At the 2012 DNC, the Democrats Said the US Economy Is Fine – So Should I Start a Franchise?

Well, we heard it on all the news channels, the economy is fine, everything is recovering nicely and it will all be peachy from here on out. You heard it from the President himself and another former president as well, and you know we can trust politicians – they know what’s best for us don’t they? Sure they do, but don’t take my word for it, just ask them, they’ll tell you.

Now then, if you are skeptical as most corporate and small business people seem to be, along with the 20+ million unemployed, you have to stop and contemplate if you really want to start a new business right now or purchase a franchise. Here is one thought, rather than signing a lease and obligating yourself to huge amount of money for a building, franchise fee and the rest, perhaps a mobile type business with low-overhead might be a better way to play it.

This way if the Democrats are correct, you’ll be fine, but if they are wrong, you might still make a go of it you see? There was an interesting article in the USA Today on September 8, 2012 in the Franchising Today section titled; Mobile Franchises Reach New Customers by Kelly Horn. Not only are mobile franchises better at finding their customers and their specific niche, they are also quite a bit less costly, because you can run a mobile franchise from your own home. This saves on operating costs, plus most of these franchises you can get into for under $100,000.

As a former franchisor of mobile carwash trucks, I can tell you that it is a lot less costly to set up a few mobile trucks to go clean cars than it is to buy a $500,000 piece of property, $250,000 worth of equipment, and put up a $350,000 building. Start adding up the franchise fee, initial startup costs, and cash flow until you start making money, and you are easily in it for $1 million. Not that many people have $1 million to go spend on a new franchise, and even if they did, I’m not sure I would risk the economy right now and go into hock for that type of money with all the unknowns.

Is this a sales pitch for buying a mobile franchise you ask? No, I am retired now, but this has been my observation in the franchising industry over the 27 years, as I participated in the mobile auto services business. Please consider all this and think on it.

Source by Lance Winslow