The pandemic has been a ruthless time for everyone. Whether it was businesses or personal lives, everyone was affected.
We witnessed many firms that had been around for years close down.
So, it has been a trying time for business and the corporate sector.
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However, there are still many businesses that saw a silver lining in the middle of this chaos.
These businesses saw an opportunity to grow since the process of providing services doesn't stop.
It means where on the one hand, business kept closing down but kept creating room for more.
So, the question arises:
- Is it a wise idea for companies to expand during a pandemic?
- Are there any foreseeable risks they need to be aware of?
- Do the risks outweigh the rewards?
This article will answer these questions to provide a deep insight into how the global crisis reshaped businesses.
Here's what you need to know about expanding in the middle of a pandemic:
1. A Better Support System
During the pandemic, many franchisors and franchisees have been working in collaboration to keep their business afloat.
As the corporate sector faces a massive shutdown, no company wants to be on the receiving end of this treatment.
The only way businesses had any chance to survive was to branch out.
Different branches made sure to keep each other updated on the current situation when it came to the consumer base.
Franchises received massive support from the head franchiser to guide them through a lack of consumers. It also helped figure out innovative ways to approach consumers.
2. Space for Growth
The consumer base will never diminish, it will fluctuate at most, but the demand will always remain. The pandemic has left many open spaces that need filling.
So, with less competition than usual, you should look into franchising and protect your business interests.
It also gives brands a chance to get more diverse and introduce more products.
Consumers also may interact with your new products more since many businesses closing down means there is a gap between products and services.
At the same time, it gives ample opportunities to entrepreneurs to sharpen and upgrade their skills.
If you're looking to upskill your business acumen, there are plenty of innovative online learning opportunities.
However, you must ensure accredited programs such as enrolling with AACSB with an online MBA to learn the ropes.
3. Bring a Sense of Community
You can use franchising as an opportunity to take care of the community.
Different franchises can address the diverse needs of the community. For example, some businesses took the responsibility of catering to healthcare workers.
At the same time, some companies took it upon themselves to help frontline workers with food.
You should try and identify what your consumers want from you outside of purchasing from you to take care of the community by offering free services.
It may include free delivery and more discounts to bring a sense of community. No one likes to feel isolated in such challenging times.
Additionally, you may notice people in your community are struggling to procure home repair or home improvement services due to an influx of demand. In this case, you can look for flooring companies for sale, or similar, to meet the needs of those in your community.
So, taking care of their needs will make your business stand out. With the community struggling due to the pandemic, it is good to have a business in their corner.
4. Allows For Better Team Building
Franchises now find different ways to communicate with each other. Even though video conferencing has been around for a while, its popularity has struck gold now.
When franchises use more technology to stay in touch with each other, it allows better team building.
For any business, when the employee gets a united front, it is suitable for business morale. It also helps companies get in touch with any problems or difficulties a franchise may be facing and remedy the situation.
Fast and easy solutions help businesses manage resources and save themselves from providing ineffective help.
Team building is also essential because if companies don't collaborate, they lose consumers.
So this is a critical time to bring your employees on the same page and retain the consumers.
5. Streamlined Business Models
There are now more revenue streams available for businesses.
It helps the industry evolve to support business models that are far more sustainable.
The pandemic has pushed firms to push through their limits of creativity.
Franchises realized the classic walk-in and purchasing products was no longer possible. So there was a need to shift businesses online.
Consumers could now place their orders and go through a curbside pickup.
It stays in line with the government policies to combat the pandemic, so a business doesn't risk closure.
In some cases, riders got a chance to deliver with zero contact between them and the consumer.
Educational models started using more animation and innovative ways to provide courses to children and adults alike.
Many fitness brands began running online programs that people could follow in their homes.
It allowed more consumers to get on board, but it also brings a large margin of profit.
6. Better Sales
Businesses can no longer rely on meeting their consumers on a face-to-face basis. It means if new franchisees need to engage with their consumers, they need to be creative.
After all, you get limited chances to leave a lasting impact to make an impression on a consumer.
Online showcasing has allowed businesses to run exhibitions and presentations in a much more attractive manner.
Franchises are now allowed to mingle in their element and talk about themselves more comfortably.
Franchises can even merge to hold trade shows while running live shows and address any questions consumers may have.
When consumers get their questions answered, they will feel compelled to spend on your business.
The more franchisees get to interact with consumers online. The further sales will go up.
7. More Funding
Governments worldwide are well aware of the toll the pandemic took on the economy.
With so many businesses closing down, there was a need for more businesses to replace the ones we lost.
It means they relaxed many policies regarding taking loans, getting paid, and getting investments. So, if you're considering buying a franchise, this is a good time.
Not only will you get a loan right away, but you may also get a good amount of loan. It means you can immediately get to work and build as many new franchises as you want with minimal interest.
You also get to pick prime locations to make new franchises accessible to a large consumer base.
Then, as the world slowly moves out of the pandemic, you get the advantage of already having a business ready.
So, the pandemic is the best time for you to expand your wings and try to capture new horizons.
Conclusion
When it comes to risks, no one handles them better than a business.
However, the pandemic was a unique situation where it was hard to tell whether the risk will outweigh the reward or vice versa.
So for most companies looking to expand and get franchises, this was no less than a leap of faith.
But franchising during the pandemic proved to be a success.
Businesses got a chance to connect with their consumers.
Help communities and streamline their revenue. It was also an excellent time to tap into loans and set up franchises right away.
As a result, the efforts of every business will be more visible after the pandemic.
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