Franchising is an incredibly popular route to business ownership for ambitious entrepreneurs of all ages. In today’s article, we discuss the reasons why it’s a great alternative to 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, let’s find out the top reasons why becoming a franchisee can make an exciting alternative to retirement.
1.Get a taste of being the boss
If you’ve 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. If you’ve always been an employee and never the one in control, this could be a very exciting prospect.
2. Can use your redundancy pay-out to get started
When you are made redundant, you may receive a substantial redundancy pay-out after working for a company for many years or decades, which you can use to finance part of your franchise investment. If not, there’s no need to worry. Lots of reputable franchises have formed partnerships with major lenders.
3. Keeps you busy
For many people, the long days of retirement have no appeal whatsoever. If this sounds like you, starting a franchise could be your next adventure. As well as keeping you busy, running a successful franchise unit will give you an incredible sense of achievement. Even if you’ve reached State Pension age, you may still prefer to stay in work (at least on a part-time basis) rather than fully retire, especially if you have a financial goal or want to expand the savings that you can pass on to your children further down the road.
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4. Can use your existing skills for something new
If you’ve spent many years working in the same discipline, why not use your skills and experience to invest in one of our low-cost business opportunities in the same sector? This will mean you won’t have a steep learning curve, so you’ll be better placed to grow the franchise into a profitable business in a relatively short space of time.
For example, if you’ve 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.
5. Can follow your dreams
You don’t necessarily have to have formal experience in a particular industry to become a franchisee, so it’s a great opportunity to enter a sector you’ve always been passionate about but never got a chance to work in.
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 don’t 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.
6. 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 unit into a profitable business relatively quickly, and benefit from further training and development opportunities from the franchisor.
7. Work the hours you want
One of the great joys of franchising is that you don’t 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.
For example, if you set up an office-based franchise, you won’t 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.
However, lots of franchises still require a full-time commitment, so check with the franchisor beforehand.
8. Consider starting an online franchise
With an online franchise, you won’t have to worry about stressful commutes or paying for expensive office space. Because overheads are very low for these types of franchises, you’ll 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.
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.
>> Read more:
- Franchising 101: The Complete Guide to Franchise Costs in the UK
- Franchising 101: 6 Top Contributors of Franchise Failure
- Franchising 101: How to Buy a Franchise Business in 10 Steps
- Franchising 101: The Official Franchise Start Up Checklist (Part 1)
- Franchising 101: Top 5 Qualities of a Franchisee
- Franchising 101: 6 Tips for Building Customer Loyalty Through Marketing
- Franchising 101: The Pros and Cons of Franchising Your Business
Franchising is a fantastic alternative to retirement
If you’re soon to retire, hopefully this article has inspired you to consider franchising. If you’re now convinced that it’s the right career move for you, check out the six signs your local area is ready to welcome your franchise business.
Becky Martin, Point Franchise ©