Guide to financial and accounting franchises
The finance and accounting sector has seen great innovation and transformation in recent years, making running an accounting franchise one of the most exciting and fast-growing franchises you could invest in. In this post we look at the different types of finance and accounting franchises you could invest in, and answer some of the most common questions you may have about starting and running an accounting franchise.
Accounting franchises are common, with many options to choose from. There are several accounting and auditing firms with established business models looking to expand their operations worldwide or even globally. Expanding quickly and effectively can also be costly, so many firms choose to expand using the franchising model. The most common types of accounting franchises are bookkeeping franchises, business finance franchises, and accountancy firms for small-medium sized businesses (SMEs). However, you can often find specialist accounting opportunities such as forensic auditing, digital accounting or working for a multinational firm.
There are many other options in the financial franchises or white-collar franchise category, all of which can be very lucrative. Common franchise options include: tax advisor, business consultancy franchises, finance/loan/mortgage advice franchises, law firms and many more. .
How much does it cost to start an accounting franchise in the UK?
One of the biggest questions all franchisees have is how much they might need to get their new business up and running. There are many factors that will affect how much you may need to invest to start your own accounting franchise. Generally these are:
- The area you operate in
- The territory you choose to operate in
- How established and valuable the brand of the franchisor is
- How much demand there is in your area for the services you offer
These are all factors which may affect how much a franchise opportunity might cost. To give you an idea, accounting firms in the UK generally cost franchisees between £20,000-£40,000 to get started.
There are other costs you will need to think about when considering how much you will need to get your accounting franchise off the ground. When creating your business plan and projections, you will need to consider the following:
- The cost of renting a premises, including utilities
- Paying any members of staff you may be taking on
- Marketing (both at a local level and the contribution to the marketing pot)
- Budget for business development such as networking
- Monthly royalties and commissions to be paid to your franchisor
- Any software and IT expenses
It can be difficult to forecast how long it might take for your business to start turning a profit and it will largely depend on the work that you put in. When you first start out, you will need to work hard to generate leads and bring people onboard as customers. One of the greatest benefits of an accountancy franchise is that often one or two good clients can push your business into profitability. This is not the case for many other areas of business where franchisees need to secure hundreds of clients to see success.
Who is an accounting franchise suited to?
Usually, accounting franchises, financial firms and auditing franchises are run by professionals who have at least some experience in the industry. Having a good understanding of professional etiquette and being able to bring on clients through networking and business development expertise is also greatly beneficial. However, you could always hire someone to bring in clients for your business. In most cases, you will need certain licences and certificates to run a financial business, as the area is highly regulated.
It is important to remember this is a sector that relies on trust and professionalism, so ultimately your skillset must be suited to working in this way. Accounting is competitive, but if you are motivated and professional with a good understanding of how to run a business, there is no reason why your venture would not be a success.
Is it possible to run an accounting franchise from home?
There are several accounting and financial franchises which can easily be run from home, with franchisors allowing franchisees to set up their business in their homes. However, there are some limitations to setting up your accounting franchise from home. Firstly, not having an office address may remove an element of professionalism and make it more difficult to secure bigger clients. On the other hand, you may be looking to work part-time or to work specifically with small-medium sized businesses. Also, not renting an office premises means lower costs, and greater profitability. You should weigh up the drawbacks of setting up a home-based accountancy franchise with the benefits you will get from doing so.
Ready to start your own accounting franchise? Browse all white collar franchises here on franchise UK.