Franchising companies involved in cost reduction and management are enjoying a boom because of the recent credit crunch, according to franchise information site www.whitecollarfranchise.co.uk [1].
According to a recent survey by Baker Tilly, the number of companies considering cutting their costs stood at 45% in March, up from the previous figure of 26%.
"A tightening in the economy is tough for most businesses, with impact varying industry by industry, but it's not always bad news," said Nick Tubb, managing director of whitecollarfranchise.
"Businesses waste billions of pounds every year overspending on fixed costs, services and procurement. Right now, if they want to survive, companies are beginning to wake up to the fact that they simply can't afford to waste that money.
"That is why more organisations are turning to cost-reduction specialists, in particular some of the more successful franchised outfits," he added.
An example of a franchise benefiting from the economic downturn is cost management consultancy Atlantic Business Resources, which negotiates special tariffs for customers in areas such as telecommunications, courier services and packaging.
"Business in our sector is up on last year," said chairman Adrian Drewe. "It's fair to say that because of the current economic problems faced by many business managers, buying well to save money is now much higher on their list of priorities.
"With more than £5bn of direct buying power that we can leverage through quality suppliers, we are able to provide customers with incomparable value, much better than they could hope to achieve through their own research and negotiation."
Another organisation is Expense Reduction Analysts, which estimates it can save an average of 23% from a company's procurement expenses.
"Our franchisees pool their expertise and experience to find the best ways to analyse and manage clients' cost savings," said Chris Aston, marketing manager. "This can cover anything from everyday office supplies to travel and waste expenditure."