How to Avoid the Pitfalls of Franchising

Despite the benefits to be obtained by franchising your business, there are some pitfalls to look out for. The most common warning sign is when the Franchisor is under capitalised. Although franchising is great for growing your business through using other people's (franchisees) capital, properly developing and supporting the network requires an investment. Establishing the franchise system, getting legal documentation, implementing the correct corporate structure and protecting intellectual property can all be costly. If this is not done correctly in the first place, it becomes even more expensive in the long term.

Poorly capitalised Franchisors typically under-resource head office and as a result fail to properly support the network. The key is to carefully plan what roles are required and when, and hire according to the support your franchise network will require. Staffing costs for Franchisors form the greatest portion of their overhead costs. If your franchise program has been professionally developed, you will fully understand the financials and know the relationship between the income from royalties and initial fees and your head office support costs. One of the biggest errors is to stretch support staff too thin with a greater number of sites than they can manage. For example, Area Managers (depending on proximity to sites and the nature of the business) should typically have no more than 10-15 stores under their control. Their contribution is otherwise counter-productive and they fail to service franchisees sufficiently.

Intense competition in the franchising industry means properly developing the offer, updating websites, collateral, training programmes and support is paramount to differentiating your franchise. Having a presentable offer greatly assists in attracting quality franchise applicants. The Cupcake Bakery and Ben & Jerry's make the recruitment process an experience which reflects the values of their brand.

Showcasing the brand throughout the recruitment process is important and includes presentations, site visits and product samples. If investment in the promotion of the franchise is limited, it is extremely challenging to attract applicants.

Franchisors will reiterate that their toughest challenge is attracting quality franchisees. To make matters more difficult, if enquiries are not responded to within 24-48 hours, applicants lose interest. Poor feedback reflects badly on the business and an unprofessional recruitment process makes attracting quality applicants much harder. If you are unable to dedicate the time to properly recruit internally, then you will need to invest in a franchise recruitment specialist. These firms typically charge on a success fee basis.

It is a common misconception that complying with the Franchising Code of Conduct is strenuous. The reality is the Code merely seeks to ensure Franchisors are acting appropriately and prospective franchisees are duly informed about entering into the Franchise Agreement. Although possibly seen as a pitfall, the obligations for the Franchisor merely reflect good business practice. Most disputes between parties are usually resolved in mediation, and if the Franchisor acts properly and in line with the Code, franchise disputes are quite uncommon and easily managed.

One of the most common problems for Franchisors and business owners is relinquishing control over certain aspects of their business. This usually stems from the view that 'no-one else can do it like I can'. Although others may not be able to complete tasks to the same standard as the owner, they can typically be completed at an acceptable level, provided you give them the appropriate training. The owner's focus must be on trying to make themselves redundant. This does not mean you leave the business, it means the business is not solely reliant on you and can operate in your absence. Many people find it tough to relinquish certain roles, but the franchise network can not reach its full potential if the owner does not delegate less important tasks.

Franchising your business does not come without risk or potential pitfalls. However, if you are diligent and properly develop the system, the risks can be mitigated. It is prudent to speak with business and legal advisers to prevent potentially costly mistakes.

You Should Franchise Your Business - The Customer Said

Interestingly enough, if you've owned a successful small business for a number of years, and you often have a line going out the door, then more than one customer has said to you that; you should franchise your business. You've also probably had people come up to you and say; if you ever decide to franchise your business, I want to buy the first one. The customers might think they are paying you a compliment, and doing you a favor by offering this advice, but let me tell you that franchising is no easy game. It's much different than running a successful small business, it involves so many more details, and lots of legal work too.

You see, I am a former franchisor founder, operating in the vehicle cleaning business, and I can tell you this; I've worked harder in my lifetime than anyone else I've ever met. I can remember times running my franchising company working 19 hours a day with no days off for months on end, in fact, on average I work 15 to 17 hours every single day with no days off for 27 years. Do you think you have what it takes to do that? If not you may want to consider some other line of work.

Most people believe that franchisors make a ton of money, and while it is a good revenue generating business, it also takes a lot of money to make money, and you could easily sink your life savings into your business, and have more than a million invested before it starts to return the kind of profits that franchising companies are known for.

Further, when you run your own small business you must deal with all the local rules and regulations at the city and county level, sometimes state as well, along with the various federal regulations. Imagine doing business in 23 states serving some 450 cities in four countries. That's what I had to do, and imagine trying to keep track of all the local ordinances, rules and regulations in all those different places? It is a figgin-nightmare, the only difference is it is real, you can't wake up from it.

