In the face of a recession has come a renewed interest and focus on franchising and franchise opportunities. Faced with the uncertainty of corporate life and layoffs rendering hard working and educated individuals without employment, a spotlight has been placed on franchise ownership and the resources available to prospective franchisees.
So what do We Learn From Viewing Franchising through the Prism of a Recession?
No Business is Recession Proof – Including a Franchise In her timely and informative article “When Career Turns Down, Franchising is Option,” career columnist Eve Tahmincioglu correctly recognizes that purchasing a franchise is definitely an option that out-of-work individuals with money should consider. However, Ms. Tahmincioglu cites to Small Business Administration statistics and cautions would be franchisees that a franchise business (like any business) is not recession proof. So what does this mean? Nothing is guaranteed and do lots of research – explained in the next point below.
Selecting the Right Franchise Requires Research In an earlier post I urge (strongly) that before you purchase a franchise contact existing franchisees and ask them about their experiences. This point is critical, however, in terms of the information gathering process the internet has helped franchise purchasers level the playing field. In his article “Blogs Provide Insight to Would Be Franchisees,” Wall Street Journal columnist Richard Gibson provides prospective franchisees with critical advice and, most significantly, an analysis of blogs that offer business purchasers with great information and advice.
So, if you are considering the purchase of a business or franchise, read Richard Gibson’s article and check out the blogs, which include:
- Blue Mau Mau
- Franchise Pundit
- Franchise Chat
- Rush On Business
- Unhappy Franchisee
- The Franchise King
If You are Buying a Franchise Only because You Lost Your Job – Don’t Do It With the many rewards that come with entrepreneurship and owning your own business or franchise come many difficult questions, obligations and choices. While your current employment status (or lack thereof) may be one of many valid reasons to buy a franchise it should not be the only reason – otherwise, you may make a bad situation worse. Although the current economic climate is difficult, there are, nevertheless, many opportunities for those looking to make a leap into the world of entrepreneurship. However, before doing this, take advantage of the valuable information offered on the web by the franchise and business community.