Co-working Spaces, A New Opportunity in Franchising

Co-working spaces are trending globally as employees call for more flexibility in their working arrangements and companies embrace the remote workplace. The concept of shared office spaces is not a new one, with many small companies opting to pool their resources into a shared office space. However, this trend has evolved into the co-working spaces we know today, unique multi-purpose buildings often located in city hubs and retail precincts.

International Workplace Group reported that by 2030, it is predicted that 30% commercial real estate will be flexible workplaces. This figure is quite realistic, with the co-working market current worth $36 billion and at least 50% of workers doing their job remotely a couple of day a week. A survey of 18,000 business leaders found that an overwhelming 89% believed utilising flexible workspaces helps their business grow.

With flexible workplaces and remote working set to become the new normal, we can expect to see changes in city plans, with a shift away from corporate parks and office districts towards a more integrated approach. A significant appeal of many co-working spaces is their proximity to dining and retail amenities, often located in the heart of the city.

As an industry set to see significant growth in the coming years, co-working spaces present an opportunity for the franchise industry to grow and diversify. Whilst traditionally the franchise model is associated with retail and quick service restaurant brands, getting involved in a flexible workplace franchise is an investment in a new era of corporate operations.

With lower overheads and operating costs than more traditional franchise businesses, co-working spaces present an opportunity for high return. There are a range of options for those looking to invest, ranging from a full service office space, with hot desking, private offices, meeting rooms and communal areas, or simply a desk within a large open plan space.

So whether you are looking to purchase your first franchise, or diversify your existing franchising portfolio the co-working market could be the right investment for you.

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The Role Of CSR In Franchising

Corporate Social Responsibility (CSR) is a term that was coined in the late 60’s, but has truly come into prominence over the past decade. CSR is a broad term but generally refers to a company's involvement and activities regarding ethical and social issues affecting the communities they operate within. CSR at its core aims to ensure that companies are held accountable for their social, economic and environmental impact. At first, this began with the philanthropic actions of corporations, but now extends to include changes made to the everyday running of a business that are geared towards a more sustainable future.

When it comes to the franchise industry, lines can become blurred when it comes to exactly who should be making and implementing CSR initiatives. No matter if it comes from the franchisor at a top level, or is built from the ground up by a networks franchisees, any action towards running a more socially responsible business has a positive impact.

Often franchise brands run CSR initiatives on a national scale, and encourage each partner within their network to get on board and represent the cause at a local level. Partnering with a charity leads to increased exposure not only for the franchise brand but for the cause they support, doubling the potential for awareness. A prime example of this is the Poolwerx Swim Safety Initiative to Make A Difference, which aims to prevent drownings by giving every child the chance to learn to swim. If a company doesn’t have a national strategy, many franchisees partake in CSR by investing in their local community. Common activities include sponsoring a local sporting team, donating to a charity or supporting school or club.

You may be wondering why a CSR strategy should be a top priority for a franchise brand, given so many around the world have seen success without one? Well studies have shown that Millennials, more than any generation that came before them, consider real social change hugely important. This generation represents a large portion of the consumer market and actively seek out brands that have meaningful CSR programs. This is further reflected by a survey of online consumers that showed more than half would pay more for products and services if they come from a company that is socially and environmentally responsible.

When creating and implementing a CSR strategy, the first and foremost goal should be to make a positive contribution to society. But this doesn’t mean that this is where the benefits of being a responsible company stop. A well thought-out CSR plan should make sure that customers feel a sense of good for their purchase, knowing they’re helping contribute to a larger cause. Because of societies drive and desire to do and feel good, this can ultimately lead to a healthier bottom line.

For franchise brands in particular, CSR has come to play a crucial role in franchisee recruitment and retention. As more and more Millennials start to invest in the franchise industry, the importance they place upon ethical and sustainable business will become a key factor in the recruitment drive. A company's corporate behavior gives potential franchisees valuable insight into values and principles that brand practices, and potential recruits are looking to align themselves with like-minded brands.

CSR plays an important role in ensuring that the world's commercial practices remain ethical and sustainable. Many brands take pride in their CSR initiatives and strive to give more and more back to the community and their businesses grow and succeed. However, whether you are a national franchise network or a single franchisee, CSR should be a top priority for more reason than one!