Do I regret franchisee my company, oh hell no, it was a hell of a ride, like strapping yourself to a rocket. Recently, someone set the record in skydiving, he jumped out of a balloon capsule from 128,000 feet, any accelerated to 1.24 times the speed of sound. He probably couldn't even take his helmet off from a spacesuit to kiss the ground due to the ice which had formed, and the changes in temperature preventing him from unlocking it. Nevertheless, I bet he didn't want to kiss the ground when it was all over.

Are you sure you want to be a franchisor founder? I hope you have fun takes. Please consider all this and think on it.

Is Franchising The Answer to a Small Business Recovery In The US?

Not long ago, I was discussing with someone the Republican presidential ticket this year, going up against Barack Obama in November of 2012. I recalled that there was a candidate who had worked in the franchising industry, a pizza man, prior to his retirement and indeed had also done a stint with the restaurant industry association. Although he bowed out of the Republican presidential nominee race early on, I always thought to myself that he might be a good person to run the Small Business Administration. Why you ask?

It's simple, because if we are going to have an economic recovery in the United States, it's going to have to be done at the small business level. That is to say we need to get these little companies generating revenue, and hiring more people. This will soak up the unemployment numbers, and bring things back into a positive state. It seems to me that franchising could go a long way to helping a small business recovery in the United States. You see, there are over a half a million franchises in the US, and just think of every one of them hired three people? That would sure be a positive shot in the arm for our economy wouldn't it?

Well, it seems we are going the other way because we are making it more difficult for franchisors to compete in the marketplace. We are making it harder for them to get loans so new franchisees can start, and we are making it more difficult for franchising companies to make sales due to all the onerous disclosure documents which are required. As a former franchisor I can tell you that our disclosure documents were over 260 pages long, but if you go to Mexico only 10 pages are required. There's no reason we couldn't make a very short form, and leave that as the only real requirement.

It is amazing to me all the bureaucracy and forms that we have to fill out for just about anything in our civilization or society. Yes, I understand much of it is because of lawyers, but then the government gets involved and makes greater regulations. Look how much it takes to get a home loan these days, buy a house, or even make a deal with your real estate agent to sell a home? Look at all that is required when you buy a new car, what is all the writing on all those pages that you sign your name to? Does anyone really know and if they don't why is it required?

If we make franchising easier the United States, there would be more small businesses created, more jobs created, more tax revenue generated, and as far as I'm concerned that's just good for business, and it's very good for our economy and economic recovery. We should do everything we can to help the franchising industry help itself. I'm not talking about giving away guaranteed loans, grants, or gifts from government - no crony capitalism is required. We just need to move the debris and minutia out of the way in the franchising sector. Please consider all this and think on it.

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Unravel the Intricacies of Franchise Law With a Reputed Law Firm

Franchise law is a complex legal framework, for which the services of attorneys are required. Reputed law firms are capable of representing both small as well as large companies. These firms also help clients in making the best franchising decisions for their businesses.

It is true that franchising makes a business grow, but when to take the franchising decision is of critical importance. Once the decision has been taken, there are some questions that need to be answered: how will one's business be better than competition, are managers required in different locations, can the business be described in the form of an operating manual, and will the business be profitable for both the franchiser and the franchisee.

Franchisers, franchisees and area developers can be represented by law offices. An experienced law office will help a franchiser to go over an accurate franchise agreement and franchise disclosure document. Franchise registrations are also taken care of, and the scope of the franchise law is explained to the clients.

One way to enter a new market is to set up the functioning business with a subsidiary or a single franchisee. After a period of time, if the single franchisee displays ability to succeed in the entire market, it can be declared as the master franchisee.

International franchising may be holding a great future for entrepreneurs, but certain considerations need to be kept in mind before making a decision to do so. Some of the advantages are: labor is cheaper in many countries, franchisees are heavily in demand, and a lot of money is involved. What makes the process challenging is that each country comes with its own culture and set of regulations to be followed, and each target audience has its own preferences and tastes. So it makes a lot of sense to partner with a local company which is aware of the culture, after conducting a research.

Due to the lucrativeness of foreign markets, many franchisers are interested to go international. The growth that has been registered by many franchisers and franchisees previously provides tremendous incentive for new players to become popular throughout the world. However, one must consider the pros and cons as mentioned above, before taking the final plunge.

