Franchising – A Possible Option For The UK’s Unemployed?
Franchising – A possible option for the UK’s unemployed?
As we are all aware, and as is well documented in the media on a regular basis, with the decline in economic stability in the UK in the last 5 years, unemployment rates have, on the whole, risen in the UK, although we are steadily seeing them drop as we supposedly re-build ourselves from a crippling recession.
Although numerous factors can be attributed to this, we can assume that redundancies and loss of jobs account for a large proportion of these figures, as well as those struggling to gain employment in the first place.
So what opportunities are out there for people that find themselves in this situation? One such option for those seeking alternatives to standard employment could be to invest in a franchise or licence business model, or perhaps more specifically a low cost franchise or license model, assuming generally that there wouldn’t be the potential here to invest large financial sums allowing them to go into business for themselves.
Although an understandable stigma associated with franchising generally revolves around a ‘costs loads of money’ mind set, this isn’t necessarily the case, especially today compared to perhaps 7-8 years ago.
Despite the lack of creditable figures becoming available on the exact number of low cost opportunities out there, I think general industry knowledge suggests a keen rise in the number of low cost opportunities available today and over the past 18 months specifically.
With the tightening of the purse strings from the UK banks, naturally many higher investment opportunities are struggling to recruit new franchisees at the rate at which they may have wished, with many relying on large bank funding alongside a personal investment to undertake a franchise.
As well as offering a diversified route for many businesses to expand and grow their operational network, this also presents a fantastic opportunity for those struggling in the rat race, or who indeed have fallen victim to the seemingly over used wielding of the ‘redundancy’ axe.
Of course franchising and owning and operating your own business is not for everyone. It absolutely relies on the efforts made by the franchise/ licensee (business owner) and is in no way, a certified solution to earning a large income. As with any business or indeed any job, as the cliché goes, ‘you get out what you put in’.
But the simple truth is, franchising and licensing as an overall business model works. Of course certain businesses may not be as credible as others and it’s the overall operation of that business that of course dictates its success and in turn the success of its partners, but as a model, this has proved a lucrative venture for many.
So with the rise of low cost business opportunities (bearing in mind you can buy a business now from as little as £100) perhaps going forward, this holds an opportunity to bring many back into the working world.
Not that we are suggesting that a business venture of this amount is going to yield the same results or turnover as a Subway or McDonalds but this is obvious, the point is, initial investment to allow people this opportunity to work for themselves and grow a business, doesn’t always need to be high, as perhaps thought by many.
But are people aware of this. Is it this ‘high cost’ stigma mentioned earlier that stop people from even exploring the franchising avenue. I would hazard a guess at yes and so think it’s important to inform and educate those struggling for job opportunities of what is out there for them. Not for a second am I saying, all those made redundant, out of work and who can raise a few hundred quid should join a franchise or license, simply that the opportunities out there are increasing and on the face of it, I’m sure in some part are assisting many of those struggling for work.
So be educated. Be informed and explore the options you have available to you. It won’t be for everyone, in fact I’m sure it won’t be for many, but as in all things, it’s always better to know your options.