Franchising: An Exciting Alternative To Retirement

05/02/2018 16:00 | Start a business

Franchise retirement

If you're approaching retirement age or planning on semi-retiring before you reach State Pension age, franchising can be an excellent way to maintain a steady income without having to put up with the inflexibility and long hours of a full-time job. Furthermore, many franchise brands actively seek older franchisees who have extensive managerial experience and expertise in one or more sectors.

So, find out why becoming a franchisee can make an exciting alternative to retirement.

Why do many retirees become franchisees?

If youve been offered early retirement but would still like to work part-time or full-time for at least a few more years, running your own business under a proven franchise business model will enable you to generate your own income and be your own boss. Some people may become redundant and receive a substantial redundancy pay-out after working for a company for many years or decades, which they can use to finance part of their franchise investment. Other people approaching retirement age may just be looking for a change and the chance to run their own business instead of working as an employee for someone else.

Even if someone has reached State Pension age, they may still prefer to stay in work (at least on a part-time basis) rather than fully retire, especially if they have a financial goal or want to expand the savings that they can pass on to their children later down the road. Indeed, employment among older people has risen significantly in recent years. For example, the Daily Telegraph revealed in 2017 that the number of women working beyond the age of 70 rose from 5.6% in 2012 to 11.3% in 2016, while The Independent reported in 2017 that the Government planned to raise the state pension age to 68.

Put your skills into something new.

If youve spent many years working in the same discipline, why not use your skills and experience to invest in low-cost business opportunities in the same sector? This will mean you wont have a steep learning curve, so youll be better placed to grow the franchise into a profitable business in a relatively short space of time.

For example, if youve worked in finance for much of your career, you could consider setting up an accounting or finance franchise under a leading franchise business model with significant exposure across the UK, Europe, or even across the world.

However, you dont necessarily have to have formal experience in a particular industry to become a franchisee. For example, if you've always enjoyed cooking but have never worked in the food industry, you could consider setting up your own catering franchise. Even if you dont have professional experience in this sector, your franchisor can provide full training and support to help you learn about its business model and understand the target market.

Earn an income from a proven business model

Rather than starting your own brand and experimenting with a new concept that might not be commercially viable, becoming a franchisee enables you to earn a living from a proven concept. Once you're up and running and acquiring new customers, you can grow the franchise into a profitable business relatively quickly, and benefit from further training and development opportunities from the franchisor.

Work the hours you want

One of the great joys of franchising is that you dont have to work full time to make your business work. For example, many franchise brands can be operated on a part-time basis, while others are seasonal and may only be busy for a few months of the year.

That means you have much more control over how, when and where you work, whereas an employee is usually expected to work a set number of hours each day. However, many franchises still require a full-time commitment, so check with the franchisor beforehand.

Franchising offers greater flexibility than an employee job.

Running a franchise gives you the freedom to set your own schedule and achieve a better work/life balance. For example, if you set up an office-based franchise, you wont necessarily have to be there every day from nine to five. As long as the business is performing well, you can still make time for other commitments and errands, from heading off to the gym to attending an appointment.

Consider an online franchise one of the best low-cost business opportunities.

With an online franchise, you wont have to worry about stressful commuting or paying for expensive office space. Because overheads are very low for these types of franchises, youll have the potential to generate a significant income at minimal cost, all from the comfort of your own home.

For online franchise brands in sectors like IT and finance, you'll typically only require a computer and internet connection, in addition to any software. Plus, a home-based franchise could be a convenient option for people who look after one or more dependants, as you may find it much easier to balance your professional and personal commitments and enjoy more quality time with your loved ones.

Save money by claiming expenses.

With a home-based franchise, you'll be entitled to claim for expenses such as transport and fuel to reduce your tax bill, whereas a regular employee typically won't be able to do this. You'll also be able to claim tax reductions on the proportion of your internet, telephone and utilities that are used exclusively for business, although it's a good idea to consult an accountant so you can understand how much you can claim.

Think carefully about putting your own money into your franchise investment

Although it may be tempting to put all your money into low-cost business opportunities, so you don't have to borrow, this can still be quite risky. It may be better to get financing so you can get your business off the ground without having to use too much of your savings. Fortunately, many franchisors have special relationships with banks, which may be able to offer you preferential rates.

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