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Accessing Business Finance With No Property Backing

There is no doubt that access to funds has been a major barrier to small business ownership for a long time, and over the fast few years the complex application requirements of the big banks have become more restrictive. Recently, the Australian Bureau of Statistics reported that 1 in 3 Australians don’t own a home. The increasing volatility of the country’s property market means that home ownership is becoming increasingly unattainable, and further those who do own property are struggling as property values fluctuate.

Even though 60% of small business owners are looking for funds to grow their business, the concern of property backing is becoming an increasing challenge. This is where non-bank lenders and alternative finance providers can help. Whilst such lenders have always played an important role in bridging the gap between the offerings of traditional banks and the varied needs of small business owners, their role in Australia’s lending landscape is becoming more important than ever.

Non-bank lenders are experiencing a steep rise in adoption rates. Though many are unable to compete with traditional providers on interest rate, they offer a wealth of other benefits which appeal to small business borrowers. Quicker and simpler application processes, reduced paperwork, flexibility and transparency were among some of the favour characteristics of alternative lenders. However most notably, non-bank lenders willingness to secure against business assets rather than personal property assets has been a key differentiator.

Whilst banks are still resistant to offer business loans which don’t take personal property as security, the flexible funding options of non-bank funders are more aligned with the circumstance of many of Australia’s small business owners. Whilst it is likely that borrows will have to compromise on rate, studies found that this is not a major concern. A recent SME Growth index found that a hopping 91% of SMEs would be willing to pay a higher interest rate to avoid using their home as security. This percentage reflects the impact that Australia’s property market is having on business owners.

The key takeaway is that if you are not a homeowner, or you don’t want to risk your home as security, there are options out there to suit you. Whilst banks and traditional lenders are a staple of Australia’s lending landscape, small business owners should consider non-bank and alternative funding sources that may be a better fit for their business finance needs.

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Trends in the Pharmacy Industry in 2019

4 Trends Considered

Posted on CashFlow It 17/09/2019

We’ve recently been researching trends in the pharmacy industry in 2019-2020, and there’s some interesting information coming to light!

We’ve also been surveying some of our pharmacy manager connections on LinkedIn and a lot of what is mentioned in this “Medical Director” article entitled “6 Predictions shaping the future of pharmacy in 2019” is certainly coming up as topical.

Prominent amongst the six, we identified:

1. Electronic prescribing
2. Non-Contact Dispensing Systems (Robotics)
3. Natural medicines
4. Medical Cannabis regulation

Let’s consider these quickly in more detail:

1. Electronic Prescribing

Medical Director writes:

"Electronic prescribing will continue to gain momentum across Australia, following the Federal Government’s decision in 2018 to increase its investment in new medicines by $2.4 billion. The decision means $28.2 million will be injected into the initiative over five years from 2017–18 to 2021-2022, to upgrade the e-prescribing software system used by clinicians to prescribe medicines."

This initiative is intended to improve PBS efficiency, compliance, and drug safety, but it also has cost implications for pharmacies as they are required to implement and integrate softwares and data requirements.

2. Non-Contact Dispensing Systems (Robotics)

A recent Drug Topics article on “The Future of Pharmacy Automation,” states

"...the mechanics of medication dispensing are mind numbingly tedious, repetitive, and nearly impossible to perform without error. [but there is] a solution: Automation. Dispensing robots never get bored, never get distracted, and make far fewer mistakes than their human counterparts. And in this era of ever-shrinking prescription margins, dispensing robots free up pharmacists and technicians for more profitable clinical services that require human judgment."

The consequences of this statement are even more mind boggling for the pharmacy industry:

“Dispensing medications will eventually become fully automated using various types of robotics,” predicted Al Babbington, CEO of PrescribeWellness, a Tabula Rasa HealthCare company. “Clinical work—the education, motivations, and support that pharmacists provide to patients to enact behavioral change—will be the new foundational service.”

Robotic dispensing machinery is not cheap!   This is a classic example of where flexible and convenient equipment financing solutions can be very beneficial to the pharmacy owner.

