Is there such a thing as a
recession resistant business? Many of my clients ask this question because they
have memory of the "great recession" and are looking for some assurance that if
the economy takes another dip, their business wouldn't be adversely
affected.
There certainly are recession
resistant franchises. Even if the economy takes a dip, we still need our hair
cut, our taxes done, our car fixed or various other necessity services. In fact,
during the last recession many franchises had sales growth.
Our entrepreneur this month found
a franchise that is recession resistant, high margins and required no initial
employees besides him. It allowed him to get started with an affordable
investment with lots of growth potential.
Congratulations Alan, and welcome
to the world of entrepreneurship!
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Alan
Kromanaker
Fibrenew
When I first had contact with
Alan Kromanaker in March of 2013, he was 51 years old and had been out of work
for a couple of months. He was last employed by a large construction company as
a project manager, customer liaison and safety director.
Alan spent the early part of his
career as a training specialist in the Navy and retired from the Reserves with
the rank of Master Chief Petty Officer after 28 years of service. Alan also
holds a BS and MS degree in Recreational Resources and Administration and went
on to become a recreational director earlier in his career.
The Entrepreneurial gene runs in
Alan's family. Years earlier, Alan started a "Baby Safe" company providing
safety products and consultation for families with children. His father and
partner operated an appliance and TV store for 25. His brother-in-law and
sister-in-law owned and operated a Cousins Sub Shop franchise and he had a
cousin that purchased a Zippy Shell franchise that provides self-storage and
moving containers.
Although Alan was looking for a
job when we first met, it appeared that he really wanted to have the
independence and rewards of working for himself again. He also had the desire to
perhaps have his kids work in the business or pass it on to them some day. In
Alan's words, "I lost my job in the construction industry due to down-sizing
and was having a difficult time finding comparable work. I've always thought
about a franchise but thought the only things out there were food-related. I
didn't want to work the food industry. After about a year of being unemployed I
received a call from Marty asking if I had ever thought about franchises. He
turned me on to several types of franchises, surprising and enlightening me
because of the availability of franchises having nothing to do with food
service."
Alan has excellent leadership,
organizational and people skills and has the ability to inspire others to get
things done. He also is a good teacher, trainer and has a gift for public
speaking. He likes helping people, likes challenges and has a creative side and
liked to see immediate results.
I guided Alan through the
Entrepreneur's Source "Journey of Discovery" and worked on the criteria for his
potential business. Taking Alan's financial consideration into account, we
decided to focus on service oriented businesses. The service business model
often allows one to start out of their home and add employees as the business
grows. This is in contrast to a retail business model where one would have to
staff the business with several employees from day one. The service business
model also does not require the upfront expense of a store front, inventory,
fixtures etc. Although the initial investment of a service business model can
often be substantially less than a retail model, I have yet to see a correlation
between the money one invests in a business and the money they make.
Alan initially decided to
investigate a residential cleaning franchise, a restoration franchise (fire and
water damage) and a franchise that repaired and restored leather, vinyl, plastic
and fabric. Alan went through the initial presentation of all three companies.
He learned about their business model, training, support and territory
availability.
All three franchises were
impressed by Alan and his abilities. The cleaning franchise and the restoration
franchise both invited him to attend their Discovery or Meet the Team Day. The
leather repair and restoration franchise invited him to "ride-along" with an
owner and experience the life of that franchise owner.
Alan chose to go on the
ride-along and was very impressed with what he learned and experienced. It
appeared he found his calling and knew this business was the right one for him.
Alan decided to move forward and become the Madison, WI owner of Fibrenew, a
worldwide leader in the repair, reconditioning and color restoration of leather,
plastics and vinyl for the automotive, marine, aviation, commercial and
residential furniture markets. With over 200 locations in the United States and
Canada, Alan and Fibrenew can make worn and faded leather look like new
again.
Alan liked results that Fibrenew
provided. It was a high margin business where he could be hands on and get
immediate results. He also liked the detailed work, the fact that he would need
no staff to get started and the possibility of getting his son involved in the
business. His wife Lisa was a nurse and he was hopeful she could help him attain
the leather and vinyl repair business for hospitals in the area.
Over the past year, Alan has
perfected his craft and has continued to grow his business. He found the dealer
automotive market very competitive so he decided to concentrate on furniture,
marine and commercial repair. With persistence and hard work, he was able to
secure the business of the University of Wisconsin hospital system. There are
lots of chairs and exam tables within the hospital system that will need upkeep
and repair. Way to go Alan!
When I asked Alan why he chose
Fibrenew and how thing are going, this is what he had to say. "I chose
Fibrenew because I like to work with my hands - I'm definitely not a sit behind
the desk sort of person, I didn't have to have employees right away, and it was
within my budget.
Business has been growing
steadily since opening just over a year ago. I have been doing a considerable
amount of furniture warranty work, boat vinyl repairs, personal auto and
furniture repairs, and have recently contracted with the University of Wisconsin
Hospital and Clinics for all their vinyl repairs. And referrals are steadily
increasing as well."
If you live in the Madison, WI
area and you have piece of leather or vinyl furniture that has a rip, crack,
cigarette burn or is showing excessive wear, please give Alan a call at
608-469-9311 or e-mail him at Madison@Fibrenew.com and let him
come out to your home or business and perform his magic. He can make your
furniture look like new again. It's truly amazing! Check out the Fibrenew
website at www.Fibrenew.com to learn about all the services
Alan offers and feel free to refer him to your friends and relatives. Most
people have no idea that this service exists and it's amazing and
environmentally friendly.
If you have the desire to
be in business for yourself but have concerns about the economy, then perhaps
you'd like to investigate one of the recession resistant franchises. It worked
for Alan and perhaps it just might work for you too.
Do you have the desire to be a
self-sufficient business owner like Tom? Success doesn't happen over night. It's
a process taken one step at a time. Whether you are a corporate executive,
manager, office clerk, mechanic or working mom, and if you have a vision or
desire of being your own boss and being self-sufficient, reply back or give me a
call so we can discuss your life goals and aspirations. Are you ready?
Your comments and feedback are
always appreciated.
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