8 Franchise Industries You Should Consider Right Now
Entrepreneurs who are considering venturing into new business opportunities should consider looking into recession-resistant models that franchising has to offer.
Even more so in the current economic environment, it is ideal to invest in an industry that is recession-resistant and that can withstand an economic downturn.
These industries will remain operational and sustainable regardless of the economic conditions, due to their offering that addresses a consumer/market need.
Here Are 8 Industries Worth Investigating:
1. Automotive Maintenance Services
The automotive maintenance and aftermarket sector have exhibited strong growth and will continue to grow. All cars, at all stages of their lifecycle, need servicing and repairs, hence the potential for growth in various sectors in the automotive industry
In the market there is a divide between one-stop-shop offerings with various automated services such as, full car services and car washes vs specialty automotive services that focus in one department such as, tires and fitment or air conditioning. Research has indicated that independent workshops e.g. franchises are visited more than those of brand dealership services.
During times of recession, automotive franchises tend to thrive since people generally take longer to replace their cars. Therefore, vehicle repairs and maintenance are much-needed services.
The beauty and health industry is continuously growing and showing innovation solutions in various sectors of the industry.
More people are becoming conscious of their health, fitness, and personal care and appearance, hence the increasing number of professional services, retail stores and salons across the world. Consumers tend to use beauty and health offerings as a means to express themselves.
Studies have shown that beauty and health franchises were predominantly aimed at females but in the past few years, opportunities have been extended to males as well, like male-only hair salons.
This industry has been affected by the pandemic, but it is showing recovery and independent, innovative solutions have been presenting itself during these uncertain times e.g. home-based offering, DIY solutions, and tutorials.
Indirectly, South Africa’s economic conditions result in industry growth e.g. people are considering alternative and/or second sources of income. The market lends itself to informal self-employment opportunities which could be converted to franchise opportunities where the model has been proven and support can be given to independent operators.
The commercial and industrial cleaning industry has been perceived as a recession-resistant industry. This industry has experienced a growth in demand over the past few months and new opportunities arise for quality cleaning and hygiene services.
Even though the market is dominated by large groups, opportunities exist for smaller independent franchises to benefit from cleaning initiatives due to enterprise development and BEE opportunities from corporate clients.
The COVID-19 pandemic has placed a new emphasis on cleaning and hygiene and the standards that are required for Health and Safety in the workplace. Even when lockdown ends, we will not be returning to our previous living standards for an extended period of time until the virus has been controlled or the population has been vaccinated. This means that hygiene cleaning, sanitation and/or decontamination is a very viable market moving forward.
The future of several South African industries will be driven by online, courier, and delivery services.
Customer purchasing behaviour has changed drastically, many opt to shop online rather than in-store, simply due to the necessity to stay and work from home. The greatest market drivers include the growth of e-commerce sales and the increased demand for just-in-time deliveries. The courier industry is seen as an enabler to bring goods safely to the customers through contactless delivery processes. This creates an opportunity to service and fulfil the demand from major and small independent retailers through industry experts where courier, logistics, and delivery is a core offering.
Franchise opportunities within these industries need to be geared up to ensure the following:
- processes are streamlined,
- adequate resources are in place to service the demand,
- delivery times are accurately met,
- robust parcel tracking solutions are implemented and monitored
- attention to detail with regards to service delivery
- hygiene and sanitation is a top priority through contactless delivery
- ongoing communication throughout the process
The education industry has shown a growth in demand for independent education solutions that are aimed at individual attention, quality of learning and safer environments that promote lifelong learning. The reach of this sector includes but is not limited to early childhood development, pre-primary, primary and secondary schooling, after schooling, tertiary education, and relevant upskilling of the workforce.
Tutoring and other educational support franchises could be in high demand in years to come due to the substantial backlog of studying and a deficit that will be difficult to recover as a result of schools being closed due to the pandemic as well as upskilling of individuals looking at alternative employment opportunities due to retrenchments.
In the current economy, consumers are more inclined to sustain cost savings in home improvements and projects. The rationale behind the growing trend is that people are spending more time at home and are reluctant to replace expensive items or relocate i.e. they would rather maintain, restore, and upgrade their current assets.
There has been an increase in homebuilding activities in rural community areas with a demand for local building material solutions to complete the building or renovating projects
Despite the current economic conditions and circumstances, people have been reassessing the values and current state of their homes. Regardless of the impact,
There is always a demand for home maintenance offerings e.g.
- repair and home enhancing materials,
- tools and hardware to execute projects,
- garden services,
- appliance maintenance,
- water and water treatment solutions,
- alternative energy solutions
- security solutions
The franchise opportunities in these categories are endless and need to be researched properly to ensure you are joining a creditable opportunity with a successful track record.
The self-storage industry in South Africa has evolved over the years and is experiencing innovations and growth that continue to make it a worthwhile investment and an interesting area to acquire a franchise in.
The increasing development activity across South Africa will increase the demand for self-storage. We believe there is still a large untapped market due to the public not being aware of the benefits associated with self-storage solutions.
Customers storage needs vary from:
- short term solutions where they are transitioning from one home or job,
- businesses that are growing faster than their resources and infrastructure e.g. storage of supply and goods,
- businesses are looking at downscaling and relocating facilities to reduce high rentals,
- individuals are downscaling within South Africa to smaller living areas or need additional space,
- individuals are emigrating internationally and may need to store items until a future date,
- and lifestyle customers who need storage spaced for items relating to hobbies and sports
Self-storage franchise opportunities that offer convenience, specialised pricing structures, transport, packing, and other value-added services and products will be perceived as more favourable in the market.
8. Home Nursing Or Caregiving
Across the world, the quality of nursing homes and residential care facilities and communities have been reported to be deteriorating. This has resulted in a need for quality home care essential services at a more cost-effective rate for the elderly, disabled or injured in the comfort of their own home. Home care solutions provide a variety of services aimed at making individuals more self-sufficient by assisting through hands-on experience with daily chores, exercising, light housekeeping, meal preparation and cooking, cleaning, personal hygiene care, administrating medical treatments, assisting with mobility, transport, and providing support.
The demand for caregiving services, especially to the elderly has grown as dedicated stay-in caregivers have been minimising the risk of infection.
It is critical to partner with franchises in the industry that are experienced in delivering home care solutions to the community and who have developed a robust franchise model that has been proven.
A few points to keep in mind:
- Not every industry is for you, you need to find the right fit for your lifestyle and pocket
- Be realistic about your technical skills and passions
- Will the franchise give you a satisfactory return i.e. personally, professionally, and financially?
- It is especially important to research each franchise concept you are interested in and do thorough due diligence to assist you in evaluating and comparing all your options