How to run a successful franchise: Government schemes that could help
Perhaps you were considering investing in a franchise prior to the COVID-19 outbreak, or perhaps the pandemic has thrown your working life upside down. Either way, we will all have to adjust to new ways of living and working, with different sectors recovering at different rates. Having to change direction could be a blessing in disguise, and you may find that starting a franchise could provide excellent opportunities for you. In this post, we look at some of the best types of franchises to invest in post-lockdown to help you understand where the biggest and best opportunities lie. While many think that this could be the worst time to start a new business, there are many government support packages and schemes to help get you off the ground.
The Green Jobs Challenge Fund
Government Chancellor, Rishi Sunak, has pledged a recovery package of £3 billion to support ‘green’ jobs. There will be support for up to 5,000 jobs as part of the Green Jobs Challenge Fund, which encourages environmental charities along with local authorities to create green spaces and plant trees. Franchise opportunities that involve gardening, landscaping or other work that supports these industries could be an excellent investment at this time. If you have already invested in a franchise, you may wish to look at how you could create ‘green jobs’ to take advantage of such support.
Social housing retrofitting scheme
Similar to the green jobs initiative, there is also a fund to retrofit social housing on a large scale. The scheme is designed to make homes more energy efficient by fitting double glazing, improved insulation and heat pumps. The scheme could greatly increase demand for construction and window fitting services, so this could be the perfect time to invest in such a franchise.
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The Kickstart Scheme
Furthermore, the Kickstart Scheme aims to create thousands of jobs for younger people, awarding businesses £2,000 for every new apprentice they take on who is aged under 25 years old. The £2,000 bonus is in addition to the £1000 already awarded by the government.
Nil rate band of Stamp Duty Land Tax (SDLT) increased
While lockdown restrictions were in place, and even now, many people have been cautious about buying and selling property. However, to get the property market moving again, the government has introduced an increase to the Nil Rate Band of Residential SDLT (Stamp Duty) from £125,000 to £500,000. The increase is temporary, lasting until the end of March next year. The practical implications of this increase mean that most people climbing the property ladder will be able to avoid paying SDLT, making it an attractive time to move. If you choose to invest in a white-collar franchise with links to property, you could see an initial boost in demand, giving you time and money to establish your business.
Eat Out To help Out
If you have recently invested in a food franchise, the Eat Out to Help Out scheme could be the perfect opportunity to get your business out there. The scheme is running in August 2020 to help get people out and into restaurants, but you will need to act quickly if you wish to register and take advantage of the scheme. The government is offering diners 50% off food and non-alcoholic drinks when they dine out, up to the value of £10 per person. Even if you are too late to take full advantage of the scheme, where it is within the scope of your franchise agreement, you could consider offering similar deals to draw in your initial customer base.
If you are still looking to invest in a food franchise, check out some of our excellent opportunities on the Quality Franchise Association member directory..
The Coronavirus Business Interruption Loan Scheme (CBILS)
After significant lobbying, the government has extended the Coronavirus Business Interruption Loan Scheme (CBILS) which allows small businesses to apply for loans of up to £5 million. Businesses which are classed as ‘undertakings in difficulty’ can now access CBILS so long as they have fewer than 50 employees and the business turnover does not exceed than £9 million.
There are many government initiative and schemes, so it is important to spend time looking at the ones that might benefit you.
Ready to invest in a franchise following the Coronavirus pandemic? Find your next opportunity here at the Quality Franchise Association.
Lockdown restrictions as a result of the COVID 19 outbreak have caused upheaval for millions of people in their working lives. However, this could be the opportunity you have been waiting for to start your own business and become your own boss. As demonstrated above, there are many franchise sectors which will be in high demand in the coming months and years. Find your next opportunity here on our site, or contact us and we can assist you.
