Tag Archives: Franchise News

16Aug 2011

Franchise News: Starting a Letting Agency not so easy!

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By Steve Roulstone

I have been somewhat surprised to hear that after many years of insisting that the only way to start in our Industry was to have a High Street presence, with all of the associated costs that this envelops, one of our major competitors has now made a major switch and started to market a start from home operation and from what I know about the industry and process I can only surmise that this is purely a cost motivated decision, because all of the evidence from my own Franchise offices is that the need for a High Street presence has never been stronger!

Historically not needed.

I took over the running of our Franchise two years ago, prior to that, the previous Management had assisted people to open offices in not only the High Street, but also from serviced offices and from a home start. The fact that this was possible at that time is confirmed by the fact that these offices are still trading and indeed have been doing so for many years, in some cases approaching a decade! But what is also clear is that this is not the case now, as I have had confirmed as I travel around our offices and discuss current trading levels.

Inherent differences.

What has been confirmed to me is that the offices with the biggest profile are the ones that are enjoying good increases in numbers of both property and number of Landlords. (This is an import point because it needs to be recognised that the number of Landlords is growing significantly and the growth is not existing Landlords buying more properties) This is not the same when smaller offices are concerned because of the massive increase in competitors. Through both the growth in Letting Agencies and Estate Agencies ambushing our trade, the customer has very soon learnt to look around and there is no doubt that even in a technological age, the best place to look is on the High Street!

Web sites tell no story.

 There is very good sense behind this, because on the internet it is very difficult to see any difference, in fact, the better the web site does not automatically mean the better or larger the Company and because of the financial implications of a poor service, the customer has taken to seeing with their own eyes! At Stafford, I recognised several years ago that when Landlords turned to the web for research, we needed something to make us stand out from competitors. Therefore with apologies to potential Tenants, if we only listed all properties we have available (as Rightmove eventually insisted, because of course Tenants are their customers) we would not look very large, so we have left all properties on our books on our site.

Best advice.

What this current trading pattern dictates, is that any new start (as we are only too aware!) needs to look very closely at where they are going to get new opportunities, because it is only new Landlords who will become their Customers (unless you have friends with property) because Landlords do not change either easily or often! It is the practical day to day reality of Management that confirms this, because unless you make a real hash of matters, you will always have the opportunity to resolve issues before any change is reasonably possible. (Consider standing orders for rents and relationships with existing Tenants) I always believe in placing myself in the position of the potential customer and what needs to be answered may be a hard reality, but one which needs to be faced straight on; Why should Landlords choose somebody operating from home, as against the choice in the High Street?

Starting again?

Not something I would like to do again at present and explains why those considering Franchising are not exactly rushing to the plate at present! But even and probably especially in hard times, we as Franchisors need to be both truthful and realistic for the benefit of potential investors in our Companies. Without and probably until professional recognition for Letting Agents, via licensing or qualification is introduced, however the Government decide to proceed as they surely eventually will to deal with an increasing level of complaints, we have nothing to differentiate us from the rest of the market I believe that the choice for Landlords will not diminish until such legislation is produced, so until then, we have to accept where we are and why!

27May 2011

Franchise News: Franchise Networking days producing rewards.

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By Steve Roulstone

At Castle Estates we have regular Network Days where all of our Franchise offices get together and discuss our Industry at length. They give Franchisees the chance to discuss various issues with their compatriots, talking over problems that have occurred, sharing successful ventures and opportunities and trading methods and trends with each other. When we put these days together, we always try to have a central theme running through them, so that our offices can review what they have seen and review an area of trading all in one day. In the past these themes have been Web awareness, Property Insurance and associated products, Changes in legislation and Advertising.

Making the most from contacts.

This was the theme from this week’s get together and the success of the day has prompted me to put ‘finger to typepad’ and comment in this way. The contact and support that flow through these days mean that they become a seminal part of being a Franchisee. This, I believe is one of the major reasons that Franchising offers such a popular route to business success. Every Franchisee appreciated just how important it was for their colleagues to purchase a Franchise and respect is automatically granted. This is then shown through the discussions and ideas that flow through the day. They need to be seen to be understood, but I have never witnessed a similar scenario in any other type of Business meeting and I have attended many conferences and seminars over the years.

