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Exit Strategy
Exit Strategy
By Elaine Rose on October 7, 2009
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.
What makes the situation even darker is that every sector is presumed to be affected. 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 our employment future holds for us. The question is what are we going to do about it? We have to options:
- Be sitting ducks and wait to be shot down.
- Be proactive about it and have an exit plan in place.
First of all let’s look at what an exit plan is. An Exit Strategy is one of the most important tools you should have in place while considering your future. It’s a plan that considers your future desires and ensures that you remain focused on achieving those goals. By planning your exit well in advance you can maximise the value of your business and enable it to meet your future needs. Make sure your plan is attainable - set a realistic timetable and measurable milestones along the way and stick to them.
Now considering the employment market at the moment the option of finding new job looks bleak. So your 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. Here you are basically purchasing someone else’s 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 need to keep certain things in mind. First of all make sure when you pick a franchise that it is in line with what are 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. Thus, allowing you to spend more quality time with your family.
When planning an exit strategy you need to have a certain basic checklist you should go through. Here’s a checklist that just to get you started while planning your 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.
So don’t wait around till it’s too late. As Nickolas James from Franchise Central says, “Be Smart , create your own exit strategy and develop a new long term career path that enables you to control for your future.”