<span style="font-size: 25px;">🕒</span> Estimated reading time: 3 min.
While a lot of countries are beginning to emerge from the lockdowns brought on by the COVID-19 crisis, the global and economic fallout of the virus will linger for months and years to come. Many companies will struggle to regain momentum and revenue in the coming months, while others, unfortunately, will be unable to open their doors again.
As businesses come to terms with the future implications and roadblocks as a result of the virus, entrepreneurs now must re-think future investments plans as industries adjust to the ‘new’ normal. Due to the pandemic, highly skilled workers have lost their jobs and are now facing uncertain employment prospects.
However, despite the difficulty in predicting the global markets, there is still opportunity for entrepreneurs to gain rewarding, financial success by investing in a franchise.
The Franchise Model
Unlike independent companies, franchises are resilient business models that are more likely to weather the storm through recessions. Given the difficult economic circumstances, now perhaps more than ever is the best time to invest in a franchise for a number of reasons:
Established brand - A franchise has the benefit of built-in name recognition and an already existing loyal customer base, giving you solid ground to build up from. This base, along with heightened brand awareness, can sustain your business throughout harsher economic climates.
Sarra Bejaoui, Founder and Managing Director of Smart PA, says;
"After over 10 years of leading a franchising business, navigating a team through economic and political challenges and now a global pandemic – I would like to think that I’ve experienced everything that could possibly impact a business! Despite all the uncertain (and often turbulent!) situations, the benefits of investing in a franchise have never been more prevalent.
When investing in a franchising model, you not only have the increased security of a global brand behind you but also a plethora of people to help you. Whether that is financially, professionally or in a personal capacity, franchising gives much more stability and security during uncertain economic times."
Low risk - Banks are more willing to lend and support franchises that have a proven record of success and stable financial histories, making them a low-risk investment. Smaller businesses and independent operations can be financially risky, even in stable economies, and many are likely to go under within two years of opening.
Sally Wilse, co-owner of Seniors Helping Seniors (UK) ltd and owner manager of Seniors Helping Seniors Canterbury and Thanet, agrees that a franchise is a wiser investment option than an independent business due to its business model:
"Because franchisees (involved with a trusted brand) are not doing anything alone or for the first time. An independent business is learning as they go along on their own. It’s true no one of us has lived through a pandemic before, but established franchises have resources and experience to draw on. Franchises support each partner and adapt quickly and efficiently. The whole point of franchising is to remove uncertainty"
Support & Collaboration - By investing in a franchise, you have access to a wealth of resources and knowledge from fellow franchise owners and managers. From setting up your own store to branding and marketing, you don’t need to worry about doing it all on your own as you have experienced guidance from those who have already been through the same process and can offer you top-level training and expertise.
Sarra Bejaoui of Smart PAagrees that having a pool of expertise to dip into is key for successful franchises:
"For our global team of SmartPAs, the franchising model delivers everything and more as they gain access to an established brand, tried and trusted ways of working and the support and motivation of an innovative team of experts. Our particular industry of business and administration support has never been more in demand as organisations everywhere need remote support now more than ever.
Our people are our greatest asset and by supporting them to be the best version of themselves, they can flourish regardless of what’s going on in the world around us. We are there with them through any and every situation, so that they can focus on supporting the success of businesses around the world. "
Financial Aid - Many franchises offer financial support to their new franchisees, whether it be directly or through third-parties, making the process of opening up a new business a lot easier. Start-up costs for a franchise will be significantly less than if you were to open an independent business.
The Opportunity
Despite the daunting economic challenges facing industries, a franchise model is a reliable bet for investors given the wide range of opportunities available on the market. Thriving franchises at the moment include online and home-based businesses, while other industries such ashome care and professional services are all adapting their processes to continue their successful operations.
Franchising provides budding entrepreneurs the chance to be their own boss and gain significant financial profits, all while having the support of multiple organisations by their side.
Sally Wilse of Seniors Helping Seniors is firm in her belief that a franchise is more likely to thrive during economic hardship:
"Customers want to buy local and with a franchise they understand they get the best of both worlds. A national or international brand’s experience and stability, run and owned by local people with local expertise."
If you feel like this is the right time to invest,browse our exciting opportunities hereand begin your franchise journey today!