Why Small Business Owners Will Play a Critical Role in Rebuilding the Economy

The consequences of the coronavirus crisis are far-reaching — from the future of social interactions to healthcare protocols that will need to be put in place, it’s likely that communities across the globe will adapt to a new way of life either permanently or long term. The aftermath of COVID-19 will also involve rebuilding the economy as businesses begin reopening their doors.

Small business owners, including franchisees, will play a critical role in that process. For the brands that are able to reopen on the other side of the pandemic, there’s an opportunity to come back stronger than when this started. According to Dan Rowe, founder and CEO of franchise development company Fransmart, franchisors need to work closely with their local owners to position them to be more profitable in the future.

“Franchisors should take the opportunity to completely restart their business model,” he said. “Tear it up and restart in a way that ensures that franchisees are making more money. Help your franchisees, employees and managers create higher quality teams. You have that luxury of people who need jobs right now.”

Rowe anticipates that it will take a while for entrepreneurs to rebuild their businesses. Until the COVID-19 crisis is more controlled, consumers will be skeptical to return to normal, which is why franchisees need to think about their long-term plans for survival.

“I think it will be a slow ramp. When we are finally able to go back to work, we’ll likely see 50% of the normal traffic volume for a number of reasons,” said Rowe. “There will probably only be about half of consumers willing to go back to places they like and trust. However, there will also likely be a third of restaurants unable to reopen, for example, so it will feel like there’s more customers coming in. After the summer, it will gradually build back. I fully expect this time next year to be normal unless another catastrophe hits.”

The biggest benefit that franchise brands have on their side when it comes to rebuilding is the fact that franchisees are local business owners. Throughout the COVID-19 crisis, communities have rallied around small businesses, and they’re looking for ways to show their support. By tapping into this heightened demand and consumer spending as it returns, franchisees have the ability to play a key role in generating business.

“Small businesses will have a major impact on the economy coming back and growing,” said Seth Holan, manager of franchise development for Wild Birds Unlimited*. “The communities that these small businesses are in are going to want to rally together to support their friends and neighbors. They’ll want to support small businesses and keep them going because that’s what a community relationship is all about.”