One of the worst consequences of any downturn has to be the numbers of organisations that fail. In a market such as the one the world has experienced over the last 12 months a number of factors have affected the capacity of company to continue to operate.

Firstly and most obvious, the reduction in consumer spending, which has resulted in increased competition in the marketplace. Only the most effective companies carry on in this situation.

Secondly the lack of access to money and investment. When organisations struggle with cash flow or revenue issues then they rely on the Banks to supply funds to get them through. As we all are aware those funds have not been available.

The net outcome of these factors is that companies are failing. When businesses fail they leave holes in the market; requests 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 just re-providing a product or service needs funds or access to funds. If a new start up is funded by the owners then there is natural personal risk in the possible failure of that company, and as we have already established assistance from the banks is unlikely to be immenent.

The other way of breaking into a market sector is through the acquisition of a Franchise Opportunity. Where there is a franchise for sale, there is the chance to get into business with less risk.

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

Of course while franchises do provide a moderately low risk entry they do have some issues which need to be thought through, including a thorough assessment of the Franchise For Sale and of the figures put forward by the seller. Also, for a free spirited entrepreneur the opportunity may be a little rigid. 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 taken into account within the Franchise itself, if it is a national organisation for example firm boundaries will need to be enforced. All that said the Franchise Opportunity does offer a low risk, soft start in managing your own company.

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