Property Portals

We had two portals represented on the day and both offer a different view to the market place. Gumtree only offer the Lettings Market on their site and are therefore important both as a lettings portal and by the way in which they attract the best type of prospective Tenant, whilst Rightmove as the market leader are a site that any self-respecting Letting Agent has to be seen on! As a result of the presentations, all of our offices now understand the options and services each portal offer, for as a punter you would only see the front end of the sites, whereas as a customer, there is a whole sea of reports and functionality available to us to help us understand where and why our prospective Landlords and Tenants visit us. The problem being just how difficult it is for everybody to understand the nature and power of the services these functions provide. It is safe to say that this style of day ensured that everybody left with much enhanced knowledge and will now utilise the functions to their benefit.

Landlord Insurance

Specialist Insurance is something that I have spoken about and something I recommend all Landlords to use, but again, following a procedure that has lasted a full 18 months and as a result of a Rental Industry  supplier that has listened to what we have told them and offices that have taken on board what their peers have recommended (length of service and experience being paramount) we now have a situation where the whole group is moving forward in an innovative way, using this crucial Landlord requirement.

The future.                                                                                                                 

Add the specialist software designed to ensure we make the most from website visitors that we discussed and the meeting was heralded by all to be a great day and this is the point. Only with Franchising are such progressive steps made so easily, because of the willingness from all present to share, assist and develop everybody’s business, not just their own. It is in the interest of every Franchisee to see progress for all offices in the network and there, in finishing this article, is that word again:

 Network: only truly available through Franchising!

03May 2011

Franchise News: 5 Good Reasons to Choose a Franchise Opportunity

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By Joel Caws

Selecting a franchise business as a route to starting up a business can be a great choice. Like anything, there will always be two sides to the coin, but lets look at five important characteristics that a franchise can offer in contrast to a non-franchised business venture:-

1. The Franchise Business Formula

The heart of any franchise business is its franchise formula. This is primarily comprised of the business structures and processes that make the business happen and that make it a potentially profitable venture. These elements make up a core part of the franchise manual that becomes a new franchisees ‘bible’ to read and follow, in order to reproduce the achievement of the original franchise pilot businesses.

2. Proven Track Record

The good thing about a franchise is that you can often talk to other aspiring business people, just like yourself, who are already running the franchise opportunity you are considering as a business. The franchisor will usually be able to provide a list of franchisees that they are happy for you to contact which can act as references for the franchise venture. It can give you extra peace of mind to speak to people who have already travelled the road you are on and have already taken on, and are actually running day-by-day, the franchise business.

3. Training & Support

Unlike starting up business by yourself, franchise opportunities are usually provided with a level of training and on-going support. This is to enable you to run the business effectively and successfully by understanding the franchise formula and how to apply it to the day-to-day business activities.

4. Financing

The majority of high street banks have franchise sections that specialise in funding franchise business start-ups. You will still need to prepare your business plan, but having the weight of a franchise system behind you can give the bank some extra assurance that you are working with an already established and proven business concept. This may give you an edge in getting any funding you might need.

5. Franchise Association Support

There is plenty of help and support offered to those considering franchising as a route to starting a business. In the UK, the British Franchise Association (bfa) is an organisation of which many franchise businesses are members.  The Association helps to promote ethical franchising in the UK and it can therefore give some extra peace of mind if the franchise system you select is a member. Additionally, the bfa can be a resource for any other help you might need such as pointing you in the right direction for professional support such as for legal and financial issues. Other countries have similar franchise organisations in place to hope promote franchising in their respective countries.

Finally, its worth bearing in mind that, a franchise is a business like any other. A willingness to work hard, be determined and dedicated to the franchise system, are all essential to give you the best possible chance of success. A franchise in itself is no guarantee of success, but it does give you the chance to get out of the starting blocks running.

