Ask James Caan – Issue 116
Retirement today is not that of a generation ago. The decline of the defined benefit pensions and the uncertainty surrounding healthcare rights are just two of the huge changes impacting on society.
Today’s retiree is faced with self-sufficiency and there is a lot more to consider when you decide to step down from employment. Especially if your pension is unable to let you lead the life you’re accustomed to.
Yet increasingly, many who have retired, typically find life more enjoyable if they remain not only physically active, but mentally as well. As such, many are considering second careers, including becoming a franchise owner.
Take this email from Ray as an example. Due to retire at the end of the month, he is already contemplating what he will do with his spare time.
He asked me:
‘I am now 65 and still employed at present, that is until the end of this month.
‘After that I am going to get bored fairly quickly and wondered whether I should embark on a franchise, or something that will keep me gainfully employed. What would you advise?’
When you hit a certain age, the thought of what to do in retirement can’t help but be foremost in your mind. A franchise, Ray, is typically a common choice for individuals looking to continue to fulfil their dreams and be self-sufficient owning a business.
Franchise opportunities are a good match for someone who has worked in almost any type of entity for numerous years. Once retired, you typically have the experience behind you to know what to expect in the business world, including communication, organisational and technical skills – important traits required to successfully run a franchise.
From your LinkedIn profile, I can see you’ve amassed a wealth of experience – sales, management and the mindset of an entrepreneur – making you a prime franchisee.
You will enjoy many advantages of being a franchisee, such as the challenge of being your own boss as well as the support of an established brand.
Depending on the type of franchise you’re looking to run, you will be required to make an investment in terms of capital, time and security. Whilst this can seem an inherent risk, it is one worth taking if you get it right.
I’ve enjoyed great accomplishments running a franchise. It was hard work, but my company, Humana International, went on to become a very successful global brand.
One of the great things about franchises is you typically don’t need specific expertise within the arena you decide to start a business since training and ongoing support is provided. As such, the most important advice I can give you if you do decide to start a franchise, is to select one in a sector you are passionate about.
Maybe there’s an area you’ve always been interested in but never had the chance to enjoy? There’s a strong chance that there is a franchise out there that can offer you that opportunity.
If you haven’t already, I suggest visiting www.franchisedirect.co.uk and www.whichfranchise.com. It’s important to gather as much information before hand and know the potential franchise’s market inside out.
You mentioned you were active on LinkedIn – start building your network out and learn as much as you can from other franchisees. By investing the time to prepare for your new venture early on, you will thrive in the long term.
Overall, Ray, investing pension and savings into a franchise can be a risk, but if you work hard and pursue it in a sector you are interested in, it can turn out to be quite lucrative. It will increase your financial worth and keep you in the lifestyle to which you are accustomed.
I wish you every success.
Have you retired and set up a franchise? If so, share your experiences with us below.