Franchising & You

by Simon Lord

last updated 23/06/2021

Simon Lord is Editor of Franchise New Zealand and has worked in franchising for over 35 years.

Ready For Lift-Off

by Simon Lord

last updated 23/06/2021

Simon Lord is Editor of Franchise New Zealand and has worked in franchising for over 35 years.

Looking to launch into your new future? Here are 10 good reasons why now is a good time to buy a franchise

Ready to launch into your new future?

The idea of launching your own business is both an exciting and scary one at any time, and in the wake of a global pandemic, it might seem crazier than ever. But if you’ve ever wanted to be your own boss, now could be the best possible time to make the move –­ providing you make the right move. 

Buying a franchise can help you there, because you can see how the business model performs before buying it, and there are plenty of opportunities available across all sorts of industries. You’ll also get the training, support, systems and marketing you need to get yourself established, not to mention the buying power that comes with being part of a larger group. All these things add up to reduce the risk, and increase your chances of success.

So why is now a good time to make the move? Let’s count down some key reasons why you – and your new business – could be ready for lift-off.

10. Changed lifestyle

New Zealand might have come through the pandemic better than many other countries, but lockdowns and border closures meant that many people became aware of their lifestyle preferences. 

You don’t need to commute constantly; you can work from home if you choose; you don’t need to live in the city and, best of all, New Zealand has some wonderful regions where all these choices can be enjoyed without having a massive mortgage hanging over you. Instead, you could invest in your own business and live life on your own terms.

9. New options

A franchise can offer you a new career, an opportunity to turn an interest into a business, a chance to work with a family member or friend. It can create an income, a return on investment, and an appreciating asset. According to pocket and preference, you can start a new outlet from scratch and make a larger capital gain for yourself or take over an established business with existing cashflow. 

Some franchises also allow you to work part-time, either in addition to a full-time job, as a secondary source of income, or as a way to build up confidence or experience before going full-time. There are also semi-passive investment franchises such as vending, cabin hire and laundromats.

8. Where to invest?

New Zealanders have traditionally been big investors in property, both in terms of owning their own home and having a rental or two for retirement income. Much of the appeal of such investments lies in the expectation of constantly growing property values and the lack of a capital gains tax. While the current Government has ruled out a CGT (for now), recent changes to housing policy have removed the tax deductibility for interest costs associated with residential property investment. Along with the extension of the bright-line test from 5 years to 10 years, this will further reduce the commercial benefits of residential property investment...

 

This article appears in full in Franchise New Zealand magazine (Year 30 Issue 2). You can read it in the digital magazine here or request a free print copy here.

Simon Lord is Editor of Franchise New Zealand and has worked in franchising for over 35 years.

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