In light of the current economic climate, small business startups need every possible advantage available to them in order to have a shot at succeeding. Most experts agree that when recession is in full force, the name of the game for businesses small and large is survival; do whatever it takes to make it through the lean times and if you do, you’ll be stronger for having gone through the tough times and ready to take on a larger client base and make some serious money when the economy turns upward. Although franchise businesses (and work from home franchises in particular) are insulated from the recession, every business is still feeling the pinch, which may cause some discouragement to anyone thinking of starting a new business right now. The fact remains, however, that while some of the largest corporations in America are facing their hardest times ever (such as auto makers), a shrewd businessperson with the right work at home small business can not only survive in tough economic times, but has the potential to profit in nearly any climate.
The insulation provided by franchises comes in the form of a strong business plan, name recognition and a product that has been tested and proven over time. Franchises have shown to outlast traditional small business startups, with numbers as high as 96% of all franchises still in operation after the 5 year mark (according to the IFA). To help bolster your chances, if you’re a work at home mom or a stay at home dad, you will have significantly less overhead when it comes to your home based business.
This is due mainly to the fact that work at home businesses don’t require leased office or retail space or a sizable staff of employees. Sure, there are no guarantees in life, and some economists would say that you’re taking your life in your hands trying to start a new business right now, but the fact of the matter is that it is possible to succeed and many of the only businesses that have reported growth during this recession have been franchises (fast food, entertainment, etc). If you’re a work from home mom and have been considering a franchise business for sale, here’s some questions to ask yourself to get you going in the right direction and to see if you have what it takes to survive in small business, even in tough economic times.
Do You Have The Support Of Friends, Family and Mentors?
When you start any major endeavor in life, having the support of the people that you trust and care about is of utmost importance. Not only will this help you to have peace and encouragement when times get tough, but it will also give you a good third-person perspective on the major decisions you are about to make. Additionally, it will hopefully give you a good idea whether or not you’re making a good long-term decision for you and your family. Say for example you start a work at home franchise with Blue Coast Financial Group, a low-cost financial franchise which provides a slough of business to business financial services. When the economy is up and business is booming, you won’t find much criticism from anyone, but if your business should go through a dry season where you have difficulty securing clients, you need to have family, friends and mentors on your side to help encourage you and pull you along through the tough times.
Are You Comfortable With Risk?
Starting a small business isn’t the same as taking your life savings, heading down to the casino and plopping it all down on the roulette table, but there is still going to be an inevitable amount of risk involved. Many times, business owners will have to put up their homes as collateral for a loan, or dip into to their savings for startup costs or to “float” the business during lean months. Many of these moves will often turn out well and as the old saying goes, “no risk, no reward.” However, if you’re the type of person who will be up all night and have a stress-induced ulcer within a month due to the risks involved in your small business, you will want to either have a business will a very small startup cost, such as The Glove Lady which specializes in specialty gloves and safety products to the commercial and corporate marketplace, or consider bringing in a partner who will handle the risk management while you handle running the actual business.
Do You Love Your Community?
This may seem like an odd question to ask when discussing a small business, and particularly one that will be run out of the comfort of your own home, but it’s still important to consider. The hardest time, statistically, for a new business is the first two years, and the main reason is that it takes a while for people to know your business, start to use your services, spread the name of your business through word of mouth and for you as a business owner to really hit your stride and get the business running like a well-oiled machine.
With a CompuChild franchise, for example, you will run many aspects of the business from home, but the bread and butter of this work from home business is going into pre-schools, private schools, public schools and day-cares to teach young children essential computer skills. While this business model has been tested and proven and could be taken to nearly any town, it will severely jeopardize your business success if after a few years of building relationships with key players at local schools, you up and move to a different town and have to start all over. Many franchises as well will sell you a specific territory when you purchase a franchise, so moving too far away may mean that you would have to sell the franchise and re-purchase it in your new area. All this to say, make sure that you’re willing to commit to the community you live in, because the success of your business will greatly depend on you sticking around and planting roots.
No business is a guaranteed success, and it would be foolish for a franchise to make such promises, but the facts show that starting a work from home franchise is one of your best chances for success, in nearly any economic climate. Feel free to get more information on any of the franchises mentioned above, or any of the many other women’s franchises and work at home businesses available. Remember that the biggest factor in the success of your small business will be your drive, motivation and willingness to hang-in-there when times do get tough.