History repeats itself.
Or, at the very least - it rhymes.
In 2008, the economy took a dump.
💩🚽🧻🪠
ON ONE HAND, franchise owners who operated from 3S:
• Status quo
• Sunk costs
• Success complacency
....didn't know how to navigate this climate, and suffered from:
❌ Store closures
❌ Shrinking profits
❌ Dying slow from irrelevancy
ON THE OTHER HAND, I sold and enabled over 100 new franchises that year.
This "dump moment" propelled one of my brands to go IPO, another to go international, and another to get acquired.
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So how did this happen? 🤷♀️🤷♂️
Many executives were laid-off from financial institutions, and had severance packages.
• They wanted to control their destiny.
• Have always wanted to start a business (and this was the catalyst).
• And their background in corporate structure made them ideal franchisees.
Experienced franchisees who’ve weathered downturns before - and had capital to deploy - built cheaper stores through:
• Negotiating with vendors for better prices
• Negotiating with landlords for better terms
• Conversion opportunities
(conversions = taking over restaurants that went out of business, which saves money on existing infrastructure, permits, and equipment; and opening for a fraction of the cost and time)
Professionals and college graduates who couldn’t get a job, raised money from friends and family, and got into business when they otherwise couldn't or wouldn’t have.
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The economy took a dump AGAIN in 2020, and with the addition of technology (like third-party delivery and AI), and VAs, the same opportunities presented themselves AGAIN.
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I believe 2 things:
1⃣ You can get rich during the bull market (which you don't get credit for)...but you get wealthy during the bear market.
2⃣ Opportunities to sell and help people don’t disappear when the climate changes.
They’re like water:
🌊 If they hit a dead-end, they’ll redirect.
🌊 If they dry up, they'll become vapor and move elsewhere.
Having this mentality helps you prepare for, and change the perspective of "Oh shit, what do I do now?!" to:
"Where are the opportunities in this?"