Don't be afraid to go to the top

posted on 19-May-2008

Don't be afraid to go to the top


By: Linda Whitney

TO START up a business-to-business company, you should be of the disposition to be able to sell to corporates.

'You must be confident enough to talk to anyone. Our franchisees talk to everyone from maintenance staff to the chief executive,' says David Westgate of NBC Bird and Pest Solutions, which provides businesses with feral bird and pest control services.

Training includes ways to reach company decision-makers, and indepth knowledge of products, regulations and even the life-cycle of the rat. The franchisee fee is £15,000.

Previous experience in business can help in franchises such as these.

Chris Gillam of Mail Boxes Etc (MBE), the High Street delivery and business services franchise, says: 'Many of our franchisees are former directors or business owners. It equips them to deal effectively with customers.' In the current market, setting up in business with a franchise might be safer than going it alone.

Garth Allison of the signs and digital printing franchise Fastsigns, says: 'If a company is working to a successful, proven business model, it will help when times are tough.' Fastsigns franchises cost £40,000.

Check the training you get. 'Training helps people deal with changing circumstances, and with a franchise, there is always someone at the end of the phone to help, advise or share a worry,' says Lynn Lister of X-Press Legal Services.

Franchisees provide property searches for solicitors, conveyancers and Home Information Pack providers, and investment is £24,990.

The uncertain market for businesses is not all bad news, says Mr Gillam: 'When businesses are competing strongly, it often forces owners to look much more critically at their marketing materials, creating work for print franchises, for example.' MBE franchises cost £60,000.

The general belt-tightening may be good news for franchisees of Expense Reduction Analysts (ERA), which has helped businesses such as Volkswagen and Ernst & Young reduce costs. You need a professional demeanour and enthusiasm for team work, and £39,900 to invest.

In the business-to-business market expect to promote constantly. Nigel Toplis, of the £30,000 Recognition Express franchise, which involves producing promotional items for companies, says: 'You must develop the kind of relationships that keep clients coming back, so you have a high degree of repeat business.' Having more than one source of revenue spreads risk. Franchisees with not-for-profit company Western Provident Association (WPA) sell private medical insurance to companies and individuals.

'You don't need a background in insurance as we give extensive training,' says Berkeley Harris of WPA.

'Rather than selling insurance, you are helping people to get better.' Investment is £10,000.

New business-to-business franchises include recruiter Esprit People. What they require from you is a general business background, but previous recruitment management experience is ideal. Cost is £29,950.

Activ Web Design franchisees build websites for small firms at fixed prices. It provides full training for £6,995.

NBC bird & pest solutions, ERA, Fastsigns, MBE, Recognition Express, X-Press , WPA , Esprit ; Activ Web Design



YOUR franchise contract may be the most important document you ever sign, so ensure you understand it.


Your rights as a franchisee should be set out in the contract, and a franchising solicitor can explain what they mean.

Jackie Cryer (above) was convinced that an X-Press Legal Services franchise was right for her, but she still got the contract checked by a solicitor before investing.

She took the contract to a specialist solicitor affiliated to the British Franchise Association, who offered to review the franchise contract for a fixed fee.

'She checked the agreement, "translated" the legal jargon into straightforward language, answered my questions and pointed out issues she thought I should be aware of — it cost £395 and, compared with my overall investment in the franchise, it was well worth it,' says Jackie, 48, from Swindon, Wiltshire.

Typically, fees to check contracts are around £400 to £700. For a list of British Franchise Association-affiliated legal specialists, see The BFA