Get wise, look to franchising.
If you are looking to have a business of your own then franchising could be the answer for you. In these times of recession when banks are extremely cautious in investing in new ventures, when it comes to franchisees, banks are more generous and giving.
According to the head of franchising at HSBC, Cathryn Hayes, banks are still keen to invest in franchisees because of various reasons. The main reason however, is because of the low failure rate. Since franchisees are backed by an experienced franchisor and a tried and tested business model, the failure rate for franchisee start ups is lower and banks feel more secure in investing in them. This means that banks are more likely to lend money to franchisees as compared to normal, small businesses.
However, franchisees are not totally recession-proof and hence, Cathry advises all would be franchisees to first research and collect as much information as possible about where they would like to invest. As franchising has a wide spectrum compared to other industries, it considerably lowers and reduces the failure rate.
If you plan on franchising, remember that every business, including franchising requires hard work and dedication and hence it is very important you think before you decide to take the leap.