Weathering Economic Upheaval

The election is over and now we face the “fiscal cliff,” sequestration, and remnants from the last recession.  Even with our lower unemployment rates, economic uncertainties continue to be a source of worry and frustration. 

Displaced executives and employed executives who feel that they are at risk of losing their jobs comprise bulk of my clientele.  Pushed by the economic upheaval in recent years, a large number of professionals have left shaky corporate jobs. Many of these are turning to small business ownership — specifically franchises — to create their own security.

With a well-educated workforce and a stable of investors, the Washington, D.C. region is still a great place for those considering small business ownership. Low unemployment and home price increases are also good signs for those interested in opening a business.  In fact, small businesses, including franchise businesses, are the backbone of American job creation supporting nearly 18 million U.S. jobs, says the International Franchising Association.

But before you decide to jump out of the corporate world to become an entrepreneur, here are some tips to consider:

1.    Know your personality.  What are you good at?  What interests you?
What kind of hours do you want to work? What are your long-term goals?

2.    See a broader picture.   Franchising is more than just French fries.
A lot of people who think of franchises automatically think of restaurants or
hotels. Today, there are many new kinds of opportunities—retail and home-based.

3.    Understand your risk tolerance.  Franchises are usually less
risky than pure start-ups. Even within the franchise arena though, some have
long track records of success and others are newer with little or no track
record. Knowing your tolerance for being a pioneer is important to understand
in advance. 

4.    Have working capital. Make sure you have a buffer. New businesses take a
little time to start generating profits, and you’ll want to have cash on hand
to cover expenses and pay for extra marketing.

5.    Work with a professional.  Use a franchise consultant—such as myself—to help guide you through a process of finding a franchise fit. Their expertise will help you avoid costly pitfalls and their services are free to the potential franchisee.

Along with two local nonprofits—the Community Business Partnership and SCORE, I will be providing these kinds of insights and more on November 28th at the Capital Area Franchise Fair being held at the Reston Association Conference Center.

The Fair is but one way to help you explore your inner entrepreneur.  Many other great resources and opportunities are available to help you take advantage of our region’s start-up friendly business climate. 

So don’t just weather the economy.  Make a plan to successfully transition from desk jockey to business owner—and take more control of your future.