Talk on the Street
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Talk on the Street
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Consumer confidence is an important economic factor for franchise owners to consider. Find out what franchise expert Derek Cafferata says about consumer confidence and what it means for franchising.
What is Consumer Confidence?
Consumer confidence is the data measured and described as the Consumer Confidence Index (CCI). It is an important economic indicator that economists and business owners consider carefully. In fact, about half of small and medium business owners would consider the CCI as one of the most valuable economic indicators to consider.
Consumer confidence identifies the general perception and outlook of consumers in the marketplace, how they feel about current and future economic conditions. If consumer confidence is high, consumers feel confident about the economy and are more willing to spend money. If consumer confidence is low, consumers feel uneasy about the current and future economic climate, leading them to spend less.
Importance of Consumer Confidence for Franchising
For small business, in particular franchising, this economic indicator is very important because revenue is impacted. Business owners can utilize this information to make informed decisions on things like growth and development, marketing, branding and staffing.
“If consumer confidence is down, business owners can expect revenue to drop and growth to slow down,” says Derek Cafferata President and CEO of franchise experts All State Franchise Finders. “If consumer confidence is high, expect increased revenue and business growth.”
Knowing this information helps franchise owners to plan for the future and make informed business decision.
Consumer Confidence: The Ability to Spend, The Willingness to Spend
Consumer confidence considers both a consumer’s ability to spend, which takes into consideration employment and job availability as well as a consumer’s willingness to spend.
For the economy to move forward, people need to have a stable income. They also need to have enough confidence in the economy to want to spend their money.
“As a franchise owner, prioritise to make consumer confidence in your business a priority,” says Derek. “Keep a watch on the CCI and its fluctuations and make
Look at ways to recession-proof your business. Is there some way to improve on speed, quality or availability of your products or services? It might be to streamline systems or improve customer connection. While consumer confidence may drop from an overall economic viewpoint, consumer confidence in your brand is something you can work at maintaining and improving all the time.
Consumer Confidence Equals Economic Growth
Consumer confidence equals economic growth on every level, from increased turnover for the small single-unit franchise owner to increased investment opportunity across the nation. When people feel confident about the economy and confident with their employment, they are willing to spend more money. This encourages investors to invest more, which leads to an increase in the stock market, which, in turn, leads to an increase in access to lending for further investment.
All State Franchise Finders the Franchise Experts
For many years now, business owners and entrepreneurs have been utilizing the knowledge and experience of Derek Cafferata and his team at All State Franchise Finders. Whether you are looking to expand your company through franchising or looking to buy into a franchise, Derek and the team at All State Franchise Finders are here to help. For more information call 1-800-544-2161 or visit allstateff.com today. All State Franchise Finders are your franchise experts.