British department store BHS is to go into liquidation with up to 11,000 jobs lost. The store went into administration in April but failed to find a suitable offer to buy.
Big name brands going into administration and then liquidation is not uncommon and many of us have watched the British High Street disappear. Only recently Austin Reed also announced they would be closing all stores by the end of June 2016.
With so many set to be made redundant, the question now is what to do next?
Redundancy is a turbulent time for anyone and can have far-reaching effects. Many people who face redundancy may feel a sense of uncertainty of where to look for the next step in their career. However the situation may be an opportunity to take back control of your life and career.
Before your start applying for a new job, take a good hard look at your CV. If you haven’t applied for a new job in a few years, it may be time to modernise your CV to bring it up to date. Be sure to focus on your skills, achievements and education. The information should be concise and to the point so recruiters can quickly relay information. Your CV should also have a clean, easy-to-read format. The best way for your CV to attract attention is for it to be clear, focused and include information relevant to the job you’re after.
As the old saying goes, “It’s not what you know, it’s who you know”. Job fairs, exhibitions, and networking events are great opportunities to meet the right people and make a good impression. It is important to connect with these people over LinkedIn, Twitter and email and to make sure you follow up any conversations you have with them. Having a diverse network is more effective than having a large one. Attending events for your chosen professional, and events focused solely on making introductions is a great way to get to know the right people.
If you’re looking for a career change, investing in your skills and education may be a key part of taking back control. Learning the latest tech, going along to seminars and watching free webinars are great ways of educating yourself on new skills. A new career will always bring more education. Bring more to the table by teaching yourself and immersing yourself in the skills you require.
The risk of redundancy may put many off returning to the work force. People looking to start afresh may turn to starting their own business. With this comes the huge hurdle of success rates among new businesses with the majority not lasting more than 5 years. Franchising is a way of running your own business with the backing of a proven business model that you are thoroughly trained on with ongoing support from your franchisor. With a proven business model in place, banks tend to view franchising as a safer, more attractive investment than a start-up. And in the last BFA/NatWest Survey, 97% of franchisee-owned units reported profitability.
If you think franchising could be the way forward for you, why not try our 2-Minute Matching Service?
For more information on franchising, visit the British Franchise Association website.
Tags: be the boss, be your own boss, BFA, BHS, British Franchise Association, business, career, franchise, franchise business, franchise information, franchise opportunities, franchisee, franchises, franchises for sale, franchising, franchising in the uk, redundancy, Select Your Franchise, Self employment, uk economy, unemployment
Today I’m looking at what’s going on in the business world and how it might affect the franchise industry.
5 million people are paid less than the living wage
The ‘living wage’ is the basic amount that a person needs to earn to comfortably get by – in the UK at the moment this is calculated as £7.20 per hour, or £8.30 if you live in London. According to a survey by consultancy firm KPMG, one in five working adults in the UK are earning less than this amount. Advocates of the living wage, including London mayor Borris Johnson, claim that employees who earn the living wage, as opposed to the minimum wage of £6.19, are happier and better workers. KPMG state that as part of their research, they ‘have found that the improved motivation and performance, and the lower leaver and absentee rate amongst staff in receipt of a living wage means that the cost is offset and paying it is the right thing for our business.’
So, what does this mean for franchising? Those people who aren’t in receipt of a living wage are less likely to be able to scrape together the capital to pay a franchise fee, so they’re unlikely franchisees. Would you, as a franchisor, implement the living page for your employees and employees of your franchisees? It might mean higher costs to start with, but according to advocates, this can be offset by better employee results.
Work barely worthwhile for second earners because of childcare
So, you’re a two parent family with two children. Both of you work, and you both earn £22,000 per year. Strangely, due to a mixture of benefits, childcare costs, and taxes, you can end up only £4,000 better off than a similar family earning £20,000 less. The Resolution Foundation’s Counting the Costs of Childcare report shows that increasingly it pays to have one parent at home while the other works.
Franchising can offer ways around this – couples can, for instance, purchase a franchise together and work around their family commitments together. Alternatively, some franchises even offer the opportunity to take your child with you. One example of this is The Creation Station, who state that some of their franchisees bring their children to classes so that they can spend more time together. As the parents affected by this issue are generally of middle-income (earning between £17k and £42k) they would be in a resonable position to secure capital for investing in a franchise.
The economy’s on the rise!
According to Charlie Bean, deputy governor of the Bank of England, there is ‘reason for some optimism’ after recent GDP figures showed the economy grew 1.0% between July and December. We are taking his advice and not getting too excited, however, due to the possible ‘false positive’ induced by the fantastic success of the Olympics over the Summer.
Franchising has continued to thrive in spite of the recession, so there’s probably room for a spot of back-patting in the industry with news of national economic growth. Hopefully the growth will continue, and the economic climate will carry on improving.
With a rainfall that was double the average, June 2012 was the wettest in the UK since weather reports began over 100 years ago according to the news. With the slow economic recovery still blighting the employment market it might seem like the unusually wet weather just about sums up the current British outlook!
The recently released franchise survey, commissioned by the bfa & NatWest paints a markedly different picture for the franchising industry. Despite the downturn, franchise business in 2011 weathered the economy better than you might expect and in fact the number of surveyed UK franchisees reporting a profit exceeded 90% for the first time since 2007. Overall network turnover figures were seen to increase also which is encouraging news to anyone who might be considering starting up a franchise but is unsure because of the current economic stormy waters of recent years.
If you have never previously considering franchising, then the franchise survey is just one signpost that starting a franchise business still remains a solid, proven route into self employment. Of course there are risks with any business investment, but choosing a proven franchise system helps to minimise those risks, especially those of starting up a brand news business with no track record, existing branding or support to help you through those crucial early years of getting established.
If you want to know more about franchising, then you can read our series of 10 Franchise Tips or, if you are already in the know, go straight to our franchise directory and browse from a wide range of franchise business options.