New Careers for Displaced Executives - One Alternative to Those Hit by Unemployment May Be Franchise Ownership

Posted on March 25, 2009 by Jeremy Myers

The waters of the current unemployment situation are running deep leaving many people up the creek without a paddle. There just aren’t many jobs available for those looking and the outlook is particularly cloudy for those in higher income brackets such as senior corporate executives.


The lucky ones who were given a severance package or who have savings to fall back on are hoping the economy improves before the money runs out. But people without a cushion are worried about losing their homes and their lifestyle.

There are some people, however, who are using their job loss as an opportunity to reinvent themselves and, to continue the water metaphor, have decided to captain their own ship to success. "We see this happening every few years," said Lori Kiser-Block, President of FranChoice, Inc., a national consultant company that helps individuals find their ideal fit in a franchise business. "Whenever the unemployment numbers rise, we find more and more people interested in franchise ownership. I believe the idea of owning a business crosses most people’s minds at some point but some of us need a shove to move the boat away from the shore."

With the nation's unemployment rate at over 8% – the highest rate in 15 years, finding a job in a similar position at a similar pay scale to the one lost is often impossible. But that doesn’t mean a person’s experience has been wasted. Those same skills built in a tenure with corporate America can be a wonderful foundation for owning your own business, says Kiser-Block.

"Franchising can be an ideal fit for these people because it allows them to build an income-generating business without the fits and starts that often plague a business you start from scratch," adds Kiser-Block.

"As an example, we often see people who were forced out of corporate America after 10 or 20 or more years with a major corporation. Their lay off leaves them with a feeling of hopelessness and they come to us for advise sometimes as a last resort. But they soon come back to life when offered the opportunity to build their own business, using the skills they’ve developed over a lifetime."

Here is where a franchise can be a blessing to those suddenly left jobless: it will allow someone to start a business in a very short period of time while providing all of the training needed.

"Franchise ownership," says Kiser-Block, "gives people income opportunities and control over their future. It provides the franchisee with a known brand and a national advertising campaign to make potential consumers aware of the product or service provided. The franchisor provides thorough training and opening support so that the business can be up and running more quickly. Also, the better franchise opportunities have a proven system with a track record of success for the franchisee to follow. And these are just some of the benefits of owning a franchise business."

Franchise ownership is not a fix to the current economic problems. But it can benefit many people by creating jobs and stimulating the economy. In fact, President Obama recently recognized the contributions of small businesses in America and released a statement saying the SBA and the U.S. Department of Treasury were taking steps to address the challenges facing small businesses and entrepreneurs across the country by making funding more available.

If you or someone you know has recently lost a job, franchise ownership may be a great alternative to waiting and waiting for the economy to improve. "We recommend that you are even more cautious than usual when choosing a franchise company to join," warns Kiser-Block, "during this troubled economic time. But if you choose wisely, franchising will allow you to change careers, use skills and experience you’ve gained over the years, and create wealth for yourself instead of for others."

Three Tips for Choosing a Franchise Business in a Tough Economy:

• For recession-resistant businesses, look for goods and services that can’t be put off until better times. Health care and senior care services are good examples as are tax services, emergency restoration services and home repair. Business to business services are good industries to look at during a recession because many times services like payroll and IT are outsourced to save money.
• Look for a franchise with a long history of success. The more data you have about a business, the better decision you can make. Look at franchises with 10 or more years in business and 50 or more franchises and you can see whether they just survived or actually thrived during past economic down times.
• Evaluate each franchisor’s marketing plans carefully. Now is not the time to cut back on advertising. Make sure any business you consider joining is doing a stellar job of both building the brand and attracting customers.

A FranChoice consultant can help you explore a number of franchise opportunities. You are invited to sign up for our free service HERE.



About FranChoice:
FranChoice is the leading network of franchise referral consultants in the United States. Since 2000, FranChoice has been providing a free service to those interested in franchise ownership. Our consultants guide prospective franchisees through all stages of the business ownership process, from franchise investigation to the final sale, matching each individual’s interests, talents and investment level with a strong franchise business.