It takes two
Owning your own business is both exciting and challenging, but when purchasing a new business, how many people actually consider the option of owning a second later on?
It is plausible that becoming more entrepreneurial is a trait that develops in business owners as their companies grow. It is often said that success breeds success – a statement that the truly successful would almost certainly agree with.
Within the care business, this vision of expansion by working towards a second business is not simply a carrot dangled in front of hungry entrepreneurs, the idea has tangible merit.
In the care industry, business professionals purchasing a franchise will invest with the understanding that a second business in a neighbouring territory is a realistic possibility for the future – subject to them successfully building a solid business in their original area.
Certainly, multi-site businesses have several benefits worth considering:
The opportunity for greater penetration of the market through expansion
A second territory will place the franchisee in a position to capture further business in a specific area. This may offer very different business opportunities to the initial venture.
The opportunity to offer a broader range of services to a diverse client group
Different territories may vary, both geographically and socio-economically. This may afford a franchisee greater opportunities to deliver their service to a more diverse client group, (e.g. different age groups, ethnicities and disabilities).
The opportunity to have different income streams through diversification in another territory
Having a business model and a service that serves more than one income stream, i.e. one that is suitable for commissioning by local authorities and clinical commissioning groups, as well as the private market, puts the franchisee in a more advantageous position for future growth. This avoids the risky strategy of ‘placing all the eggs into one basket.’
The opportunity for continued growth through greater exposure of the brand
Further penetration of the market will continue to raise brand awareness and increase credibility with both commissioners and the general public alike. Reputation is everything. Having referrals and return business created from brand recognition, a brand associated with professionalism, fairness and high quality, is sure to lead to further growth.
The opportunity for greater income
Successful growth creates greater income for a business, its staff and of course the franchisee. Increased income is something every business owner aspires to.
Replicating excellence is the key to success, and having a business model which achieves this objective is the essence of Caremark’s franchise opportunity.
Karen Pennington, National Support Manager for Caremark Ltd, says: “We work with our franchisees to make sure they are ready to open a second territory. It has to be the right business decision without compromising the quality of the service or their cash flow. Being overstretched is dangerous and could spell disaster, something both parties want to avoid”.
Finding the right franchisees has always been the most important factor for Caremark. Consequently, steady growth has ensured that the businesses are supported to grow and develop at a sustainable pace. It is also important to have clear criteria in place for the acquisition and management of multiple territories, with both franchisor and franchisee in agreement on the direction and timing of starting a second business.
Finally, in order to build a solid network of successful businesses, elevate the brand and continue providing the same service to a high standard, it is crucial to have a transferable business model, coupled with strong support from specialist support staff. With these components firmly in place, Caremark continues to grow and build on its brand’s excellent reputation.