There’s increasing talk about a potential recession on the horizon. With skyrocketing inflation, historic rate hikes, periodic yield curve inversions, supply chain disruptions, geo-political unrest and lingering effects of a years-old pandemic, it’s fair to say we remain in uncharted economic waters. A recession may or may not happen soon, but if history is any guide, the question is not IF a recession will happen, but when. So regardless, it’s prudent to prepare for the possibility.
Not All Businesses Equally Vulnerable to Consumer Cutbacks
Whether you’re already a business owner or work for one — and even if you do neither — you’re probably well aware of the effects a recession can have on companies.
For families, opportunities to cut back on nonessential spending help compensate for increased costs. But even during tough times, some segments of the economy tend to stay more stable. Goods and services considered more recession-resistant, for example, include consumer staples, alcoholic beverages and discount retail purchases.
A recent survey conducted by CNBC and Momentive found that consumers across all income tiers indicate they’ve started to cut back on purchases and intend to further restrict household spending if inflation persists. But no matter the economic pressures on families, consumers often regard insurance as necessary spending. And that’s a key consideration for anyone seeking entrepreneurial opportunities that could help provide shelter during an economic storm.
More Choices During Tough Times
In a world of complicated insurance options, We Insure stands out with its business model based on expanded choice for consumers. Even as insurance rates rise, We Insure is positioned to continue offering superior value to insurance customers by virtue of expanded coverage options. And for franchisees, our full-service turnkey model is designed to help agency owners focus more time and energy on building their book of business.
We Insure was named a top recession-resistant franchise, based on franchisee satisfaction ratings, by Franchise Business Review (FBR) in 2022. FBR stated that We Insure is among the top franchises that have “performed well in good times and bad and … hold(s) a strong advantage to outperform their competitors in the years ahead.”
Protect Yourself With a Robust Insurance Offering
According to Kiplinger, recessions historically occur every 3.5 years, on average. While, officially, the pandemic only triggered a short recession between February and April of 2020, the health and economic impacts continue to stagnate the economy and may contribute to the next downturn. If you’re considering a franchise opportunity, look for one that can help keep your bottom line resilient regardless of when the next headwinds blow through.
The information contained in this page is provided for general informational purposes only and may not be applicable to all situations. WeInsure makes no guarantees of results from the use of this information.