During a unique time such as this, entrepreneurs and employees alike are considering their next business plans, and how to best be successful in the future. Fortunately for those who are ready to take the next step, history demonstrates a positive outlook as entrepreneurs are often born after a recession or major historical event.
As Entrepreneur Magazine recently reminded us, historical events such as the economic recession following a 100-year war between England and France kick-started a major agriculture innovation period. Even more modern-day events like the SARS pandemic changed the retail landscape in Asia thanks to a small business called Alibaba. And similarly, in the US, a post-2008 recession study in the Journal of Economics and Management Strategy reported the largest increase in entrepreneurship of any period in recent U.S. history. Additionally, more than half of Fortune 500 organizations got their start during previous recessions on bear markets.
With data like this, for those who are looking to either start a new business or expand their existing business portfolio, now is an opportune time to act. The current economic environment offers a collaborative real estate market and business-friendly banking products and rates. More specifically, the current real estate market is providing people with unique opportunities that might not otherwise be available—as landlords are looking to ensure they have tenants, there are potential opportunities like stand out properties that can offer great foot traffic and a good customer base that are now an option with lower interest rates. On top of the particular real estate opportunities, during such an unprecedented time in the economy, investors are looking for hard assets like real estate that offer a long-term investment and great re-sale value.
Even with these unprecedented advantages for business owners, paired with the historical data, starting a business can be a stressful process and a huge leap for some. So, what is the best course of action for those who are ready to take the leap, but don’t want to risk too much?
The answer is simple: franchising. Franchising is the ideal opportunity for those who are looking to start a new business, particularly if it is a new industry, for the first time. Franchises offer a corporate support team that will assist the franchisee throughout the entire process. In the real estate development process, franchises offer a dedicated team of real estate professionals who will help determine the best location based on demographics and trends in the market. A team of experts is always a valuable asset within a franchise system but is especially vital during these unique circumstances, as they are monitoring the current market conditions to ensure that each opportunity will set a franchisee up for success.
By choosing a franchise, franchisees are still able to be their own boss and make their own decisions, but without the stress of starting a business from scratch. Franchises provide the business owner with a proven track record, business plan and corporate support that will guide them to success, while at the same time allowing them to have the professional freedom that they are looking for.
Another consideration for those looking to start a new business is what type of franchise model will flourish during the COVID-19 era, but will also offer longevity. As we all adjust to the new normal, consumer behavior is changing the way businesses are operating, and impacting how consumers will interact with brands in the future as businesses continue to re-open. As customers move away from restaurants that offer the “sit and sip” model and are favoring the “grab and go” model of dining, it is predicted that this trend will continue even as things settle into a “new normal.”
Even though the initial forecast for the business market looked uncertain, recent predictions are that the economy will recover faster than before. The unique and timely opportunities that the real estate market and banks are currently offering could make this the best time to make your next business move.
Gregg Koffler is the Vice President of Franchise Sales and Development at Paris Baguette. He oversees all aspects of Franchise Sales and Development. Prior to joining Paris Baguette, Gregg was the head of Global Franchise Development for Johnny Rockets Restaurants based in Los Angeles California. Gregg also held the position of Chief Development Officer for Orange Theory Fitness based in Boca Raton, Florida. Gregg was also employed by IBA (Smashburger) as their Senior Vice President of Franchise Sales and Administration from in Denver, Colorado. Prior to that, Gregg held multiple positions at CBC Restaurant Corp (franchisor of the Corner Bakery Café concept) in Dallas, Texas, including as Director of Franchise Sales and as Vice President of Franchise Sales. Paris Baguette is currently looking for eager entrepreneurs or multi-unit owners and area developers who are ready to leverage these short-term advantages while also choosing an industry and business with a strong success rate. As a brand that offers over 70 years of experience in the industry, and more than 10 years of experience in the United States, Paris Baguette is a great opportunity for those looking to join the franchise industry.