They next recession is coming. Here’s why those considering a business should start now.
During times of high stock prices and low unemployment, many would-be business owners stay on the sidelines. That can be a huge mistake.
As people consider which financial and career moves are likely to provide the best future for their families, it can be very tempting to base decisions on what’s happening right now as opposed to what’s likely to occur in the future.
Stocks were up throughout most of 2018. Unemployment has been low, increasing job stability. Employee wage growth continues to be anemic once the effects of inflation are factored in, and low-risk investments like treasuries continue to offer low yields, but for the risk averse, the status quo can seem good enough.
But the status quo doesn’t stay the status quo. A majority of economists are forecasting a recession no later than 2021. Because of our experience in franchising, we’ve seen a common pattern in which people wait until they’ve been laid off before they start their own business. They are forced to invest after losing their primary source of income, and they face the challenge of growing their business in the face of an economic slowdown.
Fortunately, our business model and customer value propositions are strong enough that i9 Sports franchisees have been able to overcome these types of challenges. However, there are major advantages to getting started while the economy is still strong.
Reasons to start your business now, not later
Fewer startup competitors: It’s easier to capture new business when times aren’t lean. Since the prevailing trend is for people to start a business in a down economy, by starting in a stronger economy you won’t face as much competition from people trying to establish new customer relationships. You’ll have the opportunity to capture a disproportionate market share.
Easier access to capital: Bank lending becomes more scarce during recessions, which makes it more difficult to manage cash flow. By starting during a strong economy, you should have more access to credit which can help you during the ramp-up phase of your business. We also offer a five-year purchase agreement option, which streamlines and accelerates the financial approval process.
You establish a career you control: Why not be the captain of your own destiny? By establishing your business during a strong economy, and building during customer base during good times, you will have control over your outcome when challenges arise. Not only that, you’ll have a support team at your back that has every incentive to help you continue to thrive.
How i9 Sports’ business model helps new business owners
Marketing and Support to help you build your business: As an i9 Sports franchise owner, you won’t be growing your business alone. We have an experienced marketing team who will provide you with time-tested strategies to attract customers and grow your franchise. We have a step-by-step marketing plan that outlines the most cost-effective ways to target customers through local businesses, schools, community events and online marketing. We’ll teach you how and when to market, and how to measure your results to adjust the plan as needed.
One of the effective marketing tools you’ll appreciate most as an i9 Sports franchise owner is our Customer Service Center. Highly trained customer service representatives will take all of your calls for you, freeing you up to network and do in-person marketing to develop your business. The goal of our bilingual Customer Service Center staff is to convert every inquiry into a registration. We are able to provide this incredible benefit to our franchisees at a fraction of what it would cost to hire someone locally.
You’re still the owner of your franchise. We’re just there by your side to provide whatever support you need.
Low-cost labor model: Youth sports are an integral part of most communities. Increasingly, people are realizing the importance of getting kids involved in sports at an early age to get them engaged in more active lifestyles. Even non-parents are enthusiastic about getting involved, and a lot of our labor model relies on volunteer coaches and part-time referees.
Compared to many businesses, i9 Sports’ overall labor costs and staffing needs are very low. It’s great from a community engagement standpoint, and it also happens to be very advantageous for business owners.
Home-based business, with low facility costs: i9 Sports owners sign agreements that allow them to use fields and facilities that already exist in their communities. You won’t have to contend with the high costs of commercial leasing in order to run a successful business.
Recurring revenue model: Since we offer multiple sports that operate year-round, you are able to offer kids and families in your community year-round team activities. Not only does this keep revenue flowing throughout the year, it also allows you to enroll the same kid in multiple sports and keep them engaged in the i9 Sports system. Each kid often becomes a magnet for siblings and friends to also participate, and we often keep kids enrolled in our programs for several years — watching their skills grow, not only as athletes, but also as teammates and leaders.
If you’d like to learn more about investing in one of the best youth sports franchises around, fill out the form on this page to download our free franchise report. You can continue exploring the i9 Sports offering on our research pages.