Geek Retreat sparks Retail Revolution: 1 in 5 Brits set to launch businesses with franchising in focus
One fifth of Brits are considering setting up their own business in the next five years, according to new research1 by Geek Retreat, the geek culture retailer, gaming café, community hub and events venue.
The main driver for more than half (56%) of those thinking about going it alone is the need to earn more money, followed by the desire the be their own boss (54%), greater flexibility (42%) and to do something they are really passionate about (35%).
Retail is the most popular sector for 16% of those thinking about setting a business, followed by professional services (13%), hospitality (9%) and leisure (8%).
When it comes to specific business or management skills, only 32% said that they had training to help them to set up and run a business, with more than two thirds (68%) saying they had none.
The areas where people felt they needed the most support are financial management and keeping the business profitable (57%), understanding rules and regulations such as employment law and health and safety (47%), establishing the right business model (43%), and marketing and communications (43%).
Peter Dobson, CEO of Geek Retreat, commented: “Setting up and running a successful business is not always the easy option and requires a broad skill base to build a profitable enterprise. That’s why, for many, it is worth considering a franchise model. There are many interesting franchise options with very successful track records which can help entrepreneurs build a business quickly and at lower risk because they have established brands, purchasing power and a large support network.”
The Geek Retreat franchise, which opened its first store in Glasgow in 2013, now has 36 stores compared to ten at the end of 2019, reflecting its huge popularity on the high street because it offers local communities and individuals a safe and inclusive place to enjoy their hobbies and interests.
Benefits of joining a franchise
Reduced risk – nothing in life is risk-free but joining a franchise is a safer and more reliable way of starting your own business than setting up from scratch. One fifth of new businesses in the UK do not make it past the first year and 60% of new businesses fail within the first 3 years. Only 33% of small businesses reach the 10-year mark. According to the British Franchise Association, the rate of failure for franchisors has stayed between 8-12% for over 22 years.
Reduced costs – the initial investment required for joining a franchise is often a lot less than starting from scratch and franchisees can tap into an established brand and systems and processes – saving time and money.
An established brand and customer base – with a franchise, customers will already know about the brand, although there will still be a need to promote the business in its new territory. There is also the opportunity to tap into national marketing campaigns and enjoy access to large scale coverage, such as TV adverts, that would be prohibitively expensive to pay for on your own.
Product innovation and R&D – established franchise brands have the manpower and capital to constantly research and develop new products and services to adapt to changing consumer trends. They are more likely to invest in entirely new products and services to help to keep their business one step ahead of the competition.
Purchasing power – whether it is new merchandise or supplies for the café, franchisees benefit from the enhanced purchasing power of the bigger group. As the cost-of-living crisis bites and suppliers are asking more for their goods and services, every penny counts.
Support – many people aspire to run their own business and franchising makes this a reality. Franchisees have all the benefits of being their own boss but are also part of a larger network of like-minded individuals and industry experts who can help solve problems, share ideas and best practice. This makes maximising the earning potential of a new franchise much quicker.