04Apr 2011

Franchise News: A Franchise business as an investment choice

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By Joel Caws

Investing money into a new venture can be a good way of putting extra capital to work in order to make a profit. There are plenty of ways to invest capital from merely putting it in a high interest bank account or investing it into a business opportunity.

Generally, the more riskier the investment the bigger the pay back or loss. When you place an investment into a savings bank account you’re confident your capital is going to be safe, on the other hand the gain you will get from the invested capital is often low. It’s also associated directly to the interest rates at that time, hence if interest rates go down, the benefit from your investment may also be reduced.

Many people choose to make an investment into the stock market which can be an activity that carries much higher risk. The profits can be high for those who have taken the time to know the reasoning behind the way stocks and shares move, however for people who are uninitiated it could be a fast way to lose your money.

Property is another recognised investment preference having a pretty sturdy track record. Although property markets can go up and down in the short term, they have a tendency to rise gradually in the long term. As a result many investors put funds in property because they want to see a positive benefit in the future.

Investing capital into a business venture is a well-liked option. You will find a few methods to do this by means of either starting a new enterprise or looking for an established one that is already operating.

Opting for a franchise may improve the success rate further because a franchise business relies on a proven franchise formula. Quite a number of franchise business opportunities can be run as management franchises which are perfect for individuals who wish to put capital into a business venture but not be hampered with the actual every day running of the business. By employing staff to operate the franchise business, it is possible to manage the business without getting your hands soiled.

There are also franchise resales which are franchise businesses which have already been setup and have been trading for some time. Deciding on a franchise resale may help to further lower risk as you will benefit from a business history to look at prior to deciding to put your cash into it.

No investment is completely devoid of some risk, nevertheless a franchise system provides the extra support of a tried and tested business formula along with training and support. Generally speaking, the success rate of a franchise is good with nine out of ten franchisees each year turning a profit according to Natwest/BFA annual franchise industry surveys. Whether or not you choose to put money into a franchise opportunity or some other business venture, one point is for sure: the success of the business (and the return on your initial investment) will likely be measured by your commitment, hard work and dedication. If you don’t use a strong-minded and disciplined approach, any venture will most likely be doomed to fail.

01Apr 2011

Franchise News: Advertising against Google? A closer look.

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By Steve Roulstone

More often than not, I receive several requests to advertise in either the National press or a periodical associated with the Franchising Industry every week. Nothing new there! Indeed I take my hat off to the people charged with selling the advertising space for their continued persistence and enthusiasm for the task at hand.

How do they send the message?

But it has been very noticeable of late, that I am receiving less and less phone calls and more and more requests via e-mail. Not only that but we receive about an equal split between those who use a full page style of e-mail representative of a page from a magazine and those who send a personalised e-mail, no doubt designed to encourage the recipient to feel more at ease with the sender!

Bit of a contradiction!

I do not know if I am the only person to spot this, but what I perceive as a more concentrated effort to be successful, probably driven by the downturn in the Franchise market place, which we all know is out there, is pandering to its major competitor by utilising one of its most successful styles of communication introduced by the web, namely e-mail to get the message across, about the type of media, they wish to get the message across about, namely the written word!

They are not alone.

I think for the Lettings market to which my Franchise belongs, the clearest indication that web activity is more important than papers or magazine presence, is that nearly all local newspapers that derive an income from advertising property, for sale or for rent, are now running their own web site to ensure the income is not lost. Says it all really!

First page presence.

If I am bombarded by those wishing me to spend my hard earned income through the written word, I am equally bombarded by just as many (thankfully ALL by e-mail!) trying to do the same through web site optimisation. Now I think I made the correct decision on this front some time ago and the work undertaken by the Company I employ has ensured we are where we want to be (or getting their – if it were only that easy!) on page one of the most relevant searches, but let me ask you a question – what is the first page you open when on the internet? How many said Google?

First to be first!

