Franchise Opportunities Blog
Franchise Ownership – Your Pot of Gold at the End of Your Dead-End Job
If the only thing you're green with this St. Patrick’s Day is envy for those around you who seem to be taking advantage of the uptick in the economy, this may just be your lucky year. Did you resolve to get out of a dead-end job and go to work for yourself in 2017? It's nearly the end of the first quarter, but it is not too late to make a change this year.
7 Reasons Why 2017 is Your Lucky Year
- Franchising continues to outperform the overall economy – The entire economy is improving. IHS Markit forecasts a pickup in the pace of the US recovery this year. Even with that, the franchise sector is outpacing the average. It weathered recent troubles better than most and is now poised to grow faster than the economy as a whole. The franchise sector is expected to grow by $36 billion this year.
- Franchising offers strength in numbers – You want to know that you are investing in a healthy business, right? The number of franchises has climbed every year over the last three years and is expected to continue its steady rise. By the end of 2017, the IFA predicts there will be 744,437 franchises in the United States. Buying a franchise puts you in very good company as thousands of other owners continue to thrive.
- Franchising is a vital part of the US economy – You may have heard it said that the small business owner is the backbone of the US economy. In terms of dollars, revenue generated by franchise owners is in the billions. Franchise businesses accounted for some 3% of the US private GDP last year. Put another way – they made up $405 billion of our economy. That's no drop in the bucket.
- Franchising is poised for continued, steady growth – Led by the restaurant/quick service industries, franchises have enjoyed several years of steady growth. Look for restaurants (both full and quick service) to serve up hearty growth again in 2017. The other top franchise businesses poised to see growth again this year are: automotive, business services, commercial and residential services, lodging, personal services, real estate, retail food and retail products and services. The possibilities are vast and are certain to include an area that fits your experience and interests.
- As tourism picks back up, so does the need for franchises – People are hitting the road and when they do, they need places to eat and sleep. Restaurants and lodging are among the top franchise-related business lines. Additionally, various service franchises, like printing and graphics shops, auto repair centers, and even urgent care clinics, benefit when tourists flock to cities for vacations and big events. As Terry Powell from The Entrepreneur’s Source said in a recent Entrepreneur article, “being comfortable with a familiar franchise brand on a trip away from home takes the unknown out of questions about quality, service and cleanliness.”
- Optimism – Since Donald J. Trump was elected as the 45th President of the United States, we've seen a spike in consumer and business optimism. Stock market indexes have surged. In fact, according to CBSnews, stock market increases have pushed US household wealth to $93 trillion. Experts predict continued gains in consumer confidence, employment, disposable income and household net worth. As a result, consumer spending is expected to pick up both this year and next and franchise owners will reap the rewards.
- Regulatory changes – No one can say for sure what will happen under the new administration. But new leadership at the Department of Labor will likely implement regulatory changes that will benefit franchise businesses. In fact, President Trump said he will slash business income tax rates from 35% to anywhere from 15-20%.
Going out on your own and starting a business is a frightening prospect. It's less frightening when you do it with the proven track record of success and support of a franchise behind you. And there are a lot of reasons why 2017 is one of the best years to take the leap and keep that promise to yourself. Become a business owner. Become a franchise owner. It isn't luck. It's smart business.
For more educational blog posts on franchise ownership like this one, please visit http://www.franchise.org/franchise-opportunities-blogs.