Business start-ups at any time are volatile by nature, and it is difficult to predict which firms will be successful.
Most studies show that over 90 percent fail within three years – even in the best of times. During an economic downturn, such as we are currently experiencing, it can be particularly daunting to consider starting a new business. Finding a business that has a good chance of success might seem to be like following Alice into the Looking glass. But that does not need to be the case.
The right franchise business could be the answer.
It has been proven over many years that a franchisee has a stronger chance for survival than an independent start-up. This does not mean that a franchisee would automatically be a success. Success in business does require dedication but the fear of failure, and indeed the actual risk of failure, can be greatly reduced through franchising.
There are several reasons for this. First, a franchisor already has a proven business model. The guesswork has largely been eliminated. There are actual sales figures and business trends to support the business model. Also, a franchisor is able to support its franchisees with expertise in many business areas that an independent business may not otherwise be able to afford, or in fact even be able to find easily.
Further, an established brand that is easily recognisable provides distinct advantages as consumers feel ’safer’ with something that is familiar. Companies typically develop their brand image and trademark through extensive advertising and promotion. But a company can benefit from mass-media advertising only if it has in place a number of shops, offices or other locations that customers who see its ads can visit or contact. This would be beyond the reach of most new independent business start-ups. However, as part of a franchise network, you would benefit from their brand visibility.
So is this the right time to start a new business – even as part of an established franchise network?
I believe the answer is “Yes” – with some qualifications.
Historically, during times of recession and other periods of economic upheaval, there were those who prospered. This is not too surprising, as people still need to purchase many items, and often increase their spending on those things which can provide “light relief” to them in difficult times.
Those business people with money to invest, a bit of foresight and a good support structure prospered. They could do so because the cost of various overheads generally reduce, forced down by the economic situation, many competitors will go out of business and the potential employee pool will increase.
With the right franchise business, you would have the advantage of brand strength, proven business model and ongoing support to add to these other advantages. However it is vital to find the right franchisee business in a timely fashion.
Finding the right Franchise to meet your goals and objectives takes diligence and focus, and is a time intensive process. Many prospective franchisees don’t even know where to begin the process. After all, there’s so many options, how do you know which is the right franchise option for you?
Experienced consultants, such as those at Kyros have spent years pre-screening hundreds of large and small, national and local franchises to identify the leaders in their industry, building strong relationships along the way. This gives you the edge, right from the start, and can be just what is needed to find your road to success in these difficult times.
“The Only Thing We Have to Fear Is Fear Itself”
As final note, it is good to remember this quote from the First Inaugural Address of the newly elected President of the United States, Franklin D. Roosevelt. It was made in 1933 at the depth of the Great Depression, and therefore particularly timely for us today. There are excellent business opportunities out there right now if we are ready to take them.
Filed under: Opinion, The Economy | Tagged: Advantage, Advice, Economic Downturn, Opportunity, Right Time
