Take a look around you and you can see signs of the flailing economy. Jobless claims are up, businesses are downsizing and others are going bankrupt. Not to mention the foreclosure and credit crisis.
So I ask you this question. “Why are you looking to start a franchise business, now?”
Well, “now” may be the best time. This is because you can easily identify the businesses that are surviving this bump in the economic road. They are the ones who have help wanted ads and ever-present advertising. It’s usually a business that has made it’s niche by targeting stable or growing market segments. While all others are loosing market share, these businesses are growing. All you need to do is identify these concepts and your dream of business ownership has a foundation to build upon.
For example, let’s look at the Personnel and Staffing market segment.
As mentioned above, most companies are cutting back staff and reducing their workforce numbers (you might be reading this because of the fact) this has caused a substantial slow down in the demand for staffing. It started roughly during the 2nd quarter of 2008 and continues to trend downward. But remember, nearly all markets can be broken down into sub-markets and not all sub-markets are created equal.
While construction labor needs are down, there are sub-markets within the Personnel and Staffing segment that continue to be solid. One area, Medical staffing, is unlike the non-specialized fields, since there is a solid and steady demand. There has been a steady and increasing need for medical labor. With little or no sign of let up, due the increasing age of the “Baby Boomer” generation.
By identifying this sub-market, you would raise your success rate, since you would be connecting into a growth area. In spite of a soft economy.
You need to keep your eyes open. As an investor pursuing your business ownership goals, use discernment during this slow economy to seek out the winners. Because they are out there, you just need to look.
