RECESSION !!! SELF-EMPLOYMENT BECOMES THE CHOICE.
FranchisingAuthor :
Justin Efraim 
Justin Efraim is Vice-President at M-Four, responsible for its sales and marketing activities. His business career has been highlighted by implementing special projects for one of Canada’s major corporations. He can be reached at justin@mfourintl.com or Cel: (514) 402-0461
As unemployment throughout North America becomes an ever-increasing problem, we are seeing the end of "corporate loyalty”, triggered by “downsizing” and "mass layoffs” brought on by the current recession.
There has been a vast increase in blue-collar workers, managers and professionals who have been squeezed out of big corporations, struggling to compete in one of the worst global fiascoes since the "great depression” of the early 1930’s.
Getting "laid off” by your company, during peak earning years, is most stressful in these troubled times. You can scramble for months and still find nothing. You have to come to the realization that you have to move on and abandon your job searches, before you ever get started.
You see too many unemployed people with their laptops and cell phones trying to look busy at Starbucks during the day… going nowhere.
WELCOME TO THE COLD NEW WORLD OF INVOLUNTARY ENTREPRENEURSHIP… SELF-EMPLOYMENT.
Many find that the satisfaction of life outside the corporate fold is worth the anxiety and sacrifice for the income and security that their new independence entails.
As corporations are releasing their employees from their corporate moorings into an ocean of "start-ups” and small businesses, many of these "corporate refugees” are discovering that franchise opportunities offer a sound strategy for establishing a small business and a means of good personal income in the tough times, and they have the work ethic that franchisors are looking for.
There are over 1000 franchise systems operating in Canada representing about 76,000 franchise system outlets employing over 1.5 million Canadians. Nearly 4300 new franchise outlets open in Canada each year.
Canadian franchises sell over $100 billion worth of products and services every year, making Canada the second largest franchise market in the world (after the US).
As "corporate refugees” find their footing, they are beginning to have a broad impact on the world around them. With their knowledge, insight and expertise, they are transforming some long neglected projects of the Canadian economy, such as affordable products and services that deal with the challenges of the economic downturn.
Corporate "severance packages” allow these new entrepreneurs to invest in franchise opportunities and not have the burden of carrying a large debt load.
The Canadian government is endorsing franchising as a means of stimulating economic growth. They see where this can be achieved while avoiding the failure often inherent in the establishment of new small businesses.
Most Canadian banks have embraced franchising as a low risk form of lending and are playing a key role in contributing to the nation’s job creation programs.
By choosing an established franchise driven company, the future operator will have the ongoing assistance of the franchisor during the crucial early stages of the operation. The provision of documented procedure manuals and easy access to the advice and support of the franchisor are also of great advantage. A successful franchise will also offer the long-term benefits from bulk purchasing power of the franchised group and the creative marketing and advertizing muscle that they can provide.
In today’s world being "employed” is an illusion. To be in charge of one’s own destiny and have the opportunity of being self-employed is of great appeal.
Combined with the financial rewards that a successful franchise can provide, there is little doubt that the outlook for today’s "corporate refugees” is very promising.
ROAD MAP FOR SELF-EMPLOYMENT
FRANCHISING
• STEP1 : Decide: What type of franchise?
- Retail
- Food service
- Service based
- Professional
Consider your skill sets and experience.
• STEP2 : Do your market research. Will the franchise perform based on
- Income flow?
- Equity flow?
- During recessionary periods?
• STEP3 : Due diligence time !!!
- What is the real failure rate for Franchisees?
- How is the financial health of the Franchisor?
- What are the royalty and up-front fees?
- Will you have to buy products or services from the Franchisor? At what prices?
- What help can you expect from the Frabchisor,
- Talk to existing Franchisees (most important).
FAMILY BIZ
• STEP1 : Look at the Business
- Can you stay interested in it?
- Can you contribute something to it?
- Can it grow?
• STEP2 : Discuss with your family
- Does your family want to keep running the business or will they turn it over to you in a few years?
- How will authority and responsibility be shared?
CONSULTING
• STEP1 : Define the skill or service you have to sell.
- Do you have a broad skill, such as a flare for and suppliers.
• STEP2 : Focus on your markets
- Service your old company
- Similar companies, former clients and suppliers
- A consultant broker that can market your services.
- Temp agencies that can market your services.
START-UPS
• STEP1 : Create a business plan
- If you cannot create the plan yourself, it is likely that wont be able to implement it on your own.
• STEP2 : Do your research.
- Take classes or work temporarily at a similar business.
- Find a partner and make sure they are compatible.
• STEP3 : Get financing
- Seek professionals to help in negotiations.
- Give away as little equity as possible.
SMALLER CO.
• STEP1 : Contemplate company life
- Do you still like it?
- Would you like it more without corporate bureaucracy and politics?
• STEP2 : Use old contacts
- Approach small companies you worked with in your corporate past.
