Need to Diversify? Think Franchising!

  • Need to diversify? Think Franchising!
  • How to diversify your investments – FRANCHISE!
  • Add Franchising to your investment portfolio
  • Fight inflation by adding franchising to your investment portfolio

Just like there are no two people alike, there’s no one tried-and-true formula for creating a healthy nest egg. There’s the obvious: Invest in your company’s 401K plan, buy mutual funds, play the stock market, purchase real estate or gold, and so on. Despite the endless opportunities that are available to you one thing is agreed upon: “Diversify, diversify, diversify!”

But what does that really mean?

Diversifying where you save your money distributes the level of risk. Doing this helps to protect certain investments when things happen that are out of your control. Things like the stock market crashing, the real estate bubble bursting, union issues, accidents, import and export delays, which can directly and indirectly impact your ‘diversified’ investments.

Among one of all these ‘unknowns’ is inflation.

According to the International Monetary Fund inflation is simply, “the rate of increase in prices over a given period of time, and represents how much more expensive the relevant set of goods and/or services has become.”

So with diversifying being screamed into your ear, and inflation looming in the distance how does becoming a franchisee help you build your nest egg while managing through difficult times?

  1. Investing in a franchise helps diversify your portfolio.
    Depending upon the franchise vector you invest in can make your portfolio more robust. If most of your money is tied up in mutual funds having a fast food franchise can produce a monthly income stream.

  2. When the world shuts down, franchising may be a more resilient option.
    In December 2020, Forbes reported that the top five performing industries during pandemic were cleaning and delivery services, grocery and liquor stores and (board) game companies of which all could have a franchise model.

  3. When the market is down, and retail prices are up a franchise pays you back.
    When inflations hits and stocks are taking a nose dive your franchise (depending upon the sector your business is in) keeps adding to your nest egg. Consumers still buy. Remember the toilet paper crisis?

Do your research.

Just like you research what stocks to buy or what property to purchase, investing in a franchise requires you to do your due diligence. Finding the franchise that is best suited for your interests, time, and talents is critical for both its success and yours. If you want to build your nest egg and ensure that it’s robust and diverse, give us a call to discuss what franchise is right for you.