Simon Edwards had several options open to him when he left the army. He could have gone back into the forces in a different regiment such as the Royal engineers or a bomb disposal squad. Also, since he had qualifications in geography, he could have used that to become a surveyor, teacher or environment scientist such as a volcanologist, meteorologist or geologist. Another option would be for him to open a business of his own or become a franchisee of another business. Finally he could have retired at an early ageand settled down with his family. (b) Some of these options are better than others.
Going back into the forces would not have been a very attractable move because he was looking for a change and this probably wouldn’t have satisfied his want for a change in his life. Even if he decided that he wanted to join the Royal Engineers for example, he would still have had to go and train to become a mechanic which, considering his age and high rank, was not very practical. Using his geography skills and becoming a surveyor, teacher or environmental scientist was another option, but again he would have had to return to
Need essay sample on "Simons restaurant"? We will write a custom essay sample specifically for you for only $ 13.90/page
Also, being high up in the army, he was paid a reasonable salary and probably wouldn’t have wanted to start a job where he was paid less, such as these options might well do. The next option was to open a business of his own. Although it would have been advised, he wouldn’t have actually had to do any more training. Also, since he had been a high up in the army and was used to telling people what to do, he would have been at an advantage when dealing with any staff he might employ in his business and customers. This also means that he would have been a good boss in a business and able to organise it successfully.
If he had become a franchisee he would have had the added bonus of having a large company supporting him and he would have already had a brand image built up for him. However becoming a franchisee needs a large amount of capital for a royalty payment and continuous monthly or annual payments after that. As your career consultant, my recommendation is that you should open your own business. This is because your leadership skills from being in the army would be very useful in managing a business and running it successfully.
Also you would be able to handle customers and staff alike because of your communication skills acquired from talking to your soldiers. Becoming a franchisee of another company is also an option, and you would have the added bonus of being given support from your franchiser as well as an establishment from where to work, training and other added bonuses. Also, since you have not had much experience in running a business this seems to be the best options for you. However a large start up fee is required and continual royalty payments after that.
In specific I recommend that you become a franchisee of a high profile hotel such as the Hilton or the Sheraton. This is because it is an area of business that does not require specialised skills to manage and your army tolerance would help you to run it. In terms of where it is situated, I recommend that you consult the marketing research department of Hilton or Sheraton and find out where they already have businesses running, which areas are the most successful and where the best location that you could set up your business is.
In this way you can be sure to start your franchisee in a place that you know will be successful because there aren’t many more hotels around there or there are a lot of people wanting to stay at a hotel. The initial start-up costs for a franchisee restaurant may be paid for by the franchiser. However in this case the royalty payment would be substantially larger and the monthly or annual payments after that may be as well. If this does not happen though, the franchisee would have to pay rent for some sort of premises costing around i?? 50 000 annually, machines and equipment such as ovens and cookers costing about i??
5000 and chairs, tables and cutlery at probably another i?? 5000. Also, he would need to hire some staff to help operate the business and would need to pay them around i?? 1000 per month at least, he would also need to find a supplier to buy food from and to purchase his initial supply. This would cost about i?? 1000. Finally the franchisee would need to advertise his restaurant in so way so that people might know about his restaurant and go there. The price of this would vary depending on how much advertising the franchisee does and how he does it.
(b) There are several sources that Simon could raise finance from. First he could go to the bank where he could take out a long-term lone or an overdraft. Using this method he could probably raise the most amount of cash but he would have to pay it back over a period of time and would loose more money than he initially received because of interest. Another possibility would be for Simon to go to his friends and family to ask them for financial help. Alt though he wouldn’t raise so much capital, he probably wouldn’t have to pay it back.
He could also sell some of his property to raise finance. Although this doesn’t sound like a very attractable option, if he had some valuable possessions that he didn’t want any more such as an old car, he could sell them for money. I recommend that the best course of action would be for you to take out a long-term loan from the bank because it can generate a very large amount of capital sufficient to what you need and does not have to be paid back for a very long period of time. The only disadvantage of this would be that overall you would loose money because of interest.