How FranNet Creates Successful Business Owners During a Recession

After the pandemic, many aspiring entrepreneurs have decided to chase their dreams and research franchise opportunities to invest in. But with a turbulent economy, many prospective business owners have doubts about making such an important investment. FranNet franchise consultants understand these concerns and aim to set the record straight regarding the impact of a recession on business ownership.

“The reality is you want to be proactive, not reactive,” said Jania Bailey, CEO of FranNet. “In many situations, once a business is actually up and running, an economic crisis has already passed. Don’t wait on business ownership. Start exploring your options and know what is out there.”

For more than 35 years, FranNet’s experienced local franchise consultants have helped guide clients through the process of identifying the franchise opportunities that best fit their business and lifestyle goals. Through this long history of matching franchisees with franchisors, FranNet has identified economic trends and how they affect businesses.

“Everyone is talking about recession right now,” said Bailey. “But there have been 11 recessions since 1948. Most of these recessions were short-lived and didn’t warrant a panic. Businesses can take off and become successful even when economic conditions aren’t perfect.”

Despite popular opinion, there can actually be tremendous benefits to starting a business amid a recession. As the government works to get the economy back on track, small businesses can reap the benefits of government incentives. As many people are searching for employment, it can be easier to build a strong staff.

“High unemployment means it is easier to hire employees,” said Bailey. “The hiring base you need when starting a business is abundant at these times. Also, for those that have an SBA loan, you will benefit from the lowered interest rates associated with the recession. There is also more available real estate, and the government historically has given incentives for small businesses to start their businesses at these times. It seems counterintuitive, but a recession can actually be an excellent time to invest in a franchise.”

However, FranNet advises clients to be careful when selecting a franchise to buy. Fad businesses and luxury brands tend to fare the worst amid an economic downturn. At these times, many people will choose to forgo more expensive services.

“Consider hair care,” said Bailey. “Regardless of the economy, people are still going to get haircuts. But they will probably avoid the salon that charges $160. Potential franchise owners should instead consider investing in essential, recession-proof services. These services are critical and will always be in demand.”

It is never a bad time to research business ownership opportunities and discover ways to make your entrepreneurial dreams come true. FranNet acts as a trusted advisor through the matchmaking process and can provide you with the answers you need to determine if now is the right time for you to open a business.

If you are a potential franchisee looking to invest or a franchisor looking to attract new candidates, contact FranNet at https://frannet.com/.