Clearly no industry has been left untouched during the COVID 19 Crisis and economic projections for 2020 have been thrown out. Companies are facing comprehensive changes to the way they operate and some many not survive this crisis, adds to the uncertainty of the future of traditional corporate jobs. Is it time to consider some other career path? Is now, during this isolation, a time to consider an alternative route to financial security? The entrepreneurship spirit has always been the life blood of economic growth and small businesses are responsible for creating job opportunities worldwide. Even in this pandemic, many believe that it might be the best time to strike out and launch their own business, now.
Here is segment from a recent article by FranNet on March 19. https://frannet.com/resources/articles/franchising-moves-forward-despite-challenge-of-covid-19-pandemic/
“Franchise Insights’ Buyer Sentiment Survey was conducted March 16-17, polling aspiring franchise owners as to their plans amidst this challenging backdrop. Here were some key responses:
- Over 54% think that “now is a good time” to start a business. 59% of respondents expect to start a business within the next three months, and another 17 percent within four-to-six months
- The majority of respondents (39%) believe that business conditions will improve in three months, while only 24.3% expect them to worsen
- Only 18% of the respondents indicated plans to put their business startup search on hold”
It is clear that confidence may have been shaken by the outbreak of COVID 19 but the resiliency of entrepreneurship seems to be on a more positive trajectory. It is these brave trailblazers which find opportunities even in the midst of the gravest of times. During the Great Depression in the 1930s, railroads, movie theater owners, Procter & Gamble and Martin Guitars all made the most of situation and all emerged stronger https://www.mentalfloss.com/article/20837/5-great-depression-success-stories.
After the Great Recession in 2008, there was a boom of non-traditional business startups such as What’s App, Instagram, Groupon, UBER and Slack who all used the challenges of the economic crisis to find new lanes in which to run and who birthed new industries overnight. https://www.foxbusiness.com/markets/startups-great-recession.
Why will this crisis be different? Social distancing and other mitigation measures will give entrepreneurs fuel for their creativity and will lead to new business opportunities. But financing concerns will hold some back. How will you fund your new business opportunity? FranNet notes four key areas about financial opportunities in a down economy;
- The Federal Reserve recently cut the benchmark U.S. interest rate to 0-0.25%
- Small Business Administration (SBA) loans lower needed cash on hand
- 401K rollovers and Portfolio loans have built-in collateral
- Higher loan approval rates, more funding options, and increased commercial real estate
The recent Small Business Act has opened up opportunities for those looking to start a business now in the midst of this crisis. The Act recently passed has opened up new financial roads for entrepreneurs.
- Waives all borrower upfront guaranty fees for all borrowers, regardless of loan size
- Waives the ongoing fee for all lenders
- Increases the guarantee on all 7(a) loans to 90%
- Increases the Express maximum loan amount to $1 million from $350,000, and after 1 year, lowers the maximum loan amount to $500,000 rather than the existing $350,000
- Gives increased flexibility to the Economic Injury Disaster Loans (EIDLs)
To that end, main franchises are already looking for ways to provide their current franchisees and future franchisees opportunities to grow and flourish. Strong strategic partnerships between brands and their franchisees will strength this sector. Choosing a strong franchise partner is vital to a new business owner’s success.
Making a life changing decision to strike out on their own and fulfill their entrepreneurial dreams come true is a difficult one, but now might be the time to start the journey. Vetting business opportunities thoroughly is critical. ActionCOACH provides a self-paced Discovery Portal so that entrepreneurs looking for options to explore and investigate what ActionCOACH offers. This portal found on the front page of the website www.actioncoach.com. There are videos and resources in the portal which allows those in an in investigatory process to learn as much about the brand as possibly virtually. Click the link to view the portal here https://www.actioncoach.com/virtual-discovery-day-sign-up/.
ActionCOACH echoes the advice provided by FranNet and both encourages potential business owners to be prudent and for prospects and “conducting the right amount of due diligence on your journey cannot be overstated. But we wanted you to know that—even in the most trying of economic times—there may be situations that you can take advantage of to benefit the quest to become your own boss.”