CHOICE If you’ve ever dreamed of owning your own business, there are hundreds of different opportunities in New Zealand.
provide specific development and management of software solutions such as accounting packages. A third sector offers sales and marketingtype franchises based around the provision of technical services such as website development. Most franchises in this sector are usually home-based and mobile, with the investment required ranging from $20,000 to $70,000. While some training is provided, most will require you to be technically proficient or have good sales skills. The computer servicing franchises will provide many support functions to maximise time spent on the technical side. However, you will still need good interpersonal skills as well as computer skills in order to make a success of this type of business as you are the person in front of the customer. The software solutions-type franchises may require industry-specific skills.
financial services While mortgage broking is not quite the hot number it was ten years ago, there are still plenty of opportunities in the finance sector such as direct finance, invoice factoring and financial planning. There are also accounting franchises such as SBA that cross the divide between financial and business services. Generally home or small office-based, financial franchises start from around $40,000 although they may require substantial working capital on top. Some can be operated as part-time businesses and may require home visits out of office hours. There are two vital attributes for franchisees: people skills and an understanding of figures. Business finance and cost-reduction franchisees need to be able to work at senior management level within businesses; accounting franchisees do not need accounting qualifications but must be familiar with the needs of small business. Many franchisees in this sector have banking experience; however, it is not essential.
food & beverage This is the sector where modern franchising began and it still accounts for a huge proportion of the market. Such names as Wendy’s, Burger King and KFC are franchise icons, but in New Zealand there’s just one catch – none of those famous brands is sub-franchised here, with all the outlets of each chain being owned by a single master licensee. Not to worry, though, for there is still plenty of choice. Burgers are still hugely popular in New Zealand, with local companies BurgerFuel and Burger Wisconsin focusing on the gourmet (and less price-sensitive) end of the market while the mass appeal brands slug it out. Pizza has become a staple in many people’s diets, with Domino’s constantly innovating in digital and delivery technologies while Hell occupies a space it has made all its own. The café sector continues to do well with franchises constantly revising their offering to stay on trend. Conversion franchising – where you buy an existing independent outlet and convert it to a franchised brand – is increasingly popular. New Zealanders were slow to convert to Mexican food, but Mexicali Fresh has led the way here, also being an early adopter
of what is called Fast Casual dining – a more relaxed version of traditional fast food. For many premises-based food franchises, the emergence of Uber Eats has enabled them to offer a delivery option without the need to employ specialist drivers. This can maximise the productive use of specialist equipment and staff, but can also put additional pressure on at busy times – and Uber’s fees may take a significant chunk of the profit. There are several dedicated mobile options, from coffee carts to pizza, and retail distribution franchises such as Anchor have always been solid. Product delivery via vending machines attracts many looking for flexible hours, while companies such as Xpresso Delight deliver straight into workplaces. As a result, you can enter the industry for as little as $25,000 or spend as much as $500,000 – and the rest! Among the fixed premises franchises, there are two different philosophies. Some franchises make a big thing of having all their food prepared on the premises (promising more freshness and higher margins) while others prepare off-site (requiring less expensive floor space and fewer skilled staff). At the end of the day, this is a business driven by margins and the bottom line, and any of the successful franchises clearly has a model that works given the right site and the right franchisee. In return for the potential to make a lot of money, hospitality franchisees need the management ability to deal with staff training and turnover, complex regulations, long and irregular hours, leases, landlords and customers who can get quite emotional if something goes wrong. Many people have romantic notions about running a little eatery but the reality is hard work. You need high levels of energy and patience as well as good people skills. If you have these, you might even join the growing number of multi-unit franchisees who own more than one outlet in the same – or even different – chain(s). The mobile franchises have few of these drawbacks (apart from the early starts) as they tend to be one-man-bands or husband-and-wife operations. However, they do not lend themselves to ownership of multiple outlets in the same way and require constant hands-on attention from the franchisee and/or family members.
fitness, health & beauty One of the major growth areas internationally, the ageing of the baby boomer generation means the number of opportunities in fitness, health and beauty has been steadily increasing in recent years. On the fitness side, there are a number of gym and personal training brands available. There are transport franchises like Freedom Companion Driving which cater for older or less able clients; Body Audit offers mobile health and weight management monitoring; and the beauty industry offers everything from hair salons to appearance medicine. While a fitness business could be yours for under $40,000, a Caci appearance medicine clinic could cost you several times that to establish – with commensurate rewards. This is an area where appearance counts. If you have difficulty with your personal image, even superb people and management skills may not
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