Electrical Business for Sale? Why You Should Consider Buying a Franchise Instead

Posted in: Platinum Business Inspiration

So you’ve finished your apprenticeship, had enough of working for someone else and you want to go out on your own. You’re probably wondering whether you should start from scratch or buy an existing electricity business.

What if we suggested neither?

When you start a new business, risks come from all directions. No matter how well you plan and prepare, starting a business is a gamble. Will your money hold out long enough to turn a profit? Can you compete in the market? These are things you must consider very carefully.

Buying an established business rather than setting up a new business has many advantages but it’s not without risk. Advantages include:

  • The difficult startup work has already been done and plans and procedures are already in place
  • Immediate cash flow and a financial history, meaning you know what to expect (this can make securing a loan for the business easier)
  • Existing customers, contacts, goodwill, suppliers, staff, plant equipment and stock
  • Existing employees and managers who have experience they can share

But keep in mind that not every business on the market is a good prospect. It’s for sale for a reason, and many owners will be selling an unprofitable or under-performing business. This might give you the opportunity to purchase a business at a good price and then turn it around but it can also be a risky investment. Consider these disadvantages:

  • The business may be in need of major improvements and new plant and equipment
  • Staff morale may be low or the business might be badly managed
  • The seller’s established relationships may be a major factor in the success of the business and when they go they take that success with them
  • You will need to budget for solicitor and accountant fees
  • Underperforming business can cost a lot to turn around

So what’s the other option?

The allure of being your own boss with one purchase can be tempting. We applaud you for wanting to do it. We agree that being your own boss is pretty great.

Running your own business can give you a flexible lifestyle and a sense of fulfillment you can’t get when working for someone else. That’s why we’re proud to offer Platinum Electricians franchise opportunities.

Franchises offer the independence of small business ownership supported by the benefits of a big business network. You don’t need business experience to run a Platinum Electricians franchise, you just need a willingness to learn the Platinum way.

Franchisers have a higher rate of success than start-up businesses because they’ve done the market research. Franchises often have an established reputation and image, proven management and work practices, access to national advertising, and ongoing support. With a franchise it’s:

Easier to obtain finance

A franchise is seen as a part of a successful system that is less likely to fail than a small business because of its infrastructure. This means lenders are more willing to give loans for a franchise business and are willing to provide better terms.

Less expensive to start

The amount of money it can take to get a business off the ground can be extraordinarily high. This is partly due to the fact that a new business must spend a significant amount of money on advertising to attract customers. With a franchise, you’re provided an estimate of costs so you know exactly what you’re getting yourself into.

Less trial and error

Starting a business from scratch or figuring out where it went wrong in an existing business requires some investigation, trial and error. With a franchise, all the hard work is done for you, saving you time, money and frustration.

Not about experience

Starting your own business or simply taking over the books of another business can throw you in the deep end if you’ve not run a business before. With a franchise, you’re provided ongoing training and support and an already proven business plan. This takes an enormous amount of pressure off and ensures you’re ready to run your franchise effectively – no experience required.

Already familiar

When people move to a new area they often look for things that are familiar to them. If they already know your brand, they’ll choose you for their electrical needs. Choose a national brand with a strong reputation and word-of-mouth can be your best ally.

Choosing a franchise

As you can see there are many reasons why it makes sense to choose a franchise over an existing business or starting from scratch. If you’ve decided that buying a franchise is the best next step for you, your next decision will be to decide exactly which service or franchise you want to buy. You’ll be working in your franchise business for years to come, so it’s important you choose a franchise you’ll be passionate about and enjoy over the long haul.

Ask yourself – what are my personal goals?

Everyone has different motivations for wanting to become a business owner and it helps if your goals and values align with those of the franchisee. At Platinum, you’ll hear many of our franchise owners say that being part of the Platinum community is like being part of a supportive family and that’s because we choose franchisors that align with our goals and values. If you believe in:

  • Creating wow through customer service
  • Radical honesty and communication that builds relationships
  • Healthy work/life balance
  • Commitment to excellence
  • Personal growth and pursued learning
  • Having fun and smiling
  • Being generous and helping others in need
  • Being humble and having a go

then why not get in touch? Our core values are not just pretty slogans but actually what we live by, so if they strike a chord with you we’re off to a great start!

Submit an expression of interest today.