Bulletproof Your Business: The Ultimate Guide to Recession-Resistant Franchising
Imagine this: the economy is tumbling like a house of cards, yet there you are, standing firm with your franchise business, unshaken.
Sounds like a pipe dream?
It doesn’t have to be.
We’re living in an era where “recession” is not just a buzzword but a repeated reality.
From the Panic of 1797 to the latest pandemic-driven downturn, the U.S. economy has weathered at least 19 major recessions.
And guess what?
More are on the horizon.
But here’s the twist: you can not only survive but thrivein these times.
Below are three key strategies on how to set up your franchise business to be as recession-resistant as a submarine is water-tight.
Strategy #1: Focus on the Essentials
First things first: target indispensability. Opt for a franchise dealing in goods or services that are essential, regardless of economic climate. You are looking for products and services that are a need and not a want.These are your recession lifeboats.
Think healthcare services (home health care, elder care, medical transportation), day care, gas stations and car repair shops, hardware stores, and essential home services like plumbing and HVAC repair.
But don’t overlook the allure of affordable luxuries. Budget-friendly fast food and mid-priced salons offer small comforts that people cling to, even in the toughest times. They’re like the chocolate bar in the diet – not essential, but hard to give up.
Strategy #2: Choose a Home-Based Franchise
Next up, embrace the home front. A home-based franchise slashes overhead costs dramatically. Forget about shelling out for a physical location, utilities, or security.
Your startup capital stretches further, and your day-to-day running costs plummet. Plus, in times of downturn, you can hit ‘pause’ with minimal losses, ready to restart when the skies clear.
Strategy #3: Set up Multiple Locations
If your pockets are deeper, consider the multi-unit approach. It’s like having multiple fishing lines in the water; if one doesn’t bite, the others might.
This strategy offers protection against localized economic dips and other crises. Plus, the economies of scale are your friend here – shared resources across locations mean lower costs and potentially higher profits.
Multi-unit franchising isn’t just a safety net; it’s a trampoline for bouncing back stronger from economic lows.
Final Thoughts
Setting up a recession-resistant franchise is less about avoiding risks and more about smartly managing them.
Whether it’s focusing on essential services, operating from home, or spreading your risk across multiple locations, the key lies in strategic planning and adaptability.
The next recession might be just around the corner, but with these strategies, you’re not just ready; you’re set to thrive.
Remember, it’s not just about weathering the storm; it’s about learning to dance in the rain.
Ready To Explore Franchising? Let’s Talk!
Mack and Sharon Strange are on a mission as Franchise Consultants to help others go from “Start” to “Success” when it comes to franchise ownership.
If you’re curious about exploring franchising as a career pivot, investment vehicle or lucrative side hustle, let’s talk!
You can book a free, no obligation call with Mack here and/or a free call with Sharon here.
As Franchise Consultants, there’s no fee for our services.
Rather, our role is to serve as a trusted guide and educational resource, and we’re compensated by franchisors only if and when you decide to move forward with (and are approved for) franchise ownership.
Lastly, you can learn more about our story and how YOU can follow in our footsteps via the Franchise Together Podcast.
We look forward to connecting with you soon!