As we sit here speculating if the U.S. is headed into a recession, and, if so, what kind of recession, I find some of my franchise candidates expressing a concern that the flow of business in their industry field has a real risk of drying up. Maybe it’s due to interest rate increases, supply chain issues, or simple belt tightening by consumers – in any event, these candidates are signaling to me that they’re seeing a declining trend in earnings potential in their legacy business.
A franchise business can breathe new life into those hard-earned and trusted client relationships. For example, I was recently speaking with a mortgage specialist who was lamenting that the Fed increases were most definitely slowing the transaction flow in financing home purchases. We got to talking about the depth of her client network, and I challenged her with the question: Why wouldn’t you look to those legacy clients in your network as your opportunity set for a new business? People do business with people they trust!
Franchising can give a candidate that pathway to pivot – and pivot quickly – with a proven business model, established demand, a known brand to market and tested operating systems. What you bring with those already in your rolodex (I know, it’s an old term, but I think it works visually) is a network of potential clients who already know you and trust you. The only thing different is that now, as a franchise owner, you can help them in a different way.
All of this doesn’t mean you have to completely abandon what has been your “day job”. The mortgage specialist I mention wasn’t ready to walk away from her home financing business, but she did find the option to add a second business into her portfolio through franchising to be attractive and potentially lucrative in gapping her lost earnings. In franchising, we call those candidates “Owner/Executives”.
If you’re having concerns about risks to your ongoing earnings potential, but not quite ready to throw in the whole towel, I can help you consider franchise possibilities that keep you connected to the clients and customers whom you already know. Let’s start a conversation today booking an appointment to talk further by going to https://calendly.com/jim-mceleney.