More good news today that the franchising industry is on the up.
It is not only seniors or veterans who have found a lifeline in franchising during the recession. Laid-off corporate executives and victims of the Wall Street credit crunch are also turning to franchising, it seems.
Reuters has told the story of David Ambinder, a former senior vice president of global support services with Lehman Brothers with 25 years of experience on Wall Street. Laid off a few months before Lehman Brothers collapsed, Ambinder decided to begin a second career in franchising, with Mr Handyman.
“It’s very exciting to build a business; for me it’s the right move,” says Ambinder. “People aren’t going to be moving and they are going to need their homes repaired. I feel there’s a niche for it.”
The story quotes a number of other businessmen across America who are finding real success through franchising, despite the gloom around the state of the economy. It also reports that interest in franchising is peaking. Take Jim George, CEO of Snip It, a child hair-cutting franchise based in Natick, Massachusetts.
“January was our best month in the number of inquiries in the past seven or eight months,” he said.
Finally, the article singles out business coaching franchises, IT franchises, digital imaging franchises and senior care franchises as industries on the move.
Times may be tough, but it’s reassuring to see the franchising industry looking so resilient at the moment.
Location and geography are intangibles in the world of franchising that end up having a huge effect on an entrepreneur’s ability to start and maintain a profitable business. Small businessmen and women are facing enough challenges at the moment, so navigating the pressures of geography in starting a business is a prerequisite.
Truly mobile franchisees and franchisors should take note of the Small Business and Entrepreneurship Council’s Small Business Survival Index for last year. The SBE ranks from one to 51 the best and worst states (with Washington DC included) to operate a small business. The index was created by tabulating a number of factors including taxes, various regulatory costs, government spending, property rights, health care and energy costs.
The most entrepreneur-friendly states are South Dakota, Nevada and Wyoming, while New Jersey, California and Maine are the three most difficult states to make a living as a small businessperson.
Anyone in the franchise industry considering uprooting to level the business playing field at this difficult time should spend a few minutes analyzing these statistics. Relocation might become a necessary move for entrepreneurs in the coming months, and it’s important to know the best places to invest.
Some interesting statistics on franchisors’ salaries have emerged in the last week. Over the past few months, Virginia-based company FranData Inc. has been soliciting franchisors for their payroll figures, in order to provide a broad look at pay across the franchising industry. The financial crunch has made franchisors much more cost-conscious, and by taking a bird’s eye view at the industry, and it’s safe to say they’ll find some interesting information here.
The Wall Street Journal described the FranData survey as “what’s believed to be a first-ever glimpse at how rewarding work at franchising companies can be”. The study reveals that the best paying managerial jobs are in the full-service restaurant sector, while the best-paid managers were in charge of legal departments or handling a franchise outlets site selection.
Follow the links to find specific info on annual base pay for franchise managerial and professional staff, comparative base pay by sector, and pay by franchise industry and size.
Welcome to 2009, a year that is sure to be interesting, challenging, and hopefully lucrative for franchisees and franchisors alike.
We just couldn’t let 2008 pass with pointing out an excellent article from the December issue of Business Week magazine that spells out the virtues of franchising.
The article offers prescient advice about some of the important practicalities involved in franchising, including utilising top-notch consultants and employing sound legal advice.
Also featured are three important questions prospective franchisors should ask themselves before commiting themselves to franchising:
1. Firstly, is your flagship business successful? Your flagship’s success will provide the blueprint to a thriving franchise operation.
2. Is your business solely reliant upon your presence? If work is stopping you from taking a vacation, handing over the reins of your franchised business to a manager may prove extremely difficult.
3. Is your business idea simple enough to be franchised?
“Any business that requires a specialized skill or creative talent—say, a restaurant with a complicated menu or a boutique clothing store—isn’t ideal. Relatively simple concepts tend to do the best because they appeal to a diverse pool of would-be franchisees and are quick to launch.”
If you’ve answered ‘Yes’ to these three questions, odds are, you have a business concept that’s perfectly suited to franchising.
Stick with Franchise Direct this year for all the latest news from the world of franchising.
Even though Veteran’s Day was commemorated last week, it’s still always a good time to honour the service that veterans have made to this country. And while, as soldiers, they contributed to the country’s safety, thanks to the Veterans Transition Franchise Initiative (VetFran), honourably discharged veterans are finding they can contribute to the nation’s wealth as franchisees.
With VetFran, over 350 companies have signed up to assist qualified veterans purchase franchises by offering them financial incentives. VetFran was started 17 years ago by the late Don Dwyer during the first Persian Gulf War. The idea behind VetFran was to allow veterans easy access into contributing to the economy after their service abroad. Over 100 companies originally signed up and the operation, which was eventually taken over by Don’s daughter, Dina Dwyer-Owens, was grown from strength to strength.
Vet Fran was created with assistance from the U.S. Department of Veterans Affairs, the Veterans Corporation, and the U.S. Small Business Administration, and includes outreach initiatives to our country’s military and veteran organizations. VetFran is one of the most innovative initiatives in franchising and here’s a somewhat belated thanks to America’s veterans. If you’re an honorably-disarmed veteran looking to set out on a new course in life, VetFran may have an opportunity for you.
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