The COVID-19 pandemic has caused severe loss of employment and had a major impact on job security. The US has lost nearly 20.6 million jobs since March, resulting in an unemployment rate of 14.7%, which doubles the number seen in the Great Recession (2007-09).
Impact of the Outbreak
The current economic situation has forced industries and businesses to layoff and furlough employees at an alarming rate. The loss of a steady job and income has led to increased hardship for many people who were already struggling to make ends meet before the pandemic hit.
Blue collar workers, white collar workers, executive-level employees in major corporations, employees associated with the tourism and food industry, many people are facing the brunt of waves of job layoffs since the outbreak of COVID-19.
Opportunities to be Explored
The only silver lining of the coronavirus has been the boost to entrepreneurial minds to explore innovative career options. Do you want job security? … Own the business!
The job that you once had isn’t there anymore. Think bigger, think entrepreneurial. This can be a great time to invest in a business. Investing in franchise opportunities is advantageous. With a well-defined support system, franchise business ownership comes with limited risk to run a proven business model.
This is a great time to explore new career options for people that want to “buy a job” or for the executive that wants to “oversee the manager” or for the semi-passive investor that wants to “build a legacy”. Lending is also cheap; as SBA Loans have never been so attractive. Or finance the business yourself with your retirement funds – 50% of all businesses today are started with retirement funds. Landlords are much more willing to negotiate, and most franchisors are giving out special offers and adapting with innovative business models.
Given the current economic situation, it is a boost of confidence to be part of an extensive franchise network in terms of quality control, staff training, staff support and product consistency. Many Americans have access to substantial savings in the form of savings accounts, fixed deposits, stock ownership, home equity, etc., and many companies have been offering substantial employee buyout packages to reduce employment. These have all been a primary driver for consumers to invest in business ownership.
While starting your own business may seem scary, some franchise sectors are now deemed to be COVID-proof due to their “essential” status. There are multiple career options in franchise models that guarantee a boom in sales in the upcoming years. Franchising opportunities in Home services, Property Management, Commercial Cleaning/Restoration, Fast-casual food, and Senior Care as well as others are certainly better positioned than most.
Being able to adapt, experiment and embrace change are the pillars for success during such dire times. Owning a franchise has its own set of advantages as it comes with much less operating risk than an independent business, which is reassuring during this current situation.
The fundamental value of franchising is that it provides a higher chance of success along with control of your life and security, something which we all want right now.
About The Author
Bill McKee has been a business owner since 1993 and built several successful businesses, he has been a franchise consultant since 2007. Contact Bill at (972) 767-8433 or Bill@TheFranchiseConsultingCompany.com.
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