I was having a conversation this morning with a fellow who represents a number of the franchises with which I do business. He asked me how things have been going during the pandemic and how I thought things had changed. I thought about it for a minute and this is the gist of what I said.
For most folks, investing in a franchise, or starting a business of any sort, is a scary process. It involves risk, both professional and financial. Oh sure, there are some well-to-do folks I’ve worked with who are just looking to start something up on the side while they keep their day job, but the risk is still there. While the risk is decreased when you go with a franchise (proven system, strong support team, etc.), you’re still jumping out of that airplane. Maybe you’ve got someone strapped to your back who has jumped a hundred times before, but it’s still a scary process.
The pandemic has only intensified that fear. Every person that goes into the process to any deep degree has hit the “stuff got real” moment when they have to make the leap or back away from the door. When almost every news story each day is bad and when neighbors, friends or family might be hurt by the pandemic, it’s a lot more difficult to convince people that they’re making the right move. Couple that with the fact that many 401K’s became 201K’s almost overnight and many people would rather not add to the risk it seems we all take just by waking up each day.
Many of the folks who express interest in learning more are, unfortunately, not good candidates for many brands. They don’t have much liquid capital and due to what’s been going on, their credit may be damaged. Honestly, some are pretty desperate to buy themselves a job which is not a great reason for them to be looking at starting a business. The virus has made it harder to find really well-qualified folks in many ways.
It hasn’t all been negative. Getting financing has rarely been less expensive for those who decide to move forward. The government has been delaying loan payments to help borrowers out. Some business sectors – in-home care, home repair and remodeling, cleaning, and some others – that were good businesses before are even better businesses now. I had one person who was looking at some food businesses shift overnight to wanting handyman businesses. That’s smart thinking because he is looking at the business as something that makes his goals possible and is unconcerned with the means to that end. Shifting on the fly is something we all need to be doing more of these days, right?
Those are my general thoughts about what’s happened to my business over the last few months. What’s going on with yours? How can I be helpful?