Franchising is beneficial both for the franchiser and franchisee. The franchiser is able to expand his own business by receiving royalty payments and the franchisee can use the strategies of a tested business model. Startup businesses have been more successful when in partnership with franchisers. However, care needs to be taken to make sure that the franchise disclosure document is signed as per legal requirements, under the guidance of a reputed law firm.

Franchising Opportunity

In December 1827 the American author, Charles A Goodrich coined the motto which is now popularly quoted as "a place for everything and everything in its place". In doing so he was merely drawing on the pre-existing idea that there is a natural order and size for everything and to go against that order is to invite trouble. So as we search the universe for Goldilocks planets which are neither too hot nor too cold and therefore may sustain life, we hear tales of dinosaurs being too big for their own good and understand that giant vegetables grown for competition may not be the best to eat.

The same is true in business. The BBC television programme Dragon's Den regularly features individuals who are commended for their idea but rejected as the business is not scalable. In fact, the commonest causes of business failure include expanding a business too fast or attempting to expand beyond a natural size. The step up from individual entrepreneur to multi-site business is not an easy one and many fall along the way.

When considering business expansion one option which is far too frequently ignored is that of franchising. Bringing your business or idea to the market place by way of a franchise can enable the business and brand to expand rapidly without the attendant cost and staffing implications. Although the British Franchise Association (BFA) warns that not all businesses are suitable for franchise, the franchise model does work for a far wider range of business types than mere coffee houses or stationary providers.

Successful business franchises are based upon a robust business model supported by a comprehensive franchise contract. Whilst franchising brings many benefits, the franchisor is partially handing over their reputation and their brand to others and this can have implications for the business as a whole. In a global 24/7 marketplace the actions of one franchisee will reflect on the franchisor as well as the other franchisees and therefore the franchise contract needs to cover every conceivable eventuality.

This means that a franchise agreement cannot be written on the back of an envelope but will require specialist franchise contract review advice from a franchise solicitor. In fact, those who specialise in franchise agreement reviews need to not only have a deep understanding of the law as it applies to franchises but also a strong grounding in business processes. This enables franchise solicitors to take account of all the nuances of a particular franchise; and those looking to set up a franchise or become a franchisee ignore specialist franchise contract advice at their peril.

Whilst this may seem like a doom laden warning, the truth is that it is only when something goes wrong that the true nature of an enterprise is revealed. Good franchise agreements are as much designed to pre-empt trouble as they are to act as a rule book. So, potential franchisors should take specialist finance contract advice and potential franchisees should also commission a franchise solicitor to undertake a franchise contract review.

These franchise agreement reviews are vital in ensuring that the franchisee is fully aware of their obligations under the franchise contract.

From a franchisor's viewpoint the potential to be gained by way of rapid business expansion, income growth and the spread of risk is a heady mix. Similarly a potential franchisee can easily succumb to the temptation of an existing business model, strong brand and business support from the franchisor. But unless an in depth franchise agreement review has taken place both parties may be simply stepping into the franchise arrangement with their eyes shut.

Perhaps that is why franchise solicitors are often asked to mediate or advise on franchise disputes. These often arise when the original franchise agreement review has not ensured that franchisor or franchisee fully understand the nature of their obligations under the finance contract. Franchise contract reviews are also required on an ongoing basis to ensure that the franchise contract continues to meet the requirements of an ever-changing business world.

Whilst there are those in the business world who are content to remain a "one man band"; for many the drive to expand, to build, to secure is part of their business DNA. Those who take the franchise route have the potential to successfully take their business far beyond the natural size for a single outlet. By spreading risk, injecting capital from franchisees, taking advantage of bulk buy-discounts yet minimising staffing levels the successful franchise has the potential to be a global enterprise. So maybe we need to modify Goodrich's motto to read ""a place for everything and everything in its place, unless you franchise".

On Finding The Best Retirement Business Ideas

Finding the best business franchise is every hardworking individual's dream. Due to the abundance of risk factors involved in starting one's own business, franchising has become a great option for most people. This is especially true with retirees who want to still be doing something worthwhile even after they have gone off working.

Franchising is a good investment for retirees. They have the funds to buy out a branch from a specific brand. This is also a great way of keeping themselves busy, which they have been used to during their younger working days. Retirees also have the knowledge and also the skills needed to run a business, which means that they would not find too much difficulty in handling the franchise. Also, franchises put on lesser pressure to the retirees because they already have a proven system to operate with.

