The American economy is going through some upheaval. Some see this disruption as a good thing, some see it as bad, and still others are on the fence. In the midst of the uncertainty, however, some clear economic trends are emerging. And that’s where my role as a franchise consultant comes in. No matter what the economy is doing, I want to help you understand what current economic trends mean for your goals.
Why you shouldn’t default to the status quo
Conventional wisdom says that now is not the time to make a big change. A lot of people prefer to hunker down in the midst of a storm. I have a different perspective. When life and work are challenging or uncertain, your time and energy become more precious. You want to ensure you’re spending them on what really matters to you and your family.
I felt that principle keenly in the early days of the COVID-19 pandemic. I had only just launched my franchise consulting business, and suddenly everything ground to a screeching halt. I had to decide: push forward, or let it drop? I chose the first option, despite being unsure whether people would buy new businesses in the midst of so much uncertainty.
It was one of the best decisions I ever made. As it turned out, many experienced corporate executives were doing just what I described. With the economy in upheaval, they were asking themselves whether the corporate life was right for them. They realized that they wanted a new relationship between life and work. And so for both me and for them, a challenging time also brought good growth.
I think the same is true today. Yes, times are uncertain. But indicators point to an open door of opportunity for people brave enough to make the leap. In particular, I see three economic trends that mean now is an excellent time to become your own boss.
Economic Trend #1: Corporate America is pumping the brakes on hiring
In recent years, corporate American has fluctuated between hiring sprees and mass layoffs. Economy-watchers are now seeing a new trend. As the Wall Street Journal reported, “Companies big and small [are shying] away from mentioning layoffs, but said they would be more cautious before bringing in new workers.”
Rather than actively shed workers, companies are sitting on their hands. They’re implementing hiring freezes, pausing the creation of new positions, and not replacing workers who leave. Where companies are hiring, they’re doing it carefully and slowly. This trend is holding true even in sectors, such as education and government, that have been bastions of job security and steady hiring.
All this means that managers and executives are suddenly finding themselves with shrinking opportunities for advancement. One solution? As my friend Pete Gilfillan would say, hire yourself.
By becoming a business owner, you promote yourself to the top position. And if you see an opportunity that will help you grow, you can pursue it. You can also create jobs for others–one of my favorite things about owning a franchise. Nor do you have to stop at just one business. Plenty of franchisors are seeking multi-unit owners and area developers to run business empires.
Economic Trend #2: Employers are setting a harder line with employees
The last year brought a rise in the number of companies issuing return-to-office ultimatums. This, despite the fact that research shows these mandates cause higher turnover, lower productivity, and lower job satisfaction. The move is part of a larger economic trend of employers taking a harder line with workers.
The tech sector, for instance, has long been famous for high salaries, out-of-this-world perks, and rapid growth. Now, we’ve seen a steady two years of mass-layoff announcements. Big-name employers are sunsetting fringe benefits, converting permanent roles into contract or short-term positions, and asking managers to handle punishing workloads without pay raises.
In other headlines, CEOs at well-known companies have been up-front (and unapologetic) about AI’s ability to replace human workers. And companies that were previously known for being worker-friendly are implementing new workplace rules and demanding that employees step up their performance.
What does this mean for you? If you’re craving more freedom, flexibility, and rewards at work, you’re probably not going to get them in the corporate world. Self-employment is a better path. When you own your own business, you can set your own schedule. When you work hard, your rewards keep pace. And any wealth you generate goes into your pocket, not a corporation’s coffers.
Economic Trend #3: Young people are more interested in family businesses
The first two economic trends are leading to an interesting third one: more young people who want to work for a family business. In some cases, these workers can’t find a decent job elsewhere, thanks to the widespread hiring slowdown. Others are choosing the family firm because it feels psychologically safer than corporate America’s hard line on productivity, profit, and conformity. Many also see family businesses as offering professional advancement, wealth-building potential, and empowerment–opportunities that are less available in the corporate world.
If you have children in their 20s or 30s who would make great business owners, you might find them surprisingly receptive to the idea of working for you. Even if you don’t have children, or don’t have children who’d make good entrepreneurs, you can still take advantage of this trend. The current economy has a lot of young people–not just those with parents who own businesses–questioning the traditional corporate path. Open your own business, and you can snap up these talented workers while they’re relatively affordable.
Call me on any given day, and you’ll find me full of reasons why buying a franchise is a smart idea. The economic trends I’ve listed here are just three of those. Want to hear more? Book a call with me today to find out why entrepreneurship could be the smartest and most rewarding professional decision you’ve ever made. It just takes 20 minutes to get started on your journey to the future of your dreams!
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