If you’re a Hispanic entrepreneur, it’s important to understand the potential of Latino franchises. That’s because these franchises are rapidly forming the backbone of our economy!
This isn’t just a reason to be proud. It’s an opportunity to create your own success via Hispanic franchise opportunities. If you’re not sure whether you’re ready to take the plunge or not, check out these important facts you should know about Latino franchises.
Relevant facts about latino and hispanic franchises
1. Powerful Workforce
Most franchises are effectively small businesses. As such, the entrepreneurs running these franchises often end up hiring family members or trusted friends and colleagues.
When you open Hispanic franchises in Colorado or anywhere else, you will likely get many applications from the local Hispanic population. Considering there are over 59 million Latinos in America, you will have many qualified workers to help you hit the ground running.
2. Latino Franchises: The Future Is Now
There is no better time for you to invest in Latino franchises, and other people are starting to notice!
For example, the Latino Franchise Symposium has grown in popularity and prominence year after year. The explosive popularity of this event is due to the growing number of Latino workers who are ready and willing to start their own businesses.
3. Diversity as an Asset
Occasionally, Latino entrepreneurs get annoyed by phrases like “Latino franchises.” Some think these phrases are too broad and paint too many people with the same brush. Others simply believe we should be moving beyond labels like that.
However, as national demographics change and cultural tastes shift, one thing becomes very clear: diversity and inclusion are now cornerstones for marketing to influential groups such as millennials and zoomers. By starting your own Latino franchise opportunity, you can naturally appeal to demographics longing for more diversity and representation.
4. The Economy Survives on Latino Businesses
The emphasis on diversity and inclusion may be relatively new in the country. However, the economy has survived on Latino businesses for much longer than you might think.
According to Stanford’s Latino Entrepreneurship Initiative, it was Latino businesses that helped keep the recession that began in 2008 from getting worse. These businesses ensured that America’s unemployment rate did not rise above 10%. And with the economy still recovering from COVID-19, businesses such as Latino franchises are more important than ever.
5. Latino Business Growth
You may have noticed the number of Latino businesses growing over time. But the actual numbers are fairly shocking.
According to Stanford, the number of Latino businesses grew by 44% between 2002 and 2007 and by 47% between 2007 and 2012. If you’ve wanted to start your own business, you can be part of this rising trend.
6. Small and Intimate Businesses
As we noted before, most franchises (Latino or otherwise) are small businesses. And such businesses are uniquely situated to succeed in today’s world.
That’s because demographics such as millennials prefer interacting with smaller, local businesses rather than major, monolithic corporations. Your small business creates the intimate and authentic experience that this demographic has been craving.
7. Strong Sales Potential
When you look at the rise of Latino businesses in the past two decades, there is much to be proud of. But these entrepreneurs aren’t just making a huge impact in the community. They are also making plenty of money!
Stanford’s research discovered that 66% of Latino businesses are in America’s top five industries when ranked for sales growth. This is compared to 54% of non-Latino businesses and helps showcase the strong sales potential of your own future franchise.
8. Your Customer Demographic
One of the biggest misconceptions about Latino businesses is that they primarily service Latino customers. However, that couldn’t be further from the truth!
According to Stanford, about 75% of Latino businesses either serve more non-Latinos than Latinos or serve the same amount. This is important because Colorado’s Latino population is just a little over 20%, but that doesn’t mean your franchise won’t be a major success with the rest of the state’s population.
9. The Question of Funding
Not all of the data about Latino businesses are positive and uplifting. Some of it, in fact, is more than a bit sobering.
For example, Stanford researchers discovered that the entrepreneurs themselves almost entirely finance Latino businesses. This usually came in the form of personal savings and financial gifts from friends and family. On that note, Latino businesses are 9% more likely to rely on friends and family for financing than non-Latino businesses.
However, that brings us back to why franchising is such a great investment for Latino entrepreneurs. It takes far less capital to start running a franchise than it does to start a business from scratch. In other words, you get to enjoy the major benefits of owning your own business without enduring the headaches that come from financing.
10. An Open Door for Entrepreneurs
One of the ways that we like to describe franchising is that it’s like an open door. All you have to do is step through!
While Latino businesses are thriving more than ever, the Latino population has still struggled with things like financing, networking, and market penetration. But these are all things that franchising makes easier. In addition to being easier to finance, successful franchises are simpler to market and, best of all, have a proven track record.
Whether you are a veteran entrepreneur or just starting out, a franchise may be just the opportunity you’ve been waiting for.
Latino Franchises: Start Your Own Today!
Now you know the most important things about Latino franchises. But do you know who can help you start your own?