ACCOUNTANTS FOR VODAFONE FRANCHISES
The decision for Vodafone to franchise its stores is nothing new, globally Vodafone already franchises over 80% of its stores and the trend is to be continued here, in the UK. There are already over 100 franchise partners in the UK and this figure is set to rise over the coming years. The idea of franchising mobile phones stores is deeply embedded in the other telecommunication service providers such as O2 and EE, who have franchised their stores over the last decade or so.
So why franchise? Well the figures speak for the themselves, franchise stores tend to outperform most retail stores on a like for like basis.
The Vodafone partner agent programmer is truly unique!
There is no upfront cost and all Vodafone ask for is a capital injection equal to around three months of your operating costs. Another unique feature of Vodafone franchise is that the stock is owned by Vodafone, which is very different to the other telecommunication franchises out there. This means there is no need to purchase stock and it presents a significant cash flow advantage. We’ve found Vodafone’s internal reports to be quite robust yet simple. This is really important when it comes to understanding your business and its financial position.
So, what’s the catch:
From what we can see there isn’t one!
Vodafone do however have different rates cards for different stores, which from what we can see is based on the current performance of the stores. In a nutshell, under-performing stores tend to have more favorable rates cards, in contrary to stores that perform better or have higher footfall. The exact criteria that determines the rate cards are not publicized, but Vodafone’s intention is to give everyone a fighting chance to become successful.
Now that you have your store up and running, you need to ensure that you are aware of your responsibilities as a director, ultimately the buck stops with you.
How can we help?
Unlike most accountants who will be able to provide general advice, we have industry specific knowledge and our services are tailored as such. There are essentially two functions that you must think of when it comes to running a successful franchise, ‘External Compliance’ and ‘Internal Reporting’.
External compliance is basically keeping the tax man happy, this is ensuring all your taxes are kept up to date.
Internal reporting on the other hand is for you, knowing your numbers internally is key to driving performance.
This will include knowing what targets individual staff have against actual performance and whether the store’s performance is on the right track to meets its targets.
The internal reporting function can be tailored, so that you can track target such as; Handset Conversion, HBB targets or Insurance targets.
Below is a summary of what we can do, from initially approaching Vodafone to ensuring that you are operating a successful franchise.
Our aim is simple, to take away the compliance and numbers from you, so that you can concentrate on ensuring the stores perform to its fullest potential.
1. Preparation for Interview
- Store Analysis
- Business Plan
- Interview Skills
2. Company Formation
- Registered Address
3. Registration of all necessary taxes:
As a business owner it is your responsibility to ensure that you keep records of your finances, At Valentis, we use cloud-based applications to ensure the timely and accurate recording of all your business transactions.
Working for yourself is a daunting prospect, you may have been a store manager or had staff working under you in the past, but its whole different ball game when it comes to having your name above the door. We have experience in dealing with most challenging business situations, whether it’s a disgruntled employee or formulating a bonus scheme, we can help.
6. Trackers & Internal reporting
It is important to keep track of day to day sales and whether you are on the right path to meet your targets.