Take advantage of the economic climateNovember 27, 2018
Now is the time to invest in Fantastic Sams ownership, since salon franchises are a good bet in any economy
The United States economy is in a state of euphoria. Unemployment is down, businesses are bustling, and the Great Recession is a thing of the past. Everyone from Wall Street investors to employees across the country are feeling cozy; many are satisfied with their savings and their jobs. But instead of growing complacent, as contented workers tend to do, hungry entrepreneurs with a taste for success are taking advantage of the current economic climate. They know now is the time to invest in the future by buying a franchise; now, when working men and women have secure savings and a steady career to cushion any blows. Fantastic Sams salon franchises offer the perfect opportunity for eager entrepreneurs who want to invest in something more dependable than the stock market.
It’s hard to predict how long the economic expansion in the U.S. will last. Some experts say there is no end in sight, although most agree a downturn is inevitable as part of the ebb and flow of the economy. Others predict the next recession will happen sooner rather than later, starting in 2019 or any day now. It’s a worrisome thought, but not so much for those working in a recession-resistant industry.
Why salon franchises are a solid bet
“No matter the economic climate, it doesn’t cause significant swings in our business,” says John Prichard, who owns two dozen Fantastic Sams salons in Minnesota with his wife, Patti. “In good times and bad times, people still want their hair to look good.”
The Prichards first became Fantastic Sams salon owners in 2004, a few years shy of the global financial crisis. They began with three salons, and, after slowly adding one or two salons a year, they now have the largest Fantastic Sams multi-unit group.
The Great Recession didn’t seem to get in their way.
What to expect when you’re investing
Speaking at a meeting of the National Association of Business Economists in Boston in early October, U.S. Federal Reserve Chair Jerome Powell said the economy is in good shape — and the future is looking sharp.
“The economy is strong, unemployment is near 50-year lows, and inflation is roughly at our 2% objective. The baseline outlook of forecasters inside and outside the Fed is for more of the same,” said Powell. “This historically rare pairing of steady, low inflation and very low unemployment is testament to the fact that we remain in extraordinary times.”
Some economic experts believe that expectation is overly optimistic. In an earlier article in The New York Times, senior economics correspondent Neil Irwin says something will kill the current economic expansion, but what and when is unknown.
“The Federal Reserve has had a relatively easy time over the last year or two. Both inflation and employment have been gradually moving toward healthy levels as the Fed has gradually raised interest rates,” says Irwin. But he explains that the job facing Powell and the Fed is on the verge of getting trickier. “The risk that the Fed will miscalibrate interest rate policy and cause a slowdown or a recession is rising.”
The bottom line is, no matter the current economic climate, no one can predict the future. The time is right to prepare for whatever is in store by investing in a recession-resistant business like Fantastic Sams salon franchises.
Investing in Fantastic Sams
Scott and Selina Hansen purchased six Fantastic Sams salons in Utah in 2017. Scott left his longtime job as a mall manager to work for their business full time, while Selina continues to work as an accountant. The parents of four saw this as an investment in their family’s future.
“We wanted to not have to worry about what’s the economy going to do with the mall business and be our own owners,” says Scott. “We wanted to control our own destiny.”
After spending 25 years as a mall manager, Scott saw numerous retail stores come and go because the internet was a better competitor.
“In this industry, you’re not going to lose to that. The internet isn’t going to do a better job than you,” says Scott. “Fantastic Sams is taking advantage of all of those things that technology provides, but we’re not losing our customers to it.”
It’s true that the services Fantastic Sams provides cannot be replaced by technology. Salon owners aren’t simply investing in a concept that has staying power, they’re investing in an overwhelmingly successful industry. The beauty industry is a $75 billion business, and it has so far proven stable for those who depend on it for a living.
Investing in stocks comes with uncertainty, but a successful franchise owner can win big. Unlike entrepreneurs who create a new concept, Fantastic Sams owners are armed with the strength of a brand that’s been franchising for over four decades. Along with brand recognition, Fantastic Sams salon owners benefit from ongoing training, marketing support and field-level guidance.
Rather than wait until the next recession begins, or until there is a change in their job status, enthusiastic entrepreneurs are taking advantage of this moment of respite in the economy.
There are various ways to finance your new Fantastic Sams salon. There’s no reason to wait.
And, of course, there’s also strength in numbers. The opportunity to collaborate with other owners is part of why delving into franchise ownership is a smart investment. With nearly 1,000 Fantastic Sams salons across North America, many that have been in operation for decades, there is a plethora of experienced owners willing to share their experiences. Many owners belong to regional support teams or have mentors on speed dial.
These owners are invested in Fantastic Sams salon franchises, and each other, and the decision to do so is paying off nicely. The economy may twist and turn, but one thing’s for certain — Fantastic Sams has a fantastic future.