Recession Effects on Small Business and What that Means for Franchises
Recession Effects on Small Business and What that Means for Franchises
Small Business and Recession
Though small business makes up 99% of American business and employs half of the country’s working population, even some small business owners are getting nervous amidst declining financial conditions. In light of the nation’s general response to our economic circumstance, some organizations have stepped out to investigate exactly what kind of toll it has taken on America’s small business leaders.
One of those investigations is a survey of small business owners that was conducted by the National Small Business Association, and their findings, if nothing else, solidly confirm that small businesses, like everyone else, are very anxious about recession, and have been for some time. The same survey has been conducted annually for numerous years, and the most recent findings were complied in April of this year, when recession was still a looming threat instead of a present reality. Even then, small business anxiety was rampant. When surveyed in 2007, the majority of small business entrepreneurs were optimistic about the economic outlook for the coming year of business, but when the same pool of business owners was surveyed in 2008, an overwhelming 71% expected a negative economic trend for the year.
With analysts only giving more and more reasons to believe that the economy was coming to the crunch that we now, in retrospect, know was true, entrepreneurs became more pessimistic even in regard to their own business forecasts. Nearly 25% claimed they had no growth strategy for the 2008 fiscal year; 55% reported having a hard time securing credit last year; and, according to Inc Magazine, the number of business owners citing inflation as their #1 concern rose to its highest level since 1982. Simple morale even decreased. In 2007, 81% of surveyed owners voiced confidence in their businesses, but in 2008, with recession pressed firmly into their minds, that number dropped to 70%, leaving the other 30% with a dwindling sense of hope not just for the market but also for themselves.
Without a doubt, recession was anticipated in early 2008, and has now struck toward the tail end of the year. And that has negatively impacted both the success and morale of the small business sector. However, the question to follow, which must be asked, is how that shockwave has more specifically rattled the world of franchised small businesses.
Recession and Small Business Franchises
To propose that no franchise anywhere has taken a hit because of recession would be a half-cocked presupposition, because there have undoubtedly been all kinds of businesses to suffer in recent months. Still, in spite of the downturned economy and how it’s begun to eat away at businesses in the larger scheme of things, franchises have proven to be very resilient in the face of economic adversity.
This is mostly due to the essential nature of franchise business. During recession, one of the hardest things for a business owner to do is adapt the business plan to account for the shifting economy while successfully operating the business. Franchisees don’t have to worry about that, because as they continue to perform daily operations, central staff takes responsibility for adapting business plans to the changing market, and with the long history most franchise operations have, those adaptations are made with a wealth of knowledge and experience behind them that most non-franchised businesses simply do not have.
Another huge benefit that a franchise opportunity brings to the table that no ordinary small business can compete with is a comprehensive marketing plan that uses the best strategies for local and national advertising. Because marketing is something that the average self-starting entrepreneur is not well versed in but is one of the most important tools for maintaining a business despite recession, having that professional staff of marketers doing the work on your behalf is a huge plus for any business owner.
Some Ideas
With that in mind, here are a few franchise business opportunities for the interested entrepreneur.
Pillar to Post
This home inspection home based business has been recognized by Entrepreneur Magazine as the #1 in its class for the last 6 straight years. With a central staff of dedicated professionals behind each franchisee to develop the best training systems, business practices, and marketing plans in the home inspection market, recession is not enough to stop this business.
DES Staffing
As unemployment rises, businesses become increasingly choosy about whom they select for open positions, and hiring a staffing agency to help make that perfect selection becomes a very wise decision. Specializing in the manufacturing and light industrial markets, DES Staffing franchisees provide temporary and long-term staffing solutions for their clients.
Club Z Tutoring
The education industry is one of the few markets commonly known to be recession-proof, and this is the perfect work from home franchise opportunity to take advantage of that fact. Unlike many tutoring businesses that cost large amounts of money for franchisee and client alike, because they have full storefronts, this business cuts costs for everyone and puts students in their most comfortable learning environments by sending the tutor straight to the tutee’s home. With this franchise, be your own boss, save overhead expenses, and get through the recession.
There is no surefire way to walk through a recession unscathed, but purchasing a franchise is certainly a wise idea. Among all the other benefits, franchisees receive personal attention and encouragement from their franchisors, something that is a bigger help than many recognize.
Recession Effects on Small Business and What that Means for Franchises - To learn more about this author, visit Candice Clem's Website.