But with the abundance of retirement business ideas currently available both in the actual and online industries, how do you know if you have found the best one yet? Here are some factors that you can consider:

1. Nature of the business franchise

Do you like writing or teaching? Or do you prefer cooking different dishes? Perhaps, you are a sales enthusiast who likes marketing products? The best business franchise for you is that which is focused on what you are familiar and passionate with. You must be able to identify yourself with the product or service that the franchise sells. That way, you would find satisfaction in knowing that you are trying to make people purchase items or avail of services that you yourself believe in the quality of. Also, managing a franchise that is relevant to your personality and way of life would help you impart testimonials on why your product or service works. Doing so would help you gain your clients' trust and encourage them to keep purchasing your products or availing of your services.

2. Sales probability of the product or service

Definitely, you would like to buy out a franchise from a network or a company that has a great sales performance. It is one thing to be challenged and sell an unpopular product. But it is a whole lot of another thing to sell a dying brand. In choosing the business franchise you would be investing on, always check on how the other franchises do financially. Do a thorough research on the marketability of the product and its audience share. As much as you can, try to acquire financial reports so you can review the sales trends over the past few years. This would also help you in deciding which marketing strategy to use so you can cater to the needs and demands of your clients.

You may have ideals on investing on something because you have a passion for it. But do remember that this is an investment, which you would be spending time and money on. Of course, you would not want it to go to waste just because the brand or the product is no longer saleable.

3. Working environment

If you are buying out a franchise, the network and the working environment is important. You have to make sure that the head office that would be acting as your main supplier is accessible for whenever you have concerns regarding the franchise or the product. People who are at the head office should be knowledgeable of the systems within the company so that they can easily assist you when you have concerns.

The other franchise owners meanwhile should also be accommodating enough to guide you through the whole process of setting up your business. A network of supportive co-franchisees would certainly help in learning about the new market trends and sales strategies, which in turn you can use to further develop your own franchise.

Money-Making Activities For Baby Boom Retirement

A lot of baby boomers are expected to retire within the next couple of years. This means that there would be a lot of people from within the workforce who would no longer be employed and would instead be living off pensions and retirement packages. Retirees are often thought of in this way. They are people who have found more time and more money to spend in any way that they want. They have all the means to enjoy life and the fruits of their labor.

But what people sometimes fail to realize is that retirees are also looking for something to do after they leave employment. Some retirees want to be spending time doing things they are not able to when they are working: traveling, engaging in habits, and discovering new activities. Others, meanwhile, want to continue with a little working to keep them financially stable for the rest of their lives.

With baby boom retirement looming very nearly, there are now several money making activities that are being made available to the retiring public. In fact, these activities are so abundant that the retirees have so many options to choose from whether in the form of traditional or online opportunities. To find which of these activities are worthwhile and beneficial, retirees can do any of the following:

1. Ask for referrals from friends and relatives

Finding a business venture or opportunity is difficult especially as there are a lot of risks posed against the entrepreneur. It is better if the retirees would seek information first on the reputation and credibility of the venture. A lot of business and money-making opportunities may be heard from referrals by your trusted friends and relatives. Retirees already have a wide network of friends both from their personal and professional life. This would help in finding the best possible money-making opportunity in a field that would be most relevant to their previous job or line of interest. Referrals are important because the retirees should be able to make sure that the business they will be venturing into would be beneficial to them.

2. Research about affiliate marketing and franchising

Affiliate marketing, which is a job focused on getting commissions through successful subscription referrals, and franchising are good money-making activities. The business franchise is an easy venture to put up because there are already available systems and operational strategies available. Affiliate marketing, on the other hand, usually depends on networks of brand associates and promotions individuals.

If you want to start making money out of these jobs, it is best to research thoroughly. You have to know the kind of business that the franchise is offering, how it operates, and of course the financial returns. In affiliate marketing, you have to research on the credibility of the brand that you would be promoting. Also, you have to learn about the product or service that you would be asked to market. This would help you decide on whether or not you can meet the demands of the job.

3. Attend conferences and conventions about entrepreneurship

There are a lot of start-up business owners who form a group to strengthen their network. These groups like to gather together in conventions and conferences to talk about the industry-its latest trends, business strategies, and new discoveries. Retirees who want to find the best money-making activity can attend these conventions. Aside from the idea that they will be introduced to the industry's bests, retirees attending the conventions would also learn about updated information and latest business cases. These can help in ensuring that the business venture they will be investing on would operate in relevance to the current needs of their market.

