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IS INVESTING IN A FRANCHISE IN THE CURRENT PANDEMIC SITUATION A SMART DECISION?

Many people in Australia believed that if they put in the hours and worked hard, they would lead a comfortable life and be financially stable.

But the COVID-19 pandemic has extended its tentacles throughout the world. A vast majority of people in Australia (like many other countries) are reeling under the resultant economic collapse.

Today, there are stringent restrictions in place on interstate and international travel, live entertainment, sporting events, social gathering as well as non-essential trade. IT companies, as well as businesses in many other sectors, have been hard-hit by the pandemic. This has resulted in en-masse sackings in almost every industry in Australia.

The COVID-19 Impact on the Economy and Jobs in Australia

• The coronavirus has proved to be a force that has overwhelmed the most privileged countries with hitherto robust economies. Like many other countries in the world, Australia has also come to a virtual halt even though we continue to have relatively low COVID-19 infection counts.
• As of 27th April, there were 6,719 COVID-19 cases in Australia, the majority of these having already recovered. Victoria and New South Wales are under lockdown for all except essential services.
• Unemployment is set to touch its highest rate in almost 30 years. Experts project that approximately 1.4 million Australians will be out of work.
• As per treasury figures, in the June quarter, there is slated to be an unemployment rate rise to 10% from 5.1%.

 
In short, the economic shock from COVID-19 will be far more debilitating than we ever imagined. The government has intervened with its $130B wage subsidy program called JobKeeper, and that has provided some relief in the interim. All industries and every arm of government are working to help ensure that Australians keep their jobs and business don’t shut down.

But the immediate future doesn’t seem very bright, and many people with what looked like secure jobs are finding themselves on shaky ground.

The Silver Lining

However, there is another side to this coin, and sometimes, it is crises such as these that give you the push you need to take that path which beckoned you all along. Many people feel that a traditional 9-5 job isn’t for them.

Some believe this because it does not give them the satisfaction they want, while others find it too monotonous and uninspiring. Certain people are intrinsically enterprising, but economic restrictions keep them shackled to their desk jobs.

Regardless of which category you fall in or even if you have never considered venturing into the business space, now is the time to give it some serious thought. The lack of job security created by the pandemic situation can and should be the catalyst needed to yank you out of your comfort zone, think about becoming an entrepreneur and invest in a franchise.

Time to Think About Entrepreneurship

We are living through a challenging time, which, by all indications, may worsen before it gets better. It’s true that now may not seem like the ideal time to make any significant financial decisions and career changes. But it’s also the time to evolve and be dynamic in your approach; after all, when things get tough, the tough gets going!

With self-isolation and social distancing the norm, many people are now working from home. While that does keep you busy for some portion of the day, it also leaves you with more time on your hands. Why not use this time more productively and begin researching various franchising opportunities now?

Without a doubt, embarking on an entrepreneurial lifestyle and purchasing a franchise is a life-changing event. And at this point, you may not want to dive deep into these waters. When you are busy rushing out to work every day, commuting to and from your workplace, and working extended hours, you just don’t have the energy and time needed to do all the groundwork required to start a new business.

Creating a Foundation to Start a Business

Time is a precious commodity, and we rarely have enough of it to dedicate to these activities, and it’s also how we tend to put some things on the back-burner. But as mentioned, now while working from home, you will have more time in your hands. It’s the perfect opportunity to start researching the franchising space and the why and how of it.

While you might not actually be able to go and meet people and discuss franchising opportunities in person, you can collect all the information possible online. You can also speak with people over the phone and assimilate all the relevant information you need.

Check about financing options and take stock of how much you can potentially invest in a franchise of your choice. Discuss your plans with family and get some inputs from people you know that may already be part of a franchising industry. This prep will set you on solid footing and make you more confident about your decision to enter the franchising space.

Be Prudent in Your Decision

When you are considering investing in a franchise, maintaining a prudent approach to your decision-making is crucial. This trying time that we are all going through can be that turning point in your life if you take advantage of it and take steps to become your own boss.

Optimism itself is a commendable quality. If you have the right attitude and persist in your endeavours, it can often lead to outcomes that are beyond your wildest dreams. Stay positive and believe that your shining moment is right there around the corner. All the research you conduct and the planning you do today can become a solid foundation for you to invest in a franchise of your choice, once this crisis blows over.

If you want to know anything more about how franchise agreements should be checked, please get in touch with us 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