Employment Independant Business or Franchise

By Dugan Aylen, Director of Franchise Recruitment Services (FRS) Ltd

Are you entirely happy with your job?

A poll of more than 2,800 employees in the UK carried out for online learning provider SkillSoft has found that two-thirds go to work wishing they were doing something else! As well as this, 6 out of 10 of these people are checking job listings and recruitment websites while at work, with half of them having their details registered with a recruitment agency, headhunter or online job service.  A third of the people interviewed claimed to have no loyalty to the company they worked for and half of them said they would be leaving their existing employer in the next 12-24 months. Motivation, money and being unappreciated (8 out of 10 said they didn't feel their employer recognised their potential) were given as the main reasons behind these statistics. This article talks briefly about the 3 major options to making money that most of us have available to them

Working for someone else

If you have a secure job you really love, and get paid more than what you need and don't need the flexibility or want the risk that having your own business provides, nor the lifestyle or family time it offers, then you probably won't be reading this...

The advantages of most jobs are that you are not risking any of your money as no investment is required, you generally know the hours you work, what you are paid and when, and usually can forget work when you go home. The disadvantages of taking a job are you may be doing something that you don't particularly enjoy; you may not get paid what you want nor be able to control your income; the hours may not suit you; you are not the boss; redundancy may be a threat and you may be left still thinking that you need to do something for yourself. If being employed is something you want to move away from there are 2 other main options available in order to generate an income - start an independent business or join a franchise network.

Starting an independent business

The risks involved in doing this are there for all to see.  Of the 9,000 new businesses that start up in the UK every week, 73% are no longer trading after 24 months!!  It is extremely difficult and extremely hard work to start a business from scratch, and not only ensure you are still trading after 2 years, but also making a good profit. Usually people that start an independent business will be restricted by their experience and knowledge to a sector they are comfortable in. i.e. A qualified accountant my decide to become a self-employed accountant and start a business that way.  This hugely restricts the choice people have when starting up via this route. The advantages of having your own independent business are that everything you earn is yours, whereas in franchising, you are usually paying a monthly fee, or a percentage of your turnover in order to get the continued support and everything else that being part of a franchise offers.

Joining a franchise network

Franchising is much less risky and largely depends on finding one that will suit you best, as well as making sure you find out everything you need to before making a decision - Is it a recession proof industry?  What territory do I get?  What support is offered?  How much money do I need to put in?  What can I earn and how much can be borrowed are just some of the main questions you will need answered. Most of the major banks will often lend up to 70% of the total investment in franchises they know well which means that the personal investment does not need to be as much as you think (i.e. if you are looking at a franchise with a total investment of £20k, this means that you will need to provide at least £6k of your own money).

The ‘leap of faith’

Over the last 6 years in my role as an independent franchise consultant, I have talked to 1,000s of people weighing up taking a franchise versus staying in a job, and what I have found is that there is always a leap of faith that needs to be taken.  This is the gap between being how sure the individual is about joining the franchise and being 100% certain (I don't believe anyone is really ever 100% certain...).
Some people don't 'leap' because they don't have the confidence in themselves and decide to remain in employment, or they take that promotion; some because they don't find an opportunity that will suit them; some because they just don't have the finances; some because they are waiting for the economy to bounce back and there are always those that think they can do it themselves. If you decide franchising is the route to take, narrow your options down systematically, and then make sure you narrow the gap between certainty and uncertainty until ready to make that 'leap of faith'...