Hidden in the gray cloud that loomed over us in 2020 is a silver lining for franchise buyers in 2021. According to the Bureau of Labor Statistics, approximately 20% of all new businesses don’t make it past the first year, and by the end of five years, only about 50% are still operating. But those numbers are a whole lot different when you section off franchise startups. Surprisingly, franchise sales are weathering the storm, even as we head into a New Year of uncertainty. People fear that unemployment might be in their future, and are switching gears to find more security and freedom in their career path. If you are ready to carve out a bit of employment stability for yourself, these are three trends to watch for when considering buying a franchise in the upcoming year.
Trend One: Real Estate Deals
With many well-established businesses that are no longer profitable closing their doors during the pandemic, there will soon be an unimagined number of commercial real estate deals to invest in. Even if things return relatively to “normal” for the nation, the lesson learned by many small to large businesses is not only that people can be just as, if not more, productive remotely, but also the cost of commercial overhead is unnecessary. So even those businesses that are going to make it another year are reconsidering having a home base office brick and mortar. With so many ways to do things remotely, paying rent and expenses to keep shops open doesn’t make much sense for much of the business population. When surrendered, those commercial buildings will flood the market, and the prices will devalue quickly. That is a loss for the owners, but it can be a considerable gain for franchise buyers.
“It's through curiosity and looking at opportunities in new ways that we've always mapped our path.”
Trend Two: Available Talent
The fallout from the pandemic on unemployment for the future is uncertain. Still, one thing is for sure, the beginning of the year was devastating for small businesses and large businesses alike. And that trickled down to the employees who quickly found themselves either without a job altogether or underemployed. The most successful franchisees are the ones that acquire and retain talent, which might have been more difficult pre-COVID due to a robust job market. While the economy is set to recover, hopefully, now is a perfect time to find those who will help to make your franchise profitable by dedicating their strengths to help your franchise grow and flourish. When there is less competition for talent, it is easier to come by, and you don’t have to outbid the competition by paying more than you should in employee wages.
“If a window of opportunity appears, don't pull down the shade.”
Trend Three: Create Opportunity
In 2020, we saw millions of people lose their jobs or graduate from college into a tough job market. Some people will turn to business ownership as a way to build wealth, secure their future, and to create opportunities for themselves and their families. If you choose the right franchise to invest in, you can grow something that your entire family can reap the benefits from for generations to come. For those who have children who recently graduated or about to graduate, a franchise is an excellent starting point for both them and you. While they focus on making the franchise successful, you can expand to buy more or even switch gears to diversify. The point is that you can work as a family unit team to grow something that your grandchildren’s grandchildren can profit from for the long-term.
The pandemic has undoubtedly had a disastrous effect on many lives, but as with many hardships in life, there is an upside for those who have an entrepreneurial spirit. 2020’s challenges have created many opportunities for those who seize the moment for 2021. The business forecasts for franchises in 2021 look as if a pandemic never happened, which is good news! With some strategic planning, not only is now a perfect time to go into business for yourself but never before has franchising given you an upper hand to success. For those looking for more security to build wealth, there is no better time than the present, so make 2021 your year to grow greatness.
Conditions are ripe for someone who is looking to switch paths and start on a venture to build wealth, not just for themselves but for generations. Because the economy is uncertain and job security in question, now is the most opportunistic time in history to take advantage and to take a chance to be your own boss and in control of your own destiny.