Recession- Resistant Industries That Are Great Franchising Options
A common perception of many about the franchising business is that it’s “safe and tested”. To an extent, this is true; most businesses have decided to enter the franchising game after they have received good results from their initial venture. It is important to remember, though, that success is influenced by many factors. The location, customers, management, and even economic state are all key factors that more or less affect the success of a business. With the proper combination of these three, a business will flourish, but if it goes awry in even a single factor, the same success would be impossible.
During a recession, almost all businesses are affected, and both franchisors and franchisees may find themselves closing down. Just because a business is doing well today doesn’t mean that it will continue to do so. Carefully selecting a franchise is a key to success. There are certain industries that have proven to be “recession-resistant”. These are the industries that continue to earn comfortably despite a bad economy. Investing in these industries will increase your chances of surviving a recession:
Cosmetics – Affordable cosmetic products increase in sale during recessions because people still try to find ways to pamper themselves without spending too much. Take note that people are only willing to splurge up to a certain amount, so the less-expensive cosmetic products have a higher probability of being sold than their more expensive counterparts.
Vices – It has been proven that vices, such as alcohol and cigarettes, continue to make huge sales during a recession. There is, however, a shift in people’s buying habits during a recession. They choose to buy in smaller quantities than indulge freely. The wine industry reported that sales by the glass were higher than by the bottle during such periods. Candies, which are a vice of some sort too, were also observed to skyrocket in sales during recession, probably because they make easy snacks during work breaks.
Discount/Consignment Stores – The cheaper, the better. During times of recession, people choose to buy from discount stores than spend on expensive clothing.
Health Care – No matter the economic situation, people get sick, so there will always be demand for healthcare facilities and clinics with affordable rates.
Repair Technicians – Just like in health care, appliances and other housing needs need maintenance regardless of economic status. Plumbers, electricians and others will always be in-demand.
If you need help deciding which industry is best for you, consult this article for more information: http://www.businessnewsdaily.com/1783-choosing-franchise.html.
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