If you’re a franchise owner, you’ll already know the value of a diverse portfolio. If you’ve yet to take the leap, the Covid-19 pandemic has highlighted more than ever the importance of ensuring your risk is dispersed.
Flexspace as an investment
Flexspace is likely to play a crucial role in the future world of work – not just because it chimes with modern ways of working, but also due to its adaptability in a time of economic uncertainty. Because many businesses are unable to predict their future office needs, they are naturally unwilling to commit to the types of leases demanded by traditional landlords.
This makes flexspace a far more attractive proposition, since contracts can be adapted to suit – from the sole trader booking a meeting room for an hour to the company renting an office for a couple of months, the variety of options makes flexspace a superior choice in today’s fast-changing climate.
In addition, many of the pre-pandemic reasons to invest in flexspace remain unchanged. One key trend of the last five years has been the investment in flexspace by businesses to attract and retain top talent, including Millennials – the largest demographic in the global workforce, who are coming of age and demanding a better work/life balance. It is hoped that offering flexspace in suburbs and smaller cities, rather than so-called “top-tier” locations could be the secret weapon to help mitigate the effects of the so-called ‘Millennial exodus’.
A strong and stable partner
All of this makes flexspace franchising a strong investment for entrepreneurs. All you need is a stable business partner – ideally a global leader with a history of strong growth and proven track record in terms of business continuity and stability during uncertain periods.
Mark Dixon, IWG’s founder and CEO, knows better than most about weathering uncertainty. “9/11, SARS, swine flu, volcanoes, earthquakes, cyclones, shootings. You name it, we’ve had it somewhere,” he says, he says, speaking to Forbes in April.
It’s this experience, accrued over 30 years of running flexible workspaces, that IWG is able to offer its franchise partners, as well as resources, training materials and marketing collateral, which are provided to help you build a successful business. Close and direct support is offered throughout the journey, from selecting your first location, dealing with brokers and finding appropriate agreements, to deciding on office layout and design.
What’s more, by operating under an established brand with a proven business model, and a growing number of franchise partners now operating in the network, the business can provide you with research on how long other franchisees took to begin generating a profit. This predictability is something that isn’t possible when you start a business on your own.
An opportunity for many
It’s important to highlight that franchising is not limited to individual entrepreneurs. There’s also an opportunity for existing businesses who want to expand their offering and add an additional revenue stream, as well as landlords and property owners who have space available in their buildings for one of IWG’s brands.
Mark Dixon has ambitious plans for IWG’s expansion – growing the locations in number from 3,400 more than tenfold in the next 10 years. “In order to achieve the goal of national coverage – every town, city and suburb – it has to be done with partners,” he says. For investors looking to diversify a portfolio in post-pandemic times, now could be time to take your first step.
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