Accountancy and financial franchises are an increasingly popular choice for many franchise seekers and the UK is at the top of the global financial services sector. The franchises available in the financial and accountancy industries are diverse, meaning that there are plenty of options available. You don’t have to have specialised degrees or certifications as some of the available franchises just require you to have the ability to sell products and services. Regardless of which scenario applies to you, purchasing an accountancy and/or financial services franchise is an exciting opportunity to boost your income. One of the benefits of the financial services sector is that, because you will be entering a service-based sector, the investment you will require to set up can be significantly lower than that required for many other franchises. But what types of accountancy and financial franchise are available?
Types of accountancy and financial franchise available
Tax Preparation Franchises
Everyone knows someone who hates doing their taxes. In fact, most people dread filing their taxes. This is not a unique trend and, because of this, tax preparation is an exciting franchise to enter into. This area is only likely to boom with the growth in the UK economy and the increase in self-employed workers, so your potential client base will be expanding. There is also the fact that the tax code is more complicated than in previous years. If you decide to embark on a tax preparation franchise, then you should be aware of the surrounding issues:
Education – Tax preparation financial franchisees, or their employees, have to have some accreditation in accounting and taxation to enable them to apply the correct tax requirements to their clients’ assets.
Ethics – This is a vital aspect of tax preparation services. If the service is conducted unethically, you and your client could be subject to extreme penalties, including imprisonment.
Investment – The typical investment is around £25,000, however this varies depending on the client base you wish to attract.
The Drawbacks – This industry is almost seasonal with you spending one of the half year swamped by tax returns, which need completing on time, and the other half of the year practically living in the red. You will need to use the money from the busy half of the year wisely in order to offset your quiet months.
ATM cash machines franchises
Running a small fleet of private ATMs requires very little effort and minimal maintenance, so if you’re looking for a business opportunity which enables you to be fairly hands off then this could be the option for you. You will have to take care of maintenance, buying new machines and keeping the cash available, but other than that there is very little involved in this kind of business. You will generate income from the fees charged when your customers withdraw cash, so placing your machines in a busy, well-populated thoroughfare will ensure that you get good footfall and generate a significant income.
Pay-day loans Franchises
Arguably, this is a riskier business to become involved in. There is a lot of negative press surrounding the pay-day loans sector; however, this does not seem to be affecting their popularity. If you can accept the controversy surrounding the business, then this could be the right opportunity for you. The only downside to setting up a pay-day loans franchise is that you will need a large pool of cash readily available, about £250,000. You will generate your income on the high interest rates charged on the short-term loans, sometimes more than 30% a week. You will also have to be aware of the fact that the reason your customers are coming to you for a loan is because they cannot afford to pay a bill, repayment, etc. and as such there is a high risk that you will frequently be dealing with defaulting customers.
Mortgage brokerages Franchises
If you want to work in a sector where you feel like you are helping people, then this might be the right opportunity for you. This is a very wise area to enter into as the investment required to set up your franchise is minimal, sometimes as little as £5,000. You could be dealing with people looking for mortgages to buy their first home or people looking for a business mortgage, so this is also a varied occupation. Mortgage brokers do not actually lend any money; they match up their clients with banks and lenders who are prepared to lend money and negotiate for the best rates and terms. What you should be aware of for this industry is that you might be regulated by the Financial Services Authority. However, this can be a bonus to your business as it presents you a reliable and responsible broker.
This is a very exciting sector to join due to the large variety of investment opportunities which will cross your path. However, you will most likely require a degree or securities course and a license in order to conduct your business. It will be important for you to stay up to date with the financial markets and the different types of investment available so that you can provide your clients with the best advice possible. You will generate your income from the commission charged when someone adds to their investment portfolio, so being able to give reliable advice about the latest investment opportunities is crucial to retaining your client base. One of the major benefits of this kind of business is that the amount of capital you will require to set up is fairly low, depending on the kind of client base you wish to attract.
There are numerous accounting franchises out there which you can look to join if this seems like the opportunity for you. The benefit of setting up an accounting franchise is that you have the freedom to set your own hours and you will reap the rewards for working hard and putting in extra hours as it will be obvious in your increased income. This is a varied business to enter into as you could be working with all sorts of different businesses, from well-established long-running companies to brand new start-ups and sole traders. A lot of your time will be dedicated to bookkeeping, accountancy and filing taxes. The only drawback is that you will need to have the relevant qualifications (ACA, ACCA, AAT and CIMA) as well as some industry experience. If you do not have these qualifications and do not intend to obtain them, then you will need to employ staff members who can support your business with this mixture of experience and accreditation.
As with accounting franchises, franchises for independent financial advisors and financial consultants offer an exciting business opportunity with plenty of variety and a wide client base. You will need to stay up to date with the latest investment opportunities and you will need at least the basic qualifications, or to employ staff who have the relevant qualifications. However, the financial rewards for both of these business opportunities are high. With the growing uncertainty of the state pension, more and more people are turning to financial advisors and consultants in order to seek better security for their capital.
Who could run an accountancy and financial franchise?
You do not always need an accountancy qualification or a degree in Further Mathematics. Running a fleet of private ATMs, for example, can be done successfully without any formal qualifications. As long as you have the right mindset you can earn money from any of the accountancy and financial franchises available. If you do not have the correct academic and professional qualifications but still want to set up a franchise for one of the businesses requiring accreditation, you can. As long as you employ staff with the relevant qualifications you can succeed with your business.
The benefits of running an accountancy and financial franchise
The benefits of the accountancy and financial franchise sector are seemingly endless. You can generate a high income from interest rates or earn a significant salary from helping clients add to their investment portfolio, or you could be fairly hands off with certain sectors like running a fleet of private ATMs. You can also feel like you are contributing to society by helping people to buy their first home or business by negotiating their mortgage with a lender.