The pandemic has affected every aspect of our personal and professional lives.
It has changed when and how we move out into our local communities or for work. No matter which way you look at it, COVID-19 has turned our lives topsy-turvy. When news of the pandemic first spread, it was incredibly unnerving.
There was a significant amount of uncertainty surrounding the condition and the spread of the virus, which caused a lot of people to reevaluate how secure and stable their financial situation was. A large number of people in Australia continued to work from home over the months and followed social distancing norms. Since people had more time on their hands while at home, many began to look for various ways to strengthen their current financial position.
The need of the hour is to look for sustainable earnings that will also be that way in the future. For a lot of people, considering stepping into the franchising space became one of the many options. Historically, whenever there has been an economic downturn, people have turned to franchising. While it doesn’t seem like a very plausible fact, it is true.
When people are laid off or furloughed, they begin to lose interest in their jobs. Opting for a business that will give them some control over their personal and professional life without having to report into a boss seems more and more attractive. While it might not be possible for everyone to start a business from scratch, franchising is very different. There is already a fixed network and structure in place.
The overall business is well-established as are the brands, which means that you do not have to put in as much effort and time as starting a business from the ground up. The financial risks are also much lower. It is also an attractive option for many people because they feel that becoming a franchise also means that they are their own boss and control their destiny.
With all of these aspects and views, many people have now begun seriously looking at the idea of franchising. However, in the current situation it is a good idea to invest in a business. When you start to look, you will find that there are numerous franchising businesses to invest in.
These could cover various industries, liquidity requirements and investment threshold points. With the current situation in view, the viability of a franchising business becomes the main point of discussion. You have to consider many different things.
Determine whether the product or service that a franchise offers is economically viable. Also, is it able to withstand the economic recession and future global events? Nobody would have imagined that they would have to face the kind of hardships that the pandemic has brought forth.
Many companies, big and small, have realised that various industries are vulnerable in different ways. This is why it becomes necessary to assess the risk to benefit ratio. During a pandemic, it means that looking for a business model which is considered essential yet is safe for clients and employees is crucial.
Whenever there is a situation like the current one where global change is taking place, the concept of stock has been made and unrecognisable and turned, adjusted and flipped in every way possible. It is tough to determine what the right route to take is. We all are undergoing an unprecedented change, and every business has been scathed in some way or the other.
Since there is no previous similar experience that people can call from or look upon, it has become necessary for everyone to evolve, adapt and change. Since franchising involves less experimentation and there is a proven business model to work on people find it less of a risk.
However, this is an excellent time to determine which industries you should be looking at while considering a franchise if you are deciding to step into this venture. Using that feedback and information will help you make a better decision about the franchise that you want to opt for.
While the pandemic has created a lot of financial and instability for business owners big and small, there are many takeaways and learnings as well. You can get a good idea about which industries are doing well, even in the current situation. The franchises in the essential services space such as health care facilities, outdoor-home services such as lawn care and pest control or healthcare facilities, and grocery stores are all thriving today.
In fact, many of them have seen a significant upswing in their business during these difficult times. Some of this hike in business is because of customer need while at others it is because consumers now have more time to schedule for these services. Regardless of the scenario, you can take a closer look at who is thriving and the reason for it.
You can use this information to determine which franchise would be a good option to invest in. Choosing a successful brand and a franchise that can adjust towards a more need-based market growth can prove to be a better approach to stepping into this industry.
Regardless of what kind of business you want to start, you need to conduct a certain amount of research. You also have to keep industry data in view and follow the latest trends. Read up on the latest business news and understand what is happening in the franchising industry.
Aside from the franchises classified as essential services or ones that fulfill a need, many brands have flourished by adapting to the current conditions. This is more evident in restaurants that have provided incentives for guests to order their food online. They have been offering free deliveries and discounts. Many have also adopted and created curbside delivery options.
Some restaurants have switched to a pick-up-only format where customers only come up to the lobby area, maintaining social distance to collect their food parcels. However, this isolates potential customers that may not feel very comfortable with entering these spaces or who do not want to bring their children inside.
Many companies and businesses have expanded their delivery option significantly with various safety measures in place. These include things like box deliveries, where customers take their items from one specific box, online ordering and no contact drop off. Some franchisees have begun offering same-day pick-up or started with online ordering services.
These also prove to be a safer alternative for their employees that still need to fulfill orders but can maintain the distance from most of the population. It has worked well for franchises in various industries including grocery store chains, pet shops’ parts stores, retail locations and more.
Business owners have had to don their creativity hats over the past few months. However, how they have adopted and the methods they have used to make changes to the business is what being enterprising is all about. They should have taken steps to protect their employees and shoppers and find safer ways to provide services. Many non-essential businesses have also found different ways to draw in business without any conflict with existing social distancing guidelines.
So if you are planning to enter into this space, look for businesses that have gone the extra mile, using their creativity and innovation and adapted to the new normal. The only way you would be able to find something suitable which you will enjoy doing but will also be profitable is all about conducting groundwork. Take the time to look online for different kinds of franchises, also visit the FCA website, and understand what is happening within the franchising industry.
Since you do not want to take a hasty decision, use this time to plan everything correctly, take stock of your finances, speak with a franchising lawyer and if you can meet up with some of the franchises that you have shortlisted. Systematically going about things can help ensure that you have everything in place when you ultimately decide to take the plunge.
If you want any more information on how to plan your venture into the franchising space, contact the experts at The Franchise Institute. You can call us on 1300 855 435 or fill-in this contact us form, and one of our experts will contact you as soon as we can.
Thanks for reading,
The Franchise Institute Team
1300 855 435