Tim Harris, chief executive of ChipsAway and Ovenclean, on the advantages franchising offers to those facing redundancy
The harshest recession in a generation is still taking its toll on the UK economy and has led to over 589,000 redundancies being made last year alone. With recent figures showing there is only one vacancy for every four active jobseekers in the UK, it is unsurprising that those facing redundancy are turning away from employment for career security.
Being made redundant can seem like the end of the world and many lose confidence in the security of employment and dependability of their employers. However, redundancy can provide a great opportunity for a new start. A cash lump sum redundancy payment offers people the opportunity and the funding to take time out and redress their options before taking the next step.
Instead of returning to employment, more and more individuals are turning to franchising, and with the latest NatWest/British Franchise Association franchise survey reporting over 91 per cent of franchisees are profitable and only 2.6 per cent suffering financial failure last year, it’s not difficult to see why.
An increasing number of individuals are looking to forge their own future and alleviate the uncertainty of redundancy rearing its ugly head again. Franchising offers the benefits of self-employment and running your own business, but with the support network of a bigger brand using a proven business formula and with lower risks than going it alone. There is also the reassurance of knowing you are in control of your own career.
For those wanting to become self-employed, franchising offers much lower risks than going it alone. Essentially what you are buying into is a turnkey business template with a tried and tested model that has been honed and perfected over time. Investing in an established and recognised brand gives your business even more of a head start with proven demand, a confirmed marketplace and previous franchisee successes.
Ovenclean and ChipsAway are the original companies in our sectors with large, successful networks of established franchisees. We have been able to refine business models, develop bespoke product ranges through research, profile territories through demographics and execute high impact marketing campaigns to raise brand awareness. The longer the franchisor has been in operation, the larger the number of well established, successful franchisees in its network. And the higher the brand awareness of the franchise, the more comfort you can take.
Redundancy can often be a catalyst to re-evaluate career paths, and offer the opportunity to try something different. Most franchise offerings are designed for individuals with little or no experience in a specific industry, as good franchisors will provide extensive initial and ongoing training, allowing you to try something new, while also assuring you with the best possible start to your new business in a new sector.
What’s more, unlike some redundancy retraining schemes, acceptance by a franchisor means that completing your training will guarantee your place in the network, with all the taught skills specific to the brand.
After going through redundancy, however appealing the idea, self-employment can be daunting. The first few months are undoubtedly the toughest when starting a new business and often the loneliest. Franchising bridges this gap, offering franchise owners access to the support network of a bigger brand.
In our experience, we’ve found that, on top of a dedicated support team, established franchisees make great business mentors, providing one to one advice and practical hands-on help, which is invaluable particularly in the early days. The best franchisors will provide unlimited, ongoing support to help develop your business and regular training opportunities to refresh, update and extend your skills, while also giving you the freedom to be your own boss.
In the current turbulent economy, franchising could offer more stability than being employed or going it alone. By default, if you work for yourself you are not going to have to worry about redundancy, which for many is the one burden that is most important to avert.
Simply buying a franchise can’t guarantee success, but it provides the formula for a profitable business. In our experience, people who have been made redundant are usually keen and driven, which often makes them exceptional franchise owners. But ultimately it is down to you to make a success of it. So before jumping in feet first, make sure you not only research franchise opportunities thoroughly, but ensure you are suitable for self-employment.
For an increasing number of people facing redundancy or worried about their long term job prospects, franchising offers a strong, lower risk alternative to employment. We value the drive and ambition of people who have been made redundant to forge their own future, rather than relying on employment, and welcome such individuals to our networks.