Impending Recession, Uncertainty, And Why Franchise Ownership Is A Sound Investment Decision

Impending Recession, Uncertainty, And Why Franchise Ownership Is A Sound Investment Decision

The economy is always in flux, and the impact of a recession is as important to understand as the relief you experience during an uptick. The last few years have shown exceptional growth in jobs, savings, and investment returns. Since Labor Day of this year, there has been an increasing sense of doom, like a damp wool blanket is about to be thrown on your sunny day. The Media has been cranking out reports that a recession is drawing near, which actually holds as much promise as it does fear.

I witnessed firsthand the PTSD symptoms of the 2008-2011 recession, and many U.S. citizens today are expecting the next one to be the same. That recession was an epic failure, but also unique in many ways. Talk to a good Economist about the characteristics that created the , and you will realize that no two were equally devastating, nor universally impactful. In fact, this chart is a strong visual summary indicating the swelling surge of economic rebounds following those recessions.

 

Source: https://www.capitalgroup.com/apac/capitalideas/article/guide-to-recessions.html 

 

Create An Investment And Exit Plan
As an Entrepreneur, as well as an Early-Stage and Franchise Investor, I recommend that you take a broad swath of real information and start to create an investment and exit plan that takes advantage of spending patterns before, during, and after a recession. After all, there will always be an economic shiver; you just need to know how to capitalize on it. People eat, fix their cars and homes, and especially find ways to enhance their self-image and outward appearance in both up and down economic cycles. 

Find Your Inner Winner And Free Up Valuable Billable Hours

Recessions create competition that just gets stronger, so it is only natural that humans turn inward and find their Inner Winner. When the times get tough, the tough get going. They take care of their minds and bodies to improve themselves, and wisely pay other people to do chores that free up billable hours.  I worked with an alpha female during the 1980s recession, and she was blatantly unapologetic about having a maid clean her apartment so that she could work six more hours a month to build her commission base, and to audit graduate-level classes to become financially conversational with high net-worth individuals. Talk about money well spent!

Protect Yourself With A Recession-Resistant Plan

As the next recession draws near, let’s have a frank conversation about leveraging your Inner Winner to succeed as a franchise business owner with a recession-resistant investment plan. We will focus on total authenticity, so that you can follow an industry standard you can completely embrace, and still maintain your own standards. I exercise radical empathy, to understand and solve your financial goals by caring about your most essential outcomes with a proven, successful business model.

Consider this – franchising is the best of both worlds – business start-up with guardrails. The franchise has seen it all through different markets and has the proven systems and processes in place to help you weather every economic storm.

Want a little more information on how Franchise ownership could change your life? Download my free ebook. 

The One Simple Secret to Helping Life Partners Become Successful Business Partners

The One Simple Secret to Helping Life Partners Become Successful Business Partners

As a Franchise Consultant, I help people take the leap into successful business decisions. We all have principles that guide our work, and my First Principle is that I need to have the partner/spouse involved in the research process from the very beginning. While I can only guess about how financially impactful decisions are made at your house, I very rarely hear a spouse say they do not want to be included in the decision about business ownership. And you can’t be part of a decision if you are not part of the discussion.

I am reminded of the saying, “If Mama ain’t happy, ain’t nobody happy”

So much truth to those seven words.

Everything’s better when you do it together
From the time I began my business consulting gig, I have maintained a daily commitment to keep three things at the forefront of your business decision:

  1. your wife
  2. your life
  3. and your money.

(Pardon the rhyme, as women are increasingly driving the ownership decision)

I take it as a personal challenge to make certain you and your partner both thoroughly research each brand to understand what your roles and responsibilities are, and then make appropriate decisions relative to protecting your family relationships and the time you value spending together.


I learned the hard way…
When I was much younger, I was married to a man who had a dream to quit his job and own a business. He went to a Franchise Expo in Chicago, met with a number of companies there, and came to a conclusion: we would invest in a haircare concept because everyone needs a haircut. Cha-ching!

The problem was that our money was held in a joint account. It was not WE, but HE, who was making a decision that created a disconnect for ME. While I was definitely interested in making more money, I was not keen about a business that operated seven days a week and required constant staffing efforts.

Although we got started together, he wanted to throw in the towel about six months after our Grand Opening. Why? We were financially bleeding to death while being held hostage by a manager unable to retain stylists. I was angry about the time, the money, and the disruption to our lifestyle.


…how to do it the right way
Turning around that first Great Clips location required a few things:

  1. Stop thinking that we “knew better” and start following the franchise’s existing, proven system, including marketing and staffing
  2. Honestly assess employee behavior and weed out those who were not customer
    service-oriented
  3. Create a culture that nourished and encouraged better attendance and productivity
  4. Listen to customer feedback about both negative and positive experiences

Once those four things were addressed, I was astonished at how rapidly revenue grew. When the employee culture pivoted into one where the stylists trusted each other, their “deliverable” to the customer improved, and that changed our client and employee retention numbers. That is a recipe for success!

Confidence to turn around a poorly performing business became confidence to open and more locations. The fact that I had found the world’s best manager (and future business partner) meant that I could focus on Big Picture Growth and Expansion while she focused on employee-specific results.

As your business consultant, I first get to know you through conversations about your work history and skill-set preferences, as well as your household dynamics. We collectively discuss your short and long-term goals to understand how this business will add to your happiness and financial well-being. In preserving your primary relationship, we address division of labor as well as covering household expenses.

The Moral of the Story? Joint decisions are important
The current hiring economy is robust, but if you consider owning a business instead, your role must be mutually defined for household continuity. You may want (need) to keep an income generating job while getting the business launched. Perhaps you are out of work and looking for a business to fill the voids in your professional life while living off savings until the business generates real income. In either scenario, you can see how important it is to be aligned with your spouse in the decision, because this is first an investment in the future, with financial rewards increasing with each passing year.

If you and your partner are interested in exploring owning a business together, let’s chat!