“Start a business in this economy? Are you crazy?” Maybe not so crazy. For the moment, set aside the fact traditional employment options might be limited because of this economy. (It isn’t a news flash the job market is tight.) Instead, let’s focus on different questions: Is a business started today likely to succeed or to fail? Are there good recession resistant businesses? It all depends on the kind of business. This might not be a great time to start a business selling luxury goods. But aren’t there other options? What about businesses selling necessities? Better yet, what about businesses selling necessities at a good value? Maybe this is a great time for that kind of recession resistant business. Tutoring services, for example, are famously steady in an off economy. No matter how tight money might be, many parents will make it a priority to see their children have the resources needed to succeed in school. What about businesses that operate almost independent of the economy? Yes, there are some. Have you ever had the misfortune of having a flood in your home? A problem like that happens just as often in economic booms as it does in a recession. There are businesses that provide exactly that kind of disaster repair. It’s hard to think of a reason a disaster repair business can’t do well in a recession. What else? What about businesses with greater demand in a down economy? There are plenty of business owners struggling today. Wouldn’t this be a great time to sell services that can help turn around someone else’s struggling company? Not to mention anyone who sells a product that will help a business to lower its costs. Wouldn’t this economy help that sort of business to prosper? There are certain demographics that are growing quickly. It might be a great time to own a business that sells to the fast growing population of senior citizens. There are several types of businesses that sell to seniors. Some might provide skilled medical care, and others non-medical care. Still other businesses provide home modification services, installing wheel chair ramps, stair lifts, or shower adaptations. If you are providing this type of service, you might do very well in a world with a fast growing population of seniors. Corporate America has cut so many positions they have created an excellent opportunity for temporary staffing companies. Many retail businesses continue to do well – sales are way up at dollar stores. And, given more people than ever work from home, pack-and-ship stores are doing more business than ever. We could go on and on. Yes, this economy has hurt a lot of businesses. But it has also created opportunities for many others. There truly are some great recession resistant businesses. This might, indeed, be a great time to start a business. You just have to find one that has the right kind of market.
Last week, the response to my “When Corporate America Doesn’t Want You Anymore” post was amazing.
In it, I mention 70% of all millionaires share a common trait.
Do you know what it is?
Can you guess? The answer is...
(Drumroll please!)
70% of all millionaires own their own businesses.
The fact is, no other form of creating wealth results in as many millionaires as being in business for yourself.
Ever Thought About Being Your Own Boss?
For those of you who want financial freedom and are frustrated by the discriminatory practices of corporate America, the solution could lie in business ownership. I’m not talking about starting your own business from scratch, I’m talking about buying an established business of franchise as a way to break free from working for someone else and establishing your own path to wealth. Are you a seasoned professional (50+ years old) and looking for work? Did you spend years building your career only to now find yourself without a job and feeling like corporate America doesn’t want you anymore? You aren’t alone. I speak to people every day that feel the way you do. They are talented, smart, and eager to engage in meaningful work. But, they can’t seem to land a job, or even find one that seems like the right fit for their skills and experience at this stage in their lives. If that sounds like you, then watch my seminar on the alternative to job searching in these troubling times. In this FREE webinar I explain:- What 70% of all millionaires share in common.
- Why you need to stop looking for a job.
- Why you need to start looking for a problem to solve.
- How to invest in the one thing you can count on – yourself.
"Should I limit my choices to a well-known franchise brand?"
There is a lot of disagreement over this question. Some people insist a franchise is not worth owning unless it is a household name. Others feel that name recognition is of comparatively small importance.
Rather than jump to a conclusion, let’s look at the facts.
Sure, a strong name brand can be a help. Your customers will already know something about what the brand stands for. That could be a positive: think McDonald's.
But most successful franchises actually don’t depend on that sort of recognition. You may never have heard of Hoodz, and you may never have given a thought to their business, which is cleaning the exhaust systems for restaurants.
But, even though they are only two years old, Hoodz is the number one company in their industry.
This is an exceptional business opportunity that has never even entered the mind of most people. In most communities, the fire code requires every restaurant to clean their exhaust system every three months.
Most of the people who own and manage restaurants feel they have no workable options - restaurant employees do not have the training or equipment to do this, and independent contractors are considered unprofessional and unreliable.
Restaurant owners and managers would welcome an alternative. When a professional Hoodz salesperson calls on a restaurant, they are welcome. True, the customers might never have heard of Hoodz. But they know they need a new solution.
The Hoodz franchisees usually come into the business with no industry experience. The franchisor does not provide name recognition. They do provide a way to train the cleaning crew on just how to efficiently complete the cleaning job. They do provide their expert specifications on what is the best cleaning equipment to use. They do provide training to help the salespeople obtain signed customer contracts. They do provide experienced specialists to help the franchisee in all other areas of their business: Advertising, IT, HR, finance, and others.
Yes, of course name recognition can be a positive. But think of all the other things a franchisor can supply to a franchisee. They give a model to follow and an answer to the questions about building a strong, profitable business.
Take the time, study the businesses. You might learn these other factors are more important than simple name recognition.
Now What?
Opt in on the next page to receive access to my FREE video archive. This library includes eight different tutorials that will teach you how to own a franchise the right way. FREE ACCESS ► Well-known franchise image from Shutterstock
Some of the clients I work with are very headstrong. They have their ideas. They know what does and does not work. They do not want to be distracted by facts.
So they jump to conclusions.
One client felt the way to have a successful business was to appeal to as broad a range of customers as possible. He came up with his own mantra “I want to accommodate, not exclude.” Any business he considered was rejected if it didn’t fit with this notion.
To him, this made sense, and it does seem logical: Why not appeal to as many customers as possible? One reason not to is maybe it dilutes your ability to focus. After all, McDonald’s doesn’t appeal to people interested in fine dining.
Another myth to bust is a great franchise should be in a business segment with little competition. Each year, Entrepreneur Magazine publishes a list of top franchises. Their top 25 includes four fast food businesses and three convenience stores. I don’t know about your town, but in mine it seems like there is a fast food business at every busy intersection, and a convenience store at half the gas stations.
If there isn’t too much competition in fast food or in convenience stores, then maybe competition is not necessarily to be feared. Maybe it just means there is a lot of demand for this service.
Sometimes people reflexively want to reject a business with certain types of employees. Many times I’ve heard “You can’t succeed in a business with unskilled employees. They just aren’t reliable.” That hasn’t stopped McDonald’s though, has it?
I’ve also heard exactly the opposite: “You can’t succeed in a business that requires highly paid employees.”
My point is not to claim that a tight focus or high competition is nothing to worry about. Those are examples of things any sensible person should worry about. But worrying does not mean that you assume the business is a bad one. It just means you need to do some research to find out just how good the business is.
Only a fool would ever assume a franchise is good, and invest without doing research. It is just as bad of an idea to assume a franchise is a poor opportunity without doing research.