Going in a new direction

Redundancy often leads to a new career path as people have time to take stock and reconsider their options. Peter Williams reveals why franchising is worth considering

Earlier this year an acquaintance of mine had the misfortune of being made redundant and sought advice concerning alternative employment. Initially, he was greatly encouraged by his adviser's assurance that "a problem leads to an opportunity," but following a succession of failed job applications it transpired that the only opportunity on offer involved replenishing shelves at a supermarket, a role that wasn't right for him. The problem facing those who are redundant is that they need to secure an ongoing source of income and find an opening related to their career background and experience.

Being made redundant is not a reflection on ability, far from it. As we are seeing, redundancy can result from high level policy decisions taken remotely, which have far reaching consequences.

It is unreasonable for those affected to remain disadvantaged for a moment longer than necessary. So, if trawling through the vacancy columns looks daunting, the alternative of self-employment and business ownership is well worth investigating - and where better to start than the franchise marketplace?

Franchising has grown into a sector turning over almost £12 billion annually, providing a significant contribution to the UK's Gross Domestic Product. Even more significant are the success statistics. Despite problems affecting the economy, on average 90 per cent of franchised businesses are reported to make a profit, this in itself is a sound reason to see a franchise as a preferred option in comparison with a stand alone venture.

There is huge diversity with established and sometimes leading brands to consider, ranging from owner-operated businesses, van-based or home-based that have relatively low start-up costs, to premise-based management franchises where the franchisee employs members of staff and runs a larger concern. By aiming at the appropriate category it becomes possible for someone previously redundant to maintain - and enhance - personal status and avoid the dilemma of unsuitable employment in a tight job market. However, franchising amounts to far more than simply buying a business. It involves a contractual relationship in which initial training and continuing back up are of the essence.

Previous experience is generally not a requirement and it is worth noting that the great majority of franchisees have had no prior knowledge of their respective businesses. In addition to operational aspects concerning the relevant products or services, training will typically embrace other vital elements such as sales, marketing, accounting and administration, which make all the difference to an efficient business.

Although redundancy payments could provide a valuable source of funding, in many cases franchisees are able to set up by means of a personal investment enhanced by a bank business loan. Notwithstanding the extraordinarily high percentage of profitable franchisees, success obviously cannot be taken for granted and, as with any venture, diligence, enterprise and commitment to hard work are essential qualities.

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