Tough Times Made for Franchises
If You Have the Guts, Now Can Be a Great Opportunity To Leap
No matter what you hear on the news, there are opportunities for business.
In fact, now might be a better time than ever. The uncertainty of the job market and the shakiness in the economy can create opportunity for potential entrepreneuers. While other businesses are struggling, franchising can offer a great opportunity to get into your own business.
If you are hesitant about whether now is a good time to launch a business, here's some evidence that there is profit in starting a franchise in a recessionary market.
- Among the different start-up businesses, 90% of franchise businesses are still open for business after five years whereas the figure for stand-alone business in the same time-frame is about 10 percent.
- Most start-up businesses fail because the inexperience of the owner becomes a liability. They often end up making decisions that have disastrous consequences on their business. On the other hand, an inexperienced franchisee has the franchisor to show him/her the right way. That is why the success rate of franchise businesses is so high.
- Due to the volatile market, financial lending institutes are hesitant to lend money to newcomers, especially those with no experience in the field. But when an inexperienced franchisee approaches a bank or other lending institutions, they can ride on the name of the franchisor. Some franchisors have their own chosen lenders while others are registered as small business franchises.
- There are so many kinds of franchise opportunities in the market that finding one that suits your budget and interest is not difficult. Moreover, the franchisors in most franchise concepts prefer newcomers with no prior knowledge of the industry, so that they can mold them in accordance with their business model.
If uncertain economic times have gotten you worried about your current career, or if you're ready to try something new, franchising can be a great place to start. Of course, any business success requires your hard work.
Here are several categories of franchises that tend to be recession proof:
- Hair care: People will still scrape together money to get their cut. A number of the most successful franchise concepts offer something unique, whether it's a sports-themed male-oriented shop like Sport Clips, or one that specializes in hair coloring like Hair Color Xperts.
- Employment: As businesses outsource many of their current functions, companies that specialize in personnel services like Snelling Staffing Services, find more work.
- Printing: Again, companies are outsourcing functions like these. International networks such as those offered by AlphaGraphics, can fuction much like a Fortune 500 company's internal print shop.
- Home care: People with aging parents or ill family members will continue to need assistance. That's why the senior care category shows no signs of stopping. Within that category, non-medical inhome care like that offered by AmeriCare Alliance, offers a broad-based business that can withstand tough economic conditions.
If you're ready to leap, now can be a great time to enter franchising.
