There are so many things to consider when getting into business and choosing which business will be right for you and your family.
After 40+ years in business, I can tell you one thing…. Always be in a business that is selling/providing a NEED not a want.
The economy will go through ups and downs. In fact, in a cycle that is almost (well almost) predictable.
Over my 40 years I’ve seen lots of highs but also a lot of lows. When there is a downswing in the economy, you want to be in a business that provides a need not a want.
Think about it. Imagine you become your own boss, buy a franchise and your business provides a want. Not something needs, just something people want. Even coffee is a want really. I know some of you are thinking it is a need, but it is really a want because if the economy has a downturn and you are really having to stick to a budget, do you go out for a coffee twice in the day or do you cut that down to one, maybe even none….
When the economy goes down, people start cutting back… but only on the things they want, not the things they need.
Sure, you could say people will just simply say, I’ll clean my gutters myself, but a lot of customers (in particular the elderly or commercial customers) can’t do it themselves. You could think that people will simply stop having their gutters cleaned, but not a huge percentage because people know that if their gutters are not cleaned, they risk the chance of blocked gutters, overflowing water, property damage or potential bushfire danger (all it takes is one ember).
Many times, franchisees that appear to be ‘sexy’ or cool, that is because they are providing or selling a want. “Wants” are sexy and cool. The franchisees that are not sexy or not really all that ‘cool’ are usually so because they are providing a need and “Needs” are not particularly sexy, just stuff you need… everyday life.
So if you are looking to buy a business, buy a franchise, be your own boss, really consider what type of business you are going to get into … a business that provides a want or a need.
I know which one I’d choose every day of the week and twice on Sundays.