How to pick a franchise that’s recession-proof
With a projected UK recession on the horizon, anyone looking to invest in a franchise must be canny. That’s not to say that this isn’t possible – it is. You’ll just have to be more selective in your choice of market.
What happens in a recession?
Recessions bring uncertainty, which, in turn, depresses trade. Prices shoot up as a result of inflation, and costs for businesses increase. Add increased utility spending to the mix, and life becomes more expensive for all.
Consumers may also be affected by a growth in unemployment, which means less disposable income, or they may just sit on their cash waiting for a superb bargain. The important thing to remember is that trade never stops. Sales in certain sectors may slow down, but other sectors thrive.
Preparing for Opportunity
If you’re looking to invest in a recession-proof franchise, this is the time to do your homework. You can never carry out too much research. What people will always need and how to attract them to your franchise are just two questions you should consider.
Publicity and excellent customer service are other areas to be examined. Once you’ve invested in your recession-proof franchise, you’ll need to shout about it to develop growth.
This is the time to build an effective business plan taking into account all the projected franchise expenses, including horrifyingly pricy fuel and utility costs. This step is essential if you’re considering applying for a franchise investment loan. If you have an accountant, ask them to help you prepare the plan – this will prove to be a sound investment. The online magazine FranchiseUK suggests that a recession can be a time of opportunity.
Attractive areas for franchise
Once you have your finances in place, here are some areas that may prove to be recession-proof for franchises:
● The cleaning industry
● Repair franchises
● Baby products
● Website development
The cleaning industry is a no-brainer as people always need cleaners. Admittedly, since the pandemic, fewer offices will need to be cleaned as occupancy has diminished because of working from home, but for those trying to sell their buildings, cleaners are essential. Working from home has a plus side in that if you’re using your house as an office, you may well need the services of a cleaner.
The growth in social care means there is a constant need for domestic cleaners. With 6.8% of roles unfilled in 2020/21 and 165,000 vacancies in 2022, this is an ideal area of opportunity for franchise investment. As long as you treat your staff well and ensure they’re all Disclosure and Barring Service (DBS) checked, this is an area of boundless opportunity. Click here to discover some of the current opportunities.
Technology has a reputation for booming during times of economic strife. Whatever’s happening to the economy, technology investment still increases. With the growth in eCommerce and the need to find a bargain, customers will become even more reliant on tech.
There’s plenty of opportunity in this sector, from telecoms to logistics companies. Tech support franchises will also be worth looking at. Many will still need to have their software re-written, serviced or set up, so investing in a franchise that outsources computer developers should prove highly lucrative.
The social care sector uses telephony for most of its home alarms. Diabetes and heart monitoring are all carried out through an app, so look out for some of these essential services that are looking for investment.
Repairs will become essential
Rather than opting for new products, recessions are traditionally a time to make do and mend. Any franchise that offers these services will become invaluable, from dishwashers, fridges and washing machine repairs.
The same applies to laptops, mobile phones, and other domestic technology; rather than spend a lot of money on a new product, consumers will opt for a repair by a reputable franchise.
Given that house prices are also set to remain static in the last quarter of 2022, franchises that offer house repairs are on to a winner. Owners will see a recession as an opportunity to invest in repairs to their houses, so they’re ready for an economic upturn. Take a look here for some of the opportunities currently on offer.
Specialist areas – baby products
The small people in our lives may be adorable, but this comes with a cost. Baby and toddler foods, clothes, beds and shoes are constantly in demand. And supplying all your children’s needs can prove expensive and exhausting. Toys are always in demand, and most parents would rather treat their children than treat themselves. Look at some children’s goods and services franchises here.
Traditionally, a recession brings a growth of opportunity to those who wish to set up on their own. Either the company they worked for has gone bust, or they see this time of economic uncertainty as a reason to work for themselves. According to the association of Independent Professionals and the Self-Employed (IPSE), freelancer numbers increased from 1.39 million to 1.56 million due to the 2008 recession. Currently, there are 4.25 million freelancers in the UK.
To project their services and entice customers, many of these will need effective web design. The business has to sing and drive customers to their site. Any franchise offering web design and maintenance services will be in demand. And it’s not just the self-employed who’ll use these services; companies of all shapes and sizes will want to cut costs without diminishing the services they offer. A franchise that offers web design with support services will benefit those who want their businesses to thrive.
To find out more about this exciting business opportunity, why not take a look here.
If you are looking to become your own boss and are considering going down the franchise route, why not consider a web design business of your own from the it’seeze franchise?
Here at it’seeze we have a brilliant team ready to help you turn your business into a success, our business model has proven successful over more than a decade of franchising, and our initial investment fee of under £10K is far more affordable than the average franchise cost.
Not quite sure? Why not have a read of our success stories from our current franchisees by clicking here, they'll show you why this is the best franchise to own!
To learn more about our digital marketing franchise opportunity, get in touch today.
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