Self-Employment is the Best Job Security
Generations ago, dedicated employees could count on a simple formula to secure their financial security: Work hard for a single company for 40 years, then enjoy a steady pension and a comfortable retirement. But the workforce and the job market have changed considerably over the years. Not only are pensions a thing of the past for most people, but the idea of someone working for just one company over the course of their entire career seems outdated and unrealistic.
Growing older meant getting closer to the security we have been working toward our entire career. Workers looked forward to the reward that was waiting for them after decades of loyal service. But that dream no longer exists. Between mergers, acquisitions, budget cuts, restructurings, downsizings, and ageism, workers can no longer feel secure in their employment as they progress in their careers.
Job Insecurity for Older Workers
One only needs to look at employment trends to realize that as workers age, their perceived value in the workplace diminishes. Once an employee enters their mid-40s, their job prospects decline, time spent looking for work increases, and salaries often tend to stagnate, and in some cases, decrease. This is due to many factors, including:
- Cost Savings: Companies looking to trim costs often target workers with the highest salaries, which is usually older employees who have been in the workforce longer.
- Technology: In the past, older workers possessed invaluable knowledge that was needed in the workplace. Nowadays, much of this knowledge can be replaced with online searches, automated tools, and specialized software.
- Outsourcing: Many companies opt to hire contractors on an as-needed basis instead of high-salaried employees.
We all know older employees who have found themselves suddenly out of work due to issues unrelated to job performance. These older workers often struggle to find another position at a comparable salary. Each year, the age parameters for “older workers” seem to get lower and lower.
Freedom, Flexibility, and Financial Security
Given the bleak future than many older workers face, it’s no wonder that so many experienced professionals are turning to self-employment to achieve financial security. As we’ve discussed in a previous article, the idea that only “natural-born entrepreneurs” can be successful business owners is merely a myth. In fact, many hardworking managers with 15+ years in the workforce have all the skills, experience, knowledge, and worth ethic to start, grow, and run a profitable company.
The primary benefits of running your own business can be summarized by these three bullet points:
- Live where you choose
- Do what you love
- Secure your future
After all, managers in their 30s, 40s, and 50s have seen first-hand how their efforts, knowledge, and leadership styles have played a key role in the profitability of other companies. So, why not put in the same effort for their own businesses? They have seen what it takes to manage a successful operation and they are ready to take the initiative to build a company that provides them with the freedom, flexibility, and financial security they desire.
Risk and Reward
Of course, there are risks associated with opening a new business, especially when entering a new industry. Learning the ins and outs of business ownership often involves a steep learning curve, which may result in a period of time where the company generates little or no revenue. This is often a hurdle that deters many people from opening a business.
But starting a company from scratch is not the only option. Becoming a franchisee with an established, reputable, successful, and supportive organization can significantly reduce the risk of business ownership. Franchisees are more likely to succeed because they do not have to figure it all out themselves. Benefits of being a franchisee include:
- A blueprint for success: Companies provide their franchisees with all of the processes, practices, and knowledge needed to start, run, and maintain a profitable business. No need to learn from trial and error, as the proven roadmap for success is provided at the onset.
- Support: Companies have a strong financial and reputational interest in the success of their franchisees. Many provide comprehensive advisory services, operational assistance, and marketing support to guide franchisees every step of the way.
- Networking: It has been said that entrepreneurship is lonely. But with a national network of other business owners, franchisees communicate regularly with their “colleagues” to share successes, challenges, and opportunities.
FPC National is a leading, Forbes Top-20-ranked executive recruiting firm. With more than 60 years of experience and 65+ franchises across the country, FPC partners with experienced professionals who are looking to make the leap to entrepreneurship and secure their financial futures – on their own terms. Learn about franchising opportunities with FPC National today.