It is a known fact that start-up businesses experience a very high failure rate within their first few years.
Statistics differ by industry and researchers, but on average, you will find that nearly 70% – 80% of small business in South Africa fail within their first three years. After five years, only 5% – 10% of small businesses survive. The picture internationally is not a whole lot better either.
There are many reasons for the failures of independent start-ups such as poor market research, bad financial planning, weak strategic decisions, etc. but I do not want to dwell on these here. I prefer to point out that the picture in the franchising industry is far healthier.
Franchises in SA have a 90% success rate compared to a 10% success rate of an independent business according to a recent Franchise Association of South Africa (FASA) report. Similar statistics back up the franchise industry internationally.
There are many reasons for the high success rates experienced in franchising. For example:
- Standardised systems
- Top quality software and apps
- High levels of training
- Professional backup and support
- Tested marketing strategies
- Financial benefits due to size
- Benefitting from brand value
In The Tax Shop, our success rate is even higher than the average reported by the franchising industry.
If you are an accountant who is serious about your future, then I invite you to find out how you can profit from our fantastic franchise opportunities. Learn how to establish a successful accounting and tax practice whether you are starting out, grinding a corporate job or have an existing practice. Our proven track record since 2007 and 70+ franchise offices in Southern Africa speaks for itself.