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Current Economy is Attracting Many Americans to Franchising
By: MFV Franchise Expo
While the overall job climate in our current economy has made people reluctant to start a business from scratch, many of those with an entrepreneurial spirit are exploring the option of becoming franchise owners. According to a recent Franchise Direct online survey, aimed toward people who are interested in becoming franchisees, the struggling economy is a driving influence for nearly half of the respondents in regard to seeking this particular career path. Though the survey results are not applicable to the franchising industry at large, they do offer some insight into why franchising is attractive in this economic climate, how franchisees are securing funding for their business ventures and what type of career background influences current and prospective franchisees.
Why Franchising is Lucrative
Just over half of the survey respondents indicated that they are interested in becoming franchisees because the thought of "being one's own boss" is very appealing. These people have specific career goals that they feel are best met through buying an established franchise rather than starting an independent business. A smaller number of respondents, approximately 14 percent, view operating a franchise as a good opportunity to earn supplemental income while working for another employer.
How Franchise Owners are Financing Their Businesses
The majority of survey respondents, or just under half of all respondents, plans to invest in a franchise opportunity through the use of retirement or personal funds. Others stated that they plan to take advantage of financing options such as commercial bank loans, U.S. Small Business Administration loans and credit union loans. Approximately 48% of the survey respondents wish to be conservative in their franchise investments by spending less than $100,000 in starting an operation.
Career Profile of Current and Potential Franchise Owners
Nearly three-fourths of the prospective franchisees who were surveyed have obtained valuable experience in business management and 43% of respondents have prior experience in owning and operating a business. Approximately two-thirds of those surveyed wish to become franchisees within 12 months and over half of that number hope to start running a franchise in six months' time.
A great number of franchises continue to perform well in the current economic climate, which makes this method of business owning worth looking into. For detailed information on owning a franchise operation and answers to any questions that you may have, please feel free to contact us.