Redundancy Advice: Buy a Business

by Adam Bannister
While a swathe of redundancies engulf the developed world in the wake of the global economic downturn, many of those set free from their contracts of employment are turning their previously dormant Business Ideas into a reality and becoming entrepreneurs.

Hard hit industries such as the financial sector are witnessing the highest conversion of redundancies to entrepreneurs, with hundreds of City workers turning their back on a narrowing jobs market to blaze their own trail.

Lee Shuell, a former employee of a major mortgage lender, was made redundant after a nineteen year stint working for a company that lent upwards of £70 million daily. Following a three month period of unsuccessful job applications and recruitment agency cul-de-sacs, Mr. Shuell stumbled across his holy grail, an advert for a Belvoir Lettings franchise. Mr. Shuell takes up the story:

"I had always wanted to run my own business, but due to having very good jobs I never had the chance to follow it up"

He continues:

"I then came across a franchise called Belvoir Lettings. To cut a long story short, I bought the Oldham franchise and opened in November 2008. In the short time that I have been open I can already see that this is going to be a great success. I believe people that have been made redundant should look at what they enjoy doing as a hobby and see if they can make a career out of it."

In a similar scenario, Mike Mitchell took early retirement from his post at Cheltenham & Gloucester when he foresaw a difficult period looming for the banking industry. Sensing he was at the end of one chapter and the start of another, Mr. Mitchell fulfilled a lifelong ambition and bought an online art gallery, artgallery.co.uk, with his wife. Says Mr. Mitchell:

"We are now responsible for managing the prestigious Knapp Gallery in Regent's College, London, and providing the artworks for the Malvern Theatres, one of the most successful provincial theatres in the UK. Banking to art? Quite a change and we love it."

Mr. Mitchell is keen to emphasise the polarity of his previous and current work patterns:

"Less than twelve months ago I was managing the entire customer service operation of Cheltenham & Gloucester plc, circa 1200 people in the UK and a team of about 600 in India. Last year I would have been at home in Lloyds TSB's board room in Gresham St, last week I was having breakfast in Sotheby's Board Room surrounded by Damian Hurst's butterflies."

Starting out on your own can be a tough proposition, even in the most settled of financial climates. A helping hand for the fledgling entrepreneur can be found at the Prince's Trust Business Programme (18 to 30 year olds), and BusinessLink, a government organisation that provides support and grants for small businesses. Additionally, the National Federation of Enterprise Agencies supports micro-businesses and the self-employed.

About the Author

Adam Bannister writes for Dynamis, publishers of BusinessesForSale.com, FranchiseSales.com & BusinessWings.co.uk among others. BusinessWings.co.uk provides the inspiration to help get your business off the ground with advice on Starting a Business.