Corporate Refugees Reinventing Themselves Rather than Waiting for Jobs to Return
Financial franchise reports surge in interest from unemployed workers seeking new opportunity Recent jobs reports probably brought a small sigh of relief to the millions of workers who are unemployed because of the recession. The US Labor Department reports 80,000 jobs created in February. Additional research from the NSBA showed 25% of small business owners now expect to hire in the coming year. Clearly, things are getting better but it is nowhere near where it needs to be.
The United States lost 8.8 million jobs in the Great Recession. While 1.5 million jobs have been recovered, at the current rate it will take 14 years to provide jobs for the 13.7 million “officially” unemployed. If you include the 6 million discouraged workers, the timeframe jumps to 20 years. That’s too long to wait for many older, unemployed workers.
“The sad reality for many older workers is that their former jobs many never come back and it’s time to consider reinventing themselves with a second career that is entrepreneurial and flexible,” says David Banfield, president of the alternative financing firm The Interface Financial Group (IFG). Banfield reports many long-term unemployed workers are contacting him to inquire about IFG franchise opportunities.
“We are seeing a huge uptick in franchise development from corporate refugees who want to put their valuable skill set to work for themselves and control their own destiny rather than wait for something to happen,” Banfield adds. Many interested former corporate workers are visiting IFG booths at franchise trade shows. Banfield categorizes those inquiries into three types: 1. Former corporate workers who have spent their severance and need work. 2. Former corporate workers who have saved their severance and are looking for an investment. 3. Former corporate workers looking for a change and an opportunity to control their future.
Daryl's Story Daryl Turko worked in the oil and gas industry for 15 years until he was laid off. He explored various opportunities through an outplacement service and finally settled on buying an IFG franchise. 15 years later, Turko carries just a handful of clients in a very manageable portfolio. Turko says his leads first came from contacts mostly in the banking arena but many more are now coming through referrals from existing clients.
“IFG promised to provide all the training and support I would need and they’ve delivered,” says Turko. “I’m my own boss, I work out of my house, and I’ve been able to adjust my schedule through the years to fit my family.”
The Opportunity IFG is an international provider of short-term working capital via spot factoring and has more than one hundred and fifty franchises in 7 countries that work with small businesses in their communities.
“Opening an IFG franchise is attractive for unemployed executives because they can be their own boss, it is inexpensive to open shop and the franchise can be run out of their home,” adds Banfield. “In addition, IFG has perfected a franchise model that provides training and support to franchise owners, a comprehensive risk management program, and a seasoned management team experienced in financial services are available to back up every franchisee.”
As an invoice discounter, IFG franchisees purchase a percentage of their clients’ verified receivables and provide them with access to instant capital usually within 2 -4 business days. Payment is then made in due course direct to the IFG franchisee and the transaction is completed. This form of short-term financing offers small business owners the opportunity to access cash quickly without having to wait for their outstanding invoices to be paid.
Spot factoring is hugely popular among countries in the European Union and is routinely used by large companies in the United States. Small US businesses are showing more interest in the practice because it is flexible, can provide cash quickly and the commitment isn’t permanent. Spot factoring is transactional, not a revolving loan, so the process can be repeated as the business owner needs.
IFG has been established for 39 years and is consistently ranked one of the top franchises among Entrepreneur magazine.