Franchise Growth in a Down Economy
Most would agree that we are indeed still in a “down” economy. Unemployment rates are officially listed at 10% or more in most places around the country. Realistically, the United States might have unemployment as high as 30% if you include the under-employed in addition to those who have just given up.
Manufacturing is still down in most industries, the housing market couldn’t look any worse and the U.S. seems to be getting closer to second place in comparison with China. Even the federal government looks to be on the brink of bankruptcy. The fact is that it is just a rough scene right now.
So why is the franchise industry growing? Why is a new franchise opened every 8 minutes in the United States alone? How has an organization like Mosquito Terminators gone from 1 location in October 2010 to 16 locations in June 2011? Aren’t we in one of the worst economic downturns since the Great Depression?
The answer is that franchising teaches people how to start their own businesses and take care of themselves when no one else is willing to provide handouts. Franchising provides people with the confidence, structure, and hand-holding needed to show them that they too can take control of their own future and financial well-being.
It is my opinion that franchising is one of the great vehicles available today that our nation’s economy and global economy can use to lift the world back into a growth phase that creates jobs, produces innovative thinking, and puts people back into a business development state of mind.
Many people have the ability to do this, but just not the confidence and ability to step into the perceived risk of starting their own business, franchising is the vehicle that allows this metamorphosis to happen.
In working with many franchisees for different organizations, I try to explain how different and free it feels to step out of the W-2 world and into that of an entrepreneur. I relate it to the feeling of importance an employee puts on the floor below them. It’s safe and sturdy and provides comfort to an employee.
But when you take that step into being a business owner, or a franchisee, you lose the “floor” beneath you….but the roof opens up. It is at that point that you immediately realize you’ve been focused on the wrong side of the room the whole time. Franchising provides the channel to support entrepreneurialism and teach people how to “fish”.
It empowers people to work hard and create jobs for other people. It is for these reasons that the franchise industry continues to grow and even thrive during a difficult economic time period.
For more information on how to franchise your business, or how to buy a franchise, contact us.
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