Tag archives for company

The Basics of Buying a Franchise

Interested in starting a business, but starting from scratch isn’t for you? Consider buying a franchise.

The biggest benefits are starting out with successful systems of operations and training, and pre-set daily routines. If this sounds like the way to go, there are some things you need to look into first. Figure out which industries with growth potential interest you. Once you’ve figured out your top three to five, look at your community, is there a niche that could be filled by one of these industries? Go from there.

Things to consider before buying in: research, research, research! Once you’ve found your niche start looking at franchises that interest you within it. Contact them and ask for information. Do not take the promotional materials at face value, however, do some of your own sleuthing. Read articles about them, ask your state’s consumer franchise regulators/authorities about the franchise, have they had any lawsuits or bankruptcies? All things you want to know ahead of time. You should also see if they’re registered with Dun & Bradstreet. If they are you can request a D&B Report, which will tell you about their finances. Better Business Bureau is also worth contacting.

I’ve done all the research and franchising is for me, now what? You want to obtain a copy of your franchise’s Franchise Disclosure Document. This document must be given to you ten days before any agreement is signed with the franchise. “The FDD contains an extensive description of the company, the investment amount and fees required, any litigation and/or bankruptcy history of the franchisor and its officers, the trademark you’ll be licensed to use, the products you’re required to purchase, the advertising program, and the contractual obligations of both franchisor and franchisee. It specifies how much working capital is required, equipment needs and ongoing royalties. It also contains a sample copy of the franchise agreement you’ll be asked to sign should you buy into the system, as well as three years’ worth of the franchisor’s audited financial statements” (Entrepreneur Staff, 2o15).

  • I’ve read the FDD, they seem legit, I’m good to go now, right? Not quite, in the FDD there is a list of all current and terminated franchisees. Does the terminated list look suspiciously lengthy? Red flag, you may want to call some of them and ask why they termination occurred. Things seem normal? Move on to step two, pick a few of the franchisees and go to their locations for interviews. Check out how their business is, what did and didn’t the franchise help with when they opened, are they enjoyable to work with? Entrepreneur suggests asking these questions:
      • Was the training the franchisor offered helpful in getting the business off the ground?
      • Is the franchisor responsive to your needs?
      • Tell me about a typical day.
      • Have there been problems you didn’t anticipate?
      • Has your experience proved that the investment and cost information in the FDD were realistic?
      • Is the business seasonal? If so, what do you do to make ends meet in the off-season?
      • Have sales and profits met your expectations? Tell me about the numbers in the business.
      • Are there expansion opportunities for additional franchise ownership in this system?
      • If you knew what you know now, would you make this investment again?” (2015)

Ideally, you should try and spend some time in one or more of the franchise locations. Spend a week working there, and see how it fits. Getting to know the ins and outs of the franchises will help you decide which is the one for you.

This post is a summary of : http://www.entrepreneur.com/article/240609

 

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Going Into Business

You are young, energetic and daring with a great idea. You are ready to try the waters and become an entrepreneur. You dream of being the next Bill Gates, Steve Job, Mary Kay or Richard Branson. Before you launch into the economic deep there are a few things that the Wall Street Journal advises you should consider (Spors, 2009).

First they advise that you consider the amount of risk that you can bear. According to the Washington Post 9 out of 10 businesses fail within the first 5 years (Kessler, 2014).  Are you in a financial position to chase your dream? How much capital will it take to launch?

Another consideration is your time and how this business endeavor will impact your life. If you have a spouse or domestic partner they will have to be committed to your idea and willing to be your support and safety net. Entrepreneurs and start-ups are not a 9 to 5 convention, nor is 40 hours adequate. Often 60, 80 hours or more per week is required to launch your company.

How people friendly are you? You will have to attract customers and networking is essential. Are you a good storyteller? If you can tell stories that engage people so they realize why your service or product is something beneficial for them then you have a chance at being successful.

You will be the lone ranger wearing many hats. When you begin a business you will be the accountant, public relations specialist, marketing professional, event planner and office manager or any other business role that would be required. How knowledgeable are you in these disciplines and the disciplines that would be required for your dream launch?

