Fortified by its own past successes as well as increasing options for business ownership, franchising continues to gain momentum worldwide. Here’s why…
Franchising today is credited with having a tremendously positive impact on the economy, creating millions of jobs and allowing many hungry entrepreneurs, including white-collar employees who are intent on breaking away from the tumultuous job market, to confidently move forward into business ownership. Corporate downsizing continues to be a reality, so disenchanted, successful corporate employees will continue to flock to franchising as a way to create the kind of financial prosperity they are accustomed to enjoying, but with the added bonus of self-reliance and expert support.
Beyond the positive economic impact that franchising has within the franchised businesses themselves, thriving franchises help support non-franchised businesses, too, by purchasing products and services necessary to run the franchise. If you include the positive effects on the wider economic community, franchising contributes close to 17.5 million jobs and approximately 2.1 trillion in economic output. That is one huge impact on economic health in the US and its positive effects are continuing internationally. For these reasons and more, the future of franchising is assured to continue to gain momentum, picking up dynamic individuals, perhaps laid off from bigger corporations. They will bring their great talents, brains and unstoppable motivation into their own promising franchise opportunities. The longevity of franchising is fortified by its own success stories and the fact that it addresses vital and continual needs within the business world.
According to The Franchise Business Economic Outlook report for 2016 by the IFA (in conjunction with the U.S. Census Bureau), the franchise business model is one that, despite concerns of economic downturn, can anticipate strong growth in 2016. Fortified by trends such as increased business spending, the franchise industry is poised to grow by 1.7% this year (which outpaces overall economic growth). This latest report comes after a stronger-than-anticipated 2015, so going forward, momentum is building for franchising and more professionals are taking advantage of new and existing franchise opportunities.
Here are 2 notable findings from key studies on franchising:
- As in previous years, franchise businesses are projected to increase and create jobs faster than will the overall economy. More than 200,000 new jobs were created by franchising in the U.S. in 2014 alone (IFA)
- Demand for service-based franchises will remain high thanks to shifting consumer preferences from DIY to do-it-for-me (DIFM) – (IBIS World)
Projections are positive thanks to proven success and increasing funding options
Bob Heimbuch, Minuteman Press Regional Vice President for Washington DC/Virginia/Maryland and Virginia, has seen franchise owners launch and grow thanks to a combination of their own determination, hard work and the trustworthy application of a time-tested system of operations provided by the business to business services industry leader he represents. Bob states, “The future of franchising looks very bright due to the overall success rate of franchises verses independent start-ups. All business ventures require some level of risk taking, however investing in a franchise helps minimize this risk and can, therefore, increase your chances of success as an entrepreneur. Motivated entrepreneurs are seeing these successes and are inspired. As they continue to act upon the inclination to join the ranks of other successful franchise owners, it only helps to ensure that the future of franchising is an exciting one that will include continued growth.”
The potential for an improved, lucrative lifestyle frequently attracts white-collar professionals, sometimes, with little or no experience in the particular industry they embark upon. They can do so because reputable franchisors act as mentors and provide comprehensive training and support, the best of which continue to gain respect around the world.
As funding options continue to expand, in part, due to a slowly (but surely) loosening funding market, the coming years will see more driven entrepreneurs get started in business via intelligently selected franchise opportunities. It is increasing in rank as a selection among those corporate employees seeking to shed the ever-present threat of being laid off due to corporate downsizing and become their own bosses. Many feel they are limiting stress and risk associated with independent business ownership by signing a franchise agreement and they are producing the results that prove it.
Even more encouraging is the fact that additional programs are being implemented to strengthen and encourage small business growth for women and minority-owned businesses as well as programs for veterans. The Small Business Association or SBA has increasing options for franchise hopefuls and as time goes on, there will be greater opportunity for people to move from the planning stage to the launching stage of franchised business ownership. More frequently, lending institutions are being granted incentives to provide loans to small businesses and help capitalize on the economy’s improvement. On top of that, the top-tier franchisors are committed to their franchisees from the beginning and are able to help them find the best options for securing financing.
A sunny outlook for B2B franchise opportunities makes them favorable
Offering all the benefits of the franchise model and the chance to be your own boss without being slave-driven by hours that span all 7 days of the week, franchising within the business to business services industry (or B2B) is an option that many highly motivated entrepreneurs will continue to find uniquely advantageous. The reasons why are many, but aside from the perk of working standard business hours and having weekends free for leisure and family, the investment has the potential to be quite profitable. However, you must be are ready to roll-up your sleeves to work intensely, knowing you will have the convenience and reassurance connected to following the stalwart system of operations provided by your franchisor.
A great number of successful B2B franchise owners are pleased to discover that serving clients within the business community is less rife with temperamental complaints. Instead, clients are passionate about their goals, but more even-tempered and willing to engage in a productive partnership so they may grow their businesses. Also, this sector of franchising is golden when it comes to generating repeat business because once you deliver “the goods”, so to speak, they will be gratified to know that for the aspect of business growth you serve, you are right there with the follow-up to ensure them they will have what they need, when they need it.
Neil MacLeod, Regional Vice-President in Vancouver, Canada for Minuteman Press International, affirms the constant nature of business to business services and how the ability to establish long-term relationships with clients is natural within this industry, when the marketing strategy provided by the franchisor is applied well. Add in the lifestyle bonuses and there are even more reasons to believe that the future of franchising through B2B ownership is rich with exciting possibilities. Neil elaborates,“I find there are two key reasons that people are drawn to a B2B business. The first is the hours. Most B2B are generally 9 to 5 Monday to Friday. The second is the clientele. Unlike the retail client which is basically whoever walks in the door and no control when they might do so. A B2B allows the owner to control the growth of their business through marketing and advertising efforts. It allows to establish long term relationships with their clients by providing personable service and high quality products.”
Rebekah Allen, owner of International Minute Press in Phoenix, Arizona, has had a great experience working with clients within the business to business services industry and she can point to many benefits that forecast a bright future for B2B franchisees. She knows that her digital print, design and marketing services, for example, will simply never have an expiration date and never be subject to the shaky fate of business trends or fads. She explains, “Working with other businesses provides opportunity to network with a great variety of industries. Your clients need your service to be successful, so you are truly helping them with their business. It is also challenging and provides variety to your own business experience as you deal with different types of businesses. Working with businesses rather than the general public gives you a focus with marketing and builds clientele and repeat orders. There will be no end to the needs of the businesses you come to serve in this industry. The future is encouraging, indeed, for franchising, especially as a B2B franchise owner.”
Strong forecast for franchising
The healthy effects of viable franchising options upon the economy are too obvious to deny. The push for small business growth will continue to be supported by additional programs which will strengthen and encourage entrepreneurs to launch and as they do, the future of franchising will be expansive. The franchise model is one that efficiently supports small business development in any economy by paving successfully-travelled paths for budding business owners to invest wisely and have the chance to progress productively. As the economy continues to improve, the support for small-business growth in the US and around the globe will continue to position franchise ownership as a prime means for entrepreneurs to realize their greatest aspirations, so optimism for the years to come can be justifiably high.
Interested in franchising with an industry leader that offers full training and ongoing support? Visit www.minutemanpressfranchise.com for more information on getting started with Minuteman Press.