Thursday, October 30, 2008

Volatile Economy is a Mixed Bag For Franchises

A downturn in the economy freezes some individuals so that they postpone any new purchases while others view it as an opportunity or challenge. Many corporate refugees use severances or retirement packages as a source of credit for a franchise business. With so many different industries making up the economy, not all businesses flail around when the economy does not fare well in general. Indeed, unemployment sometimes spurs those to go where they would not otherwise have gone.

Interest in entrepreneurship tends to increase when people face unemployment and have no other options. Many people consider starting small businesses and franchises. Indeed, some sectors of the economy do not see a difference in a downturn or may even see increased consumer demand. Many people find that these areas coincide with personal interests as people start franchises involving handyman services, fitness, pet care or elder care with require relatively less capital than other types of businesses.