RetroTax ...More Than Recession Proof – Recession Friendly

I've really been feeling the pain of late, for many of my franchise brethren in the world of brick and mortar. Many franchisors and franchisees are struggling in this downward economy. With election year uncertainty, the rising costs of fuel and essentials, consumers are starting to tighten their belts and spend less. Franchisors and franchisees too, face similar problems, with rising costs of goods and overall increased costs of doing business. Additionally, many must now deal with tariffs and surcharges that have recently been imposed by suppliers and distributors that have no choice but to offset their rising fuel costs, in order to get products delivered to the franchisee's door. This leaves everyone fighting for every last penny and lately it seems, there are fewer pennies to go around.

Now, I'm not for a moment suggesting that we're bulletproof, but these kinds of problems pose no challenges at RetroTax. Sure, we too must fight for business in a competitive marketplace, monitor our expenses and cashflows, but we don’t face the challenges that most others do in a downward economy. In fact, our clients look to us to help them offset some of the negative cycles that this type of economy bestows upon them.

Since we help them redeem unclaimed tax credits and incentives and only charge a contingent fee for what we produce, our clients experience no up-front costs for doing business with us. Our brand actually thrives in a downward economy. More and more businesses looking for ways to offset rising costs, want to avail themselves of our services. While this is great for us, it will be even better for our franchisees.

When business is good and cash is flowing, our service makes nothing but sense for our clients. When business is bad and things tighten up, our service moves from just being a good idea, to something a bit more compelling. In this economy, our franchisees will have the ability to establish a solid client base now, and see it expand exponentially as the economy recovers. Now though, is a great time to begin building a book of business.

In times like these, those thinking about career changes and/or making the leap to business ownership, must really be cautious about what they consider. For first time franchisees in retail or food concepts, start-up and working capital requirements are quite likely higher today, than just a year or two ago. Alternatively, there are concepts like ours, that do not face the challenges of those increased costs. Our franchisee profile is that of a former executive, or one possessing high level, intangible sales experience and who will quite likely work from home or an executive suite. There are no expensive leases, build-outs, or equipment packages. (beyond perhaps those things that most people already possess, i.e. a computer, a printer, a PDA, a personal vehicle, and some working capital to see you through your start-up)

As odd as it might seem, a downward economy is actually somewhat positive for us, as the opportunities to build a client base increase, along with those looking for franchise opportunities that do not include expensive start-up costs. To me it all spells something that goes beyond recession proof, all the way to recession friendly.