Now’s the Time to Explore Franchising with vomFASS
Today, we are once again facing the prospect of a recession as the world grapples with the COVID-19 pandemic. While it is too early to predict the financial implications from the global pandemic, we do know that during times like this, with unemployment numbers higher than years past, it becomes a great time for those who are ready to become owners of their own business! A vomFASS USA franchise will allow you this opportunity and there is no better time than now to learn about who we are and what we do.
During the last market meltdown, franchising was a sector that continued to rise as it allowed business minded individuals to rely on their own abilities rather than relying on others who made decisions on their worth and employment situation. The key to opening a successful franchise is to choose a profession you are passionate about. If you are a foodie, love communicating with others, and managing your own time and business; this opportunity, again, is for you!
It is important to share that even during the last economic downtrend (2008-2009), not everyone’s finances suffered during this time; just a few years later in 2013, Reuters reported a record number of billionaires in the world. It is in times like these that many of us more carefully consider the stability of our current jobs and businesses. While it is impossible to guarantee that an industry is “recession-proof,” there are certain industries that do well — or even thrive — during times of widespread unemployment and economic recession. Economic hardship does not necessarily equate to personal financial downfall. In fact, people tend to turn to franchising in times of a strained economy (as well as in times of prosperity).
Franchising has historically done well under most economic conditions. During boom periods, the fear of missing out on a great opportunity fuels strong franchise growth. During a downturn, on the other hand, the fear of job loss and financial security drives many people to take control of their own futures by investing in a franchise business.” – Eric Stites, Franchise Business Review CEO and Managing Director
Despite recent economic trends of growth and stability, the economy — as we have just witnessed — is notoriously unpredictable. If you’re looking to start a new business or buy a franchise that can weather unpredictable market volatility (and a potential recession or depression), you may want to consider investing in an industry that will thrive in good times as well as in bad.
The TOP Recession-Proof Industries
Industries and/or companies that offer goods or services that fulfill people’s basic needs are less likely to fail in periods of recession.
Understanding how a business will perform during a recession is an important consideration before you buy a franchise. As a potential business owner, you should ask yourself:
- Are the products or services more luxury items or everyday necessities?
- Who are your typical customers and how may their purchasing decisions change?
As you conduct research the type of businesses you want to pursue, consider industries that offer basic services. Here are some examples:
- A company or industry that provides staple items (such as grocery stores)
- A company or industry which provides a critical repair or maintenance service (like the auto-mechanic industry)
- A company or industry that provides an essential public-works service (like electricity servicing)
- A company or industry that provides a mandated service (like pipeline inspection)
If you plan on starting an independent business or purchase a franchise, you must consider the industry you will be competing in and take a close look at those that have proven their economic endurance over the past several decades.
Food and Beverage
No matter what happens to our economy, people must eat. Whether they are looking for a healthy option to sustain themselves throughout the day or a tasty treat to aid them through a stressful situation, there are business and franchise opportunities just waiting to be cashed in on.
In times of economic instability, people cut back on “splurges.” That means a lot less of going out for dinner and a lot more of cooking in. The National Purchase Diary (NPD) estimated that, in 2008, 77.4 percent of meals were prepared at home. Home-cooked meals rose steadily to 80 percent in 2013, at the end of the recession. And with the current social distancing guidelines in place, home cooking is once again making an appearance during a tough economic period.
Where are People Getting the Food They Cook at Home?
Grocery and food specialty stores are a stable investment, not just because they offer people the basic sustenance to survive (food, spirits and lots of it); they also provide consumers with their basic goods. No matter what the economy is doing, people still need to brush their teeth, make delicious meals, do their laundry and wash their dishes. Grocery and food specialty stores sell toothpaste, food and beverage items, laundry detergent and dish soap, all of which will be purchased in good times as well as in bad.
Spirits as a category have traditionally been resistant to economic downturns. According to a CNN report, alcoholic beverage sales grew 10% in 2008, the last economic recession in the United States. People may have changed where they spend, like moving from bars to home, but they continue to purchase the category.
One other recent favorable trend is the rise of the economic purchasing power of the millennials. Millennials as group are drawn to authenticity and are drawn to brands that are transparent about how their products are made. This is a perfect fit for the vomFASS Spirits category as almost all of our products are unique to vomFASS and we know the source.
Buying a franchise or starting a new business is not a decision you will make overnight. It is a process that you will research exhaustively. For many would-be entrepreneurs, franchising is an interesting opportunity given that it offers you the chance to be your own boss without taking on the significant risk that comes with starting a business from scratch.
With vomFASS you have the ability to leverage exclusive products, a robust training program, site selection expertise, unique marketing tools and ongoing support to ensure your success!
By doing your research, you can invest in an industry that offers security no matter the state of the economy.
To find out if franchising is for you (or which franchise is for you!), make sure you do your research. Contact us at vomFASS USA and learn more about why we may be the right fit for you, your spouse/partner and/or family!
Note – It is important to share that no industry is truly “recession-proof,” but there are certain industries that are more resilient during economic downturns than others.
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