• STEP3 : Try temping
- Take interim work to get a foot in the door for a permanent job.
• STEP4 : Compensation
- Negotiate agreements that are big on performance bonuses and stock options, because salary will be a fraction of what it was and the work could be far greater.
There has been a vast increase in blue-collar workers, managers and professionals who have been squeezed out of big corporations, struggling to compete in one of the worst global fiascoes since the "great depression” of the early 1930’s.
Getting "laid off” by your company, during peak earning years, is most stressful in these troubled times. You can scramble for months and still find nothing. You have to come to the realization that you have to move on and abandon your job searches, before you ever get started.
You see too many unemployed people with their laptops and cell phones trying to look busy at Starbucks during the day… going nowhere.
WELCOME TO THE COLD NEW WORLD OF INVOLUNTARY ENTREPRENEURSHIP… SELF-EMPLOYMENT.
Many find that the satisfaction of life outside the corporate fold is worth the anxiety and sacrifice for the income and security that their new independence entails.
As corporations are releasing their employees from their corporate moorings into an ocean of "start-ups” and small businesses, many of these "corporate refugees” are discovering that franchise opportunities offer a sound strategy for establishing a small business and a means of good personal income in the tough times, and they have the work ethic that franchisors are looking for.
There are over 1000 franchise systems operating in Canada representing about 76,000 franchise system outlets employing over 1.5 million Canadians. Nearly 4300 new franchise outlets open in Canada each year.
Canadian franchises sell over $100 billion worth of products and services every year, making Canada the second largest franchise market in the world (after the US).
As "corporate refugees” find their footing, they are beginning to have a broad impact on the world around them. With their knowledge, insight and expertise, they are transforming some long neglected projects of the Canadian economy, such as affordable products and services that deal with the challenges of the economic downturn.
Corporate "severance packages” allow these new entrepreneurs to invest in franchise opportunities and not have the burden of carrying a large debt load.
The Canadian government is endorsing franchising as a means of stimulating economic growth. They see where this can be achieved while avoiding the failure often inherent in the establishment of new small businesses.
Most Canadian banks have embraced franchising as a low risk form of lending and are playing a key role in contributing to the nation’s job creation programs.
By choosing an established franchise driven company, the future operator will have the ongoing assistance of the franchisor during the crucial early stages of the operation. The provision of documented procedure manuals and easy access to the advice and support of the franchisor are also of great advantage. A successful franchise will also offer the long-term benefits from bulk purchasing power of the franchised group and the creative marketing and advertizing muscle that they can provide.
In today’s world being "employed” is an illusion. To be in charge of one’s own destiny and have the opportunity of being self-employed is of great appeal.
Combined with the financial rewards that a successful franchise can provide, there is little doubt that the outlook for today’s "corporate refugees” is very promising.
ROAD MAP FOR SELF-EMPLOYMENT
FRANCHISING
• STEP1 : Decide: What type of franchise?
- Retail
- Food service
- Service based
- Professional
Consider your skill sets and experience.
• STEP2 : Do your market research. Will the franchise perform based on
- Income flow?
- Equity flow?
- During recessionary periods?
• STEP3 : Due diligence time !!!
- What is the real failure rate for Franchisees?
- How is the financial health of the Franchisor?
- What are the royalty and up-front fees?
- Will you have to buy products or services from the Franchisor? At what prices?
- What help can you expect from the Frabchisor,
- Talk to existing Franchisees (most important).
FAMILY BIZ
• STEP1 : Look at the Business
- Can you stay interested in it?
- Can you contribute something to it?
- Can it grow?
• STEP2 : Discuss with your family
- Does your family want to keep running the business or will they turn it over to you in a few years?
- How will authority and responsibility be shared?
CONSULTING
• STEP1 : Define the skill or service you have to sell.
- Do you have a broad skill, such as a flare for and suppliers.
• STEP2 : Focus on your markets
- Service your old company
- Similar companies, former clients and suppliers
- A consultant broker that can market your services.
- Temp agencies that can market your services.
START-UPS
• STEP1 : Create a business plan
- If you cannot create the plan yourself, it is likely that wont be able to implement it on your own.
• STEP2 : Do your research.
- Take classes or work temporarily at a similar business.
- Find a partner and make sure they are compatible.
• STEP3 : Get financing
- Seek professionals to help in negotiations.
- Give away as little equity as possible.
SMALLER CO.
• STEP1 : Contemplate company life
- Do you still like it?
- Would you like it more without corporate bureaucracy and politics?
• STEP2 : Use old contacts
- Approach small companies you worked with in your corporate past.
• STEP3 : Try temping
- Take interim work to get a foot in the door for a permanent job.
• STEP4 : Compensation
- Negotiate agreements that are big on performance bonuses and stock options, because salary will be a fraction of what it was and the work could be far greater.