As the nation celebrates Independence Day in America, it could not be a better time to reflect on individual independence and what that means to each of us. The restaurant brokers come from a long line of entrepreneurs. Breaking with that tradition, we did many years in the corporate world but found that owning a business was always the siren call, not the corner office. Like many Americans, we wanted the chance to call the shots with our unique brand of independence and know that fail or succeed, the buck stopped here. That's why we both left large companies to found We Sell Restaurants. Seventeen years later, we’re thrilled with the decision.
It's uniquely American to celebrate our independence and also to seek control over our own circumstances with something we call our own. In looking at the history of our country, the Homestead Act of 1862 can be seen as the earliest catalyst to lighting the flames of financial independence and entrepreneurship. Under the act, any citizen could appy for 160 acres after filing a $10 fee for the land. Then they had to start living there within 6 months and within five years the land was his for just $1.25 per acre. Then President-elect Abraham Lincoln said the act was necessary, "so that every man should have the means and opportunity of benefiting his condition.” The idea worked and countless individuals began homesteading across the country, working the land and building their own small businesses capable of feeding, clothing and sheltering their families.
Here are five reasons we think the timing hasn't been as positive since way back when the Homestead Act brought everyone into land ownership to take matters into your own hands and buy a business. It seems that 2017 may be the best chance since the Homestead Act of 1862 to follow your instincts and seek your own financial independence.
Reason 1: Stock Market Performance
If a picture is worth a thousand words, this picture of the rise in the stock market for the last year should spell out reason number one. The gains in the market have almost everyone looking at a pretty healthy 401K. Since many business starts are financed through tax free rollover of a 401K plan, taking part of those gains and reinvesting them in your own business may be a smart strategy.
Who knows how long this trend will last but for now, a stock market that's posting wins and a trend line like this one are reason number to signal the right timing for buying a restaurant opportunity.
Reason 2: Economic Optimisim Soaring
Americans believe we’re on the right path. The latest CNBC All American Survey posted the highest rating for America's optimism in survey’s 10-year history. They found that 30 percent of the public are both optimistic about the economy now and for the future, the second quarter in a row that present-future optimism scored so high.
- 44% say wages will rise
- Homeowner optimism is off the charts – 54% say value of home will rise versus 38% in September
- Investor optimism – 44% say now is a good time to invest
In the survey prior to the election, 30 percent gave the economy a poor rating–a result largely consistent with those throughout the Obama administration. In the latest results, just 16 percent give the economy a poor rating.Reason 3: US Business Confidence Highest in 8 Years
US consumer confidence spiked to a 16-year high in March, according to the Conference Board's monthly survey.
The headline index jumped to 125.6, the highest since December 2000. Economists had forecast that the index dipped in March to 114.0 from a 15-year high of 114.8, according to Bloomberg.
Consumers were more positive about the labor market and economic conditions. The share of people who expected jobs to be plentiful also jumped to a 16-year high.
Reason 4: Lending
The lenders working with the restaurant brokers are willing, ready and able to fund deals today! That's a big change over just a few short years ago when any restaurant submitted for lending was a reason for most banks to run and hide. There is plenty of money out there to fund investments in a business of your own. We are being approached daily to add new lenders to our robust list of resources for funding a restaurant purchase.
Morning Consult and the International Franchise Association released a survey a few short days ago. In that survey 67% of franchise owners and potential buyers are likely or more likely to invest compared to six months ago. By a two to one margin, franchise owners and potential buyers say the economy is improving. 52% of current franchise owners say the economy is improving. That means there will be more people seeking the business opportunities on the market so don't drag your feet too long.
It's true that the deal of 1862 for 160 acres at $1.25 an acre can't be found today but these five reasons and many great business opportuntiies for sale indicate the timing is right to let freedom ring! Happy Independence Day!