“Current trends indicate that more and more business and professional people are working longer hours without noticeable increases in benefits,” says Leigh Kealton, organiser of the forthcoming Business Opportunities Expos in Perth and Sydney.
“For many, this will trigger a decision to get into their own business, where they can work for themselves, determine their own future and get their life in balance.”
Craig Parke, from the Jim’s Group franchise, agrees.
“We have more requests for work than we can service right now,” he says. “What we really need is more franchisees to provide these services and, in the process, to grow their own businesses.
“Many of our franchisees own and run more than one area in a particular business system, and this allows them to build a bigger client base to sustain them through quieter periods.
“Small business franchises are more likely to appeal to people for lifestyle reasons. Many enjoy the freedom of being out on the road, while other entrepreneurs prefer to project-manage multiple staff and trailers.”
Interestingly, back in 1998 IBIS World Business Information chairman, Philip Ruthven, addressed the annual FCA conference in Melbourne and spent quite some time focusing on the importance of the emerging service industry sector.
Ruthven said: “If I had a son or daughter leaving school who was unsure which career to follow, I’d recommend they get into the service sector, without necessarily even stopping to attend university.”
Kealton decided to find out whether Ruthven still feels that way, and there is little question that he does. Indeed, speaking recently from his Melbourne office, Ruthven reiterated: “The service industry is as important as it ever was, and is still increasing its share of GDP. The work will not run out in my children’s or grand children’s lifetime, and provided the standard and quality of service remains high, a business in this industry can provide a terrific future.”
John Brown of Franchise Alliance agrees with the assessment.
“In this time of record low unemployment, only those people who are genuine entrepreneurs are going into their own businesses. The others are happy to continue being employed,” he says. “Gone are the days when the selection process was also to seek out people who had a choice in buying a business rather than those with a desperate need to buy a business. Today we only see clients attracting those who actually want to be in business for themselves and improve their lives in certain ways.
“While on the face of it this could be viewed as a negative for the franchise industry because there are fewer potential franchisees than back in the mid 90s, when unemployment was at an all-time high, it can also be seen as a distinct positive. Not only do both visitors and franchisors maximise their time efficiencies through the selection process, but good calibre candidates almost invariably become higher-performing franchisees. This benefits not only the franchisee, but also the franchise system and the entire industry.
“The other advantage to potential franchisees now is that, following the introduction of the mandatory Franchising Code of Conduct, in general terms the sector is more efficient, better organised and provides greater protection to franchisees. This naturally translates into better opportunities.”
Returning to the theme of people being increasingly time-poor, Kealton explains the rationale behind the decision to maintain the dedicated focus of the Expos on business opportunities.
“While it has been tempting, we believe that adding other unrelated elements to create a larger event serves to weaken the focus,” he says. “Most people who want to get into their own businesses don’t want to be distracted by other options, but prefer to concentrate on identifying what businesses are available and finding the relevant advice to ensure they make the right choices before setting their course for success.”
The 13th annual Business Opportunities Expo will be held in Perth’s Burswood Cenvention Centre 24-26 June and is again sponsored by the WA State Government through the Small Business Development Corporation.
The Sydney Expo will run 9-11 September at the Sydney Showground, Sydney Olympic Park. The Expo is again sponsored by the New South Wales Department of State and Regional Development and is a major feature of its state-wide Small Business September initiative.
24-May-2006