T.S Eliot says, “Only those who will risk going too far can possibly find out how far one can go.” The thought of launching a business at any time can be intimidating.
But in the wake of worldwide pandemic, it may seem unreservedly unnerving. It is alarming and uncertain time.
Many people just place the focus on survival- staying healthy and either keeping their job or quickly replacing the one they lost.
While no sector of the Indian economy has remained unstirred by the COVID-19 crisis, certain categories of business remain tough, regardless of economic cycle fluctuations; these type of businesses in most cases provide the new business owner considerably higher start-up stability.
A recent survey revealed some surprising results on franchisee activity in the near term. The survey polled aspirants franchise owners as to their plans amidst this challenging backdrop.
While this survey was US-focused, we are seeing similar levels of credence among our Indian clients. Here are some key responses:
• More than 54% reckon that “now is a good time” to start a business. 59% of respondents expect to start a business within the next three months, and another 17% within four-six months.
• 39% of respondents believe that business conditions will improve in three months, whereas only 24.3% expect them to worsen.
• Only 18% of the respondents indicated plans to out their business start-up search on hold.
Also, one must keep in mind that when it comes to franchising, risks are always calculated and the opportunities are plentiful unlike independent business.
The present time can be utilized and perceived as to overcome fear and grab a unique opportunity to regain control of upcoming days.
Here is the list of reasons demonstrating the present time to be apt for franchise ownership:
1. Secure Quality Employees Easily:
Securing and hiring quality employees is indeed one of the biggest challenges of business ownership. Also, finding potential employees that you can rely on is arduous.
When economy is at its acme, quality employees are like gold dust, it’s difficult to get them, and you need to provide economic incentives to get them to join your company.
However, owing to pandemic, the days have changed and a myriad of quality people are looking for jobs. Businesses can secure quality employees at a lower cost.
2. Prime Locations Become Available at an Affordable Price:
Pre-pandemic, the scenario was such that every business owner had to strain hard to find a great location at an affordable price.
However, at present the scenario has taken a turn and prime locations are available as businesses close.
As the supply of prime locations goes up and the demand for those locations goes down, prices decline. Today a new business owner stands a superior chance of securing a prime location at the modest cost.
3. Lack of Competition:
When economy is at its peak, everyone jumps into business. Owing to abundant demand, competition also multiplies.
This further leads to higher advertising costs and sharp price competition. With many companies slowing down operations and financial controls, now is the perfect time to jump in head first, get your ideas and products out there and capitalize on the opportunity to market your brand with far less competition than usual.
4. Franchisor Incentives:
Some successful franchisors are offering temporary incentives over the last several months like waiving royalties for six months, discounts on franchise fees, paying for training costs or flexibility regarding opening dates.
The reason behind offering these incentives is pandemic only. Because of the changing business climate, franchisors are also adapting and coping with it and the outcome is greater opportunity for the franchise partners.
5. The Rise in Adoption of Technology:
On one hand, countries are facing strict COVID-19 restrictions including curfews, closures of businesses, and complete lockdown and on the other hand, the rise in adoption of technology and online platforms for everyday functions have recorded a rise during the pandemic.
Reliance on Zoom, Microsoft Teams, and Google Hangouts have increased a lot in businesses to keep team connected and manage meetings with clients.
In terms of technology and online platforms, growth of e-commerce has been incredible. The pandemic has made people reluctant to go out to shops to make purchases and the outcome is increase in online shopping.
Amazon’s stocks have increased by 87%, since the onset of pandemic and related restrictions. Even when national economy is going through a lot of uncertainty, consumers are looking forward to spend and get latest online deals.
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Dhinal Baxi is a founder of franchise Insider. As a founder, he has served hundreds of clients. His experience from the financial sector has helped them to achieve great success.