Here Come the Middle Managers – The Prayer for the Next Recession

Economists suggest that 2030 is going to be the next Great Depression. 2008 will eat 2030’s dust.

Don’t panic, though. This is your opportunity.

If you didn’t read my last column, read that one first. That will help put this one in perspective.

The prayer for the next recession, and in turn, depression, is because that is the time the most buyers become active. That is when all of those marketing dollars you spent educating the buyer that your opportunity makes most sense comes to fruition. That is when you have the opportunity to scale the growth of your brand, position it and sell for a ridiculous dollar amount to the next round of private equity firms looking to buy.

If you play the game – the economy game – correctly, you will have a chance at winning.

Think about all the franchise brands that exist. What percentage climb to over 100 units? One percent? Maybe? What percentage of those brands have put out a press release declaring they will sell (not award) 100 units in the next three years. A high percentage.

Data is data is data is data.

The data points to all of the things that are tough about franchise development. More brands, fewer buyers, increased real estate costs – the storm is upon us. So, the prayer for the next recession is needed to drive the next bump in growth.

As I wrote before, franchising needs to live against the grain of the traditional economy – if brands want a shot at winning. When times get tough, franchise brands need to invest.

There is no secret to how investor portfolios grow. Buy low, sell high. For some reason, franchise brands hunker down when trends go south, yet, that’s the time they need to bump their investments in order to sell high.

When system-wide sales go down, you spend more. Why? Those sales trends should show you a dip in the economy. Dips in the economy create shaky ground for careers. Shaky ground for careers drives life changes.

And whose lives change the most in downturns? Middle managers. And why do we love middle managers? They won’t get filthy rich being one, but many have the drive to be wealthy – or to build wealth for their families. If they can’t build wealth in their career, where will they look? Other opportunities. Historically, what opportunities provide great wealth building opportunities for middle managers? Franchising.

So, what does this mean?

Save now. Strategize now. Really identify your persona targets. Plan to own the small bump/correction expected for 2019 and 2020. And then ride the waves until 2030 when we battle a Great Depression. And when we hit the great depression, be even more prepared to make even more money.