How to keep cash flowing in a job crisis
Suggests that buying into a franchise and becoming your own boss is one of many options after a layoff
MORE than 200,000 workers aged over 50 have been forced into early retirement since the pandemic began; and that number keeps growing as more and more firms lay staff off.
The over-50s are one of the hardest hit age groups during the economic downturn. However, not all over-50s are giving up earning, and many have turned to entrepreneurism and ‘side hustles’ to keep the cash flowing. One domestic services company has seen a big increase in the number of people aged over 50 buying their franchises in the past six months.
Since the start of the year, cleaning firm Fantastic Services has sold three times as many franchises to over-50s as it did in 2019, with the average age of those applying to buy a franchise rising from 37 to 47.
Rune Sovndahl, co-founder of Fantastic Services, says: “For the slightly more risk-averse entrepreneur, a franchise is a great vehicle for launching and growing a long-term business, while being sheltered from some of the costs and uncertainty that come with going for it alone.
“The number of start-ups in the UK that reach the five-year mark is around 40%, but if you look at franchisees after five years, close to 90% are still in business.
“This shows just how effective the franchise model can be for supporting entrepreneurism.”
WHAT IS FRANCHISING?
THIS can be a good option for those who want to run their own business but who don’t have their own great idea or who don’t have the resources or cash to get a completely new venture off the ground.
A franchise is the right or licence granted by an established company (the franchisor) to sell a product or service using their logo, trademark and brand name.
You must comply with strict guidelines and rules regarding the business and how it is run. You typically pay a fee to buy an area and set up, and then ongoing royalties. In return you get training, support and marketing assistance. Check out the British Franchise Association ( thebfa.org), the trade body for the industry, for details on how it works and a directory of members.
Also try websites such as Which franchise.com and franchisedirect. co.uk to find lots more information on the industry, how to get started, things to be aware of and available franchises.
Prices for franchises vary widely. Fantastic Services franchises cost from £1,900 to £15,000 and above, for those who purchase an area.