This is one of those situations where the preacher preaches the gospel yet is already converted. There is no doubt that web presence and by that we all know I mean on Google is the Holy Grail (and if it is not it soon will be) for all advertisers. But how good that the very method by which we wish to achieve this presence is by a country mile, the most commonly used ‘first page’ we seek when starting our own regular thirst for knowledge. A case of proof being not just in the pudding, but in the starter, main course and coffee and biscuits as well!

02Mar 2011

Franchise News: Why choose a Property Franchise NOW!

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By Steve Roulstone

Last year I wrote a Blog about why somebody should choose a Property Franchise when looking for a new future in Franchising. This week some figures have been released as a result of the Communities and Local Government English Housing Survey for 2009-2010, which confirm if ever there was a right time, that time is now!

Increase in Rental properties.

The figures released based upon a survey of a total of 21.5 million properties in England, has shown what can only be described as a mammoth increase in the Private Rental sector over the preceding twelve months, which even outstripped the increase at the start of the housing sales slump in 2008 of 1.2%. This time the increase is 1.4% and this is confirmed by recent news items, suggesting that demand could see this increase outstripped during this current year. Indeed figures are being discussed which would give another record increase approaching an additional 2% possible this (current trading) year.

Steady growth.

The overall percentage in the private rental sector as shown in this survey is now 15.6% (Current figures being discussed are 17%) with the social rental sector now falling to 17%, it clearly looks as if private rented property could overtake the social sector to become the largest sector, within the next twelve months. In big round numbers, this is an increase of nearly 300,000 properties in one year, which is all additional potential business for Letting Agents, at a time when more and more self managed Landlords are also turning to the Industry.

Effect on local markets.

So how does this affect local markets, well let’s look at Birmingham, who confirmed 420000 properties within the City Council boundary paying Council Tax last year. 1.4% growth would represent a potential of up to 6000 additional properties, which, at £1000 average earnings per year as a conservative estimate, would produce potentially £6 million pounds additional turnover for the area. Even in a quarter of the City, £1.5 million additional turnover, should encourage anybody able to make a start in Franchising, that the market is buoyant and still growing.

Continued growth.

But it is not just the current growth which is encouraging, for the market has shown growth of over half of one percent year on year for the last decade. What is happening now is a clear sign that this growth is constant and growing. The icing on the cake for Letting Agencies is that the number of potential Tenants continues to grow. This has also been widely reported in the press, and again in a period after this latest survey. So never has there been a better time to become a Letting Agent so you will have to excuse me, whilst I go and make sure there is a clear path to my door!!

20Jan 2011

Franchise News: Franchisee guidance and timetable – The key to clarity.

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By Steve Roulstone

If I have learnt anything in my first year as a Franchisor, it is that the best help and assistance I can give to any potential Franchisee is twofold; clarity of purpose and a clear route to achievement. I should not be surprised at all and really should have known from day one, as it was what I was looking for when I first approached Franchising as a way of achieving my objectives in life, back in 1999. But as it is something that happened in my case rather than something I knew I needed, it was something I accepted without questioning why or even realising it was what was being offered and subsequently was then delivered to me.

Franchise visits.

At the time that I was investigating the Franchising market, which luckily for me was in the autumn of that year, just at the time of the National Franchise Exhibition, I visited several organisations from differing trades and Industries, all of which in my mind could be an industry that I could operate in. In the end it did not take me long to choose the Company I now head, but looking back at why, is more revealing.

Why Castle Estates?

So why did I choose Castle Estates? I had decided that it was an Industry that I felt comfortable operating in (Requirement number one!) but they were not the only organisation that I looked at as I visited the possible partners in Franchising with my Wife (which is exactly what any prospective Franchisee should do, right from the start, as it is so important to ensure that all partners believe in the venture you are about to launch) so I asked her when I was thinking about the answer what she remembered of the day at the then Head Office in Milton Keynes and her answer was what formed the basis for this Blog.

A vision of how it worked!

