Franchise Opportunities with Aldes Business Brokers - Which Franchise Opportunities Survive During Difficult Economic Times? Read More.
If 2020 has taught us one thing, then it is that the business environment can change overnight. To prevent having to close business doors because of lockdown regulations, it is essential to seek recession resistant franchise opportunities.
The answer depends on the regulations in place, political stability, consumer confidence and availability of credit, to name only a few factors to take into consideration. What may have been the best franchiseopportunities just a few years ago may no longer be relevant. Buying into a business model that has worked in previous economic slow periods, as well as during political unstable periods, makes more sense.
Being part of a franchise family already helps as the brand marketing is on national level. If the brand is trusted by consumers, you already have 50% of your marketing work done. Small mom and dad stores may find it difficult to keep their doors open during economic recessions, but franchise groups provide support, training, and national exposure, which all help to keep their various outlets operating. That doesn’t mean buying a small retail store is not recommended, only that some franchise opportunities are sogood that you can hardly compete if you own a small retail store not associated with the known brands.
Possible Opportunities in an Economic Recession
Cleaning businesses have been able to increase their market share because of strict regulations regarding sanitising practices. From bed & breakfast establishments, to lodges and hotels, the accommodation industry is more focused now on the creation of exceptionally hygienic environments to prevent the spread of pathogens. Companies that provide sanitising products also perform well.
Business is moving online in many ways. More and more people now shop for their groceries, luxuries and even entertainment products at shopping portals and company websites. Studying online or completing short courses online is now also popular. Courier services have done well due to the increase in online ordering. With the online purchase culture now well-established, one can expect more people to make use of courier services.
Another business model that has been proven to be recession proof during this time is that of online tutoring and home-school help. Whether the schools re-open or remain closed, parents have come to realise the importance of outside help when it comes to assistance with homework and having extra tutoring in subjects such as Science and Maths.
Vehicle repair, maintenance and wash services remain popular even during economic hard times. Mobile vehicle maintenance or component fitting services are also fast gaining popularity. Services that can be delivered at the client premises are fast gaining ground as many people do not want to leave their homes, while others don’t want to go through all the sanitising and reporting procedures involved with shopping at malls. With vehicle maintenance as an essential, it is no surprise that service and fitment centres often perform well even when other businesses struggle.
Signage may seem like a business model that cannot work when so many small enterprises had to close doors in the past year. However, with small signage and posters now widely required for reminding customers of sanitising rules and the need to wear masks, etc., joining a franchise group that provides for signage services may be a good idea.
Buying and selling of used goods business models work well in recession and economic boom periods. Food delivery services, take-away franchises and medical or pharmaceutical business models are more examples of franchiseopportunities to consider.
Where to Find Out More About Franchise Opportunities?
As specialists with invaluable industry insight, we’re perfectly positioned to guide you on your way to success. Please feel free to get in touch with Aldes Business Brokers today!