The other day I read a quote by Bo Bennett, who is an author and entrepreneurial businessman. Bo said, “As sure as the spring will follow the winter, prosperity and economic growth will follow recession.” I really couldn’t agree more. It’s not just my opinion, but simply a study in history. Now, this obviously isn’t the first time the United States has fell on hard economic times, and it won’t be the first time the economy roars back into prosperity. I don’t need a Wall Street tycoon to tell me there is money to be made in a bear market. I know there is, and there are thousands of entrepreneurs out there that know that as well.
What do all those entrepreneurs know? They know that a recession not only alters the spending habits of consumers, but also their needs and wants. And, in recognizing these changes in spending, needs and wants, entrepreneurs identify business opportunities. So, naturally these entrepreneurs do what most any smart businessman or businesswoman would do. They do their research, build a small business model and secure financing to put their small business plan in motion.
Simple, right? Well, it’s simple until they get to the financing part of the plan. Right now, banks clearly aren’t lending money to small business – at least not much. In a recent article in the Wall Street Journal, “Lending Falls at Epic Pace,” the authors cited that “U.S. banks posted last year their sharpest decline in lending since 1942.” Which is devastating for those who want to start their own small business and gain a strong foothold now before the economy begins to rapidly ascend.
Even despite the multi-billion dollar taxpayer financial stimulus – and likely more to come – many banks aren’t lending that money back to those same taxpayers who are trying to start their own small businesses. Bank regulators are saying “don’t lend” and Capitol Hill is saying “lend,” but right now many banks are remaining idle on small business lending.
This is the dilemma thousands of aspiring small business owners are facing. They want to move themselves and their families financially forward and help rally the economy, but the banks aren’t helping them. It is certainly a frustrating time for many. Yet, it doesn’t have to be. There are opportunities out there that allow people to stake their small business claim, and position themselves smartly to make money now and in the future, as the economy rebounds.
Where are these opportunities? Franchises. The product is proven, the business model is already there and, in the case of franchises like ColorTyme and RimTyme, the financing is available in house. In fact, more and more financially strong franchisors are finding ways to offer incentives and financing to their new franchising applicants. No need to try and pry a loan from a bank that isn’t interested in a person’s desire to move themselves and their family financially forward, and strengthen their local and national economy. Buying a franchise through a company that provides their own financing is a solution that allows a person to take their individual and monetary well being into their own hands. No more relying on the government to allocate “sufficient” stimulus funds to banks in order to make the banks feel comfortable investing in the people the stimulus money came from in the first place.
If you are looking at starting a small business, be sure to see what’s currently being offered by franchisors. Find a franchisor that puts its guarantee on the line with the lender to offer competitive, achievable franchise financing.