Jobs and Careers Spring 2020 - 261

S E L F- E M P L OY M E N T

B

y the fourth
quarter of 2019
there were more
than five million
self-employed
people in the UK
according to the Office for National
Statistics - up from 3.2 million at
the start of the century. Despite the
lack of a guaranteed steady income,
many find it beneficial to work for
themselves, as it enables them to
have more variety in their work as
well as a better work/life balance.
Companies big and small are now
more likely to introduce more flexibility
into their workforce
by engaging the
services of selfemployed contractors
than they were a
generation ago.
That means there's
more freelance
work available, even if there is more
competition for it. But while there
are plenty of positive aspects to going
it alone, there are downsides too.

by the hour, day or a project, you'll
usually have more leeway on your fees
than you would as a salary slave.
Knowing you're the sole financial
beneficiary of all your efforts can be
a great motivator too. The harder you
work and the more hours you put
in, the more you should earn - with
profits going direct to you rather than
your boss or faceless shareholders.

The downsides
Of course, the major disadvantage of
being self-employed is that you can
never quite be sure when the work - or
the cash - is coming in. Not having a
regular income
means cash flow
can be a serious
problem - your
bills still need
to be paid every
month regardless
of whether
your clients are settling up on time.
You'll have to deal with your accounts
too, including filing tax returns.
This means keeping comprehensive
financial records , even if you employ
the services of an accountant. And
while it's great to have flexibility on
your working hours, you don't get any
sick or holiday pay. You'll also need to
make your own pension provisions.
If you're the kind of person who
thrives on workplace banter, then
working from home can often feel
isolating too. You may also find that
working from home makes you stir
crazy. If your home also happens
to be your workspace, it can be
difficult to switch off from your work
at the end of "office hours".

Being your own
boss gives you far
more control over
your working hours

The benefits
Being your own boss gives you far more
control over your working hours. Want
to take the morning off? There's no
need to get permission from anyone
except yourself. Fancy a holiday? You
don't have to book the time off months
in advance. Around 4.2 million people
currently work from home and you
could become one of them, cutting
down on travel time and expenses.
You also have the ability to set your
own rates. While market forces may
dictate the maximum you can charge

Franchise know-how
Want to run a business with support? A franchise may be the solution
A franchise is basically a licensing agreement, where you carry out work under
the banner of a bigger brand. Franchise opportunities range from estate agency
to childcare - many chain restaurants, for example, are run under franchises.
Franchises offer the independence of small business ownership supported by the
benefits of a big business network. The franchisor usually has an established reputation
and national marketing, and may provide training to operate the business.
Franchises have a higher rate of success than startups, so you may find it easier
to secure finance, and it may cost less to buy a franchise than to launch your
own business. Just be aware that you may not be able to end the arrangement
when you want - a franchise is a legally binding agreement for a set term.

"You need an
entrepreneurial
mindset"
Saleem Anwar is commercial
director at FranchiseSales.com
"Buying a franchise
is a direct route
into business
ownership and one
that means you
can hit the ground
running with the
support and experience of an established
enterprise behind you. It isn't risk free,
but it's an attractive alternative to starting
up on your own. There are around 930
franchises systems in the UK in every
sector, from dog grooming and website
building to restaurants and childcare.
"Every franchise is different in terms of
investment, ranging from a few thousand
pounds to £2m-plus. It will depend on the
brand, sector, location and size of territory
you are investing in. You may need to
make significant investment to get the
business up and running, as well as have
enough cash to keep the business going
for its first few months of trading. It is
likely you'll also have to pay a franchise fee
covering the costs of training, recruitment,
marketing, equipment and so on. There
could be ongoing fees too - a kind of
license or commission you pay to the
franchisor. All this must be thoroughly
investigated before you commit.
The majority of franchises offer full
training as part of the package. Ultimately,
though, you are going to need to be a
people person, have an entrepreneurial
mindset and be able to wear many hats in
order to run your business successfully."

Find out more
* Association of Independent
Professionals & the SelfEmployed ipse.co.uk
* British Franchise Association
thebfa.org

JOBS & CAREERS /// 261

260 JC Spring 2020 Franchises FINAL Artwork.indd 261

27/05/2020 17:12
http://www.FranchiseSales.com http://ipse.co.uk http://www.thebfa.org
Jobs and Careers Spring 2020

Table of Contents for the Digital Edition of Jobs and Careers Spring 2020
