Small business benefits as franchising overtakes manufacturing

In a surprising development franchising is set to overtake manufacturing in  terms  of   employment  numbers  during  this  decade.  Recent  treasury modeling  has  suggested  that  the  number  of   jobs  in  employment  in
manufacturing is expected to shrink by 17 per cent this decade, wiping out 170,000 jobs.

This supports the positive attitude of  the franchise community according to Brian Keen founder and director of  How To Franchise Simply. “Ten years  ago  manufacturing  in  Australia  employed  1.08  million  people, which was 12 per cent of  the total number of  jobs,” quoted Keen. “And today it has shrunk to 990,000, or 8.8 per cent of  total jobs.”

Keen explains this and more in his regular free seminars in South East Queensland  and  in  his  online  webinars.  “With  my  new  DIY  concept business owners can save $10,000s on normal franchise set up costs and the timing is right for small business to take the lead in job growth. Micro- franchises  with  3-10  outlets  can  be  very  successful  and  self-financing,” says Keen, who passionately believes they are ideally suited for regional expansion.

Talking further Keen drew attention to what he calls a most interesting statistic, “While manufacturing has lost 90,000 jobs in the past 10 years, and it is expected to shed almost twice as many in the rest of  this decade,” he said, “the Griffith University Franchising Australia 2010 study shows the  franchise  sector  grew  it’s  employment  statistics  by  40%  during 2009/2010 alone, from 500,000 to 700,000.”

Keen  has  a  long  and  successful  relationship  with  franchising.  As  well as  associations  with  franchises  Ultra-tune,  Donut  King  and  Brumby’s, Keen  helped  establish  many  new  franchises,  including  the  simple  and successful  Jim’s  Mowing.  He  also  established  six  of   his  own  franchise groups that grew to 120 outlets over a five year period.

A   promising   outlook   for   the   future   is   given   in   a   survey   by PricewaterhouseCoopers   which   showed   franchising   outperforming many employment sectors. “Its 2010 survey backed up findings from the previous  year’s  survey  (conducted  during  the  GFC)  in  which  franchise systems were forecasting growth of  12 to 15 percent.”

Keen also explained that the 2011 BRW report showed franchisor revenue (which  is  of   course  a  function  of   franchisee  revenue  in  most  systems) growing by 12 percent and profitability by 19 percent. And the outlook is optimistic, with franchise systems forecasting a growth of  13 percent for 2011, and 49 percent over the next three years – and growth is expected to continue at a healthy rate.

‘With   the   Australian   economy   jumping somersaults   over   many   other   economies in  the  developed  world,  the  scene  is  set  for franchising to continue its strong run in 2011 and onward,’ he said.

Keen  is  presenting  free  seminars  at  6pm  on Monday  11th    July  at  Fitzy’s  Loganholme, Tuesday  12th    at  Travelodge  Garden  City and  Wednesday  13th    July  at  Nerang  RSL. Seats are limited so booking is essential.

For  more information  visit or call Brian Keen on 0417 211 366

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