Is now the right time to buy an educational franchise?
UPdate April 2020:
Although so much has changed in recent months, this article remains relevant - even more so as the education system has been disrupted. We are all in scramble mode and coping as best we can. But when this is all over, kids will still need tutoring!
No one would deny that the last few years have been interesting and uncertain times. But how does that affect you if you’re thinking of buying a franchise?
Well, the good news is, that if you choose the right franchise, you may be surprised at just how successful they can be during times of economic and social change. Our experience over the decades has shown that economic fluctuations are actually a force for good when it comes to our franchises. And our experience is supported by independent research. Here’s why.
Choose a UK centred franchise
If you are thinking of buying a franchise, it’s important to do your research. Is the franchise you’re considering entirely UK centred or do they rely on suppliers or materials from Europe or beyond?
MagiKats, for example, is independent of any external or overseas factors. Our headquarters and team are based in the UK. Our programmes are based on the UK national curriculum. Our suppliers are all UK based, whether that’s the printers we use for our marketing materials or the servers and storage of our IT and data.
That means global or European changes don’t have any significant impact on our franchises, costs or how we operate. However, not every franchise is so independent so make sure you check carefully first.
Ensure the franchise has a solid foundation
A start up business might expect to take time to put down roots and establish the solid foundations necessary to sustain a profitable, successful business. But the situation with a franchise is different (provided you choose the right one).
MagiKats has got over 30 years of experience in the education sector. As a franchise business we’ve been established a long time and we’ve weathered a few storms. That experience is vital. We know what works, and when it works. We’ve refined our processes and systems. We’ve adapted our business model. In short, we’ve built very solid foundations which means anyone buying one of our franchises, is getting all the benefits of a well-established, resilient and robust business.
Better still, because we’re a smallish team, and a family business, it makes MagiKats very agile and well positioned to adapt quickly to change if that’s what’s required. It’s a win win situation.
The education sector
It goes without saying that different sectors react differently to national and global economics. But the education sector is probably one of the most robust sectors of all.
The job market is highly competitive. More so when there’s an economic squeeze. That in turn makes a candidate’s educational background and demonstratable skills all the more important. And never more so than with the core skills of maths, English and reasoning.
It’s these skills that shine through on a CV and on a candidate’s record of achievements. It’s these skills that help a candidate come across well in an interview and will help a candidate to thrive and succeed in a new role. It’s no surprise then that according to the Sutton Trust, maths and English are the most popular subjects when it comes to private tuition.
Your market
The result is that over the last few decades, the demand for private tuition has consistently grown. Education is always important. Especially in light of increasing economic pressure on schools and growing class sizes. Back in 2015, The Good Schools Guide reported a significant increase in demand for private tuition in the preceding decade, despite the major financial crisis during that time. In 2013, The Guardian reported that some private tuition providers had seen an increase in demand of 42%.
Parents may become budget conscious during times of uncertainty. However, whilst they might cut back on what they see as non-essential extras and activities for their children, what they don’t cut back on is tuition. Quite the reverse. Instead, it becomes a question of allocating their budget wisely. Most parents realise that if things are going to get tough in the work sector, education is going to be key to ensuring their child has the edge.
Your choice
Starting a new business can be daunting. Choosing the right time to take the plunge even more so. But it’s often a mistake to be put off by what you may perceive as uncertain external factors. There’s every possibility that while many sectors may be hit hard by Brexit (whatever shapes that may take), other sectors, such as ours, will see a boom as a result. Which may just mean, now is exactly the right time to buy an educational franchise.
Call us
If you’d like to know more, why not visit our website or book a call. MagiKats is in the top 100 of all franchises in the UK, making it a great choice.