Could the #1 Reason For Franchise Growth in 2012 Be the Economy?
At The Franchise Sales Solution, we believe that there has been a fundamental shift in our economy. An entire group of high wage earners have been displaced over the past 36 months, and corporate America has found that they can do without them.
Finding it difficult to re-establish themselves in a new industry at a significant pay cut, many find themselves contemplating the pros and cons of the entrepreneurial life and investigating what it takes to become a franchise owner.
Franchise Direct recently surveyed 335 people “who were looking to franchising as a way to pursue their career goals”. There are many reasons for investing in a franchise; however, the psychodynamics of being your own boss must surely be associated with the downsizing of America’s job market.
The survey provides great insight into what people are thinking and confirms what we have been seeing for the past 12 months. Our economy will rebound; however, it is going to take displaced workers dipping into their personal savings and retirement funds to make it happen. Nearly 49% of respondents understood that they would need to leverage their nest egg to start a business.
Our recent experience and meetings with local banks continues to suggest that even though banks have money on their balance sheets, the lending environment is only strong if you have assets and collateral to support the loan. In addition, the SBA’s stipulations have been strangled by regulations, which is making the program difficult to navigate and exhausting to complete.
We believe that the challenge for this group of displaced high wage earners will be selecting a franchise opportunity that will provide a solid return on investment, while at the same time delivering a strategy for future growth through multi-unit or multi-brand ownership.
For all the survey results link to the entire article at http://tinyurl.com/7sqb2bj
Do you know someone who is looking to purchase a franchise? What kind of experience are they having in this lending environment?