Business Special

We take a look at how you could start your own business.

SLICE OF THE ACTION

In times of economic uncertainty, starting a business with the backing of a well-known brand is the best way to be your own boss, says Felix El Hage

Times may be tough, but one business model that is reporting not just survival stories but tales of success in the UK and across Europe, is that of franchising. And now more than ever is the time to jump on the bandwagon when it comes to going into business for yourself.

Make no mistake, starting a new business successfully during a recession isn’t easy. It’s usually downright difficult, and takes someone with an iron determination and belief in getting from point A to point Z – despite the many potential storms that can occur along the way. It helps, of course, if you have your own source of funding and are not reliant on the few lenders that remain for new businesses out there. But it is possible provided you choose the right type of business and go about it in the right way.

Franchising is one of the best options for would-be entrepreneurs, as it means operating a tried-and-tested business model with a full support network, as opposed to a risky solo business. And if your franchise can thrive in a recession, think how it will soar when the good times come again.

According to Brian Smart, director general of the British Franchise Association (BFA), UK franchise businesses today are still successful, and proving highly resilient to the hard times affecting the global economy.

Take Domino’s Pizza for instance, one of Europe’s well-known fast food pizza outlets. Last year, Domino’s Pizza Group Ltd head of franchise development Andy Hirst told the BFA: “In contrast to the economic gloom, we’re still doing very well… franchisees keep snapping up our exciting new business opportunities. The tried-and-tested formula of a franchised business offers a welcome safety net, when coupled with a quality product offering and a strong brand.”

Clearly, in a tight economy the quality of the business model is critical, and the essence of a franchise is that you can access knowledge, key areas of best practice, business tools and training. You are in business for yourself but not by yourself. And that is something that customers will also respond to.

“We found in recent research that given the choice, twice as many customers would prefer to use a franchised outlet over a non-franchised outlet,” says Smart on the BFA’s website. “Locally owned businesses, with national business support are a real success story, and we expect to see the trend towards more franchising continue.”

One thing to remember is that despite all of this, your franchise business will not succeed on its own in a difficult market. A proven product is one thing but the attitude and enthusiasm of the individual running it is paramount. If a customer feels you care and you give them a positive experience in a recession, when the recession ends the gains to be achieved can be incredible.
FOR MORE DETAILS, VISIT WWW.THEBFA.ORG

NOT JUST GOING IT ALONE

Business format franchising is the granting of a license by one person (the franchisor) to another (the franchisee), which entitles the franchisee to trade under the trademark/trade name of the franchisor and to make use of an entire package – comprising all the elements necessary to establish a previously untrained person in the business and to run it with continual assistance on a predetermined basis.

WANT TO MAKE SOME MONEY?

GET THAT MBA
Career plans may be in flux in investment banking, but business schools are still booming, says Des Dearlove

Lehman Brothers, Merrill Lynch, AIG, HBOS, Bradford & Bingley, Wachovia – the list of credit crunch casualties is lengthening. For MBA hopefuls who covet a job in investment banking or financial services, the news is not encouraging. But what does it mean for the MBA market as a whole?

Manchester Business School dean Professor Michael Luger says: “MBA applications have traditionally been counter-cyclical, with students taking the view that an economic downturn is a good time to take a career break – a chance to retool and go back into the labour market with more value.”

Open University Business School MBA masters programme director Richard Wheatcroft agrees, saying: “People who get a redundancy package often decide that it’s a good time to do an MBA while the labour market is unattractive. But we also find a slight increase in registrations from people still in employment who want to make themselves more valuable to their employer.”

A clear indicator is the increasing number of candidates taking the GMAT entry exam.

“Our data shows an inverse relationship between downturns in the economy and GMAT test-taking volume,” says Dave Wilson, president and chief executive of the Graduate Management Admission Council, which administers GMAT.

