Looking to invest money during inflation? Opening a recession-resistant franchise is one of the safest investments you can make. Here’s what to look for.
FIND YOUR PLACE IN A RECESSION-RESISTANT INDUSTRY
Recessions are impossible to predict with perfect accuracy, but certain businesses stand a stronger chance of weathering an impending storm. Industries that trade in luxury and big-ticket items like automobiles and high-end travel most commonly face greater challenges during times of economic downturn, when consumers are watching their spending more carefully.
However, some of the most lasting and successful businesses were founded during times of economic crisis: think Disney at the beginning of the Great Depression or Hewlett and Packard during the next recession in the late 1930s. The most recession-resistant industries have less to fear from rising interest rates and a fluctuating GDP, and many have the potential to do even more business amidst inflation.
Healthcare, home improvement, automotive repair, and food and beverage are all considered somewhat recession-resistant industries, providing fundamental goods and services that are in demand regardless of the state of the economy. And while there is no such thing as a truly recession-proof business, industries that provide necessities and even items that may be considered small luxuries are positioned to maintain and even grow their business during challenging times. Home improvement covers both categories for many consumers: a functional upgrade and an aesthetically pleasing project to make a home even better.
WHERE TO INVEST IN 2022
During times of economic hardship, people try to save money by maintaining what they already have, including their homes. Since people tend to choose home renovation or upgrades over the hassle and expense of selling and moving, the home improvement industry includes many recession-resistant franchise opportunities.
One way to choose a recession-resistant franchise that will thrive during both good times and bad times is to determine whether it bridges the gap between what consumers want and need. If your business can provide goods or services that can be considered both essential and desirable, you stand a greater chance of achieving long-term success. During times of economic uncertainty, franchise brands with a proven business model and established reputation are reliable resources for consumers and savvy investments for prospective owners.
For many companies, periods of recession result in operational and financial distress. Businesses may be forced to downsize employees and limit inventory or services to reduce expenses. Companies with larger overhead are often hit the hardest. So, if you’re looking for a franchise that can not only weather the storm but become essential during a recession, consider a couple of factors that will keep costs low no matter the economic climate.
- No inventory required. For many franchise businesses, a large upfront payment is required to cover inventory to stock shelves or have items on hand for potential customers. Purchasing inventory is a fixed cost and necessary element in some cases, but that is not the case with Budget Blinds, which offers a no-inventory business model to keep overhead low and ease of operation high.
- Scalable, home-based business. The ability to run a franchise business from home benefits business owners on many levels. You’ll save money on a daily commute, need fewer employees, and you can set your own schedule as it applies to a healthy work/life balance. Unlike other home improvement franchises that require a storefront, warehouse, and massive amounts of inventory on hand, Budget Blinds has been perfecting the home-based, mobile model for 30 years, giving franchisees the freedom (and lower overhead) to run their business without unnecessary constraints.
BUILD A FUTURE WITH BUDGET BLINDS
Choosing a franchise simply for its recession-resistant qualities may not guarantee your success; you need a franchisor that has the knowledge, experience, and support system available to guide you through all seasons.
As a leader in the window coverings industry, Budget Blinds is proud to be the No. 1 home-based franchise and #1 Mobile Franchise on Entrepreneur’s Franchise 500® list, having earned these rankings thanks to our commitment to providing franchisees with a proven business model, brand strength, comprehensive support, and all the other elements essential to building a successful business in your local community.
To learn more about franchising opportunities with one of the biggest names in the recession-resistant home improvement industry, inquire now.