You’ve heard the news and seen the ads: online businesses are on the rise. More and more people are realising a physical brick-and-mortar site isn’t essential to starting a business.
This is especially true in the case of software developers and service providers; which is fertile ground for franchise options. This is an ideal opportunity if you’re not sold on the big idea or need a little inspiration or direction when choosing a business.
So, let’s take a closer look at why you may want to begin your online business journey.
Facts & figures
- Small retailers are projected to see 30% higher mobile conversion rates compared to large retailers.
- We’re anticipating that 18% of all UK retail purchases will occur online this year
- UK shoppers are among the highest online spenders in the world; second only to American shoppers.
- It’s estimated that by the year 2040, 95% of purchases will be through eCommerce
What is considered an internet franchise
Essentially, the concept of an internet franchise acts as a catch-all term for any franchise that conducts its business almost entirely online.
This means there’s a wealth of different sectors and industries that fall under the term of internet franchise – from app developers to online retail, to property investment.
The real benefit of this is that if the model is for you then you’re not short of options. You’re free to choose an opportunity that suits your ambitions, lifestyle and expertise. What’s important is the kind of model you’ll be using in your business.
And that really all depends on what the internet franchise sells.
The franchise models
Once again, as a result of the broad scope of possibilities that technically fall under the category of ‘internet business’, the number of possible franchise models available to you tends to fluctuate.
To make an assessment of how this would look, you should begin by looking at the franchisor’s business model first, before considering their franchise model.
The business model is simpler to understand as it’s based on whether or not they sell a physical product, a service, or a digital product. Knowing whether you’ll be selling a physical product or not will give you some insight into potential responsibilities (managing stock and storage, for example).
However, the franchise model is a separate issue entirely for online businesses. In fact, they can be widely different across sectors. As an example, e-commerce sees four different franchise models widely used across the industry.
It can be complex to wrap your head around, but they essentially agree with the extent of the rights and responsibilities between the franchisor and franchisee.
You’ll need to do some digging depending on the industry, start-up capital, and time commitments you have in mind. But doing so can help you tailor your time and financial commitments to your taste – and rule out the
Is it for you?
First and foremost, choosing an internet franchise is an exceptional choice for those who want to avoid working on-site. Consistently working from home, or while you travel, is often very possible when working through an online business – often requiring only minimal contact time per month. The dream of being a ‘digital nomad’ is real!
In terms of required qualifications, that will change depending on the opportunity at hand. Often franchisors will offer full training with their franchisees, while others will require previous expertise depending on the industry.
For example, Adam Bude offers ongoing training in their product and service line, however a degree of entrepreneurial and experience in sales would be instrumental to success. You can read our listings to research a little more about our opportunities and what each franchisor offers.
All that said, a strong grasp of basic computing skills and internet savvy is likely to be required across the board.
What may be an adjustment is if you are used to being in the company of your team on a day to day basis. Working through an online business often means a lot of hours spent working independently.
You’ll, of course, be able to delegate online and collaborate with your team as it grows; however, if you struggle with the idea of rarely being face to face with your team members then this may be challenging for you.