These are the seven biggest bu

Image Source: https://www.pexels.com/photo/business-composition-data-desk-348323/

These are the seven biggest business opportunities in SA right now

Barclays Africa Group find growth is still very healthy in franchising outlets

These are the seven biggest bu

Image Source: https://www.pexels.com/photo/business-composition-data-desk-348323/

As the economy balances on a knife-edge, job security and future financial planning have become a huge stress to South Africans.

The whole of 2017 has been financially disastrous for the country: Recessions, junk status, and cabinet reshuffles alike have seriously dented SA’s financial clout.

Business Opportunities in South Africa

However, it need not be all doom and gloom, according to Barclays Africa Group’s Sybrand Bezuidenhout – She’s their business development manager for franchise services, and has a rather uplifting insight into what areas can whether the fiscal storm

Bezuidenhout believes these markets are the silver lining amongst the gatherings storm clouds:

“Historically, the franchising services sector has shown healthy growth despite challenging economic times.”

“All indications are that it will continue to grow and positively contribute to the economy – especially if franchisees focus on providing quality products and top-class customer service.”

The franchise sub-sector ranges from automotive trade to cosmetic beauty. The Barclays representative has identified the seven biggest business franchise opportunities in SA right now:

Building and Construction Supplies

. Building contractors are always looking to reduce costs and use cheap, sensible options. A start-up in distributing and selling construction tools could also be savvy if placed in the right location – anything near a new property development can tempt the DIY dabblers to give you their business

Eye Care

. With many being shafted by medical care bills, the chance to provide an affordable solution with optical equipment is something Bezuidenhout thinks would be a lucrative niche market.

Automotive Sector

. Fewer people are buying new cars in the current financial climate. They hang on to their older models and their aged vehicles do what all aged vehicles do: Fall apart.

The demand for parts and repairs therefore remains high, and independent franchises in this sector can generally be seen as more favourable than having to handle dealerships.

Telecommunications

. South Africa’s telecoms franchise sector is dominated mainly by the four large mobile networks – MTN, Vodacom Cell C and Telkom. Although they’ve come under fire for extortionate data prices, SAs access the internet through their mobile devices more than anything else, meaning this market stays evergreen.

Much like the automotive sector, people are hanging on to their ‘older models’, choosing to repair their old phones rather than buy new ones. Indeed, start-ups and smaller franchises are preferred when it comes to phone repairs.

Beauty and Cosmetics

“Even though consumers tend to cut down on so called “luxuries” when they have less disposable income, people still strive to spoil and pamper themselves. The change is seen in what their hard-earned money is spent on.”

“For instance, rather than going to a spa, a woman will choose to get her nails done. That way, she still feels she is treating herself, but at a fraction of the cost.” –  Sybrand Bezuidenhout

Education

. Private schools are becoming a more popular choice for parents, and where we have our children, we will need our teachers.

There is a particular market opening for ‘extra-curricular’ studies. So whether that includes private tuition in a specific school subject or coaching opportunities for sport, the demand for paid tuition is steadily increasing.

Utility Services (particularly water)

. The Cape’s current water crisis has sparked a flurry of entrepreneurs proposing all kinds of solutions: From desalination to better data analytics, there is a huge drive to find water specialist and suppliers.