One of the worst areas of any depression has to be the numbers of firms that fail. In a market like the one the world has experienced over the last 12 months a number of things have affected the capability of firm to continue to do business.

Firstly and most clear, the downturn in consumer spending, which has produced increased competition in the marketplace. Only the most effective businesses carry on in this situation.

Secondly the shortage of access to funds and resourses. When firms experience cash flow or revenue issues then they rely on the Banks to grant funds to see them through. As we all are aware those funds have not been available.

The net result of these factors is that businesses are failing. When businesses fail they leave gaps in the market; demand for a product or service has not automatically reduced just because a company providing it has ceased trading. To start a new company in a recession simply re-providing a product or service requires funds or access to funds. If a new start up is funded by the owners then there is inherent personal risk in the possible failure of that company, and as we have already seen help from the banks is unlikely to be forthcoming.

The other way of breaking into a market sector is through the procurement of a Franchise Opportunity. Where there is a franchise for sale, there is the opportunity to get into business with a lesser amount of risk.

Even where there is a Franchise For Sale there is some risk as the success of the organisation will rely on the skills of the Low Cost Franchise operator. That said the investment is fixed and evident and the market opportunities should be translucent as the owners should be able to demonstrate success in that particular market place.

Of course while franchises do give a quite low risk entry they do have some traits which need to be taken into account, including a thorough appraisal of the Franchise For Sale and of the figures proposed by the seller. Also, for a free spirited entrepreneur the opportunity may be a little rigid. A franchisor will expect the brand and product or service to be upheld, with very little room for self- expression.

There is also the issue of competition to be taken into account within the Low Cost Franchise itself, if it is a national organisation for example strict boundaries will need to be enforced. All that said the Franchise Opportunity does offer a low risk, soft start in managing your own organisation.