Franchising

First it was the 'credit crunch', then the Recession, and now, the emergency budget announced by George Osbourne has outlined plans to reduce public spending and raise certain taxes like VAT, putting another strain on homes and businesses across Britain. There are some aspects of good news affecting small businesses in the budget too though, so it's not all bad news.

Starting a business now, therefore, means that the decision of which business sector and industry to operate in is now even more important. So, knowing that the industry that you start your own venture in is established, stable and forecasted to continue to grow is certainly a key attraction in these times.

The domestic cleaning market is therefore one of the most attractive sectors to start a business in today, thanks to the development of recognised national brands, such as Molly Maid, who have the 'lion's share' of the professional cleaning sector of this industry, which in total is worth around £3billion in the UK, and who estimate that around 10% of UK households are existing users or viable and realistic potential users of the domestic cleaning services they offer.

Although an established industry, it is still largely dominated by the 'cash in hand' one man/woman bands though the professional operators, led by Molly Maid, are becoming increasing utilised as their brand and reputation spreads. So, there are great opportunities for those who wish to operate under the proven business structure and branding of a market leader, through franchising.

Molly Maid, with its recognised branded vehicles and professional approach and appearance, has been operating in the UK since 1984 and their business system has been proven time and time again. The Molly Maid service provides high quality reliable domestic cleaning, operated by Franchise Owners who manage teams of maids within an exclusive area.

Pam Bader OBE is Chief Executive of Molly Maid UK Ltd. Pam was awarded an OBE in recognition of her services to training and she also became the first women to be elected Chair of the British Franchise Association in 1994 and is now on the Board of Directors.

Regarding the UK Marketplace, Pam confirms "There is enormous scope in the market for the right type of people. Businesses like Molly Maid are very reliable - they can't be replaced by technology and operate in a secure business sector with very high growth potential. They enjoy high consumer demand with steady repeat business. There are more and more women pursuing careers, people working in busy dual income households, young up and coming singles and recently retired seniors, all looking to have more time during the day which can be achieved through service businesses like Molly Maid."

Molly Maid is a management franchise which means Franchise Owners employ staff to carry out the maid service. Franchise Owners come from all walks of life although there are certain skills and attributes that will help a franchisee to succeed. Pam explains "We've found that a sales background can be an advantage but the strength of the Molly Maid brand avoids the need for a 'hard sell'. We believe that business experience, professional qualifications and academic achievement are less important than a capacity for hard work and determination to succeed."

Coupling the right skills and attributes with the right business in the right market sounds like a recipe for success, so what does a franchise owner actually do? Pam advises "A key requirement is to recruit staff. The Franchise Owner must then ensure that his or her employees are aware of their responsibilities and duties, and are properly trained and supported to fulfil them. To a large extent, the role of the Molly Maid Franchise Owner is defined by the Molly Maid Operating System. Numerous responsibilities include those of employer, trainer, salesperson and transport manager. What a Franchise Owner does not do is the cleaning itself!"

The result of the combination of the efforts of the Franchise Owner, coupled with the Molly Maid proven business model are dozens of successful franchisees throughout the UK, but what might a new Molly Maid Franchise Owner expect from their business by way of financial performance?

"The scope is enormous," says Pam, "providing they follow the business system and have a determination to succeed. Depending on personal ambition Franchise Owners can have 5 Molly Maid branded cars on the road within 12 - 18 months with estimated sales turnover in excess of £100,000 and when the businesses are fully established 15-20% of turnover could become net earnings. Some of our Franchise Owners turnover in excess of £500,000 and are running upwards of 12 teams. Of course none of these figures are guaranteed as at the end of the day success or otherwise hinges on the skills and abilities of the Franchise Owner."

There are clear benefits to running a Molly Maid franchise over starting a domestic cleaning business from scratch, and the initial investment of £16,995 covers full training and support, as well as the whole business and operations structure so that you can, after successful completion of induction training, operate your own Molly Maid franchise in full confidence.

"Franchising is a much safer way of getting into a business that is already proven to work. All the hard work has been done for you. Someone else has already proved that there is a demand for the service. Molly Maid is a well known brand and as the business grows it becomes a bigger and bigger asset which if and when it comes to be sold the value is likely to be a lot higher than if it was being run independently."

Explains Pam who, with her abundance of experience in franchising and also from her position on the Board of Directors of the British Franchise Association, is well placed to advise would-be business owners who may be considering starting up with a franchise of how to conduct their research.

"A logical approach is to start by selecting a particular category of franchise then focus on the business that appeals to you. When considering various franchise opportunities it's worth knowing from the outset what you can afford to invest and what borrowings you are able to commit to. It's also important to be clear about what your income goals are to support your family and the lifestyle you want. Once you know this you can talk to Molly Maid or any other franchisor to see whether they can help you to achieve your goals with the resources you have available" she advises.