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The positive message of franchising in a slow economy

Written by: Nick Strong

Article Overview: Don't be negative about franchising when the economy is slow. Be positive about franchising. In the UK over 90% of franchisees trade profitably and GDP has risen by a factor of ten over the past twenty years.

The positive message of franchising in a slow economy

Now more than ever it is vital that franchisors give out positive messages about their network’s successes. Since the summer it is clear that the Northern Rock situation and the UK press’ clamour for the negative have dampened some people’s confidence.

The next quarter will certainly be an important one for confidence and franchisee recruitment. Therefore complacency is not an option. More effort from franchisors in areas that demonstrate reassurance will be helpful to people in buying process now.

Tackling the negative undercurrent that is around in some parts of the UK at present head on is one option. Online newsletters, emails and articles carrying positive stories of how your network may be bucking trend, and posting feel good factor news and press releases is another.

People want a better way forward and they are looking for UK franchising to provide that way for them. Let’s take the initiative and get positive during the close of 2007 and opening of the New Year.

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Article Tags: clamour, complacency, confidence, franchisee, initiative, new year, northern rock, positive messages, press releases, reassurance, recruitment, successes, undercurrent



Related Forum Posts
Re: Ways to Maintain Profits in a Slow Economy - Hi Gt, You have hit the home run with this post. I agree with you on all the points. Let me add this, you should also get high quality product to market to wealthy people. I read it in a magazines that the wealthy people buying habits are never slow down in any economy. They buy whether the econoy is slow or fast
Any franchising horror story? - I am always writing about the benefits of franchising in this forum. Although I don't own a franchise I do believe in franchising is a great business model. Do any of you have horror stories to share about franchising?
Service Or Product? - I'm doing an interview with CBC news this weekend about starting a business in a down economy. One of my recommendations will be to start a service based business instead of a product. My philosophy is to get to cash flow positive as soon as possible and running a service helps you keep your costs low (no production costs and very little overhead required). What do you think? What other advice would you give to someone who is just starting up in this economy?
Re: Are Economic Recessions Good for Franchising? - Since the last post we have had the collapse of part of our financial industry, a freeze-up of almost all business and commercial loans, an intense election, a significant stock market drop, the bailout of the big three automakers, unprecedented actions by the FED to try to prop up the economy, and have entered a possible era of deflation. Much of the rest of the world has followed us into the same situation. I would have to agree with some earlier statements that in the past franchising may have strengthened or even thrived when a slowdown affected part of the economy. However, this situation is different, where financial services, autos, Wall Street, homebuilding, home ownership, and employment are all concerns. Franchising may not escape this situation unscathed.
Re: Women-owned Franchises on the Increase - [quote="Carol Aston":yol98dmb]This is great news GT, although I'm not entirely surprised, franchising is a very good way to go for a lot of women who want to start up their own business and be able to determine the hours they work so that they are more able to fit the business around their family and children. Carol[/quote:yol98dmb] I was speaking with a friend of mind a couple of days ago, who is also a hair stylist. She's been cutting hair for 20 years, and used to manage a Great Clips, and her opinion on franchising a salon (such as a Great Clips) is that it's not worth it. Unless you have your own salon, so you can set your own limits for advertising and what to buy, you don't really make any money at it. Course that's just hair...but in today's economy especially, who knows how many mothers are now cutting the hair of everyone in their family!


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