The recent statistics about employee layoffs and furloughs continue to rise with more and more Americans losing their jobs. Many businesses were able to maintain their workforce through the help of the COVID government loans and grants. But alas, in many cases, business has not returned to pre-COVID levels, or brands simply have decided they can manage with less and are downsizing. Despite this dark cloud in our economy, it is also creating opportunity for franchising.
How big is the opportunity?
According to Bloomberg, about 200,000 job cuts have been announced recently. The companies affected range the spectrum, including Ford, MGM Resorts, Coca-Cola, Salesforce, Boeing and many of the airlines. In fact, experts predict that 5-10% of the bank workforce will be cut in Q4 2020.1 On top of that, many of the job cuts include middle to senior management. At these seniority levels, the displaced workforce has many years of experience and financial wherewithal ideal for franchise brands to capitalize on the talent out in the market.
Historically, when the market conditions emulate today’s environment, franchise sales peak. Consumer confidence to invest tends to peak with the following:
- High levels of unemployment at the senior levels
- Access to debt capital at historically low interest rates
- Access to substantial savings in the form of home equity, retirement accounts and personal savings
In addition, COVID has been a time of reflection for many. They are reassessing their lives and are looking for more fulfillment in their career.
With Change Can Be Rewards
Franchising can be a rewarding solution for many as they are looking to make a career move. Instead of finding another job and risking another downturn, franchising offers a wide variety of industry and career options where displaced employees are able to put their skills to work for themselves. While some individuals may be slow to pull the trigger given the market unrest, others are moving quickly to take advantage of market conditions.
The key is to get in front of like-minded individuals who share your company values and are looking to take their skills and expertise to build a business of their own. This is the time to gain market share for your franchise by getting in front of prospects and letting them know how your brand could be the freedom from corporate America that they are looking for.
To learn more about lead generation best practices to attract individuals from corporate jobs, talk to our team of strategists. We’ll build a custom plan for your brand so that 2021 can be your year to hit your goals.
Written by: Jen Campbell, President, Hot Dish Advertising