As 2020 began, even the most optimistic of economic sages were predicting that it was time for a downturn in the market – and perhaps even the next recession.
A survey conducted by Duke University’s Fuqua School of Business in September 2019 revealed more than half (53 percent) of U.S. CFOs believed that the U.S. would be in an economic recession by third quarter 2020, and 67 % predicted a recession by the end of 2020.
Then in February, coronavirus entered our world. As we sheltered in place and shuttered many businesses, the economy came to almost a complete halt. We are operating in an unprecedented moment in modern history.
Economic recovery now hinges upon the unknown course the COVID-19 virus will take. Will it rebound in the Fall or Spring of 2021? Will it disappear completely? Is its spread or containment determined by social distancing and wearing of masks or by the development of a vaccine?
More than one market strategist has called this a health crisis versus a fiscal crisis. But whatever the label, once the virus is under control – we will be left with the economic fallout it has created.
With every recession and downturn, however, there are always businesses that remain stable or rise up because of the needs of the moment.
Franchising is a business method that supports different types of industries. During an upturn, people buy into a franchise so as not to miss out on an opportunity. Often, when the economy falters, those who want to take control of their future, versus working for someone else, will invest in a franchise business.
Choosing a franchise in a neutral or more recession-resistant industry should be a primary consideration when deciding the type of franchise you would like to own.
Historically, industries offering basic services like,
remain somewhat stable during a downturn. When the plumbing leaks, the car breaks down, or a loved one needs care, these businesses will be called upon, even during a pandemic.
Other industries are counter-cyclical. When the economy slows, their business expands. Credit and outplacement services are two examples.
Businesses relying on discretionary spending trends or store-front and walk-in traffic – like retail and restaurants- are influenced by consumer habits. These businesses are particularly affected by the Coronavirus crisis. Their success going forward is dependent upon the course of the virus and consumers’ willingness to leave their homes to socialize and shop with the masses.
Since the onset of the pandemic, senior home care services, information technology, and cleaning services are three franchise opportunities that have experienced an increase in need from consumers and in interest as a franchise opportunity.
Already poised for growth of 12% through 2028, demand for information technology services rose as millions of people shifted from working in offices to working from home. For as long as technology continues to evolve, demand for those who help businesses operate in a globally competitive world will remain strong.
Large and mid-sized cleaning and disinfecting businesses have benefitted from the influx in need due to COVID-19. Overall, however, this industry’s prediction for growth in the immediate future is mixed, as many buildings remain empty due to the virus.
Before the pandemic, the senior care industry was already a $400 billion industry … and growing.
With senior populations expected to grow by 25% over the next 10 years, reaching the 72 million mark by 2030 and 84 million by 2050, a senior home care franchise will endure both health and financial crises.
According to a survey by AARP, 86% of the 50 plus population in the U.S. want to stay in their home while aging. Those surveyed believe staying in their home offers a better quality of life and is less expensive than nursing home and assisted living options.
The current crisis has heightened not only the senior population’s desire to stay in place – but has raised awareness of the types of aid that will be necessary for non-medical needs. Home health care provides seniors aging in place and their families with:
By investing in a senior home care franchise, like Senior Helpers, you would be:
Franchise ownership doesn’t require a lot of experience, but a smart investor will make sure it is in an industry poised for growth and one that is recession-resistant.
Senior Helpers franchise owners have maintained their businesses for more than 20 years. We provide tools and support to franchise owners to rise to success in the senior care industry. With 341 units in 42 states, our owners operate franchise locations in the top 20 U.S. markets.
To learn more about our successful franchise opportunity, we invite you to a First Call – the first step in our Discovery Process. Please fill out our information form and we’ll be in touch to schedule a call.