Top 5 Recession-Resistant Franchise Opportunities
There is no better time than now to pursue franchise opportunities. In the United States, our economy is experiencing a record boom that may well go down in history as the longest. Unemployment is at record lows, and people are earning and spending more money. That means franchise opportunities are also growing rapidly, as both franchisors and franchisees are experiencing a period of success.
But as an old truism reminds us, what goes up must eventually come down. That may also include this current period of prosperity. No one can accurately predict when an eventual downturn will occur, just that it is likely. That means entrepreneurs who are investigating franchise opportunities should consider investing in certain sectors that are more recession-resistant than others.
Certain sectors and industries seem to prosper and hold value regardless of the economic climate. This is generally because they offer products and services that are needed by the population, no matter what else is happening. As such, they are sound investments for aspiring business owners and should not be overlooked as serious options.
At-Home Care for Seniors
The American population is aging, and fast. The U.S. Census Bureau predicts that by 2035, there will be more Americans over the age of 65 (78 million) then there are children under the age of 18 (76.4 million). And, according to AARP, 87% of adults age 65 and over want to stay in their current homes and communities as they continue to grow older.
Home care for senior adults provides non-medical caregivers who help seniors with the everyday chores at home that they cannot accomplish themselves. These are things like taking seniors on errands, housekeeping, meal preparation, caring for pets, and simple companionship. In-home caregivers of this ilk cost a much smaller amount that the costs of a senior living community.
This is a gem among franchising opportunities because of the growing demand, simple skill set required for employees, and built-in scalability. Franchise owners can scale as the business grows, allowing them to start small but add caregivers as the demand for their services grows. Be sure to research your area to determine the level of need or saturation, and also what options are available.
Mother Nature doesn’t check with the economy before hurling damage and waste in her wake. Depending on your location, there will be a need for certain restoration services after wildfires, tornados, hurricanes, and earthquakes. And of course, there will always be occasional house fires, bursting pipes, flooding toilets, and shifting foundations.
Of all the franchising opportunities, the restoration industry will always have customers. Home and business owners want their property restored to usable status as quickly as possible, and most jobs are covered by insurance. When insurance pays, consumers rush to get work completed.
Restoration services are a major industry in every part of the country. Plus, franchises in this sector are priced more reasonably than most others, and feature a low overhead because they can be operated without a storefront location. Some specialty equipment, training, and certifications may be required.
More men may let their hair go longer, or have it cut by a family member, but most ladies consider hair care as an essential spend, in good economic times and in bad. And, at least for the foreseeable future, hair care will not be soon replaced by technology. The various treatments involved still require the personal ministrations of a trained professional.
Another benefit among franchising opportunities is how hair salons can operate without the constant presence of the owner. Called the semi-absentee model, owners can spend 15-20 hours a week running their hair care franchise while depending on a manager and contractor hairstylists to actually work the business’ advertised hours.
Those entrepreneurs who are just starting out and still work a 9-5 job will find this model to their liking, as well as those others who like the work/life balance it affords.
Resale Franchising Opportunities
When an economic recession looms, consumers always look for ways to cut costs. One of the best ways to do that is by reselling unneeded items, or purchasing used items from a reseller. Whether it’s clothing, technology, athletic gear or household items, resale stores generally do well in a recession. Not only do they offer significant discounts from high retail prices, but they pay people in cash or trade for their items, which benefits customers during hard times.
In fact, according to reselling franchisor ThredUp, reselling is a $20 billion industry. More and more consumers are jumping on the reselling, or “recycling,” bandwagon, even younger generations who are more environmentally conscious.
As car prices continue to rise, consumers are holding onto their vehicles for longer periods of time, figuring that occasional repair costs are still more affordable than large monthly car loan payments. This means auto repair and related franchises, like parts stores, will continue to thrive, especially in a recessive economy.
Some reports claim that the average car on the American roadways is over 10 years old. And, the same reports all point out the fact that most auto repairs are performed by independent shops, many of which are franchises, instead of big-name auto dealership service centers.
Are you considering opening some kind of franchise business? Let the professionals at Franchise Guardian help you investigate the franchising opportunities available, and walk you through the process of building a solid plan for success.