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Franchises Might Be Best Bet For Business in Tough Economy
Franchises Might Be Best Bet For Business in Tough Economy
When times are tight financially and it seems everyone is going under, the thought of venturing into starting your own business may seem counter intuitive. Watching big business and Wall Street masters fall into oblivion each night on the news sends the message that every business out there is slated for certain doom in these tough economic times. While for some, failure due to the recession is unavoidable, all will not succumb and close up shop. Looking back in history during past economic downward spirals, some businesses floated through fairly unscathed and even prospered after the recession lifted. Of these businesses that survived, franchises primarily remained intact. After World War II, soldiers coming home flooded the business world, spawning franchises that successfully lifted this nation out of economic darkness. The same formula for success just might be the answer to getting the current economic crisis under control.
There are several reasons to consider opening a franchise during an economic downturn. One reason is a built in successful business plan. You do not have to do all of the leg work to find if your business will fulfill a need or deliver a necessary product. It has already proven its viability. Your business model has already been proven tried and true and ready to be executed. With this already successful business plan in hand, you also have the added benefit of tools for success and employee manuals already laid out. You will save yourself the time of researching necessary equipment, sales material and employee training techniques. This too is already outlined for you.
By opening a franchise you are also tapping into a built in customer base. There is already brand recognition in the community. Others who started the franchise already did the work of making it well-known, respected, and trustworthy. You simply have to open and that built in trust and respect will already be established. You have to maintain that level of expected service; but if you are motivated to succeed that should not be a problem. This built in customer base will make your franchise succeed in harsh economic times just as their loyalty made it a success in great times. When you look at the top franchise companies in the Unites States today, built in brand recognition is obvious. The top ones are currently Subway, McDonalds, Sonic Drive In Restaurant, Ace Hardware Corp. and Pizza Hut to name a few.
You might find opening a franchise during tough times simply easier to get backing for compared to a new business. One reason is financing. Right now, banks are very particular as to who they want to gamble on. They may be more apt to lend to a franchise opening up rather than toss the dice on a startup which has no proven success rate. For the banking community, the franchise is seen as a sure bet. They see cost savings compared to new startups which would require added cost of licensing and marketing.
It is no secret that the real estate bubble bursting has led to the cheapest prices ever in the market. There are also record foreclosures in every area, housing and retail. This could be a prime opportunity for a new franchise to open. Finding your dream location for your franchise will be a lot easier during a recession. You may find more space for less money than you could have anticipated. For added savings on a location, you might actually want to check in with franchises already in your area. They might be owned by people looking to retire soon or by folks itching to try a new business opportunity. If this is the case, taking over an existing franchise makes the process all the more easier.
Not only is physical space cheap these days, but employees to get your franchise going are also in abundance. With the job market looking so bleak, the amount of talented and willing people out there waiting for work is astounding. They are reliable and eager to see your franchise succeed and that will naturally translate to incredible customer service.
