One of the worst consequences of any slump has to be the numbers of businesses that don’t survive. In a market like the one the world has experienced over the last twelve months a number of factors have affected the capability of organisation to continue to trade.

Firstly and most visible, the drop in consumer spending, which has resulted in increased competition in the marketplace. Only the most successful organisations survive in this situation.

Secondly the lack of access to funds and resourses. When businesses suffer cash flow or revenue problems then they rely on the Banks to give funds to see them through. As we all are aware those funds have not been on hand.

The net outcome of these factors is that organisations are failing. When businesses fail they leave holes in the market; demand for a product or service has not automatically lowered just because a company providing it has failed. To start a new company in a recession simply re-providing a product or service relies on funds or access to funds. If a new start up is funded by the owners then there is intrinsic personal risk in the possible failure of that company, and as we have already recognised support from the banks is unlikely to be forthcoming.

The other way of breaking into a market sector is through the purchase of a Franchise Opportunity. Where there is a franchise for sale, there is the opportunity to get into business with not as much risk.

Even where there is a Franchise For Sale there is some risk as the success of the firm will rely on the skills of the Franchise operator. That said the investment is preset and evident and the market opportunities should be transparent as the owners should be able to exhibit success in that particular market place.

Of course while franchises do give a quite low risk entry they do have some traits which need to be thought through, including a thorough evaluation of the Franchise For Sale and of the figures offered by the seller. Also, for a free spirited entrepreneur the opportunity may be a little restricted. A franchisor will expect the brand and product or service to be upheld, with very little space for self- expression.

There is also the issue of competition to be considered within the Low Cost Franchise itself, if it is a national company for example exacting boundaries will need to be enforced. All that said the Franchise Opportunity does offer a low risk, soft start in owning your own business.