Over the last several months we have seen daily updates on the number of diagnosed cases and deaths from COVID-19. We have heard how the worldwide pandemic has impacted on the nation’s business sector. We have heard about the multitude of businesses that have suffered, laid off employees and even closed down. What we have heard less about is the large number of businesses, many of them franchises, that have thrived during the pandemic.
The lockdowns of 2020 introduced us to “pivoting”, “essential” and “non-essential” businesses. Prior to 2020 we would probably have referred to these businesses as being recession resistant.
2021 is a new year and most of us are glad to see 2020 in our rearview mirror, even those who have business that were not impacted negatively by the Coronavirus. I have been on a number of webinars and been following the trends through various other information sources. The conclusion I have drawn is that 2021 is going to be a strong year for those who choose to make it so. Let’s take a look at some factors that support this, and as usual my focus is on the world of franchising. The year 2021 may see unprecedented growth in entrepreneurship through franchising for a number of reasons:
Franchising presents a great opportunity for those who have lost their jobs but have some level of accrued wealth, an entrepreneurial spirit and good credit. Getting into franchising allows them to take control of their destiny and provide for an income and lifestyle they want and need, never having to work for a boss again.
An Influx of Young Entrepreneurs – with job hunting being so difficult, caused by the COVID-19 pandemic, entrepreneurship has also become attractive for young entrepreneurs.
Lower interest rates and SBA Loans
Interest rates are at record low levels, making small business loans more affordable and thus more attractive for entrepreneurs of all ages and backgrounds. The SBA (Small Business Administration) is incentivizing small business loans by offering the following for a limited period:
- Borrowers will not pay any interest or principle for the first six months.
- The SBA will guarantee up to 90% of the loan.
- The SBA are forfeiting their guarantee fees
Real Estate Opportunities
With so many small businesses, that were unable to pivot in 2020, shutting their doors for good, commercial real estate is a buyer’s market right now. This increases your ability to secure a good location. Landlords are looking for good tenants and are willing to negotiate on lease terms (price and support services provided).
Support from the Franchise company, proven by 2020 pandemic
One of the many reasons for buying a franchise is the support that comes along with it. It’s great to know that you’re in business for yourself, but not by yourself! This was proven during 2020, the worst year ever experienced by millions of people, where Franchisors stepped up by pivoting, and helping Franchisees pivot, within in record time frames. These companies immediately adapted their service offerings, adapted their business models and technology, and came up with ingenious ways to retain or grow their customer base. In many cases not only did Franchisees not skip a beat, but they also outperformed 2019! Many Franchises are a lot stronger going into 2021 because of these actions they took in 2020. Of course, not all franchises are equal and certainly not all of them pivoted equally well. Talk to me if you want to learn what options are best for you.
Technology has kept the franchise industry moving and will make it stronger for years to come. Upgrading technology was not an option in 2020 – it was a necessity. Overnight we all became dependent on technology – Zoom calls with clients, virtual meetings, virtual networking events, virtual seminars, virtual conventions, apps to conduct business online, and so the list goes on. Even when many industries had temporarily shut down in 2020, many franchise businesses were not idle – they upgraded software, equipment, and training programs. All of this has set them up for a more productive and efficient 2021.Next month, I will be attending a two-week, 100% virtual annual franchise convention organized by the IFA. While this takes out some of the fun and personal engagement, just think of how it has impacted our efficiency. No travel time, no travel costs or hotel costs! In 2021 we will start seeing a good balance between traditional live interaction and virtual interaction. Interactions overall certainly are going to be more efficient than prior to Covid-19.In conclusion, I have no doubt that 2021 is the best year, in a long time, for those wanting to get into business for themselves, but not by themselves, to take action and buy into that franchise(s) that meets their lifestyle and financial goals. The pandemic, despite its devastating impact on the world, has resulted in the perfect conditions for many to take charge of their destiny.
In conclusion, I have no doubt that 2021 is the best year, in a long time, for those wanting to get into business for themselves, but not by themselves, to take action and buy into that franchise(s) that meets their lifestyle and financial goals. The pandemic, despite its devastating impact on the world, has resulted in the perfect conditions for many to take charge of their destiny.
If you are serious, or even curious, about getting into business for yourself, but NOT by yourself, let’s talk. Please go ahead and click on the link below to set up a free consultation.