THE RESURGENCE OF SMALL BUSINESSES IN A POST-PANDEMIC ECONOMY

The 2023 Small Business Trends report found that 84% of small business owners believe technology is critical to their survival and growth. E-commerce platforms, social media marketing, and online payment systems have enabled these businesses to reach wider audiences and operate more efficiently.

 

THE RESURGENCE OF SMALL BUSINESSES IN A POST-PANDEMIC ECONOMY

 

By FMM Contributor

 

The COVID-19 pandemic significantly disrupted the global economy, leading to widespread business closures and job losses. However, as restrictions ease and consumer behavior shifts, a remarkable resurgence of small businesses is taking place. This article covers the factors contributing to this revitalization and the challenges that small businesses continue to face.

 

The most up-to-date statistics are from 2023; a report from the U.S. Census Bureau revealed that small business applications reached over 5 million, marking a 3% increase from 2022. This surge indicates a continuing trend of entrepreneurship as individuals seek autonomy and the opportunity to create their paths amid economic uncertainty.

 

Small businesses are vital to the economy, accounting for approximately 44% of U.S. economic activity. They promote innovation, increase jobs, and contribute to community development. Recent data from the National Federation of Independent Business (NFIB) indicates that nearly 70% of consumers are consciously supporting local businesses, reflecting a growing preference for community-oriented commerce.

 

Technology has also been instrumental in this resurgence. Many small businesses have embraced digital tools to adapt to changing consumer preferences. The 2023 Small Business Trends report found that 84% of small business owners believe technology is critical to their survival and growth. E-commerce platforms, social media marketing, and online payment systems have enabled these businesses to reach wider audiences and operate more efficiently.

 

However, challenges remain. Supply chain disruptions and inflationary pressures continue to affect small business operations. According to a recent NFIB survey, 63% of small businesses reported difficulties obtaining necessary materials and products, and 58% noted increased prices affecting their profitability. Rising costs have led many entrepreneurs to reassess pricing strategies while maintaining competitiveness.

Despite these obstacles, the resilience and adaptability of small businesses shine through. Many have pivoted their offerings to meet changing consumer needs, such as providing takeout services or enhancing their online presence. Moreover, government initiatives, including grants and loans, have supported small businesses during this challenging period. The recent $75 billion investment in small business recovery programs by the U.S. government highlights this commitment.

 

The post-pandemic era presents opportunities and challenges for small businesses. As entrepreneurs navigate this evolving landscape, their ability to adapt and innovate will be critical in shaping the future of local economies.

 

Learn more about owning a business here

 

 

This post was researched, outlined and edited with the support of AI

HOW FRANCHISORS HELP FRANCHISEES MARKET AND ADVERTISE IN THE LOCAL MARKET

While franchisees are encouraged to adapt marketing strategies to fit their local market, maintaining brand consistency is critical. Franchisors often provide strict branding guidelines, ensuring all marketing materials adhere to the company’s established image. From logo usage to color schemes and messaging, these guidelines help franchisees create localized content that still reflects the brand’s identity, reinforcing brand recognition across all markets.

 

HOW FRANCHISORS HELP FRANCHISEES MARKET AND ADVERTISE IN THE LOCAL MARKET

 

By Gary Occhiogrosso, Founder FranGrow

 

One of the principal reasons entrepreneurs invest in a franchise is the support provided by the franchisor, particularly in marketing and advertising. Local marketing is crucial for franchisees, as it helps drive customers to their specific location while maintaining the brand’s overarching message. In this article, we explore the various ways franchisors assist franchisees in effectively promoting their local business, ensuring both parties’ success.

 

National vs. Local Marketing: A Symbiotic Relationship

Franchisors typically handle national marketing through large-scale campaigns to build brand awareness across multiple markets. However, while national marketing helps establish a broad presence, it may not resonate with local audiences. To address this, franchisors often develop strategies that allow franchisees to tailor marketing efforts to their unique market while maintaining the brand’s integrity.

Franchisors usually provide franchisees with marketing guidelines, advertising templates, and digital tools that can be customized to fit the local community. These resources enable franchisees to align their promotions with regional trends and consumer preferences without compromising the brand’s overall identity.

 

Marketing Support from Franchisors

Franchisees benefit from several layers of support that help them run localized campaigns:

  1. Advertising Fund Contributions

Most franchises require franchisees to contribute to an advertising fund, typically a percentage of their revenue. These contributions are pooled to fund national and regional campaigns, but many franchisors set aside a portion for local marketing efforts. Franchisees can use these funds for promotions, social media advertising, and local events, with the franchisor’s guidance to ensure alignment with the brand.

  1. Cooperative Marketing Programs

Many franchisors implement cooperative marketing programs, where multiple franchisees in a specific area pool their resources to run joint marketing campaigns. This collaborative approach allows franchisees to maximize their advertising budget while ensuring a cohesive message across multiple locations within the same region.

  1. Digital Marketing Tools

In today’s digital age, franchisors often provide franchisees access to tools for managing social media, SEO, and online advertising. These platforms allow franchisees to create localized campaigns, run Google Ads, and optimize their website for local searches. With guidance from the franchisor, franchisees can target specific demographics within their local market, driving traffic to their stores.

  1. Marketing Training and Resources

Effective local marketing requires the right tools and the proper knowledge. Franchisors typically offer ongoing training in marketing strategies, covering areas like social media management, customer engagement, and public relations. Some franchisors even provide dedicated marketing consultants who work closely with franchisees to develop personalized marketing plans for their local area.

  1. Localized Promotions

Franchisors often create promotional materials that franchisees can customize for local events, holidays, and community initiatives. Whether sponsoring a local sports team, participating in a charity event, or running a holiday promotion, these localized efforts help franchisees connect with their community while benefiting from the franchisor’s brand recognition.

 

Leveraging Data to Target Local Audiences

Many franchisors provide franchisees with access to customer data and analytics tools. By analyzing local customer behavior, franchisees can develop their marketing to meet specific needs and preferences. For example, a franchisee might discover that certain products are more popular in their market, leading them to focus promotions on those items. This data-driven approach enables franchisees to make informed marketing decisions that resonate with their local audience.

 

The Importance of Brand Consistency

While franchisees are encouraged to adapt marketing strategies to fit their local market, maintaining brand consistency is critical. Franchisors often provide strict branding guidelines, ensuring all marketing materials adhere to the company’s established image. From logo usage to color schemes and messaging, these guidelines help franchisees create localized content that still reflects the brand’s identity, reinforcing brand recognition across all markets.

 

My Final Thoughts

Franchisors play a pivotal role in helping franchisees market and advertise their business at the local level. Franchisees are equipped with the resources needed to effectively engage their local audience through advertising fund contributions, cooperative marketing programs, digital tools, training, and localized promotions. The support franchisors provide ensures that franchisees can capitalize on their local market while maintaining brand consistency, ultimately contributing to the franchise’s success as a whole.

 

LEARN MORE ABOUT FRANCHISING & ADVERTISING HERE

 

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This post was researched, outlined and edited with the support of AI