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The United States, along with much of the world, is in a state of economic decline, and that thought is scaring everyone at least a little. And why shouldn’t it? Prices are rising, the value of the dollar is dwindling, businesses are closing, stock market investors are backing out, and banks are going bankrupt. From the look of things, it seems that no one is immune to these frightening changes in our national economy. So what does recession mean for small businesses in specific?
Small Business and Recession
Though small business makes up 99% of American business and employs half of the country’s working population, even some small business owners are getting nervous amidst declining financial conditions. In light of the nation’s general response to our economic circumstance, some organizations have stepped out to investigate exactly what kind of toll it has taken on America’s small business leaders.
One of those investigations is a survey of small business owners that was conducted by the National Small Business Association, and their findings, if nothing else, solidly confirm that small businesses, like everyone else, are very anxious about recession, and have been for some time. The same survey has been conducted annually for numerous years, and the most recent findings were complied in April of this year, when recession was still a looming threat instead of a present reality. Even then, small business anxiety was rampant. When surveyed in 2007, the majority of small business entrepreneurs were optimistic about the economic outlook for the coming year of business, but when the same pool of business owners was surveyed in 2008, an overwhelming 71% expected a negative economic trend for the year.
With analysts only giving more and more reasons to believe that the economy was coming to the crunch that we now, in retrospect, know was true, entrepreneurs became more pessimistic even in regard to their own business forecasts. Nearly 25% claimed they had no growth strategy for the 2008 fiscal year; 55% reported having a hard time securing credit last year; and, according to Inc Magazine, the number of business owners citing inflation as their #1 concern rose to its highest level since 1982. Simple morale even decreased. In 2007, 81% of surveyed owners voiced confidence in their businesses, but in 2008, with recession pressed firmly into their minds, that number dropped to 70%, leaving the other 30% with a dwindling sense of hope not just for the market but also for themselves.
Without a doubt, recession was anticipated in early 2008, and has now struck toward the tail end of the year. And that has negatively impacted both the success and morale of the small business sector. However, the question to follow, which must be asked, is how that shockwave has more specifically rattled the world of franchised small businesses.
Recession and Small Business Franchises
To propose that no franchise anywhere has taken a hit because of recession would be a half-cocked presupposition, because there have undoubtedly been all kinds of businesses to suffer in recent months. Still, in spite of the downturned economy and how it’s begun to eat away at businesses in the larger scheme of things, franchises have proven to be very resilient in the face of economic adversity.
This is mostly due to the essential nature of franchise business. During recession, one of the hardest things for a business owner to do is adapt the business plan to account for the shifting economy while successfully operating the business. Franchisees don’t have to worry about that, because as they continue to perform daily operations, central staff takes responsibility for adapting business plans to the changing market, and with the long history most franchise operations have, those adaptations are made with a wealth of knowledge and experience behind them that most non-franchised businesses simply do not have.
Another huge benefit that a franchise opportunity brings to the table that no ordinary small business can compete with is a comprehensive marketing plan that uses the best strategies for local and national advertising. Because marketing is something that the average self-starting entrepreneur is not well versed in but is one of the most important tools for maintaining a business despite recession, having that professional staff of marketers doing the work on your behalf is a huge plus for any business owner.
Some Ideas
With that in mind, here are a few franchise business opportunities for the interested entrepreneur.
Pillar to Post
This home inspection home based business has been recognized by Entrepreneur Magazine as the #1 in its class for the last 6 straight years. With a central staff of dedicated professionals behind each franchisee to develop the best training systems, business practices, and marketing plans in the home inspection market, recession is not enough to stop this business.
DES Staffing
As unemployment rises, businesses become increasingly choosy about whom they select for open positions, and hiring a staffing agency to help make that perfect selection becomes a very wise decision. Specializing in the manufacturing and light industrial markets, DES Staffing franchisees provide temporary and long-term staffing solutions for their clients.
Club Z Tutoring
The education industry is one of the few markets commonly known to be recession-proof, and this is the perfect work from home franchise opportunity to take advantage of that fact. Unlike many tutoring businesses that cost large amounts of money for franchisee and client alike, because they have full storefronts, this business cuts costs for everyone and puts students in their most comfortable learning environments by sending the tutor straight to the tutee’s home. With this franchise, be your own boss, save overhead expenses, and get through the recession.
There is no surefire way to walk through a recession unscathed, but purchasing a franchise is certainly a wise idea. Among all the other benefits, franchisees receive personal attention and encouragement from their franchisors, something that is a bigger help than many recognize.
Recession Effects on Small Business and What that Means for Franchises - To learn more about this author, visit Candice Clem's Website.
