The tech industry is one of the most recession-proof businesses, proving its resilience during economic downturns over the years. In 2023, in the wake of a pandemic-induced recession, this fact is even more apparent. Despite four years of challenging economic conditions, the IT industry continues to grow at an unprecedented rate. This creates opportunities for aspiring entrepreneurs and innovators to make their mark.
Why is the tech industry so recession-resistant?
One reason is the tech industry’s constant innovation to meet the evolving needs of small and medium-sized businesses (SMBs). Technology has become so ingrained in the daily lives of SMBs that most companies can’t imagine a world without it.
The demand for new and improved technology never wanes, even during economic downturns. In fact, tough times often make businesses more willing to address technological shortcomings so they can improve efficiency and cut costs.
CMIT Solutions’ franchise-based system has thrived during times of economic hardship. Even when the gross domestic product (GDP) in the United States and Canada has fallen, CMIT’s growth has been tracked with overall growth in the broader IT industry.
Take 2019 and 2020, for example. GDP fell nearly 6% overall—the worst period for economic growth in the U.S. since World War II. During the same period, the CMIT Solutions network expanded by six units, a 2.6% increase, while system-wide revenue increased by 8.4%.
During the period spanning 2019-2022, economic uncertainty dominated many industries. But CMIT Solutions has grown by leaps and bounds. Between 2019-2022, the overall number of independently owned and operated franchise units in the CMIT Solutions network grew by 9%. Meanwhile, revenue growth increased by a whopping 48.9%.
Achieving long-lasting success
For 13 consecutive years, CMIT Solutions has ranked on Entrepreneur Magazine’s Franchise 500 list, the world’s first, best, and most comprehensive franchise ranking list. This ranking reflects CMIT Solutions’ unique business model, which empowers entrepreneurs to build recurring revenue streams.
CMIT’s subscription-based services give new business owners the opportunity to build a stable foundation, even during times of economic uncertainty. As long as clients continue to pay their subscription fees or monthly payments, a CMIT Solutions franchisee will continue to generate revenue.
Adaptability and flexibility
Another factor contributing to the resilience of the tech industry is its ability to adapt quickly to changing market conditions. The vast, nationwide CMIT Solutions network is accustomed to dealing with rapid change. Our franchisees have the agility and flexibility to pivot their business models or products to meet new market realities. This adaptability enables CMIT franchisees to maintain a competitive advantage and leverage new technologies that emerge during recessions.
The pandemic accelerated the adoption of remote work technology. Many businesses and consumers rely heavily on digital solutions to maintain operations and stay connected. This trend has created new opportunities for tech entrepreneurs to develop innovative solutions to address the challenges posed by the pandemic. At CMIT Solutions, we’ve leaned into this “new normal,” by providing innovative IT packages that empower businesses to adapt.
That’s why now might be the perfect time for aspiring entrepreneurs to learn more about our franchise opportunity. Once you learn more, you may even want to take the leap into owning your own CMIT Solutions franchise. The unique set of challenges and opportunities created by the pandemic empowers those with an entrepreneurial spirit to leverage the situation and build an innovative and valuable operation.
The help you need
Starting a business during a recession may seem daunting. But resources are available to help aspiring entrepreneurs navigate the challenging economic environment. The Small Business Administration (SBA) provides guidance and resources to help entrepreneurs start and grow their businesses. The CMIT Solutions system also offers business coaching and training, ongoing mentorship, marketing playbooks, and other support. These resources help those starting an IT services franchise successfully get their businesses off the ground.
As a recession-proof industry, IT services offer a path to entrepreneurial success. Ongoing IT industry growth and technological innovation make a CMIT franchise a smart investment. In a 2022 survey of IT services providers, industry leader Datto, found that 95% believe now is a good time to be a managed services provider. MSPs are the kind of trusted advisors that today’s businesses need.
Don’t let economic uncertainty scare you away from starting a business in a recession. Believe it or not, it’s the perfect time for aspiring entrepreneurs to take advantage of CMIT Solutions’ tech franchise opportunity. With the resources and support of a large and growing system like ours, you can create a recession-proof business that will allow you to weather any economic storm and emerge stronger on the other side.
Visit cmitfranchise.com to find out more about our recession-proof business model and IT franchise growth. We can help you succeed and achieve your entrepreneurial goals—today, tomorrow, and during every economic downturn to come.