Did you know that historically, franchising has been one of the business models that have gone up during the recession and economic slowdown? The economic recession in 2008 offered a painful, yet important lesson for people looking to purchase a franchise or launch their own business: some industries, such as cleaning services and property restoration services, are more recession-resilient compared to others.
Because of the COVID-19 pandemic, businesses of all sizes are finding it hard to keep their doors open. However, note that it is not all doom and gloom. Actually, specific industries are doing well. And in most cases, franchising is one of the best avenues for tapping into them. Hurricanes and flooding will continue to ravage our coastal communities, causing wind damage. Pipes will burst, toilets will flood, and foundations will continue to crack whether we are in a state of economic prosperity or a recession.
This is the reason why companies in the cleanup and restoration business will always have customers. Also, keep in mind that different types of insurance pays for most of the work. As a result, the bulk of the bill might not fall to the homeowner.
If you are looking for a recession-proof franchise, ask these important questions:
- Is the service or product seasonal?
- Is the service or product part of a fad or short-term trend?
- Is the service or product harder to sell when the economy is down?
Why Owning a Cleanup Business Franchise is Prudent
Proven Resilience and Quick Recovery Post-Recession
If you look back at which industries in the US took a hit during the economic recession, specialty cleaning and property repair are some of the few in the main category of home services/ home improvement/ that not just stayed strong during the recession, but has also steadily recovered and grown over time.
Strong Drivers of Growth
It is worth noting that many robust drivers of growth support the positive outlook for cleaning, restoration, and repair industries, like:
Increase in the Number of Commercial Spaces
More space means there is a larger potential client base for your supportive services.
Low Vacancy Rates
There is no doubt that this naturally brings a greater need for upkeep and cleaning services.