Jenny’s words not mine, that was her answer and it is exactly what I have learnt in putting together the manner in which I present not only our Company, but also the Industry and most importantly, Franchising itself, to all who come to discuss the opportunity of becoming a Letting Agent with Castle Estates. It can be frustrating sometimes to realise why and how some things come together, what I have come to describe as ‘earth shatteringly obvious moments’! As a Franchisor, we need to offer a clear route to becoming a Franchisee, so that it is understood what is needed and how our goals are achieved, offered within a timetable which clearly states when all of this fits together as we work towards starting this all important and all encompassing venture for both parties. Added to clarity of vision, so that what we are trying to achieve is clear for all to understand and how it is achieved is understood as well as what is needed to continue to progress towards completion and the start of a new business. 

What to look for.

This is not something that has come easily and needs careful consideration in ensuring the plan (which in my case has taken the best part of six months to assemble, this with the assistance of professionals trainers to ensure nothing is left to chance) that every franchised organisation puts together is consistent and delivers ‘what it says on the tin’ (a saying I am using more and more) but I would recommend everybody looking at a Franchised Company considers this methodology above all others. Only when what you buy in too can be clear and decisive about what they deliver, can the end result be worthy of your investment.

08Dec 2010

Franchise News: Renting on the web.

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By Steve Roulstone

Franchise News: Renting on the web.

Earlier this year, I posted a Blog about the importance of web presence. ‘Wrapped in the web’ I stand behind what I said in that post, but I have noticed just lately, that it is being suggested that it is possible to open new Letting Agencies solely using the web. This, in my opinion is not correct – not yet and certainly not for the majority of current Landlords.

Current Trends

As Franchisor when discussing possibilities with new Franchisees, I would not recommend starting a new business, in what has become and will continue to be driven as a professional market over the last and probably the next ten years as well. It is my role to ensure that all new offices are given every opportunity to succeed and that includes the need for visibility from a business address, preferably in the centre of any operation. Even five years ago, this was not the case, but at present it definitely is!

Personal contact

I believe that there are two main reasons for this, firstly, as a people we still prefer the ability to have ‘meetings’. The internet has not yet provided a way of assessing us technically, enabling Landlords to employ Agents without meeting. As a Landlord, distant or not, I would still wish to get a feeling for somebody through meeting them, a point which was summed up only today, by one of our Franchisees, who stated in an e-mail, ‘meeting is the professional way to do it’ well I know we would wish to stay professional!

No office to call home

Secondly, we are a conservative nation at heart, and like our traditional methods. For Landlords, that means a Letting Agent should preferably have an office, whether it be retail or serviced, it is where we are expected to work from. I have experienced all forms of working locations in my time as a Franchisee and I know the difference it made once we had a ‘presence’ in our town. We have never looked back! So do I believe in the web, absolutely unequivocally, yes! it is just as important to have a ‘presence’ on the web, but look at it like this would you expect a legal Company who provides a service for the public which encompasses the lives of other people as well to work from an invisible address? Now tell me if I was describing a Solicitors office or a Letting Agent – they both provide the same style of service after all!

Crystal ball time

But in the future, no doubt this will be true, as new technology spreads, we already have the ability to hold meetings across the net, no doubt soon we will have the technology to sign agreements via the net as well, but not until all of our Customers have the ability, equipment and understanding of such procedures will a true Internet based agency be supportable. For Tenants, no doubt web based is perfect, although viewings still have to be held of course, but at the moment Tenants are not our Customers, Landlords are. In the meantime, we continue to give Tenants the information they require through the web, whilst respecting the need to give the type of servcie our Landlords expect.

03Dec 2010

Franchise News: Resolving Territory problems

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By Steve Roulstone

I have spent the last few weeks seeing many prospective Franchisees as a result of the National Franchise Exhibition at the Birmingham NEC held last October. This is a very busy time of year and of course very concentrated when it comes to discussing Franchising in general and the issues that affect people when they are considering joining the growing numbers of Franchisees in this country. As I said, concentrated, because I am being asked several questions on a daily basis and one of the major issues seems to be one of cross Territory trading.