3. Natural medicines

Quoting Medical Director again:

“the rise of patient demand for natural and alternative approaches to medicine means our healthcare system has become more agile to adapt and meet patient expectations. In fact, as early as 2000, the increased demand was recognised as something public health needed to take more seriously.”

This is most certainly a welcome trend in the medical and health-care industry.  There is now so much eveidence-based information under-pinning the value of natural solutions informed by qualified practitioners such as nutritionist and naturopaths, but often the front-line staff work in the pharmacy!

It’s not unusual now to see naturopaths or other natural health practitioners either having full-time or sessional roles within the contemporary pharmacy setting, and the shelf space devoted to supplements is growing all the time.

IOt might be time to refurbish and create your pharmacy’s own dedicated natural health section, or consulting office?

4. Medical Cannabis regulation

“In 2018, we saw an increasing interest in the use of cannabis for medical purposes, with Governments at both Commonwealth and State and Territory levels in Australia implementing a raft of legislative and policy change to allow the cultivation, manufacture, prescribing and dispensing of medicinal cannabis products for patients in Australia.”

Medical Director

This places huge demands on pharmacy staff for training in this new field as well as a sound understanding of ethical, compliance  and other considerations.

Summary

The pharmacy industry is certainly undergoing more than its fair share of change currently!

For more information on these trends, please refer to our source articles:

Medical Director – 6 Predictions shaping the future of pharmacy in 2019 

https://www.medicaldirector.com/news/medicines-information/2018/12/6-predictions-shaping-the-future-of-pharmacy-in-2019

Drug Topics – The Future of Pharmacy Automation.

https://www.drugtopics.com/automation/future-pharmacy-automation

Why Aren't There More Millennials In Franchising?

When you think of the franchising industry Millennials probably aren’t the first thing that come to mind. Many of us would go straight to thoughts of Mum & Pop partnerships formed out of a desire for a flexible working lifestyle and a business they can call their own. However, the franchising model and Millennials have a lot to offer each other, and could just be the perfect partnership.
Whilst the most obvious reason to entice Millenials to get involved in the franchise industry is the fact that someone has to take over the hundreds of franchise businesses currently operated by franchisees approaching retirement, there are so many other reasons the industry could be a good fit for the countries youngest entrepreneurs. 

Employment opportunities for young people are few and far between, and as a result new businesses and start-ups are popping up everywhere as Australia’s youth try to find their place in the workforce. It is well known that Millennials have taken a different approach to employment than the generations that came before them, and one of the major differences is the importance placed upon work-life balance. Striving the find a lifestyle that allows flexibility and versatility whilst also providing a level of stability and independence, Millennials may just find that franchising is the right fit for them, so why are there so few in the industry?

The reason is a combination of two things, the first being that many franchise brands have failed to realise the benefits of bringing Millennials into their business, and the second being that those who have, aren’t quite nailing the marketing.

Slowly but surely young entrepreneurs are starting to invest in franchise businesses, however the uptake has been slower than the generations that came before them, partly due to a lack of interest from franchisors recruitment teams. Many franchisors see Millennials as a risk, widely known for their short career tenure as they search to find a role that gives them purpose. The media shines these attributes in a negative light, however in an ever-competitive business landscape, drive and ambition to succeed could bring new life into plateaued franchise brands.

Another important consideration for the long-term success of a franchise brand is its ability to adapt and grow. Bringing younger franchise partners on board can help businesses achieve exactly that. Technological innovations continue to play a major role in almost every industry across the globe and franchising is no exclusion. It is vital that brands are able to navigate their way through the changes brought on by such innovations, and who better to guide a brand through this new landscape than the generation that fueled the change. Millennials are the first generation who could be considered digital natives, and the skills they bring with them in the space are an invaluable contribution to a sustainable business model for the future.

So, why are franchise brands that see the benefits of Millennial franchisees struggling to get them to invest? Many may think a lack of savings, or an inability to get a loan may be a major barrier. However, many Millennials are struggling to find a franchise brand that connects with them, and it’s not because they aren’t out there. Franchisors simply don’t know how to market to Millennials.

Read the entire article here:  Why Aren't There More Millennials In Franchising?