The world of franchising is wide and varied – for anyone keen to take on this type of business it is worth knowing what is available and a B2B management franchise is one that all prospective applicants should be aware of.
One of the most important parts of succeeding with a franchised brand is finding a business that is right for you, in terms of the industry it is involved in and the support offered by the franchisor, but also the day-to-day activities that you will be asked to undertake.
When you sign up for a franchise you need to be sure about it, as you could be working with the brand for a long time; below is a guide to what you can expect from a B2B management franchise and why many individuals decide it is the right choice for them.
What is a management franchise?
A management franchise is essentially a business that you run, but with other people carrying out the business activities. Hence you are managing the operation rather than using a franchise name to sell your own skillset – as in job and executive franchises. A good example of a management franchise is a parcel delivery firm, with individuals recruited to drive the delivery trucks while the person at the top ensures the smooth running of the organisation.
One special feature of this type of business is that you could sell it on after a few years without it affecting the organisation too much, as your workers need not change just because the management does. Another feature of this form of franchise, compared to say a retail franchise, is that you generally do not need to tie up too much cash in stock, which makes a significant difference to your cash flow.
For this type of arrangement the franchisor will provide an operations manual and training to help the franchisee understand how to manage a team in the industry in question, but some management experience is preferable. There are management franchises available in all sorts of sectors, but one thing common to these organisations is that they will generate much of their revenue from B2B activities.
How does B2B differ from B2C?
There are several significant differences between dealing with consumers and working with other businesses, one of the most pressing of which for some people are the working hours. While consumer-led firms will tend to be open when their customers need them, a B2B company will usually have more conventional hours – although some clients may insist on being able to contact you out of hours if something time-sensitive has happened.
As you are not dealing with consumers, you can also base your business in more remote areas – as opposed to a town centre high street – so a cheaper industrial estate or even a home-based office are very real headquarters for your management franchisee. Another key difference is obvious; you are dealing with businessmen and women rather than consumers, which means a shift in the tone of negotiations.
Does a B2B management franchise suit your goals and skillset?
When it comes to a B2B management franchise, it is not actually that crucial for you to have experience of the industry itself; as the name suggests, the backbone of what you will be doing is managing other people, so the experience that a franchisor will look on favourably will be management/leadership in any sector.
If you are someone who enjoys developing business contacts and knows how to speak to busy executives then a B2B franchise could be a good fit, particularly if you feel your talent lies in organising people and the associated administration, rather than in the technical skills required to deliver a service.
This choice also needs to be about what you want to get out of the franchise; for example, think about the experience you will gain from developing a network of business contacts in the area. You may want to build up an organisation so you have an income over the ensuing years, or alternatively you could be looking at B2B management franchise as an investment that you will eventually sell on. Both options are viable – it is a question of what you want to get out of your business.