Choosing a to open a small business is always a scary idea, but the rewards of business ownership can be thrilling. You may have been considering an entrepreneurial leap recently but stopped as the COVID 19 Crisis emerged, grow and swept over the globe. In time of crisis many find comfort in stability, but this crisis illustrates how fragile and short life is… So, if not now, when will you be ready? If you are waiting for the perfect time, you may wait too long and the opportunities to live your dream my pass you by.
You aren’t alone. Thousands of professionals are facing the same dilemma. But a recent survey shows that many are feeling that this might be the best time to embark in a self-employment journey.
The information that follows is from Fransinsight.com by Franchise Ventures shows that many are undeterred and un-phased and are continuing to march on towards business ownership.
The following data is from the Small Business Startup Sentiment Index from April 14, 2020 (https://www.franchiseinsights.com/franchise-prospects/franchise-buyers-remain-undeterred-by-coronavirus-headwinds-according-to-april-small-business-startup-sentiment-index/)
- 52% of aspiring owners are actually more likely to start a business now than they were three months ago.
- 57% of those surveyed agree or strongly agree that “now is good time” to start their own business journey.
- The responses continue to reflect undaunted entrepreneurial spirit, as 10.7% report “no impact” and 26% report that the Coronavirus disruptions actually increase the desire to control their destinies through business ownership.
You may be wondering if the respondents of this survey reflect your demographics.
“More than half of prospects interested in buying a franchise are married, which turns out to be an important factor in boosting average household income” (franchiseinsights.com, 2020).
More details show;
- In Q4 of last year, 58.5% of prospects contacting franchisors were married, and 50.1% of the married prospects had estimated household income of $100,000 or more.
- Interestingly, married Generation X prospects ranked highest for income, with 56.8% at $100,000 or more. Baby Boomers had 49.7% of married prospects with at least $100,000, and Millennials had 36.2%
More research shows Gen Xers (39-54) year of age are in a great position to consider business ownership.
- Generation X claimed 44.9% share of prospects contacting franchisors through the Franchise Ventures demand-generation platform in 2019. Here is a demographic profile of the 39- to 54-year-old cohort, based on 2019 data:
- Gen X prospects indexed the highest among age groups for estimated household income, with 40.8% earning $100,000 or more a year. That indexes 13% higher than the average.
- Gen X-ers also led the field in asking about high-investment franchises, indexing 4% above average for $100,000+ franchises and 5% above average for $250,000 franchises.
- 78% own their own homes, with 50% residing at the same address for 5 to 20 years. Half of Gen X prospects owned homes valued at $250,000 or more, and 15% were valued at $500,000 or more.
Like you, these survey respondents indicate that lifestyle rewards are among the most important consideration factors when investigating business ownership.
- More than half, or 56.5%, say “lifestyle rewards” are one of their top motivations as they think about starting or buying a business.
- That’s the third-largest response, after “be my own boss” and “income potential.” The survey allows multiple responses, and “lifestyle rewards” almost always appears in tandem with other answers.
If you think the lack of a completed degree or limited higher education experience is a barrier to owning a business, think again. Franchiseinsights.com show that many of the demographic groups pursue business ownership without formal degrees.
- Overall, 74.8% of franchise prospects had some college experience in Q3 2019, but 52.9% of the total either did not attend college or complete a degree.
- Millennial’s, ages 23-38, had the greatest college participation – 81.4% – but also had the largest proportion not finish a degree, at 31%.
- Baby Boomers, ages 55-73, had the highest ratio of franchise prospects post-graduate college work, at 29.2%, and Millennials had the second highest ratio, at 27.9%.
This Crisis has made it even more clear that many are looking to getting off the Corporate roller coaster. Again, franchiseinsights.com reports that ending the cycle of running the ‘rat race’ is a clear motivator for many looking towards business ownership.
- 2% of respondents include “tired of climbing the corporate ladder” as one of their reasons to search for a business to buy.
- 97% of those respondents also said “Be my own boss” was a motivation.
- Income Potential and Lifestyle Rewards were also strong factors, appealing to 92% and 89% of those considering a leap away from a larger organization.
If you are looking to break the ‘glass ceiling’ business ownership for women is an attractive option. Young women are clearly not willing to wait and see if the barriers of equal pay and equal opportunity are finally removed in corporate life. They are leading the way in small business ownership interest and are one of the demographic groups seeing the highest success.
- Generation X, ages 39-54, saw more women than men contacting franchisors, with 50.5% of inquiries coming from women, and 49.5% from men. Gen X was also the largest group of potential franchise buyers in the Q3 analysis, which balanced out gender ratios in other age groups.
- Millennials, ages 23-38, saw 48.1% of franchise inquiries from women and 51.9% from men.
- Baby Boomers, ages 55-73, had a wider gender gap, with 46.9% women and 53.1% men.
“Independence and controlling your own destiny are powerful motivators,” said Michael Alston, president of Franchise Ventures, “It’s telling that this is stronger than potential income in the survey current result.” (Franchiseinsights.com, 2020).
During times of uncertainty, many want the freedom to control their futures. Choosing to own your own business puts you in the driver’s seat. You no longer are beholden to others. You are in control.
- A full 87% of users starting a franchise search said that being the boss was a primary motivation for them, beating out income potential and lifestyle rewards, among other reasons.
Small business loans and other funding to finance your business endeavor are more available than ever and if your business plan is sound and well developed and if you choose a proven partner or franchise you will be more likely to get the funds you need to start a business in today’s economic marketplace.
So, it’s clear that the COVID 19 crisis has changed the world and the way business will operate for some time. If you are looking to open a business, you need to find one that is positioned from the outset for ease of startup and has features that make it somewhat “crisis proof”.
Business coaching a booming industry which is expected to exceed $2 Billion, may be the perfect fit. A virtual business that you can conduct from almost anywhere, anytime gives you options to consider. Businesses of all kinds need help now, as a certified business coach, you can be there to provide resources, tools and teach business people strategies to help them survive and thrive. You can help change business results and make a real impact on your communities’ economy.
You can own a Business Coaching Practice or firm with a low start up cost and operate a business in an exclusive territory anywhere on the planet. But going out on your own might not be as easy as you think. Choosing an existing brand that supports, trains and provides you with all the materials and information you need to run a successful coaching business is critical. Choose to work with the largest and most successful organizations, ActionCOACH which has more than 27 years of experience and offers more than 3500 tools, systems and processes to arm you with the products and services you need to offer businesses in your local area. With a global community, spanning more than 70 countries, ActionCOACH has a built-in support network you can draw from as you launch your business.
So, ask yourself again, “If not now, when?” When will you stop the 9-to-5 grind? When will you be your own boss? When will you choose to start a business with a purpose? When will you choose independence and freedom?
The answer is… today, now. Because if not you, who will grab the opportunity you let pass?