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Beating Unemployment with Self-Employment

Posted February 20, 2013 by Thomas Jones to Career 0 0
This post was written by a EasyFinance.com Community member. The views expressed below may not reflect the views of EasyFinance.com.

The credit crunch had a devastating effect on many industries, along with the people that worked within those fields. In fact, virtually no sector of the economy has been completely untouched, as a fall in consumer spending and unwillingness of banks to extend credit has meant that companies everywhere are tightening their belts. This has led to many talented and hard-working individuals being made redundant through no fault of their own. Despite possessing relevant work experience and, in many cases, evidence of significant educational achievement, these people sometimes find it difficult to re-enter the workforce as job openings are few and far between.

On the other hand, for some, this has become an opportunity. Those who dreamed of owning their own business, but who were previously too fearful to gamble by giving up their job, have effectively had that choice made for them. This shift in risk perception has led to huge growth in the small business sector as many find success in self-employment.

Starting Out on Your Own

Of course, you can’t just decide to become self-employed. You’ll need a vision and a solid plan in order to achieve your goals. What product or service could you provide? More specifically, what product or service could you provide and beat the competition? This last part is important. It’s a dog eat dog world out there, and if you don’t appeal to potential customers more than your rivals - whether due to price, efficiency, quality, or some other metric - you won’t survive for long. Once you’ve come up with your key idea, you’ll need to think about practicalities. Will you set up a corporation? How much financing will you need, and where will you get it? What about employees? Setting up a business is hard work, but it can be worth it in the end.


Another option for those who want to own their own business is franchising. Under this model, you pay a major brand to operate one of their branches. You benefit because you can rely on the trust generated by the brand name, advertising campaigns run by the franchisor, and the economies of scale that come along with being part of a huge network. The franchisor benefits because it no longer has to worry about micromanaging each branch, and because it is not liable for any possible failings.

Franchising can alleviate some of the risks associated with running a business. Because the brand has already generated trust and goodwill amongst customers and suppliers, you can be reasonably sure of an income stream and good relationships with others. You also know that the business model is a successful one, because it has worked for the franchisor and can be replicated. However, this is a double-edged sword. Being required to work to somebody else’s model can feel too restrictive to some entrepreneurs. Another drawback is cost; you will need to fund an initial cash investment and continuing royalties, whether or not you are making a profit for yourself.

Good Luck

Whatever you choose to do, good luck! Self-employment isn’t for everyone, and there’s no shame in going back into the conventional workforce. If you can stick it out, though, business ownership can be a rewarding and lucrative option.

About Thomas Jones: Thomas Jones works as a writer for a startup in Brighton, UK. In the future, he aims to buy a Caremark franchise from caremarkfranchises.com.

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