With many people being laid off due to the economic slump there has been an increase in franchising. But even now many aspiring entrepreneurs may not run their own business due to dread of the slow down. They can now take a breath and relax as here are so
The economy is down so it is better to focus on the franchises that produce good results in a bad market condition. Although there is no such recession proof business but there are a few businesses in franchising which seem to thrive. Many people say that it is the worst time to start anything new. Quite true but we cannot deny the fact that franchising business has picked up during the time of recession as there is a less of risk and more of security. Specific industries like education, food, health, grocery etc are the most sort after franchises at this hour. Want to find out why?? Well because they are recession proof franchises!!!! These are the businesses that traditionally offer products and services that consumers and business owners just can’t (or wont) live with out.
Certain guidelines can help you in taking a franchise! Guidelines for buying a franchise:
Recession proof franchises: Some of the franchises which are more or less unaffected by recession are discussed below: Educational and training institutes: Parents would not under any circumstances compromise on their kids’ education. Euro kids, ABC Montessori, Shemrock etc are some of the nursery schools which have been doing well at the time of recession. Training centers of NIIT, Jetking, Veta etc area few examples of the education industry who are not touched by the economy monster. Taking a franchise of any of the above mentioned institutes is sure to make it work.
Grocery stores: Taking up a franchise in this sector can prove beneficial for the entrepreneur. What ever the condition may be but a consumer can’t cut down on daily commodities. So recession or no recession a grocery store can’t be influenced by any downturn in the economy.
Fast food restaurants: As the rest of the economy retrenches, McDonalds and KFC have announced the opening of hundreds of new outlets, and the Subway continues expanding at breakneck speed, with sales actually rising in the crisis. The fine dine-in restaurants are still affected but the fast food outlets are on the increase. Buying a franchise from a renowned and established brand is a better option of gaining success. It’s hard to fail with the marketing strategy and the reputation of big brands behind you.
Apparels franchise: Be it a seven years old kid or 70 years old person every one likes to look good. People seldom think of compromising on their clothes. Customers love buying branded clothes like Levi’s, United Colors of Benetton (UCB), Van Heusen and Tommy Hilfiger etc. So an outlet of any branded apparel can never fail provided it is in some high street or shopping mall.
Health and Beauty Care: The healthcare industry remains unaffected no matter what the economic situation. Some franchises of health care like Apollo Pharmacy, Fortis, Hindustan lever ltd etc are a few examples which have been doing well under recession. People do not compromise on their looks as well. Shahnaz Husain group, Lakme, VLCC care ltd, Body Spa International pvt ltd are also some of the well known beauty and health care franchise centers.
Taking a branded franchise of this industry can also work wonders during recession. Not to say that recession proof franchises start working wonders in the beginning. Like all other businesses this also takes times to start up. It is not an easy job to attract customers and make a mark on them. No doubt there is a franchisor to help but the ground work has to be done by the franchisee himself!!