Whose customer are you?

Boundaries are of course easier to define in some industries than in others. For example, we cannot insist that a Landlord only buys his property in the Territory that we ‘own’ as part of our Franchise agreement. This is easier for example if we were delivering produce, or providing a specific service at any particular address, rather than a centralised style of Management Business, especially one that the general public are associated with as Tenants, not because we are a Franchise, but rather because as a Franchised industry, we provide a service they want, such as housing.

Whose choice is it anyway?

The question that gets asked so often is how do we cope with property that falls in a different Franchised area, but where the Landlord wants to use the services of a different Franchise than the Franchisee who ‘owns’ the area where the property is situated. This will also be a problem for some service providing Indistries, especially where Family are concerned as they are bound to want to favour their own, and indeed may not even use the Company at all if it was not for this specific relationship.

Let the customer decide!

The answer is of course common sense, well it is for us, I cannot confirm for others. At Castle Estates we offer larger areas than most from the start, this means that our boundaries are always further from the central point (Office location) than others that operate within our (Management) Industry. This greatly reduces the chances of cross border problems, especially as we try to link areas that are both socially as well as geographically linked. But at the end of the day, by allowing the customer to decide and by accepting that it is the relationship with the preferred Franchisee that has given the opportunity for the business to be enjoyed by the brand in the first place, we ensure the customer (which for us means the Landlord) makes the decision.

Consequences

All we ask is the courtesy of advising your neighbour of what is happening, which again, because of the size of territory we offer, usually means co-operation in marketing anyway! Of course the other result of larger Territories is that we do not encourage cross border trading, as most of the Franchisees activity is bound to be close to the centre of operation and when borders are correctly positioned, for example, wherever possible, NOT through the centre of Towns and Cities, the risk is greatly reduced.

 

26Nov 2010

The Castle Blog explained

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By Steve Roulstone

We have been operating our Blog now for over six months and I thought it time to put some explanation behind the near 50 blogs we have so far posted which will of course continue to climb as the weeks pass. The idea is to post blogs under specific headings, covering both Property Lettings and our Franchise so that all aspects of our business are covered. We could of course increase the number of headings and may do so in time, but I feel we have managed to cover the whole aspect of our industry within the headings used, so I feel, to use a well known saying,  we can indeed claim to deliver, exactly what it says on the tin! So the individual headings:

Franchise News

‘The tin’ in this case is anything revolving around the running of the Franchise, including Industry news and views. The recent National Franchise Exhibition for example was always going to be linked as Franchise News, as are reports concerning the Lettings Industry such as trading trends, or anything which affects our group nationally, such as the recent Launch of our new ‘To Let’ boards. It has also included Blogs about our trading partners such as the banks, as well as training related news.  

Rental Issues

This is the section that sweeps up all breaking news surrounding Letting property, including legislation, where it is being reported in its broadest sense, rather than the effect any legislation has on property or Landlords. It could also be described as the Tenants section, not purposefully, but when I look back at Blogs that have been included in this section information relating to Tenants does appear in this section more often than elsewhere!

Property Landlord advice

This can rightly be described as the main section and has been left to last intentionally. This is the main reason the blog was created. Customers for Letting Agents are, by law, our Landlords (Because we act under the law of agency on the Landlords behalf) It is under this section, that the intention was from the start to advice and inform the Landlords throughout the UK of the problems and trends affecting this industry of ours, to keep them well informed and in tune with market trends. Under this section we have written Blogs covering legislation effects, housing opportunities, warnings about property scams, explaining about our Industry and how we operate and the advantages of the services provided through Professional agencies.

In summary

I hope that helps and I hope it assists you in finding the posts that are more relevant to you as individuals. In writing and reviewing our Blog, I have noticed how many times we use the word professional. I do not apologise for this, rather, I expect we will continue to promote Professionalism in our industry. Enjoy reading them and please let us know your thoughts or indeed requests for further information or new topics for us to add. and finally, Thanks for visiting our site.