The Franchise King Blog

If You Can't Change The US Economy, Maybe You Can Change Your Own Economy

 

I don't know about you, but all this talk about our lousy US economy is getting old. (Two years old!)

 
Having said that, I certainly know several friends, neighbors, and even some family members of mine that are struggling. It really sucks.
 
Warning; I'm not some brilliant financial planner who can suggest some great places to invest, right now, so you can make some fairly quick money.
 
What I am is a franchise consultant/broker. I do have the power to change your "personal economy," if you'll allow me into your world. In times like these, there are opportunities that are out there for the taking.

2010 Franchise Business Outlook Is Fairly Upbeat; The Franchise Industry Needs Loans!

The International Franchise Association just released (with the help of PriceWaterhouseCoopers LLP) their study of the economic outlook for our industry in 2010.

Bottom Line;

A few $Billion in small business loans will help!

Now, what follows is a projection. No one has a crystal ball.

From franchise.org

The U.S. economy is expected to experience slow growth in 2010 as the nation begins to recover from the recession. The Franchise Business Economic Outlook for 2010’s macro view of the economy anticipates nominal gross domestic product (GDP) to grow 3.8 percent, while economy wide employment is projected to increase 0.4 percent in 2010,” said Drew Lyon, principal in PwC's National Economics & Statistics practice....

“Our forecast is for output of all franchise business sectors to expand modestly in 2010 as the recovery takes hold.”

CNBC Discusses Franchising, Small Business Lending, And 2% Franchise Growth...

The folks at CNBC know how important the franchise industry is to the US economy. here, in an interview with the IFA's Matt Shay, a good discussion ensues. Also, a new franchisee of the UPS Store makes his case on why he chose now to go into business for himself.

The lack of cooperation by our nations banks was recently discussed in this FOX Business News article, too. Check out what a banker told me. You won't believe it. 

Houston, do we have a problem?

Today's Credit Landscape; What Should You Do?

(From Wikemedia Commons, taken by Jonathunder, January 2009. Winona Savings Bank, Winona, Minnesota)

I have been writing and talking about the credit crisis, and how it's affecting the franchise industry for almost a month now. I thought it would really add value for you-my readers, to hear how things look from the "Capital" side of the table.

(This is a guest post by David Criswell of Direct Capital)

During this recession, the financial structure that small businesses use to access capital has been significantly altered and created the most difficult environment to access capital in decades.  Between the CIT Bankruptcy, bank closings and reduced/closed credit lines, business owners are experiencing first hand the effects of the embattled credit markets.

Taking a big picture view of today’s credit landscape I see three components creating the conditions businesses are experiencing trying to access capital.

The Franchise King® Is Not Being Paranoid

      Small Business Loans Drop By $10 Billion

(From CNN.com, today)

"Some banks are unapologetic about their cutbacks. Small business defaults are soaring, and banks are under pressure to shore up their balance sheets and reduce their exposure to risky loans. Two key small business lenders, CIT Group and Advanta, filed for bankruptcy this month."

This is not paranoia. This is reality.

I have been telling folks this for the last month via;

• Radio programs
• Interviews
• Blog articles
• Phone consults
• Franchise seminars
• Social media
• WhiteHouse.Gov

Some folks feel that I am sometimes a little negative.

Some folks feel that I speak the truth-even if it is negative.

What do you think?