How a franchising model sustains small businesses
- Written by Sonia Shwabsky
Navigating the turbulent economic landscape, particularly in recent years, has posed significant challenges for small businesses. However, franchise businesses are emerging as a potential solution due to their established market presence and consistent growth patterns. As traditional businesses struggle with shifts in consumer behaviour and market dynamics post-COVID, franchisees benefit from proven models and the support provided by their networks.
The economic environment has been difficult for many businesses, with the entry rate of businesses at 16% and the exit rate at 14% in 2023, according to the Australian Bureau of Statistics (ABS). Building an independent business in the post-COVID era appears increasingly challenging, leading many entrepreneurs to explore franchising as a viable alternative. The franchise model offers a tested framework and support system, allowing entrepreneurs to operate with a degree of stability.
Joining a franchise network offers numerous benefits that can be crucial for the success of small and medium-sized enterprises (SMEs). One of the primary advantages is the ability to leverage an established brand name. New business owners often struggle with brand recognition, but a franchise comes with a built-in customer base and market presence, reducing the time and effort needed to build a reputation from scratch.
Moreover, franchises provide extensive training and ongoing support to their franchisees. This includes initial training on business operations, customised marketing strategies and customer service, as well as access to a network of other experienced expert franchisees. This support system can significantly reduce the risk of failure.
As CEO of Kwik Kopy Australia, I am proud to celebrate with the Penrith franchise on their 40th anniversary this year, highlighting its long-standing service to the Western Sydney community. The success of small businesses like theirs is attributed to their perseverance and the support they receive from the franchise network.
Franchisees benefit from economies of scale. This can improve profit margins and contribute to the overall financial health of the business. Currently, Kwik Kopy has 91 franchisees in the network, and we’re poised to expand with more locations in the coming years. Anchored on community spirit, the aim is to make owning a business possible for aspiring entrepreneurs.
By Sonia Shwabsky, CEO, Kwik Kopy Australia