What Is a Franchisor? A Clear Perspective

For all those of you who are new to the field of franchising, you would want to understand the terminology related to the field. When we are talking about franchises and franchising, it is essential to understand more about the people who are involved at both the ends. There is the franchisor and the franchisee in a franchising relationship. Our main focus here is to understand what is a franchisor?

A franchisor is a company which allows the franchisee to run a business that is similar in all respect to theirs. It is the franchisor who is the owner of the company, the trademarks that come with the business and also the products too. He gives the rights to the franchisee to sell his products under the same brand name at the franchisee's place of convenience. All these transactions are made for a certain amount of initial startup fee that the franchisor charges from the franchisee. Therefore, before a prospective franchisee gets into an agreement with the franchisor it is essential that he learns about the franchise cost.

There are different types of franchises that are available in the market. There are a few which call for exorbitant initial costs and there are a few others that come in at affordable prices. The franchise cost also may depend upon the kind of success the business has achieved. A very well established company would obviously quote a huge price to share its trademark, strategies and brand name. Therefore, having an idea about the franchise cost would definitely help in making the final decision.

Fine, coming back to what is a franchisor; we will learn that he is the utmost authority and a perfect blend of an entrepreneur and a business visionary. He has envisaged that a particular business has great profit potential and has started off with it to reach such a stage that he is franchising it out to other people as well who hail from different locations. By franchising, the franchisor gets a huge amount when the franchisee buys the franchise from him, and he will also ask for a certain percentage of commission in the profits that are made by the franchisee. This way, he is generating a steady stream of secondary income too.

Prospective franchisees would definitely want to put their money on those franchises that have carved a niche for themselves. A franchisor therefore would recruit new franchisees that exhibit great signs of success in the future with their knack and intelligence. However, the franchisor is responsible for providing ongoing support in the technical and management departments.

Franchising Businesses Offer Opportunity for Entrepreneurs

It is the dream of many to set up and run their own business - to be their own boss and really take charge of their own life. However, for most, it remains nothing more than a dream. For some though, who have the right amount of conviction, dedication and talent, it does become reality. Even those succeeding in setting up shop can fail quickly though, which is why many look at franchising businesses to provide the vital support that they need.

It is far more than support that a franchised business provides though, which is partly the reason for increasing numbers of people venturing into the sector. From providing access to funding, through providing a near immediate turnover to offering long-term success, there is much to be argued for it.

Franchising businesses are proven to work

When a business owner decides to franchise, there are certain clear elements that need to be met. Above anything else, it is essential that the business model has been proven to work. The best franchises can prove this, allowing the investors to follow the guidance given with confidence, whilst having the ability to mold the business for local conditions.

Franchises offer increased success

When the advised business model is followed closely, a franchise can also offer greater opportunities for success when compared to regular start-ups. This is also down to the easier way in which customers can be attracted, particularly with the best franchising businesses already having a national presence, to create local interest. Such presence also allows for easier and more effective marketing, which helps maintain a level of trade.

Securing finance is easier

Such is the nature that franchises provide, many big names and local banks and other lenders are eager to finance their set-up. As well as providing the initial finance to invest in successful ventures, it is also possible that better rates can be found, with lenders understanding that franchises have a better chance of succeeding.

Franchises provide faster results

For all new businesses, it can take time to get established in the local area. Building up awareness and creating a positive opinion can also be cost consuming. However, franchised opportunities are one step ahead of regular set-ups, because of the awareness that is already present, allowing the turnover to reach higher levels more quickly.

Ongoing development and access to support

Another area which allows franchising businesses to increase that likelihood of success for their investors is in the support provided. Right from the get-go, the best companies provide centralized training in how best to maximize opportunities. Further than this though, with franchisees the country over able to provide help and advice, there is a mechanism in place to answer any challenges that can present themselves.

At every level, franchises provide a greater chance of realizing professional ambitions than any other route. Selecting the best franchising businesses to work with is essential for these achievements to be reached though, which is why selecting what to invest in needs to be done with thorough analysis.

Buying a Franchise Makes Sense for Many People

Having the acumen and work ethic to run your own business is not something that everyone is gifted with. However, there are many people that do have the necessary skills. All too often though, their plans are immediately thrown into doubt by not being able to secure funding. For this reason, and a great many others, buying a franchise can be the perfect way to realize business ownership dreams and plans.

