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2010 looks like a better year for my business than 2009

2 Comments

Bob Frankman's picture

A cloudy future

It looks like entrepreneurs are having a tough time making up their minds about 2010. I would not say that business owners are beating down the doors of optimism.

Don Sniegowski's picture

Franchise Business Leaders More Optimistic for 2010

Last month, last year, last decade - translated: days ago - I received a news release from the International Franchise Association. The bottom part of the release were details about a business leader survey that they had conducted.  In these uncertain times, 51% said that 2010 is going to be a better year than 2009.

I haven't seen the actual survey, so I do not know if they provided a selection of "uncertain" like our poll does. Our poll and theirs is apples and oranges. Our poll is biased to those who visit this site.

Here's the part of the IFA press release about their leaders being slightly on the optimistic side when it comes to 2010.

WASHINGTON, D.C. (Dec 16, 2009) Franchise business leaders are more optimistic about how the U.S economy will perform in the next 12 months than they were a year ago. More than half (51.3 percent) of survey respondents say that the economy will be better in 2010, compared to only one quarter (24.6 percent) of respondents in the November 2008 survey. These business leaders have a less optimistic outlook for unit growth than 12 months ago due to ongoing challenges in accessing credit for new franchise prospects and for existing franchisee expansion. While more than 78 percent of those surveyed expect moderate to significant increases in franchise units, this compares to nearly 86 percent of those surveyed a year ago.

The survey shows the issues of greatest concern currently and in the year ahead are financing and access to capital. Nearly half of the survey respondents (49.2 percent) ranked “financing and access to capital” as their greatest concern, followed by nearly one-quarter of survey respondents (23.8 percent) who ranked “franchise sales/development” as their next greatest concern.

Survey respondents are somewhat optimistic about business conditions in the next 12 months than those surveyed a year ago. More than 40 percent of respondents stated that they expect business conditions will be “somewhat good” in the next 12 months, compared to only 25 percent of those surveyed in November 2008. Less than 20 percent (18.8 percent) stated they expect business conditions to be “somewhat poor,” compared to one-third (33.5 percent) in November 2008.

Half of the franchise business leaders surveyed indicated their employment levels will “stay about the same” in the year ahead, while 45 percent stated they plan to increase employment moderately to significantly, and only 5 percent stated they plan to decrease employment moderately.