The world is still turning, the sun is still rising and setting, and money is changing hands…
You may find this hard to believe, but there is still business being done everyday, in the US. Franchise owners, independent business owners, and yes, even big corporations like Microsoft, and IBM are still selling their wares…..Keep reading. One of the world’s top franchise expert’s answers some tough questions…
Consumers are still out there buying appliances, big screen
televisions, and even a few automobiles. Small business owners are
still purchasing computers, servers, and printing products. Some transactions are taking place right down the street from you, while others are taking place, online.
What does this all mean? It means that the sun still comes up every day. Every day.
The stock market may win some days, and may lose some days. Businesses
may open some days, and businesses may be forced to close some days.
I asked a couple of really important questions of my colleague, Michael Seid, The President of MSA And Associates. Michael is considered one of the top franchise experts in the world. Look at what he has to say about franchising, and our current economic troubles:
Q: What would you suggest to anyone that is
torn between waiting for the economy to stabilize before they start
looking at opportunities in franchising?
Michael: “While the economic difficulties are
serious, for potential franchisees this opens up major advantages.
Franchisors anticipate that their flow of quality candidates will slow
as will the availability of capital and loans for some prospective
franchisees. I would certainly take a heightened look at the financial
condition of any franchisor today (a good idea even in the best of
times). But established brands with good track records are still solid
opportunities to look at. Well funded new concepts may actually have
an advantage as they can more readily deal with market changes and
opportunities at the consumer level which larger brands cannot. Money
is made in a down economy by those who are smart enough to do their
homework and understand the possibilities. Looking at existing
franchises to purchase in addition to expanding from that base with
solid franchisors is something to consider now.”
Q: Are there any types of franchise categories that may do better than others during tough economic times?
Michael: You don’t invest in franchises simply to
avoid current economic problems. Franchise investment is a long term
investment and you should look to how brands have done in up markets
and down markets. No industry is recession proof but some are
recession resistant. I always look at what people must buy when times
are tough. Alternatives to high prices vacations or entertainment for
families and education for children should do fine. Second jobs will
require day care for children and seniors that have been assisted by
the family. I would look at the solid brands in those areas. Hair
care is essential especially if you are looking for a new job or a
second job. Those have always been recession resistant industries.