A franchise is a turnkey business

One of the greatest benefits to a franchise is that it allows for a quick start to a business. Creating a new venture from the ground takes time - to create awareness and attract customers - and costs money. A frustrating process, this is something which franchisees do not have to cope with, with much of this groundwork already done.

Franchises are proven to be successful

Part of the reason why buying a franchise offers immediacy is because the model they work to is proven. In following the proven model, profits can readily be made whilst errors and miscalculations can be minimized. Local vagaries encourage and require adaptations to be put in place but, on the whole, what works in one state will work for its neighbors.

A franchise offers increased success

The model that is in place also allows an increased chance of continued success, something which many start-up companies struggle to achieve. It is because of this more robust nature that many entrepreneurs elect that buying a franchise offers them a better chance of independent success than creating an entirely new concept.

The imaging and branding of a franchise

Much of the extended success a franchise has is down to its brand and image in the community, which is why business services are likely to succeed ahead of anything else. Ventures such as print shops for example do very well and, successful franchises in this regard often have countrywide appeal and recognition, providing instant trade.

The best franchises are easy to market

Buying a franchise with widespread appeal also provides another benefit which many start-up companies struggle with - that of marketing. By investing in a franchise that can advertise nationally, regional prospects are a good deal improved.

Training and support from franchisors makes the difference

A nationally recognized franchise will also offer the best training and support possible. Once again, this is something that entrepreneurs with their own start-ups do not have access to. With constant support from other franchise holders too, the collective strength can make an individual concern ever stronger.

Financing a new franchise
With all the training, the proven business model, and the simple fact that franchises succeed, seeking finance from lenders is easier for those buying a franchise too. With preferable terms also achievable, often with the direct help of the franchisor, it makes business sense in every facet of modern day business.

There are a great many reasons why buying a franchise makes sense, and many arguments can be made for each reason. However, without the attitude and commitment to succeed, no venture will guarantee success, and this is something even the best franchisees cannot help with, but can recognize.

How To Be Sure Of The Best Low Cost Franchise Opportunity

Are you tired of the daily corporate grind which demands so much of your energy and time? Do you dream of running your own establishment and make decisions without consulting any higher-ups? Do you often think that if only you had the capital, you would resign from your job and start a business right away?

The good news is that you can actually make your long-term dreams a reality sooner than you expected by getting into a franchise business. By doing the necessary research online, you can easily find one that can really work. But another question may creep into your mind - wouldn't it be expensive considering that there are a lot fees to settle before being able to start? Well worry no more, as there are now a plethora of available franchise opportunities that only requires minimal capital. But take note though that "low cost" is a relative term as prices can vary depending on the industry of a particular franchise. Say for example, if you want to venture into a restaurant business, the potential cost can vary widely. A simple hamburger stand can start at $8,000-$12,000, whereas a popular fast food chain can reach up to thousands of dollars and may be even up to a million. So how do you determine if the type of business that you are eyeing is the best low cost franchise opportunity? And how are you to minimize the possibility of failing as a franchisee? We share some insights below to address the above mentioned concerns.

Opt for used equipment instead of buying everything brand new. There are franchisors who sell their own equipment or those who have partnerships with suppliers. Know beforehand if it is a pre-requisite that you have to buy from them so that you can scout for others who provide more freedom in purchasing equipment. This can save you a considerable sum because these purchases can take up a large chunk of your starting budget.

Pick out a venture that you are passionate about. Being an entrepreneur is no easy feat as it can take everything from you. Unlike being an employee where you can forget about the job after stepping out of the office, a business owner needs to think of strategies all the time. You have responsibilities that are far more serious than employees, especially when you are still starting out. Thus, you have to choose a business where you can have fun and fulfillment during the process.

Utilize effective marketing for a starting business to thrive. Even if the brand you are associated with is already well known, you still have to implement promotional activities that attract a larger audience. Mediocrity should be avoided at all times, and you have to reach potential customers with great messages that resonate with your brand.

Develop The Best Successful Business Models

A business model is an essential foundation of a starting enterprise. It serves as the establishing brick that lays all the necessary aspects of the tall building that is a business venture. Commonly, the business model reflects the purpose, structure, product or service offering, and operational aspect of the venture. It guides the people who are employed by the company into knowing about and thinking and acting for the business to become a successful one.

