When you’re considering the best way to become your own boss in a sports-related business, one of the biggest decisions is whether to build your venture from the ground up, or find a franchise opportunity connected to sports.
To help you to work out the best option for you, this article gives you the pro and cons of launching a standalone enterprise v a franchise under an established brand.
Though we are biased at The Little Foxes Club, we are going the be fair and equitable – especially as those are two of our core operational values generally!
Profits, and return on investment from sports franchises
It’s attractive to think that by starting a sport-related business on a ‘go it alone’ basis you keep all the profit. No franchise fees to find, and you have complete freedom to decide the initial amount of capital you want to put into your start-up.
In contrast, the cost of a franchise agreement that provides sports activities is a fixed initial investment, Then, you will be billed for ongoing monthly support.
This is where it gets interesting though.
The figures for small business survival are eye-opening. 20% of SMEs collapse in year one and 60% don’t make it to the end of year 3.
Contrast that with a plan to open a children’s sports business as a franchise agreement. There are no guarantees of course, but your chances of surviving – and even thriving – are greatly enhanced. Not least as your ‘parent’ company (Little Foxes) provides a lot of free business support and advice to protect your business development.
Deciding the best place for a sports venture
If you are launching a standalone sports-related business, it can be liberating to be able to choose your territory with no reference to anyone else. You can freely compete with other providers and diversify whenever you want to.
Or you could work with a sports-related franchise company, to find a geographical area with high demand for your services. Somewhere you will be the sole franchisee for that business, and where the chances of success are maximised due to high demand.
Again, it can be summarised as standing alone, or buying invaluable insight that can help you ‘hit the ground running’.
Being in control of your own business
For some people, ‘sink or swim’ they want to be truly their own boss, with no one ‘looking over their shoulder’.
Again, there’s a flipside to that. Running your ground-up sports business can be lonely, and you can end up paying a fortune for professional advice. Alternatively, you can start as a franchisee in sports provision and be part of a nurturing ‘team’, so you don’t have to do everything yourself.
The Little Foxes Club provides its franchisees with a lot of free professional support and a centralised booking, admin and communications system.
Then, there are all the policies, procedures, training and compliance requirements you’ll need to run a sports enterprise, especially one for children. We package those up for you, to save you a HUGE amount of time and stress.
What we don’t do, however, is dictate how you spend your time or constantly interfere! You grow your venture your way, including choosing the best income streams for your franchise.
Building trust and reputation
This is probably where the advantages of running a franchise seriously outweigh the benefits of launching a business from scratch. Especially in terms of a business delivering sports activities to children.
Reputations are what make or break any organisation, but none more so than a community-based business start-up that provides a service to children. Added to that, if you are working with kids, both parents and local partners must be able to trust you.
The backing of a national brand – in our case a company that’s already a leader in sports activities for children – can be invaluable. You get to ‘cash in’ on the reputation and trust we’ve already established.
Job satisfaction in running your own sports business
Clearly, there are advantages to both options. However, the branding and comprehensive support you get from franchising with The Little Foxes Club adds up to a highly attractive offer.
A lot of it comes down to your own personality and preferences, and whether you want to build your own sports business team from the ground-up, or be part of an existing winning team.
To discuss it further, get in touch for a no-obligation chat about whether sports franchising is right for you.