How to keep cash flowing in a job crisis
TRICIA PHILLIPS suggests that buying into a franchise and becoming your own boss is one of many options after a layoff OTHER IDEAS FOR CREATING AN INCOME FOR YOURSELF
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.
DIRECT SELLING
THIS is where you sell popular products from brands such as Body Shop, Avon, Amway and Usborne Books.
Check out the Direct Selling Association at dsa.org.uk, which has a long list of established firms so you can find one that may suit you.
DO SURVEYS
YOU can get paid to share your opinions via sites such as panelbase.net, valuedopinions. Toluna, One Poll and The Viewers.
The amount you will receive varies greatly but via One Poll, it could equal around £40 for 10 hours, while The Viewers lets you get involved in TV focus groups and pays £1 to £10, depending on the length of the programme or survey.
BECOME A PART-TIME TUTOR
USE your work expertise and experience to educate others in your specialist field, or in a hobby or passion you have expert knowledge of. Check out teachable.com and Learnworlds.com
SELL UNWANTED ITEMS
ONE person’s junk can be another person’s must-have treasure. Have a clear out and you could make some extra cash on the likes of ebay, Gumtree and Musicmagpie. ebay is the place to sell almost anything, just be sure to be realistic with your expectations and find out what similar items have sold for. Gumtree is good for bulky items like furniture and gardening equipment that needs to be collected, while Musicmagpie is good for DVDS, games, books and technology items such as mobiles. For potential collectables worth a bit more, try Valuemystuff or Wheretosell; the former charges
£20 for an expert estimate, while the latter connects you with local buyers or sale rooms.
If you fancy setting up a small firm selling via ebay, it has launched a Pay As You Grow scheme for start-ups and small businesses.
This sees fees removed for any first-time sellers on the platform until they’ve made more than 100 sales in a single month (and reduced fees for up to 300 sales each month).
SEASONAL JOBS/ODD JOBS
AS we head into the festive season there will likely be temporary jobs on offer, particularly for delivery drivers and in order fulfilment areas for online firms.
Keep an eye on the websites of firms such as Amazon, Royal Mail, Deliveroo, Driver Hire and our jobs website Fish4jobs. co.uk.
Also, check supermarkets, which typically take on more staff to deal with increased demand over Christmas.
RENT OUT A ROOM
IF YOU have an empty or spare room in your home you could put it to good use by renting it out via the Government’s Rent A Room scheme. The scheme allows you to earn up to £7,500 in rent without having to pay tax on that income. You can let a furnished room to a lodger, or run a guest house or a bed and breakfast. You cannot use the scheme if the accommodation is not part of your main home, not furnished, or if your UK home is let while you live abroad.