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Originally Posted On: 2021 Poised To Be The Year Of The Franchise Entrepreneur (whatthefranchise.com)
It promises to be better for everyone!
2020 was nobody’s year; we’re all glad to see it in the rearview mirror. But 2021 promises to be a much better year for almost everyone, especially business owners. Economists predict a booming economy for the second two quarters of the year as vaccinations allow reopening and pent-up demand for goods and services roars to life.
If you’ve ever considered leaving your job and starting up a business, this could be your year. Many executives leave their corporate careers to start new ventures, and 2020 certainly made many of them rethink their life plans for the future. Some are seeking more autonomy; some are looking for a way to take charge of their own long-term financial security.
There are also plenty of external incentives to start up a business this year. The federal government has created a favorable lending environment to spur business creation and provide relief for companies that started up during the pandemic. If you take out an SBA loan soon, you may be eligible for debt relief. As a part of the CARES Act, The SBA is authorized to pay 3 months of principal, interest, and any associated fees that borrowers owe for all 7(a), 504, and Microloans reported in regular servicing status. (This doesn’t apply to PPP loans.)
If you’re thinking about borrowing for a startup, this is a great time to consider a small business loan. Interest rates have remained low; the Federal Reserve said in July 2020 it would keep its benchmark interest rate near zero for as long as it takes until the economy starts to recover from the coronavirus crisis. This also means that many lenders are offering refinancing options, which could help you save even more money.
Even in an uncertain economy, there are plenty of opportunities. According to Upwork, 41.8% of the American workforce continues to work remotely. An estimated 26.7% will still be working from home through 2021, and 36.2 million Americans (22% of the workforce) will be working remotely by 2025. This represents an 87% increase from the number of remote workers prior to the pandemic.
Many of the professionals who will be working from home for the foreseeable future have cash to invest in making their residences more convenient for the multiple functions occurring there. They’re doing everything from upgrading kitchens to remodeling home offices and creating serious home entertainment and workout spaces. If you’re considering a business related to home upgrades or upkeep, you’ll be in the right market at the right time.
You’ll also find a motivated workforce ready to consider becoming part of your team. As workers gain confidence in the economy, many consider changing careers, which means you’ll be able to take advantage of the churn that comes after economic recovery. The market is seeing an increase in skilled professionals choosing gig work, which gives startups access to talent they might not be able to afford to hire full-time.
As you consider your options, Marshall Reddy says you should seriously consider a franchise. Reddy is a consultant who connects with people that want to buy into a franchise model. Reddy says many corporate executives choose franchises because they offer a more predictable and structured transition into entrepreneurship.
“People who have spent years working within a corporate environment do well with structure and systems,” Reddy says. “Franchises provide the best of both worlds: a proven system that mitigates risk and provides structure and the sense of accomplishment that comes with business ownership.”
Starting a small business can be lonely, but franchise owners have a built-in network of peers and support as they work to solve problems and grow their business. “Franchisees can learn from each other and get help from trusted sources,” Reddy says. “That’s something every business owner will benefit from.”
Franchise Insights.com predicts a boom in startups, especially in industries that suffered the most during lockdowns, such as travel, hospitality, and personal care services. the most recent Startup Sentiment Index survey, which polls individuals who have recently inquired about businesses or franchises for sale, showed 19.7% of respondents expected to start a business 4-6 months out, so we may see a surge in new business startups by June 2021.
If this is your year to become a business owner, you’ll be in good company.