The thought of launching a business at any time can be daunting. But in the wake of a worldwide pandemic, it may seem downright terrifying. The uncertainty around COVID-19 has frozen some people into inaction, while others are making bold moves. One of my favorite quotes by T.S. Eliot says it all: “Only those who will risk going too far can possibly find out how far one can go.” As an entrepreneur, I live with risk, and I always see possibilities. The reason I have been drawn to franchising is that the risk is calculated, and the opportunities are plentiful.
But why now? Amid a crisis, you can gain more insights than you could have in stable times. It’s a rare opportunity to see how businesses performed and reacted when it counted. Here are some reasons buying a franchise right now could be a good move and how you can get started in our current economy.
This Is A Pivotal Time For The Workforce
Whether you lost your job or suspect it’s in jeopardy, finding a new one could be challenging. The competition will likely be fierce. The unemployment rate is at an all-time high of 23.9%. According to the U.S. Department of Labor, 20.5 million people abruptly lost jobs in April alone. Your employment may not be stable.
It May Be A Safer Way To Start Your Own Business
Starting a business from scratch is risky, but with a franchise, you have the security of a proven concept. The franchisor already went through the pains of trial and error and the expense of branding, marketing, and putting systems in place. Of course, there’s no guarantee that you will succeed, but this could be a good time to make an educated decision. After being challenged with social distancing restrictions, you can more easily determine if a business is a recession and pandemic-proof.
And franchise ownership comes with resources. You have a corporate team that can help with legal issues, marketing initiatives, business development, support, and training. With some brands, franchisees step into business as preferred vendors with national accounts in place. These are assets available to you that would take time and money to build if you had to do it yourself. So where do you start?
Figure Out The Right Franchise For You
With 3,000 franchised businesses in the U.S., how do you find the right one? There are many online resources you can explore right now, including virtual trade shows, magazines, and franchise portals. Once you have done some exploring, you may choose to gain more insights from a franchise consultant. These professionals can help you find a good fit and present opportunities that might not pop up on typical search engines. And just like real estate agents, their services are free.
Use SBA Funding
It has never been so easy or cheap to borrow money. On March 27, 2020, the president signed the CARES Act, which included $376 billion in relief for American workers and small businesses. As a result, the Small Business Administration is offering several temporary coronavirus relief funding options to take advantage of now.
Get A Deal On Your Storefront
If there has ever been a time to negotiate with commercial landlords, it’s now. With many businesses closing their doors for good and more virtual offices having success, there is real estate available, and landlords may be willing to make deals. Franchise businesses are run out of many different types of locations, from familiar retail strip malls to warehouses to office-complex-type spaces.
Vet The Franchise By Its Response To The Pandemic
People always remember how they were treated when the chips were down. Going through a pandemic has put franchise leaders to the ultimate test. You can learn a lot about a brand by calling current franchisees in a system and asking about their experience. Good franchisors made pivots to keep business moving, helped franchisees acquire relief funding, and stayed in constant communication with regular updates on the crisis. This is a perfect time to see if a franchisor stepped up or fell flat. Now, more than ever, you will know what support looks like with a brand.
Throughout franchising, we have seen tremendous support and innovation to keep business moving. Franchisees in good systems are not left alone to figure things out. They have corporate teams that provide real support. Franchising could be a good way to take advantage of that support when starting your business.
Source: Forbes