October 2020 figures suggest that a record number of new companies were founded in 2020 – amounting to an anticipated 85,000 in total. Whilst some figures may be massaged by fraud surrounding the Bounce Back Loan Scheme[i], the overall trend suggests that there are many people exploring life in self-employment and seeking to set up a new business, as a response to job insecurity, redundancy and the feeling that life is too short to hold back on dreams.
But is starting out on your own the best way to go about unleashing entrepreneurial ambitions, when the option of running a franchised business exists, to help take away some of the uncertainty surrounding new ventures?
Self-Employment: New company or franchise business – what’s best?
The difference between setting up a new company on your own and buying into a franchised business model is very much about venturing largely into the unknown or, alternatively, entering into something that has a greater degree of experience behind it, in the shape of a tried and tested franchise business model.
Even if you have expertise in a certain area, setting up on your own means taking onboard all the set-up costs involved in establishing a new venture and seeking to build your own brand. If you buy a franchise, your business proposition has been tested (in Aspray’s case in numerous different territories across the UK) and your brand are already established. You simply have to apply your skills and drive to make the model work as it should.
The risk of entrepreneurship
The risk of failure is something that holds back a good proportion of those who have an entrepreneurial inclination. An SME Loans survey, conducted in January 2020, found that more than 63% of interviewees wanted to set up their own business and a further 10% weren’t sure whether they did or didn’t. 36% said their desire for self-employment was driven by dislike of their job and a third wanted more flexibility in their working day.
Notably, one in four interviewees felt their business idea would not be strong enough, despite their desire to run their own business. Stepping into an already established business model, like Aspray’s professional property damage claims management business, could be perfect for such individuals, giving them the best of both worlds. On the one hand, they will be their own boss. On the other, they have the support of a robust franchise model.
To quit, face redundancy or set up a business?
Back in January 2020, a quarter of interviewees told SME Loans that they were too scared to quit their job and take the risk of establishing a business. The intervening months have seen Covid-19 wreak havoc in the world of employment and many people of this mindset may now find themselves out of work or furloughed. Similarly, a quarter of interviewees were worried about the stress of self-employment. Covid-19 has generated whole new levels of stress and made us think differently about many things.
For anyone worried about leaving a job to become self-employed, the question has to be what the long-term alternative might be and whether it is better to seize another opportunity quickly, reducing the stress of having to worry about redundancy every day, or obsess about presenteeism, so as to try to not be on the list for redundancy. With less risk typically attached to buying into a franchise business than starting something brand-new, many of the ‘worriers’ may well find that now is the time to face fears and act.
Support for your franchise future
Aspray is not a franchise that accepts franchisees lightly. There are strict recruitment criteria and we have a brand reputation to maintain, which means we try to avoid putting square pegs in round holes. But, if you are the right fit and do have the entrepreneurial spirit that 63% of the research sample declared in January, an Aspray franchise within a thriving sector that has proven itself to be Covid-proof this year, may well be the right choice for you.
With years of know-how and a comprehensive training and induction programme at our disposal, we can help the right franchise recruits get their goals well in sight. So, if you love property, or have project management skills – or are leaving the Forces after your service period and need to direct your organisational talents into a new productive future – perhaps you should take a look at www.asprayfranchise.co.uk and get in touch. You don’t have to go it alone when you become self-employed.