The statistics are familiar. Corporate downsizings are up, outsourcing has resulted in the loss of jobs, pension plans are largely a thing of the past, unemployment is rising, and predictions about the inadequacy of Social Security loom. These phenomena, along with the increase of globalization and debt all point to a new economic paradigm in the U.S. – a new economy – that calls for a shift in the way American workers plan for, and secure, their futures.
For many, this new realm can be paralyzing. Although the uncertainties of corporate life – working for someone else – have been evident for years, many feel inadequate and unprepared to cut their ties with employers, choosing instead to work long hours, hoping their efforts will result in long term security. However, recent figures indicate that today’s W-2 worker will make a job change within their chosen field 6-8 times during their career, often not by choice, and will change their actual career field 3 times during their lifetime.
Others, however, have chosen a path designed to insulate themselves from the uncertainties of working for others. Statistics show that as economic indicators plummet, the rise in franchise business ownership increases.
How best then to manage one’s career in this uncertain “new economy?” Work for someone else, or “go it alone?” We are now in the “New Career Economy?.”
The “New Career Economy,” a new economic reference based on a 2006 study commissioned by The Entrepreneur’s Source (TES), calls for careers based upon self-sufficiency, personal control and rewards more closely tied to one’s personal efforts. In order to minimize the risks associated with “going it alone,” and increasing the odds of success in a new venture, an increasing number of people are aligning themselves with established businesses, including franchising. According to Price Waterhouse Coopers, the U.S. has over 3000 franchise companies and has over 900,000 individual franchise units. Overall, the success rates of franchised businesses compare well to non-franchised startups.
My next blog with address the characteristics of the New Career Economy and reinforce why now is a very good time to consider business ownership, including franchising.