Entrepreneurs who want to start their own businesses should also begin conceptualizing with a business model. Importance should be given to what the entrepreneurs think and are most passionate about. Definitely, you cannot put up a business out of a simple whim to do so. You have to think about it and carefully plan for it. This is where a business model can help.

In developing successful business models, there are a lot of factors and needs that have to be considered. Here are some of the steps you can take to ensure that you are going to come up with a very successful model:

1. Research about the business you are starting and the industry that you are joining. Know everything there is to gather about the common structural and operational make-up of the business you are envisioning. What is expected of your business? What are the machines and equipment needed to complete the operations? How do you legalize the business if it is based at home or online? What are the other brands or companies that you are likely to compete with in the industry you are trying to enter? All of these are basic questions that should be answered by your business model to ensure that your operations will be defined by a single working goal.

2. Define your target market and how you will reach them. After you have established the type of business you want to start, the next step is to encourage people to buy your products or avail of your services. This is where you have to identify who are the people most likely to need and want your products. What are their ages, careers, and lifestyles? You have to be able to identify your target market so you can exhaust your efforts in reaching them. Your marketing strategies would be essential in determining the number of people who probably would buy your product or avail of your services.

3. Put in detail the operational plan of your business. If your business is online, there may be no need for a detailed operational plan. You just have to make sure that you are following a specific set of norms and laws online to attract clients. But if your business is home-based or the traditional one, you have to make adjustments to cover everything that has to be done: What are the backroom requirements that you should comply with? How do you plan to transact with your clients? How many people should you hire to keep your business operations going at an optimal pace?

4. Consider customer satisfaction and how your business can achieve it. How do you intend to make sure that your clients would be satisfied with how their transactions are handled? You should also include this in your model. Remember that customer satisfaction can lead to your brand and company developing into something very commendable. Aside from marketing your business to potential clients, make sure that your business is able to maintain it among your existing pool of customers thus increasing the probability of referrals.

5. Include the aspect of employee satisfaction. Aside from making sure that your clients will be satisfied from transacting with your business, you employees should also feel the same. Do keep in mind that happy and satisfied employees are a great investment because they will be the ones to help your business grow in all aspects. This is why you have to include in your business model several facets to improve performances and to diminish the natural causes of things.

Successful business models are not actually difficult to come by. You just have to remember what you want your business to be. Envision it well, with all the necessities and factors considered to the core. In the end, what matters is the quality and wholeness of the business model on which your business would be built.

Franchisors Need to Consider Low Cost High Volume Strategies - Need Franchisee Compliance

As a former franchisor, now retired, I remember building up my company and making the perfect business model, and then I franchised it in 23 states and 450 cities. Trust me when I tell you it's the hardest job in the world. You have to be able to run the business model better than any of your franchisees, or better than any of their employees, you also have to be a strategic thinker, and lead those teams of people into battle in various regions of our country which are dissimilar. That is to say they have different market segments, weather, buying behavior, and rules and regulations. Okay so let's talk shall we?

It wasn't that I didn't know what to do, or how to do it whenever a problem arose. Very few problems were unique to me because I had experienced them in other states and cities. In fact, when the economy got tough, I knew exactly what to do; expand the business, sell more franchises, and have our franchise teams and master franchises lower the prices and go for volume. Now then, this might seem counterintuitive to many franchisees. If there are fewer customers, the last thing you'd want to do is lower your price, because if you do you go out of business, they'd think.

Nevertheless, that's exactly what you must do. As a franchisor I also realized that I needed to lower our royalty fees so our franchisees could make more money. And they needed to lower their prices so more customers would come into the store. That's what works, but it is really hard trying to convince all the franchisees to lower their prices. Although I am retired, I bet most of the franchising companies out there right now are having a tough time, as I did back then, trying to convince their teams of franchisees of their new marketing strategies to keep everyone in business.

In fact, the Columbus Business Journal in Ohio had an interesting piece recently titled; "Wendy's CEO wants more franchisee compliance with value menu," by Dan Eaton, published on November 8, 2012.

The CEO of that great franchising company is right. He needs to get all of the franchisees on the same page to keep consistency of the brand. Ray Kroc the founder of McDonald's had always done this, and even Dave Thomas who was the founder of Wendy's would agree. If you take care of your customers, they will take care of you, and you won't have to worry about the recession because you will make it through. Please consider all this and think on it.

