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This question misses the point because it asks the wrong thing. It’s not about the pandemic itself.
Rather, people who open a business during a pandemic are the same type of people who open a business when there isn’t a pandemic.
Why? Because it takes self-starters with entrepreneurial minds to strike out and become their own boss.
That said, the pandemic has boosted franchise openings and increased new business activity significantly. Its impacts have created all sorts of unforeseen situations that make franchising even more attractive right now.
Layoffs Create Motivation.
Unemployment spiked in the early days of the pandemic. However, the Canadian unemployment rate has been consistently falling from its record high in May. Some were called back as essential or able to work in reopened stores. But some struck out on their own. A layoff is scary, but change brings growth, too. When you don’t know where your next paycheck is coming from, there is a very strong survival drive to find alternatives, and a franchise is one proven way to overcome a layoff.
Money is Available.
It takes money to open a business, but the pandemic has created more availability. Borrowing rates are low for those who need capital for their start-up or franchise. This makes it a good time to consider options. And if you’re like most, the drop in entertainment and commute costs means that personal savings are much higher than they have been. It is a good time to build a brighter future at a lower cost.
WFH is Here to Stay.
With so many people working from home (or looking for work from home), we have realized how self-reliant we can be. For prospective franchisees, a home-based business may be more doable and easier to imagine. It can balance home and family with a desire to strike out on your own. If home improvement is your niche, the pandemic’s change in where we work means a growth market as workers remodel offices and home spaces for greater comfort. We know that WFH will remain a preferred work style, and this shift is not going away any time soon.
When forced to make changes or improvements in your career, franchises always offer opportunities to pursue your entrepreneurial goals.
Yes, the pandemic is reshaping our economy, and the continual spread of the virus has shifted consumer behavior. But that brings a wider net of opportunities. Revenue was eliminated for some businesses and yet opened up new markets at the same time. More importantly, the new businesses are often more innovative and efficient than those that closed their doors.
During a pandemic, your reason for a change may be unwelcome, initially, if it’s something like a layoff. But regardless of the catalyst, your naturally creative spirit, work skills, or business dreams are solid reasons to become a franchisee, even during a pandemic. Of course, you could have done it any time, but a pandemic might be the push you need to open a franchise now.
Anne Daniells is a co-owner of Enterprising Solutions, a professional services firm specializing in corporate communication and financial improvement for businesses where she shares decades of corporate and entrepreneurial experience—including franchise ownership—in her writings on business culture. She has authored hundreds of articles for publications including AllBusiness.com, TweakYourBiz.com, and MSN.com. Reach out via her website for more on where corporate culture, communication, and human architecture collide.