There's life after losing your job (Daily Mail Franchise Story)

There's life after losing your job

By: Linda Whitney

REDUNDANCY can come as a blow, but it can also be a great opportunity to take charge of your future.

You could combine your business experience and redundancy payment to set up in business with a franchise.

Franchisors will welcome you. 'People who have been made redundant often have a strong determination to succeed,' says Chris Gillam, recruitment consultant to the High Street business services franchise Mailboxes Etc (MBE).

The MBE network includes many franchisees who wanted their own businesses but hesitated until faced with redundancy.

'One couple who, between them, have been made redundant three times decided enough was enough,' says Mr Gillam. 'They did not want to be unemployed ever again and became successful MBE franchisees.' The MBE franchise involves offering office and courier services, mainly to small business, through

High Street outlets. Investments start at £60,000. If you face redundancy, check exactly how much your redundancy package will deliver. As well as the franchise cost, you should have enough capital to pay your business and domestic bills until the business is making money.

You can usually borrow up to 70 per cent of the total cost of the franchise from the big banks.

Banks are usually keener to lend for franchises than for independent business start-ups.

Russell Golding, 40, was made redundant from financial information provider Reuters in 2003.

'It was a black time, but gave me breathing space and I decided to look at franchising,' says Mr Golding, from Maulden, Bedfordshire, who now has Recognition Express, marketing and selling corporate recognition products to other companies.

'As an employee, long hours meant I was not seeing my young family. Now I have been able to see them growing up.'

The Recognition Express franchise costs £30,000.

Most franchisors do not expect you to have any direct experience in their field but they appreciate management and business experience.

Many franchisees with Fastsigns — who manage businesses providing signs, banners and graphics — had no experience of the industry. The franchisor provides training in the processes involved as well as the business skills as part of the £40,000 cost.

Many franchises are flexible, so you can regain a work-life balance.

Franchisees with Computer Xplorers provide IT training for children. You will be running clubs and classes after school, at breakfast and lunchtime clubs or on holiday activity programmes.

Younger children learn literacy, maths, science and music, while older children's subjects include computer animation, rocketeering and creating films and videos.

Franchisees need no teaching experience, but you must be able to market your service.

The £24,500 investment includes full training.

PIZZA MAN'S SLICE OF SUCCESS

SIMON PICKLES (above) used his redundancy payment from a managing director's job in the leisure industry to start a franchise outlet with Domino's Pizza.

Simon, 43, says: 'Redundancy was not a problem financially, but the sheer slog of writing a CV for the first time in ten years made me think about starting my own business.' He chose a franchise because although it meant working for himself, he also got the safety net of a well-known brand and a tried and tested business format.

He now has two Domino's outlets, one in Huyton and one in St Helen's, Merseyside, and plans to open five.

'I have the right management skills, but it is still a big change from running someone else's business to running your own,' he says.

'Redundancy turned out to be a big plus for me. I am now ten times happier and I am building an asset for myself.

'I do not miss the big company politics, manoeuvring and meetings about meetings one little bit.' The initial start-up cost of a Domino's store is about £240,000, though you need only £70,000 in liquid capital as banks will lend the rest to suitable people. Domino's is happy to hear from people who have been made redundant.

FOR more information: MBE 0800 694 2026.

Recognition Express 01530 513 300.

Fastsigns 0808 168 0145.

Computer Xplorers 01530 513 308.

Domino's Pizza 01908 580 000..