The news has us all a little on edge. When it comes to the economy, it’s hard to predict the future. Understandably, we’re all a little nervous and fervently checking our retirement accounts (but it’s actually not a good idea to do that!). Particularly if you’re thinking about starting a business in a recession (is there going to be a recession? Even that’s uncertain!), there are a few things to think about.
After all, an entrepreneurial spirit doesn’t just go away if the economy is struggling.
While the future of the economy remains uncertain, the power of human ambition persists. Whether it’s the desire to be your own boss, build a legacy for your family, or begin a second career, starting a business can be the key to the kind of freedom you’ve always dreamed about. And yet, it’s scary. With or without economic uncertainty. We’re here to help! With our extensive data about franchise businesses, we have some advice to dole out if you’re thinking of starting a business in a recession.
5 Things to Consider if You Want to Start a Business in a Recession
Why not a franchise?
Yes, this piece of advice is predictable coming from the most extensive market research company devoted to franchise data. But listen, we use our knowledge for GOOD. If you look at a franchise vs. starting your own business, you’re signing up for support, training, brand recognition, and more. A built-in roadmap for success. There are some great franchises out there with franchisees who are so happy. Take Senior Helpers, a senior care franchise, for example. Their business model rests heavily on the training and support they offer franchisees. They do such a great job that 97% of franchisees would recommend the franchise to others.
Explore your finance options.
Without a doubt, financing is complicated. Because of that, we have an entire financing resource center to support you. First things first, figure out what you can afford. Most people get some type of financing, there are so many options. Find out what you have to start with and go from there. We have a great financing calculator that can help with this. When you enter your financial information in, the calculator will lay out all the different options available to you. It’s a great place to start if you’re feeling overwhelmed.
Consider how to get the best bang for your buck.
If you’re feeling uneasy about finances at the moment, you may want to consider a business that doesn’t require much money to get started. We have an amazing list of low-cost franchises that we’ve vetted extensively. Every single business on our list has a high FSI score (that’s our data nerd way of rating how happy franchisees- the local business owners- are). On this list, you’ll see options that don’t require an office space or a lot of inventory. Bee Organized, a professional home organizing business, is a great example because you don’t need office space and the business is literally turnkey.
What has staying power?
The best businesses to start in a recession have staying power. They aren’t based on fads or fit a very specific niche, or only available to a certain few. In classic data nerd style, we actually have a list for this. We’ve taken our extensive data and compiled a list of Recession-Proof Franchises that everyone should be looking at right now. Buying into a Christian Brothers Automotive, for example, is an incredible choice during a tough economy. People may not buy new cars during hard times but you better believe they’ll fix up their existing ones.
Keep calm and carry on.
Whatever happens, those with grit, creativity, and strong support networks will persist. Do your research, assess your support system, and check in with your gut. Why do you want to be an entrepreneur? There are no wrong answers! Just make sure your answer is strong enough to pull you through those uncertain times.
We don’t know what’s going to happen. There will always be uncertainty, even in a booming economy. Your dreams of business ownership don’t have to wait! Just invest smart. Do your research and pick a path that’s doable for you. We’re here to support your dreams of entrepreneurship with hard data.