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John PowerJohn Power, founder of Biltmore Franchise Consulting, has extensive experience developing and marketing franchises and business opportunities. He has been in and around franchising for over twenty years. From 1980 through 1990 he conceptualized, organized, and developed the American Video Association. He grew AVA to 2,000 national members, before selling the company it 1990. It was later merged into another home video marketing company. From 2000 to 2005 he worked as a contract marketing and human resources consultant to several local and national companies. In 2005 Mr. Power began working as a franchise development consultant on a full-time basis. Since that time he has helped more than three dozen companies initiate and develop their franchising program. He notes that there are many companies interested in developing a franchise program, and who need his specialized assistance. Mr. Power is a “hands-on” franchise consultant. He said, “I am the ‘nuts and bolts’ person who tends to the details for my clients.” Mr. Power holds a B.S. degree with a major in Marketing. See: www.biltmorefranchise.com You may contact Mr. Power at: jpower@biltmorefranchise.co - Visit John Power's Website |
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Cheryl MatthynssensCheryl is a life skills coach, licensed Chemical Dependency Counselor and a 20 year entrepreneur. Cheryl's dedication to achieving a life of balance led to her expanding her teaching from the simple managing of life's daily challenges to adding financial well being as well. A direct marketer with DrinkACT, she is gaining ground in the online community with her concepts of making sure business owners, entreprenuers and employees have well rounded life styles. She opened up a small affiliate site - The Balance Guide- to help others find resources for mental and emotional well being. Visit Cheryl's blog to see more of the diversity beyond business she has began offering online at www.thebalanceguide.blogspot.com - Visit Cheryl Matthynssens's Website |
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John AlexanderJohn has taught keyword research and SEO skills to small groups of business owners and Webmasters from over 80 different countries world wide since 2002. John is also the Director of Search Engine Academy ; Co-director of Training at Search Engine Workshops offering live, SEO Workshops with his partner SEO educator Robin Nobles, author of the very first comprehensive online search engine marketing courses at SEO Training Online and the SEO Workshop Resource Center. I look forward to hearing from you! - Visit John Alexander's Website |
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John BrennanJohn Brennan Ed.D. Dr. Brennan is President of Interpersonal Development, LLC, a training and development firm. Interpersonal Development has provided sales training and coaching to more than 3,000 sales reps from over 100 companies. A native of Australia, Dr. Brennan received his doctorate from the University of Rochester. His dissertation researched the effectiveness of Behavioral Modeling Technology in training people in interpersonal skills. While he has spent most of his career designing or delivering training, he was also a Vice-President of Sales of a training and development franchise with operations in 25 markets. Dr. Brennan has designed and delivered sales training in North America, Asia, Europe, Australia and the Middle East. He has been a guest speaker at numerous national and regional professional conferences. When Microsoft wanted Best Practices articles on sales for their web site, they called Dr. Brennan. The results are at http://office.microsoft.com/en-us/FX011387391033.aspx His firm’s clients have included Volvo, The Prudential, Merrill Lynch, Eastman Kodak, Gannett, Equifax Europe, the Economist Group and countless small businesses. - Visit John Brennan's Website |
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David BarrDavid Barr is the President of Venture Opportunities, Inc. David has been a professional business broker/intermediary since 1980 focusing on General Business Brokerage and Mergers and Acquisitions representing client transaction value from $400,000 to $20,000,000. Mr. Barr has handled the sale of over four hundred and fifty companies. David earned a university degree from the State University of New York majoring in economics and business. David holds the Mergers and Acquisition Master Intermediary and the Certified Business Intermediary designations from the International Business Brokers Association. He is also a Senior Business Analyst and a Texas licensed Real Estate Agent. For more information about David and Venture Opportunities, visit www.bizdealmaker.com. - Visit David Barr's Website |
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Anne BarrAnne Barr has over 26 years experience in sales and marketing, six years as a franchisee. She has assisted over 367 business owners and purchasers to achieve their goals in career change, transition and exit strategy. She holds the designation of Certified Franchise Executive from the International Franchise Association, Certified Business Intermediary from the International Business Brokers Association and Board Certified Broker from the Texas Association of Business Brokers. Anne is active in professional organizations, networking groups and volunteers for non-profit entities. As owner/operator of four successful businesses, Anne has proven people skills and enjoys helping clients find the right "fit" in business ownership. Visit www.FranchiseOpportunitySpecialist.com for more information about me and my company. - Visit Anne Barr's Website |
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