Is there ever a ‘right’ time to start a business? If you’ve been considering franchise opportunities, recent world events and headlines may be giving you pause. But we know from experience that challenging times are often short-lived. Dips lead to much longer, prosperous expansions. Uncertain times don’t have to be a threat, and in many cases, present opportunities. And when starting a franchise business, there’s a bit of good news: Franchises can be successfully launched in all types of economies. We look at some factors in your favor and how to choose a strong franchise that will buoy you up – no matter what the future holds.
A Growing Franchise Industry
The franchise industry remains incredibly strong and has been growing year-over-year for a decade. According to the International Franchise Association’s Franchise Business Economic Outlook, the number of U.S. franchises is expected to increase by 1.5% and add 232,000 jobs in 2020. While this projected growth rate is lower than in previous years, it’s nonetheless growth despite an uncertain economy. The Gross Domestic Product (GDP) of the franchise industry is also forecasted to grow by 4.6% to nearly $495 billion, outpacing the GDP of the U.S. economy.
Review Sector Performance During Up and Down Economies
When considering your franchise business options, it’s important to look at the performance for the individual sector during up and down economies. For example, at BirthdayPak, a large percentage of our business partners are restaurants. The percentage of Americans dining out at the height of the recession in 2008 was 60%. In addition, the restaurant industry contributes 4% to the GDP. These facts show that restaurant dining has been very stable during good and challenging economic times.
Americans love eating out for convenience and social benefits. This article suggests that dining out is prioritized over other recreational activities and travel when discretionary income is limited. Also, the National Restaurant Association’s 2020 State of the Restaurant Industry Report details high pent-up demand for restaurants and expects a 4% increase this year.
An Ideal Franchise Business Model: What to Look for
Consider the many benefits of owning a franchise during any type of economy: A proven system, brand recognition, and training and support. In short, franchises are in business because they set franchise owners up for success from the beginning with very little ramp up time. In addition, home-based and mobile franchises like BirthdayPak have very low overhead costs, which save a lot compared to operating a traditional brick-and-mortar franchise. They also offer scheduling flexibility around your family life. Review the franchise models and pros and cons of each when considering your lifestyle.
BirthdayPak: A Proven Driver for Increasing Traffic to Restaurants
BirthdayPak was born from the idea of “celebrating life’s memorable moments” and centers around women dining out for their birthday. Tasteful gifting is a market differentiator for small businesses and creates memorable experiences for our community. Once this challenging time is behind us and restaurants can fully open their doors again to the public, BirthdayPak will help new and repeat business flow in. If you want to become an entrepreneur in 2020, get started on the path to ownership. To find out what BirthdayPak has to offer, call 1-888-680-7554 or schedule a time to talk.