I read an interesting franchise recruitment article recently by Art Coley & Eddy Goldberg, which was published in Franchising.com1, and it has prompted me to write my own article on the merits of franchising and investing in an accounting practice in the current climate.
In the article, the authors make it very clear to franchise recruitment teams, that there really is no excuse for not recruiting new franchisees during the pandemic, due to record wealth levels and buoyant new business start-up figures.
Wealth at an all-time high
They highlighted the Federal Reserve data, showing that “$13.53 trillion of wealth was gained in 2020 in the U.S., a record year for adding wealth” and “median sales prices of existing homes were up almost 25% over the previous year.”
They add that “Americans’ overall wealth is at an all-time high. Whether you are talking home values, stocks, savings, etc., personal balance sheets are strong.”
This is positive news on a number of levels. It’s good for the individual and the economy, as people will continue to spend money. It is also good news if you are hoping to launch your own franchise, because banks will be more inclined to assist with lending, should you require it, to help to establish your franchise.
Record levels of new business
The article goes on to discuss the record levels of new business applications, as identified by John Haltiwanger, an economics professor at the University of Maryland. He identified a massive increase in new business applications between May 2020 which continued into 2021. “’It is off the charts’, said Haltiwanger in the article, ‘I think there is going to be a surge of dynamism.’”
Again, good news, and particularly so for TaxAssist Advisors franchisees, who specialize in small businesses and the self-employed, with a focus on attracting new business start-ups.
Franchises traditionally see an increase in inquiries during economic turmoil and here at TaxAssist Advisors we are seeing just this, as people look around for alternative work opportunities and decide to work for themselves and dictate their own futures.
This is a trend that has been seen time and time again, during economic downtimes.
I have been involved in franchising for over 15 years and have consistently recruited well during recessions. Yes, redundancy payments have traditionally been used by those keen to establish their own business, but banks are also willing to lend to new franchises because they are seen as a safer bet with a much lower failure rate.
Accounting is often listed as one of the top recession-proof businesses2.
TaxAssist has operated successfully in the UK for 26 years, through good times and bad. We’ve seen it all, and experience tells us that where there is change, there is opportunity.
Businesses owners often look for an alternative, more pro-active accountant during a recession, seek more advice and assistance with understanding how their business is performing and require cashflow forecasts.
Businesses are now faced with an ever more confusing range of funding options, new schemes, grants and tax changes and accountants play a key role in explaining new regulations, schemes and initiatives for their clients.
This is why we strongly believe there has never been a better time to be running a TaxAssist Advisors practice.
If you’re interested in finding out more about the TaxAssist Advisors business opportunity, Click here to book onto your 45 minute online Discovery Session.
About the author
David Paulson QFP, is an experienced Qualified Franchise Professional with over 15 years’ experience in the Franchise industry.
Whilst still retaining responsibility for UK franchise recruitment, his current role is focusing on North America recruiting Area Representatives and franchisees in targeted states within the US, along with franchisee recruitment support in Australia and Canada.
Before moving into International Development, David recruited over 100 franchisees (new, partnerships and franchise resales) into the UK network, including the first ever £1 million resale.