Franchise Central advises on creating an exit strategy

The global financial crisis is affecting all Australians. JPMorgan chief economist Stephen Walters yesterday told The Australian that the Treasury had underestimated the likely unemployment rate, which he predicted would more than double to 9 per cent by the end of 2010. It has been predicted that the job situation is only going to get worse from here. Employment is expected to grow by 1.25 per cent in 2008-09, but then slow to 0.75 per cent in 2009-10.

Every sector is presumed to be affected which makes the situation even darker. Australian Industry Group chief executive Heather Ridout said, “Job losses would be felt across the board with the services and manufacturing sectors hardest hit.” Australian Chamber of Commerce and Industry director of industry policy and economics Greg Evans said job losses would be worst in retail.

Employment Minister Julia Gillard said: "Nobody likes to see even one job lost, but obviously the global financial crisis will impact on growth and employment.”

Opposition employment spokeswoman Julie Bishop said the Government had dropped the ball. "The last budget figures the Government released showed that about 134,000 Australians would lose their jobs over the next 12 months," she said "This puts it up to almost 6per cent by 2010. That's thousands of Australians out of work. They've dropped the ball on unemployment; they've got no plans for job creation.”

So now that we can see what the employment future holds, the question is what can be done about it? There are two options:

• Be sitting ducks and wait to be shot down
• Be proactive about it and have an exit plan in place

An Exit Strategy is one of the most important tools someone should have in place while considering their future. It’s a plan that considers future desires and ensures that focus remains on achieving those goals. By planning an exit well in advance the value of the business can be maximised to meet future requirements. Make sure the plan is attainable and that a realistic timetable and measurable milestones are set, and stick to them.

Now considering the employment market at the moment the option of finding new job looks bleak. So the next best option is to look at owning your own business. However, there are a lot of risks that you take own when you start your own business. But these risks are negated when you look at purchasing a franchise. When buying a franchise you are basically purchasing an already functional, up and running business model. This is why buying a franchise seems to be the best exit strategy to consider for yourself.

When selecting a franchise you certain things need to be kept in mind. First of all make sure when picking a franchise that it is in line with your expectations of your future. But the biggest advantage that a franchise brings you is life after purchase of the business. Owning a franchise is pro family. You can set the business up in such a way that it can run itself, therefore allowing you to spend more quality time with your family.

When planning an exit strategy there is a basic checklist that needs to be gone through. Here’s a checklist that just to get you started while planning an exit strategy: 

Exit Strategy Checklist

• Amount of Capital / income required on exit – You will have to work on how much of an investment will be required. Depending on which franchise you choose to buy the initial investment costs will vary. Make sure you take into account all the additional costs that you might also incur while purchasing the franchise. 
• Economic and industry conditions – When making the decision from which industry you are going to buy your franchise make sure you study the industry trends as well as the present market conditions. 
• Documented processes – Find out what are the licences that need to be obtained. Find out what fees need to be paid.

Nickolas James from franchise consultants, Franchise Central , advises to “Be Smart, create your own exit strategy and develop a new long term career path that enables you to control for your future.”