Franchising Opportunities and Economic Strategies for Small Businesses in 2025 Insights on franchising, entrepreneurship, financing options, and the impact of changing administrations

Discussion:

1. Introduction and Purpose:  Edward (Ed) Fulbright opened the discussion, welcoming listeners to Mastering Your Money. He explained that the focus would be on franchising opportunities, small business strategies, and how entrepreneurs can position themselves in the current economic landscape. Ed highlighted franchising as a pathway to business success through structured support, recognized branding, and training systems.

2. Kevin Hicks’s Background and Ongoing Projects: Kevin Hicks, partner with Blackman and Associates (a franchise consulting firm), joined the meeting by phone from New York, New York. He noted their firm’s mission to identify viable and lucrative franchise opportunities. Kevin then shared news about two casino bids: they remain active in Chicago and are now participating in a new bid in New York (since they lost the bid in Virginia). He underscored their guiding belief that “the next human rights frontier for people of color is economic empowerment.”

3. Small Business Opportunities Amid Economic Shifts: Ed asked Kevin for insights into small business prospects given the current economic climate and incoming political administration. Kevin responded by describing several broad areas of growth, driven by demographic and policy changes:

   • Elder Care Services including home healthcare, companion care, medication support, and home cleaning. This is supported by an aging Baby Boomer generation.
   • Disability Services catering to people needing rehabilitation or ongoing assistance.
   • Childcare as employers increasingly offer childcare stipends to attract quality employees.
   • Pet Services meeting strong demand across multiple age groups.
   • Digital Marketing and E-commerce for businesses reaching customers online.
   • Mail and Shipping Services (e.g., UPS Stores) for home-based entrepreneurs.
   • Restaurant and Food Service potentially seeing a resurgence as more employees return to offices.
   • Manufacturing-Adjacent Sectors such as housing construction or food trucks near large industrial projects.
   • Cybersecurity and Data Breach Prevention due to rising attacks on personal and business information.

4. Positioning and Preparation for Upcoming Policy Changes: Kevin highlighted steps small business owners should take in anticipation of administrative shifts:

   • Manage Credit Profiles: Ensuring good personal and business credit is crucial for obtaining financing.
   • Workforce Development Programs: Partnering with organizations that train and provide “shovel-ready” employees.
   • Building a Financial and Legal Team: Maintaining solid relationships with bankers, accountants, and attorneys.
   • Insurance Coverage: Having appropriate policies (health, disability, business, homeowners) to mitigate risks.

5. Cost of Financing and Traditional Lending Sources: Rising interest rates were briefly discussed. With the Federal Reserve raising rates multiple times over the past 18 months, Kevin noted:

   • SBA 7(a) Loans: Often tied to prime plus 2.75%, totaling around 11%.
   • SBA 504 Loans: Tied to different benchmarks, so rates can be closer to 6%. These apply to land and real estate purchases for small businesses, offering the advantage of building asset value.
   • Economic Development Authorities: State-led organizations often offer low-interest loans (as low as 2% to 5%) in exchange for job creation or local development.
   • Small Business Investment Companies (SBIC): Provide equity investments instead of debt, allowing another avenue of funding.

6. Non-Traditional Funding and Incentives : Kevin explained potential structures beyond bank loans:

   • Economic Development Incentives: Counties, cities, and states may offer grants, tax credits (like New Market Tax Credits), or other funding solutions in exchange for local growth.
   • National Association of Investment Companies (NAIC): Represents venture capital and private equity funds run by Black and other diverse professionals, potentially matching entrepreneurs with targeted capital.         

7. Impact of Changing Administrations on Policy: Both Ed and Kevin noted that new president can bring unique priorities:

   • Tax Policies: Potential changes to small business pass-through deductions, no tax on certain tips, or raising meal expense deductions.
   • Tariffs: Domestic manufacturers may benefit, but import-reliant businesses could face higher costs.
   • Restaurant and Hospitality Aid: Proposals to make tips non-taxable or restore 80% meal and entertainment deductions may boost the restaurant sector.                                                                                                        

8. Importance of Social Capital: Kevin shared that the best advice he ever received focuses on social capital—relationships and networks. He emphasized that critical introductions and support often come from friends, mentors, and colleagues, noting examples from his own experience (casino bids, housing near HBCUs, etc.).

9. Final Thoughts and Next Steps:  In closing, Ed reminded listeners to take responsibility for their current situation and be prepared to adapt. He underscored that life is too short to be unhappy and that building an “independence plan” requires both financial and personal well-being. He suggested that listeners revisit the recorded segments online for deeper exploration of each topic.

To Dos:

1. (All small business owners) Manage personal and business credit to secure financing more easily.
2. (All small business owners) Explore local workforce development programs to find qualified employees.
3. (All small business owners) Investigate the SBA 504 and 7(a) loan options, plus potential grants or New Market Tax Credits.
4. (All small business owners) Evaluate insurance coverage (business and personal) to ensure protection.
5. (Kevin Hicks) Continue pursuit of new casino opportunities in New York and maintain strategic partnerships to strengthen bids.