When the economy seems to be fluctuating and unsure, many people look for ways to ensure that they can stay on firm financial footing. Most people do not consider investing or starting up a new business, when in fact- this can be exactly what they should be looking at. There are many different options for self employment and reasons why it is a good alternative. Looking at the unemployment rates in recent years, it is no wonder that some are choosing to become self employed. Doing so ensures that they know exactly what is going on with their business and their finances, so there are no surprise lay offs or closings.
“In the past few years we have seen more than 6 million American jobs lost and unemployment rates rise to more than 10%. Unemployment is typically a lagging indicator coming out of an economic recession. After the recession in the early 90’s it took an entire year for unemployment rates to peak.” Said David Nilsson, the co founder of the Guident Financial Group. His company provides funding for small businesses. “ If this trend continues during the current recession, unemployment rates could continue to rise until the end of 2010 or early 2011. For this reason, we feel it is important that some individuals investigate self-employment opportunities.”
One of the most stable means to become self employed is in buying or starting up your own business. Many people feel intimidated by this as they are not certain as to how to go about this, and for them, franchising may be an option that makes more sense. Looking at the options available to potential franchisees is a great way to scout out a potential solution to uncertain financial times and there are a number of advantages to franchising over independent business that really show truer during a difficult economy.
The first advantage to buying a franchise is that the start up is much easier, more efficient and faster than independent business. Because most franchises already have a system in place, they tend to go from signing to start up in much less time than independent business, and more often than not, franchises also have a great support system in place. Finding suppliers, equipment and other things is usually a part of the deal, but it is not in all. Franchises are up, running and drawing a profit very rapidly and tend to have the benefit of a recognized name that people trust behind them, as well.
New funding options are available through recent programs, or traditional means of financing are available. Because most franchises have a proven system and the numbers to make for a much more accurate prediction on profitability- it’s easier to produce a business plan that makes for a very strong argument in funding through banks or other institutions.
It has never been a more critical time to consider ways to become self sufficient. As more and more companies close their doors and more find themselves unemployed, it may not seem the time to invest- but for some in the position to do so, this may be a solution.