance in realizing a profit? There are many websites that list businesses for sale and franchise opportunities, so before purchasing the next property for investment purposes take a look at the franchise market first.