'Recession-proof' franchise opportunities

July 10, 2009 | Print this Page.
Senior care services is considered one of the most 'recession-proof' industries for entrepreneurs.
Entrepreneurs looking for their next big venture may not have to wait until the recession is over to turn a profit, if they pursue franchise opportunities in certain "recession-proof" industries, says franchise business consultant firm FranNet.

"No industry is completely recession proof, but we are finding that there are several franchise sectors that are prospering due, in part, to the current state of the economy," said Jania Bailey, president and COO of FranNet. "When financial change occurs, so do consumers' needs and purchasing habits. As a result, a distinct group of businesses are now in higher demand."

Topping the list of these in-demand industries is senior care services, considering the enormous revenue potential of the aging baby boomer generation.

Also promising is the technology solutions services industry - according to Bureau of Labor Statistics data cited by FranNet, the IT sector is expected to increase by 800,000 jobs in the decade between 2006 and 2016.

The tutoring services industry is also listed as potentially attractive to franchisers, as education investments are less vulnerable to market fluctuations.

Business expert Maria Anton recently published a column on business.gov outlining important steps for a prospective franchise owner, including checking out success stories, carefully comparing franchising opportunities, scrutinizing the disclosure document, and hiring an attorney and possibly an accountant.

Prospective franchise owners in need of business lines of credit are urged to consider small business loans, from banks or nontraditional lenders, experts advise.

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Joel Libava
July 11, 2009 at 2:36pm

Hi,

I must respectfully disagree. I know Jania, and she is partially correct. The Senior Services sector is growing, but there is tons of competition now.

Price shopping is becoming more prevalent, and the franchisors in this segment need to find ways to differentiate themselves, and fast.

Still a great sector to explore, though.

The Franchise King
Joel Libava

Joel Libava's last blog post... leftColBottom

OpenAFranchise.com
July 11, 2009 at 1:27pm

In my years as a Franchise Consultant, I have yet to find a "Recession Proof" Franchise.

Some are more recession resistant than others. I always recommend to my clients that they do the proper due diligence before buying any franchise.

.

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