Want to Sell Your Franchised Business - If You Carry Back Paper, Sell It To a Veteran

As a former franchisor selling mobile service units as franchises, I was rather surprised how many people would buy a franchise and two or three years later they would get tired of it and wish to sell the business to someone else after building it up. All that hard work and all the sudden they decided they wanted to go do something else. This is becoming more and more common in our society, and the average person leaves their job for only 2.3 years. Some of this is due to the fast-moving technological nature of industry where one new business is expanding, while an old one is shedding its extra weight.

Still, there may be a bigger component with the psyche of the average American worker. They don't want to get stuck in one job all their life. Things are not like our grandparents era. Today, employees like a little variety in their career. It makes sense that this attitude would permeate through the franchising industry, and I can tell you from personal experience it very much has. In the late 90s my franchising business was expanding quite rapidly. I watched many franchisees sell their franchises and transfer them to new franchise buyers.

Sometimes they have the same difficulty we had selling franchises, that is; the franchise buyers didn't always have the capital needed to invest. Therefore they would carry back paper, allowing the new franchised outlet owner pay them overtime for the purchase. This happens quite a bit when small business owners retire and sell their businesses using a business broker. It is a common practice. Still, before you sell your franchised outlet and do this, it's important that the individual taking over the business knows how to run a business, and will follow the franchisor's program.

This is why I suggest that if you're going to carry back paper to sell your franchised outlet to a former military veteran. They are used to working in a structured environment, following the rules, and doing it by the book. Those kinds of franchisees will be more successful than the average franchisee might. This is good for the franchisor, and it also means that when the business is successful, the new owner, the military veteran will be able to pay off the loan to the former franchisee.

Indeed, I can tell you from experience that this works, I've watched it work, and it makes good business sense. Not to mention the fact that it helps provide a small business for a retired veteran, they've given a lot to our country, and they deserve a break. Please consider all this and think on it.

Retirement Business Ideas Men Can Find

Men are generally used to having a lot to do, especially if they have a family to provide for. This is why most of them are used to working steady and rigorous jobs. Retirement, therefore, is not something they can easily appreciate. Aside from the fact that being rendered as no longer necessary is not a good boost for their ego men are not really accustomed to having a lot of time doing nothing.

Such is the reason a lot of retiring men are looking for something else to do in their spare time. Some of them engage in non-profit work like sporting events and business gatherings. But many of them want to still earn enough money even while on retirement.

There are a number of retirement business ideas that are available in today's industry that men can engage in. Some of these businesses are geared toward the traditional form of entrepreneurship where men can put up their own stores to manage. Other businesses are home-based and online, which are more preferred by people because they require lesser resources and are easier to manage. Here are some of these businesses that men can consider for their retirement:

1. Blogging and SEO writing.

If you want to engage in an online business, blogging and Search Engine Optimization (SEO) writing are great choices. Many websites and online brands now rely on search engine results to boost their site visits and eventual sales. Writing articles that contain relevant keywords and blogging reviews about the company or brand is one of the fastest and best ways to do so. These businesses capitalize on the production of articles for specific purposes and about certain topics.

Men are encouraged to go for a blogging and SEO writing business because they have a knack for telling good stories and sharing their comments or opinions to a vast audience. They can be animated and persuasive depending on what is required of them.

2. Franchising

In franchising, an already existing business system branches out into smaller versions called franchises. These branches are then put up for sale. When you buy out a franchise, it would be very much like starting your own business except that everything is already laid out for you. Supplies, operational procedures, and even marketing tactics are all readily available for your use. All that you have to do is touch up on them a bit to suit your immediate market and then sell the product.

A lot of people consider franchising as a great option because it is very similar to having a business of their own without having to start from scratch. Franchising is also a good idea for men, who generally like to be their own bosses even in terms of retirement businesses. Through franchising, even if everything is pre-determined by an already proven and existing mother brand, the franchise owner is still given a lot of free reign on how to run the business. Men who are once bosses in their younger ages would definitely find this type of business engaging.

3. Affiliate marketing

Since men are known as persuasive and determined when selling particular products and services, affiliate marketing is also a good retirement business idea for them. In affiliate marketing, they can easily earn commissions through successful referrals. This is an arrangement common to membership clubs and travel institutions.

Affiliate marketing allows retired men to make use of their readily available network of old co-workers and friends who may be interested in the product or service that are being promoted. The financial returns are also good, which can come in full six figures if the referral is made to premium packages. Men can benefit in this type of business because they have charisma, which is a necessity in persuading potential clients.