|
WORKING AND SETTING BUSINESS
Working and setting up in business
Salaries and wages are usually relatively low in most of the countries in which it is desirable to buy properties. Even if working for a multinational business, unless you have been lured to the country by an employer, you are almost certain to be paid less than you could expect at home. If you are an EU citizen then you have more or less the same opportunities in any of the 30 or so EU or EEA countries as you have in your home coun¬try. Citizens from outside the EU will fi nd it harder to get into an EU country to work, as will EU citizens looking for work outside the EU. In such circumstances you will need to apply for a work permit, a subject also covered above in the ‘Visa and Residence rules’ section.
Most people buying properties abroad are simply looking for a modest additional income from employment of some sort that will be suffi cient to make the venture of buying a property and living in their new country less of a fi nancial strain. Working is certainly a good way to get to know a country and its inhabitants.
A further, and usually more practical, option is to start your own business. Most countries welcome entrepreneurs, especially if they create, or look like being able to create, jobs in the country concerned. If a country is desirable from a property investment perspective then by defi nition it will either have or have good prospects for tourism-and leisure-related business such as bars, restaurants, guest houses, riding stables and so forth.
For those without a business idea of their own, franchising – a marketing technique used to improve and expand the distribution of a product or service – is a good route to creating an income stream. The franchisor supplies the product or teaches the service to the fran¬chisee, who in his turn sells it to the public. In return for this, the franchisee pays a fee and a continuing royalty, based usually on turn¬over. They may also be required to buy materials or ingredients from the franchisor, giving the franchisor an additional income stream. The advantage to the franchisee is a relatively safe and quick way of getting into business for themselves, but with the support and advice of an experienced organisation close at hand.
The franchisor can expand their distribution with the minimum strain on their own capital and have the services of a highly motivated team of owner-managers. Franchising is not a path to great riches, nor is it for the truly independent spirit, as policy and profi ts will still come from ‘on high’.
Franchising can be a good fi rst step into self-employment for those with business experience but no actual experience of running a busi¬ness – often the case with those who are looking for something to do following a corporate career. However, while franchising elimi¬nates some of the more costly (and at times disastrous) bumps in the learning curve of working for yourself, it is not without risks. Wild claims are made about how much safer a franchise is when compared with a conventional start-up. While it is true that the long-established big franchise chains are relatively safe, though a few big names have got into trouble, the smaller and newer ones are as vulnerable as any other venture in their formative years.
The cost of a franchise varies enormously. Anything from €3,000 up to €600,000 will be needed, depending on the type of franchise and its location. For example, taking out a McDonalds franchise in Spain will require an investment of €450,000–€550,000; running a Subway sandwich franchise will cost €10,000 in fees plus 12% royalties and advertising budget contribution plus, of course, the shop rent and fi ttings. A Coffee News franchise, which claims to be the most widely read publication in coffee shops and restaurants in Europe, is on of¬fer for €3,500. This last franchise was only launched in 2002, but already it claims to have over 250 franchisee-run outlets and a further 5 run by the parent company. You will need to fi nd a town with at least 20,000 inhabitants for a Coffee News franchise to have a reason¬able chance of success. English4U, an English language school fran¬chise launched in 2003, is one business where you might already have better skills than the locals can provide, but charges €17, 5 0 0 f o r i t s franchise. |
|