September 15, 2020 5 minutes read Opinions expressed by Entrepreneur contributors are their own.
How would you make a living and supply for yourself if you got laid off by your company tomorrow?This concern isn’t entirely theoretical in today’s dicey financial environment.As the ongoing Covid-19 pandemic continues to hammer numerous markets, the variety of individuals who unexpectedly discover themselves without a task is growing. United Airlines recently revealed it was releasing 16,000 people. MGM Resorts , on the other hand, relocated to completely lay off 18,000 previously furloughed workers. Not grim enough? A current study by the University of Chicago anticipated that 42 percent of all the jobs that have actually been lost throughout the pandemic are never coming back. Holding tight for a couple of months and intending to get worked with back when the economy stabilizes might not work this time. There may be absolutely nothing to return to.For a great deal of people who have all of a sudden discovered themselves holding a pink slip in their hand, the question is: now what?If you have severance or cost savings, you can live off of that for a bit, but then what?
Do you try to find a task elsewhere and run the risk of having the same thing happen again– being released whenever the economic winds start blowing unfavorably?Or, do you take your fate into your own hands and become your own boss?The excellent news is, this is America. You have the freedom to head out and start your own organization rather than working for another person. You can be your own boss. After all, if you’re going to bet on
somebody, why not bet on yourself?Once you’ve chosen that you want to leap off the hamster wheel of working for someone else and do your own thing instead, there are 2 main ways to tackle it. You can either open an organization yourself, or you can open up a
franchise. Related: Is My Business Ready to Franchise?It’s practical here to have a look at some of the pros and cons of each approach.Starting your own company is like going into a forest without an ax and trying to slice down a lot of trees. You can definitely do it, but there are a great deal of unknowns and a lot of experimentation. Franchising, meanwhile, is like going into the forest, however someone has handed you a tool beforehand that has actually been shown to chop down trees, and they’ve given you assistance on the most effective
method to chop down those trees. If opening your own service is banking on yourself, then, becoming a franchisee is banking on yourself with someone’s assistance. This aid can be available in helpful at all stages of opening a business, starting with the most basic element: the concept itself.Unless you have actually spent years conceptualizing ideas for services in your spare time, you probably don’t have a stockpile of practical organization concepts all set to go the day after you get laid off. And given that the clock is ticking and your checking account balance is dwindling, you do not have unlimited time to come up with ideas.That’s a checkmark in the”plus” column for franchises. They’ve already come up with company ideas in almost every imaginable location. You can even pick one that lines up with your interests. Do you like landscaping? Do you like fitness? Do you like food? Whatever your interests are, there’s a franchise for that.After the concept, there’s the little matter of funding. If you have a nest egg of a couple of million dollars, then you’re all set, and you can get your endeavor off the ground by self-financing the effort.Related: Aiming to Purchase a Franchise? Here’s How to Start If you do not, you’re going to have to make a trip to the local bank for a loan, and we guarantee that they’re going to wish to see a very thorough organization plan and lots of other documents that proves you’ve appropriately thought things through before they turn over their money to you.This is another location where franchising supplies an effective benefit. You can walk into the bank with a tested service model under your arm, together with historic information that shows how the idea
has performed over a particular time period. Opening a 1,000 square foot shop in a city with a population of in between 200,000 and 300,000 individuals? You can reveal what similar sales have been at other places that match those criteria.Part of the advantage of being your own manager is the liberty to call your own shots. That flexibility, of course, indicates the capability to make everything from a brilliant call to a really boneheaded call. When again, franchises can assist here by providing finest practices accumulated over years of effective operation.Necessity is the mother of creation. While no one ever wishes to be laid off from their task, it does offer a chance to pause and reconsider the path you’re on and where you wish to go next. Running your own organization, either completely by yourself or by signing up with a franchisor, can be a highly rewarding method to start your next chapter. Article curated by RJ Shara from Source. RJ Shara is a Bay Area Radio Host (Radio Jockey) who talks about the startup ecosystem – entrepreneurs, investments, policies and more on her show The Silicon Dreams. The show streams on Radio Zindagi 1170AM on Mondays from 3.30 PM to 4 PM.