by Renna Madison

Created on: June 18, 2008   Last Updated: June 19, 2008

Owning your own business may be the American dream, but it can be a pretty scary one to pursue. Some of the statistics concerning the failure rates of new businesses can be quite daunting even during times of economic prosperity. Add in the prospect of a looming recession, and your heart may begin to pound a little harder. One way to alleviate these fears and go forth into the magical land of entrepreneurship is to consider a franchise business.

WHY A FRANCHISE?
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Historically, franchise businesses have been safer investments than other forms of small businesses. For one thing, you don't have to worry about whether your business plan will work or not since it has already proved to be tried and true. Additionally, franchises offer assistance in a variety of forms including training, financing, and ongoing support. Most will already have agreements in place with vendors that will allow you to get the best possible deals on supplies for your business as well. Another plus is that you won't have to worry about building up your own name recognition. People will know who you are before you even open your doors!

Even with all these benefits, you will still need to work hard to make sure your business is as successful as it can be. One way to greatly increase your chance of success is find out as much as you can about the products and services you will be offering and try to imagine what possible pitfalls you might run into. It can be a great help to take the time to talk to others who have walked the same path before and learn from their successes and failures. Many franchises offer the opportunity for you to work with a mentor who can provide this much needed advice. Don't be afraid to take them up on this offer. It's easier to plan for a possible crisis before it starts than it is to clean up after it later.

WHAT ABOUT THE ECONOMY?
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Contrary to popular belief, a period of economic sluggishness can be the perfect time to start a franchise business. For starters, opening a franchise can help stimulate the economy in your local area by providing a few extra jobs. Additionally, these are precisely the types of businesses that people patronize during a recession.

Many franchises specialize in offering goods and services that people continue to need no matter what state the economy is in. Moreover, they tend to be the more budget-conscious alternatives to these needs. Businesses such as Blockbuster may see increased movie rentals because people are shying away from the higher price of going to the theater. It's harder to justify going to a high-dollar salon when you can get your trimmed at Supercuts. When funds are short, families are more likely to eat out at someplace like McDonalds than a nicer, pricier restaurant.

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