5 min read
The opinions expressed by the entrepreneur's contributors are their own.
How would you make a living and look after yourself if your employer fired you tomorrow? This question is not entirely hypothetical in today's difficult economic environment.
As the ongoing Covid-19 pandemic continues to affect various industries, the number of people suddenly without work is growing. United Airlines recently announced it would let go of 16,000 people. Meanwhile, MGM Resorts moved to permanently lay off 18,000 employees who were previously on leave.
Not grim enough? A recent study by the University of Chicago predicted that 42 percent of all jobs lost during the pandemic will never return. Holding on for a few months and hoping to be hired again when the economy stabilizes might not work this time. There may not be anything to fall back on.
For many people who unexpectedly hold pink panties in their hand, the question is: what now?
If you have severance payments or savings you can make a living on it, but then what? Are you trying to find a job elsewhere and you risk the same thing happening again – being let go when the economic winds blow unfavorably?
Or do you take your fate into your own hands and become your own boss?
The good news is this is America. You have the freedom to start your own business instead of working for someone else. You can be your own boss. If you want to bet on someone, why not bet on yourself?
Once you've decided to jump off the hamster wheel to work for someone else and do your own thing instead, there are two ways you can do it. You can either start a business yourself or open a franchise.
Related: Is My Company Franchise Ready?
Here it is helpful to consider some advantages and disadvantages of each approach.
Starting your own business is like walking into a forest without an ax and trying to cut a few trees. You can certainly do it, but there are many unknowns and many trials and errors. Franchising has become like a walk in the woods, but someone has previously given you a tool that has been proven to be able to fell trees, and they have given you instructions on how to most effectively cut those trees. If starting your own business is self-reliant, becoming a franchisee means banking on yourself with the help of someone. This help can be useful at all stages of business opening, starting with the most basic aspect: the concept itself.
Unless you've spent years creating business ideas in your spare time, you probably don't have a stash of viable business ideas waiting for you the day after you're fired. And with the clock ticking and your bank balance falling, you don't have unlimited time to come up with ideas.
This is a check mark in the "Plus" column for Franchisees. You have already developed business ideas in almost every imaginable area. You can even choose one that suits your interests. Do you like landscaping Do you like fitness Do you like to eat Whatever your interests, there is a franchise for that.
After the idea there is the little question of financing. When you have a few million dollar nest egg, you are ready and can get your business off the ground by financing the effort yourself.
Related: Would You Like To Buy A Franchise? Here's how to get started
If you don't, you will need to get a loan from the local bank and we guarantee they will want to see a very thorough business plan and loads of other documentation to prove you. & # 39; I got things right before they turned their money over to you.
This is another area where franchising offers a strong advantage. You can walk into the bank with a proven business model under your arm, along with historical data showing how the concept has evolved over a period of time. Opening a 1,000 square meter store in a city of 200,000 to 300,000 residents? You can show which comparable sales were achieved at other locations that meet these criteria.
Part of the benefit of being your own boss is the freedom to fire out your own shots. That freedom, of course, means the ability to do anything from a brilliant call to a really bony call. Here, too, franchises can help by providing best practices that have accumulated over years of successful operations.
Necessity is the mother of invention. No one ever hopes to be laid off from their job, but offers an opportunity to stop and rethink the path you are on and where you want to go next. Running your own business, either all by yourself or by signing up with a franchisor, can be a very rewarding way to start your next chapter.