“For instance, during the recession from 1989 to 1991, GMAT volume grew to 240,000. Again, during the dot-com bust era, volume peaked – with 2002 as the record year to date (245,000). And 2008 is already ahead of that year.”

Many business schools report that the bulge in GMAT takers is swelling the applicant pool. Lancaster University Management School, for instance, had close to 900 MBA applicants last year (200 more than 2007) chasing a maximum of 90 places.

But what about the MBA jobs market? Newly minted MBA graduates with their sights set on the City or Wall Street may have to think again. But financial services accounts for only a small proportion of MBA jobs.

“One of the great advantages of an MBA is that you develop a set of generic skills that are not sector specific and can be broadly applied in business,” says Rob Dixon, dean of Durham University’s Business School.

MBA graduates appear to be rising to the challenging conditions. Some 57% of job-seeking MBA students who completed business school last year had at least one job offer before finishing their studies, according to the 2008 Global MBA Graduate Survey conducted by GMAC. Not since the 2001 survey has such a large proportion had jobs lined up in advance of graduation.

Wilson explains: “The MBA market is about far more than Wall Street or Threadneedle Street. It is about marketing, sales, accountancy, consultancy and more arenas. Although the global economy is struggling to regain its footing, newly-minted MBAs are still highly sought after.”

Graduates of full-time programmes with job offers expect salary increases of 74%, on average, above their pre-MBA jobs. For part-time programmes, the expected average rise is 53%.

“Challenging but not daunting” is how Grant Phillips, acting head of alumni at Oxford Saïd Business School, characterises the jobs market. “While positions in investment banks will be harder to come by, there are opportunities in banking areas such as private wealth management, asset management and, dare I say it, risk management,” he says.

He also predicts more jobs in the regulatory and compliance field. It is, after all, an ill wind that blows nobody any good, even on Wall Street.
The Times/NI Syndication

10 OF THE BEST BUSINESS SCHOOLS ACROSS THE RYANAIR NETWORK

UCD MICHAEL SMURFIT GRADUATE BUSINESS SCHOOL, DUBLIN, IRELAND www.smurfitschool.ie
Fly to DUBLIN from over 100 destinations, including London (Stansted) and Marrakesh

HULT INTERNATIONAL BUSINESS SCHOOL, LONDON www.hult.edu
Fly to LONDON (GATWICK, LUTON AND STANSTED) from over 100 destinations, including Basel

DURHAM BUSINESS SCHOOL, UK www.dur.ac.uk/dbs
Fly to DURHAM TEES VALLEY from Alicante, Barcelona (Girona) and Dublin

POLIMODA, INSTITUTE FASHION DESIGN & MARKETING, ITALY www.polimoda.com
Fly to PISA (FLORENCE) from 29 destinations, including Brussels (Charleroi) and Malta (Luqa)

ESCP-EAP TURIN, ITALY www.escp-eap.it
Fly to TURIN from 12 destinations, including London (Stansted) and Trapani (Sicily)

SALFORD BUSINESS SCHOOL, UK www.business.salford.ac.uk/MBA
Fly to MANCHESTER from ten destinations, including Dublin and Barcelona (Girona)

HEC, PARIS, FRANCE www.hec.fr
Fly to PARIS (BEAUVAIS) from 21 destinations, including Bologna and Marseille Provence MP2

ERASMUS UNIVERSITY OF ROTTERDAM, NETHERLANDS www.eur.nl/english
Fly to EINDHOVEN from 11 destinations, including Pisa (Florence) and Madrid

USI, LUGANO UNIVERSITY, SWITZERLAND www.master.unisi.ch
Fly to MILAN from 47 destinations, including Alicante, Dublin, Fez and OSLO (Torp)

PITTSBURGH UNIVERSITY BUSINESS SCHOOL, PRAGUE, CZECH REPUBLIC www.business.pitt.edu
Fly to PRAGUE from five destinations, including Dublin, Birmingham and Frankfurt (Hahn)