Finally they recommend having a business partner so you will not go it alone.

Kessler, G. (2014, January 14). Do 9 out of 10 new businesses fail, as Paul Rand claims? Washington Post. Retrieved March 11, 2015, from http://www.washingtonpost.com/blogs/fact-checker/wp/2014/01/27/do-9-out-of-10-new-businesses-fail-as-rand-paul-claims/

Spors, K. (2009, February 23). So, You Want to Be an Entrepreneur. Wall Street Journal. Retrieved March 11, 2015, from http://www.wsj.com/articles/SB123498006564714189

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15 Entrepreneurial Ideas to Explore

Are you creative, hard-working, and willing to take a risk? If you answered “yes” to these questions, starting a business is an option to consider.  No matter where your expertise may lie, you can utilize your strengths and interests to build a substantial home career.

 

  1. Vehicle Repairs/Cleanings

This can include boat cleanings, bicycle repairs, automechanic work, and car washes.  While tools may be required, these businesses are relatively low-cost with a constant, reoccurring need.

  1. Social Media Management

Do you know how to create engaging content on Twitter, Facebook, and other social networks?  With most companies utilizing social media for marketing purposes, there is a growing need for individuals to manage these accounts.  Get paid to interact with a client base on social media!

  1. Cleaning Services

Most people prefer to keep their homes clean, but not everyone has the time to constantly clean their homes.  That’s where you come in, offering services such as window cleanings, vacuuming, dusting, and similar services.  Additionally, offer your services to businesses and office spaces.

  1. Pet Services

If you love pets, you can spend your whole day with them!  Some people enter the field of creative dog grooming; others may enjoy dog sitting.  Before considering dog-sitting, check out the laws on how many dogs you can watch at once.  These laws may vary depending on where you live.

  1. Technology Assistance

Are you a techie? Try assisting those who are not as skilled in the latest technologies, such as the elderly.  Offer to repair computers and phones, troubleshoot common problems with those devices and perhaps even offer some courses on how to navigate the plethora of new technologies out there.

  1. Traveling Boutique

Sell items at flea markets, vendor fairs, farmer’s markets, and other similar venues that invite vendors to sell their goods.  Buy items at wholesale (requires a wholesaler’s license) and sell them for double what you paid + $2.

  1. Online Store

Create an account on a website such as eBay or Etsy to sell goods online.  This work-from-home gig allows you to sell to anyone in the world!

  1. Event Planning

First, build a database of connections including venues, caterers, and performers.  Then, use your creativity and organizational skills to prepare the perfect event for clients that would otherwise be left stressed out and over-worked.

  1. Interior Designer

Pour out your creative juices into a client’s home or office! With your eye for detail, select pieces and colors that would work well in any space.

  1. Direct Sales

Direct sales companies give you a product to sell, offering you a commission on each item sold.  There are often rewards for selling a certain amount of product.  Be aware that the direct sales industry is an investment- you will often have to purchase starter kits, samples, catalogs, and other materials.

  1. Personal Trainer

Help amateurs and athletes at the gym utilize their physical strengths properly by training them! Before entering this field, make sure you understand the safety liabilities that come with being a personal trainer, and make sure you understand how to prevent injuries in your clients.

  1. Makeup Artist/Hair Stylist

After obtaining a cosmetology license from a credible school, enter the wonderful world of beauty!  Everyone needs a haircut every once in a while, and everyone also needs the occasional up-do for special occasions.  Start your own salon, work from your home, or get started in a local salon.

  1. Photography

Got a camera? Got a knack for taking stellar pictures?  Sell your prints online, and offer your services for special events, models, and other projects.  Perhaps photojournalism is a possibility with this expertise.

 

 

  1. Music Lessons

If you play any instruments, offer your skills to a newbie!  Kids often need lessons since musical courses are a requirement at many schools.  Be sure that you can explain ideas effectively so that students can learn from you.

  1. Personal Shopper

Run errands for those who are unable to leave their homes- basically, get paid to go shopping! Your stops may include the grocery store, clothing stores, and other necessary locations.

 

This article is a summary of: http://www.entrepreneur.com/article/201588

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