Homework will find the right fit

Mike Smart. Photo / Janna Dixon

After losing his job three times in 15 years, Mike Smart decided to start his own business.

A friend suggested a franchise, and Smart set about reading and researching. He found "professional" franchises a better fit for his skills rather than service or retail-based one.

He chose Expense Reduction Analysts, a business that helps other firms reduce their costs. "The clincher was that I felt in a depressed market, offering opportunities to reduce costs was a good value proposition."

Mike finds a big difference is that he now has to do everything, from administration to sales.

"There's no one to empty the post box."

Working from home has also had its challenges: "If you're a gregarious type of person who needs company, you might find it hard."

For others considering a franchise, he says they should make absolutely sure they understand the business before buying in - and that they have enough working capital behind them.

"You have to be able to survive," he says.