World economy is in big trouble. For the first
time, all major economies are in, or are sliding
into recession. Global growth is expected to
hit just 2.6% which is technically a recession.
Across the world, hundreds of thousands are
being laid off, and millions will follow investments
are drying up. Share prices will be unstable.
Families will struggle under the burden of record
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People need income security. Millions of people
will need the security or safety net of a second
income, and most will need to be flexible part-time,
and with low investment. What they will need
is a direct sales/networking opportunity the
very catalyst the industry needs in order to
drive it onwards and potentially, double or
triple growth predictions.
Franchising had it! The history of franchising
in most developed countries began between the
1950s and 1970s. There was a lot of hype and
focus on growth. However, there was a 99% failure
rate and both the media and goverment attacked
the idea. This was the classic story.
In the 1980s better business models were created
which enabled the industry to boom and become
more profitable. In the UK, there was 600% growth
in just 6 years. This growth was mirrored everywhere.
One of the reasons for this sudden, substantial
growth were the economic difficulties that many
countries were suffering in the 1990s.
This provided a new pool of people in planes
such as the UK and Australia who wanted/needed
a franchise opportunity.
This is EXACTLY THE SAME SITUATION TODAY!
We've had our growth wave and the industry is
established in every country of the world. There
is big hype, a huge failure sale, and new business
models are emerging.
ENTER THE FINANCIAL CRISIS to drive people into
Your job is to learn about the crisis, you need
to appreciate the trouble the world economy
is in at the moment. People with problems need
to have a paradigm shift.
The last time the U.S.A. the worlds key economic
engine, went into recession in the early 1990s
it was balanced by strong growth in Japan, Germany
and the emerging East Asian countries.
Let's look at the situation of today, in order
of economic muscle:
USA: Unemployment has jumped to 4.9% and corporate
profits are collapsing. Personal debt has his
hit record levels, and free falling stock prices
are wiping out economic confidence, thus spending
is guaranteed to drop, pushing the economy into
JAPAN: This is an economic basket-case. Over
the last 10 years since then $1 trillion has
been spent on wasted projects. These projects
designed to stimulate growth, litter the country,
Japan is now left with empty new airports and
motorways that go nowhere. The sad reality is
that Japan's rapidly ageing population needs
the wasted $1 trillion to pay for massive pension
requirements over the next 50 years. Unemployment
is at a record 5% which covers real unemployment
of 10%. The de-regulation required is not politically
acceptable, so further decline can be expected.
GERMANY: They are falling into recession. The
government is sick of supporting east Germany
and has crippling social security bills.
EU: Here growth rates are dropping. There is
record government debt and record personal debt.
Governments are not allowed to increase their
debt, so must increase taxes to pay for increasing
social costs of aging populations and higher
unemployment. The new single currency (introduced
next month) will create a short-term economic
upheaval to clear differing economic cycles.
Europe needs extra growth, yet other regions
of the world have falling interest rates which
push down the value of their currency and make
the EU's exports seem more expensive.
EMERGING EUROPE: If the EU succeeds, the emerging
European countries do not just catch a cold,
they get influenza! Their populations are living
in an increasingly crumbling structure and toxic
environment, and the EU will not have the growth
to support them as they have done in the past.
CHINA: The recent boom here, has been based
on export growth. The extremely low cost of
manufacturing in this country means this growth
should continue as global companies must find
lowest possible manufacturing prices
EAST ASIA: Many of the countries here, from
Korea to Indonesia, did not restructure the
economy after their financial crisis of 1997-1998.
The only thing to save them this time was the
continuing USA boom. Now it seems as if their
lack o faction will come back to haunt them.
Scores of insolvent banks, and many other old
problems from those countries. They do not have
an edge, and they have many poor people who
will work for very little, but with no global
growth, this region should suffer.
CENTRAL AND SOUTH AMERICA: With the USA in recession,
the rest of America will suffer.
The world is facing huge financial difficulties,
with the last twelve months seeing 75% of the
drop, yet I do not expect a global meltdown.
There are still mountails of money sitting in
pension/investment funds ready to be invested
next year. The point is that there is a dramatic
rise in financial insecurity. Personal debt
is at a record level and banks need to squeeze
people in order to pay for wasted investments
Never in the last 25 years has the time been
better to offer an additional source of income
to people. I believe that this will be the catalyst
direct sales need to create a new global wave.
In 10 years from now, we will look at 2002-2003
as the most fertile time for recruiting. If
you cannot build an organisation over the next
2 years, there must be something seriously wrong
Of course you need to be in company with a 2nd
wave programme and have good leadership. Here's
my advice: read lots of newspapers and watch
TV. Find lots of examples of what is happening
to the economy in your country and use those
examples to confirm your right place., right
Never, I repeat, never, is there a better time
to be in this business. You are in one of the
few industries in the world that is driven by
economic downturns. Thank your lucky stars.