The Benefits of Owning a Franchise in a Recession
A recession is defined as a significant decline in economic activity that lasts for more than a few months. Employment, production, and income all slump during a recession. For many people, a recession can lead to financial disaster. Fortunately for some entrepreneurs, owning a franchise can be helpful in weathering a recession.
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Time Frame
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According to the book, "Recession Storming: Thriving in Downturns" by Rupert M. Hart, there have been 12 recessions since World War II. On average, in fact, recessions occur every five and a half years.
Expert Insight
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According to Steve Olson, publisher of Franchise Media Group, franchises grew faster in past recessions than in economically sound times. Recessions tend to evoke entrepreneurship and creativity.
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Considerations
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In tough times, it's essential to focus on franchises that can still produce positive results even in difficult market conditions, according to Entrepreneur Magazine. The magazine recommends investing in franchises that provide necessities instead of luxuries.
Retirees
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According to MSNBC, older workers and retirees turn to franchises during recessions. Franchises offer people in the latter stages of their career an alternative to retirement.
Warning
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Before buying any franchise, individuals should do careful research and be skeptical about any opportunity. Every business poses some risks, so entrepreneurs should proceed with caution.
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