|As the prospect of a looming world events confuses “the experts,” I am often asked about starting a business during times of uncertainty. Whether a recssion is on or not, the reality is franchising succeeds in ANY economy because consumers continue to pay for necessary services. Franchisors AND franchisees benefit from the following during economic shifts.
1. Proven Business Model: Franchises come with a tried-and-tested business model, providing a level of stability and a higher chance of success for franchise owners compared to starting an independent business. Entrepreneurs are not as circumspect, well informed or proactive during economic uncertainties.
2. Brand Resilience: Established franchise brands tend to have greater resilience during tough economic times due to existing brand recognition and strong consumer sentiment (dollars spent). Consumers may lean toward familiar and trusted brands in a recession.
3. Supportive Infrastructure: Franchisors offer comprehensive support, including training, marketing assistance, and operational guidance. This support can be crucial for franchisees navigating challenges associated with a recession.
4. Cost Efficiency: Franchising provides both time and cost-effective ways to enter the business world. Franchisees can benefit from economies of scale and shared resources within the franchise system and save the one precious commodity we all need to protect: TIME.
5. Opportunity for Innovation: Recessions can foster innovation as businesses seek to adapt and find new solutions to increase top line revenue and bottom line profits. Franchise systems encourage and support franchisees to participate in developing creative strategies to navigate economic challenges.
There is no perfect time to open a business. You might be getting married, buying a house, starting a family, or facing another significant lifetime event. Life happens, and there will always be people and reasons not to do something that challenges the status quo. But think about how you spend your time now… are you grooming your portfolio to gain the maximum benefits of diversifying and protecting your financial future?
Franchising is always a solid opportunity to leverage and be positioned to take advantage of the upcycle. Choosing the right franchise is critical. It is important to exercise thorough due diligence, understand the specific conditions of the industry, and carefully assess the support provided by the franchisor.
If you find yourself willing to explore this path, I would love to guide you through this process and help you find the right franchise for you and your family. If you want to learn more about franchising from those who are doing it, listen to the Free Agent podcast on Spotify, Apple, or other streaming plaftorms