A Positive Outlook for Small Businesses and Franchise Development

According to recent reporting from the US Chamber of Commerce and MetLife, 65% of small business owners feel optimistic about the future of their business as it relates to the Covid-19 pandemic while44% identify as “hopeful” about the prospects of their business. Another 31%claim to be “comfortable” with the current state of their business.

As people got back to work following the pandemic, many began to evaluate their work and career choices with many deciding to pursue their own businesses or self-employment opportunities. As an example, the  2021 Annual Franchise Development Report (AFDR) revealed some encouraging findings at the Leadership& Growth Virtual Conference (FLGVC) in October 2021 — a first-of-its-kind franchise leadership and development conference set up in part to help new and prospective franchisees learn the ropes of the game and set themselves up for franchise success post-pandemic.

The Arrival of New Businesses and Franchises

Survey data from the AFDR specifically looked at the role of franchise brokers and examined how franchisors themselves are recruiting franchisees, developing their brands, and managing their budgets. Respondents representing a spectrum of franchisors answered an in-depth questionnaire, and the aggregate answers showed that despite the pandemic causing many thousands of businesses to close their doors permanently, an astonishing number of applicants filed to establish new U.S. businesses — the highest since 2007.

Now as franchise sales continue to trend upward, new and expanding franchise opportunities are actually part of a stabilizing force in the economy — even with the after-effects of the pandemic. The big takeaway for prospective and new franchisees? Research opportunities thoroughly to determine where to prioritize and invest your energies. Today, prospective franchise owners can find information online and through company franchise development staff to equip themselves with the knowledge to narrow down their decision. This can help you learn about a brand’s products and services and even its overall ROI.  

The Importance of Thriving Franchises

Franchises attract eager workers and ultimately provide job opportunities that allow Americans to grow in their careers. Many franchises offer wages 3.4 percent higher than their non-franchise counterparts. Consider the millions of people who got their first job at a particular franchise and either went on to become franchise owners themselves or took the workforce skills they acquired and applied them in other areas of their life and career.

For aspiring business owners, the franchise model provides greater security in its community of like-minded franchisees, its continuous supply chain savings, and its unparalleled marketing support that cuts out so much of the budget sole-proprietorships must shoulder to gain visibility.

Additionally, many franchises provide direct access to capital or at least provide an attractive scenario that prompts banks to supply a small business loan for franchise investment. A survey from Value of Franchising reveals that, for30% of respondents, the franchising model was the sole reason they were able to go into business at all. As franchises source many of their goods and services locally and bring on local residents to contribute to the business, the franchise directly enhances the well-being of the immediate community.

For many entrepreneurs, leading an independent franchise allows them to enlist local work, exercise their personal talents, and create a better life for themselves and their families. On top of these upsides, as many as 65% of independent franchises contribute to major charity causes. This equates to $1.5 billion and 18 million volunteer hours.

Be Your Own Boss

Tired of working for someone else? Want to work from home? Ready to channel your energy into building a business you can be proud of? OpenWorks provides the customers, training, equipment, and assistance with business planning you need to get started right away — all with affordable franchise fees and no start-up equipment costs.