Many people looking to buy a business consider buying a franchise. After all, they think the franchisor has a cookie-cutter approach that can’t miss and they can just walk into the new business, which will be flush with cash. In the numbers I have read, four out of five new franchise businesses will not be around in five years. The numbers of franchises that fail are staggering.
Why is this the case? One reason may be that the franchisee does not have business experience and they do not know how to manage the business. Many people who buy franchises are “wowed” into only seeing the upside and not examining the downside. What things should a potential buyer be mindful of?
One thing that the buyer needs to see is a projected income statement for the year of purchase, preferably for each month of the first year and for the next several years thereafter. This is not something the franchisor normally provides, as the franchisor does not want to assume liability if the potential buyer does not make his or her numbers.
Since the potential buyer cannot receive these numbers from the franchisor, the potential buyer will have to assemble these numbers, perhaps with the assistance of their attorney or accountant, or both. Some of the numbers are available in the Uniform Franchise Offering Circular the franchisor must give you to inform you about the potential risks in purchasing the franchise.
It is important to know how much of the product or service you will have to sell to break even and how much you could potentially make. Most every franchise company charges a franchise fee as a percentage of sales. They also charge an advertising fee for regional or national advertising.
In addition, your franchise agreement may require that you buy all of the items necessary to make the product, or offer the service, from a vendor controlled by the franchisor. In this case, the potential buyer may not always receive the best prices, although the quality may be uniform. In many cases, the franchisor may have the right to approve where the franchise is located.
The franchisor may have located the site, negotiated and signed the lease with the owner of the property at a higher lease rate than the owner and the potential buyer would have done by themselves. The potential buyer then takes over the lease as a subtenant, not having any rights to the terms of the lease. All of these items are important as they have a direct bearing on the bottom line number you can potentially earn or lose once you own the franchise.
Many franchise agreements may require that the franchisee buy his or her equipment from the franchisor and is responsible to make substantial improvements to the facility to match the newer franchises as they come out. This may require additional investments in the future that you may not be prepared for at the outset.
Another thing to look at is the support and training you can expect from the franchisor. There is normally a training period for the potential buyer usually included in the cost of the franchise. However, each additional manager, or anyone required to have the training, is an extra cost for the potential buyer and needs to be built into the business model.
How long does the franchise agreement last? Some franchise agreements last for 10 years and then the franchisor can take them back. Some franchises allow the franchisor to pull the franchise back from the buyer for cause. Some are renewable by agreement between the parties. Each case is different.
The potential buyer should ask the franchisor for a list of other franchise owners the potential buyer can interview. This is important, as the potential buyer can learn what to expect in sales numbers, how the franchisor treats its franchise owners, how much time each potential buyer will expect to have to spend in the business and what kind of bottom line to expect based upon the business model supplied by the franchisor.
A potential buyer can see if the franchise owners are happy with their purchase or have “buyer’s remorse” after their purchase. All of that information is necessary for the potential buyer to make the correct decision as to whether or not to buy. After all, the best decision is an informed decision and for that you need as much information as possible.…
It has always been the American dream to start a business and have it become extremely profitable with little work. The fact is, it’s not only an American dream, but actually a world wide dream. Nearly everyone wants to find some way of making money without having to deal with bosses, schedules, or having to commute to work. People want to stay in the comfort of their own home and work as little as possible to be able to live life to the fullest.
In this article, I will let you know 3 simple facts to starting a business. If you play your cards right, it is very simple to start making a lot of money with minimal work and minimal costs.
The first step is finding or making a plan. You will have a very small chance of success if you jump into starting a business without a plan. One needs to know where they are going and how to get there. The best thing to have when starting a business plan is a coach. Someone who has been down that road before and that has become successful doing it.
It may be hard to find a coach or mentor that is willing to put their time and energy into helping you. If you follow the link below you will find that I have found someone that was willing to put his time and effort into helping you out. He has spent years upon years perfecting his plan. All you need to do is carbon copy what he is doing and you are sure to succeed.
The second step is to make sure you follow through with the plan. Do not make a plan and decide to quit. A lot of people get bummed out after the initial planning and give up. A lot of those people probably could have made a lot of money, but instead they quit. It can be a variety of different reasons. Maybe a friend or family member telling you that you will not succeed or maybe you think it will cost too much money. Whatever the case may be, you need to stick to the plan and execute it.
Step three is simply keeping the ball rolling. Lot’s of people start out with a great plan, continue to follow through with it, but somewhere down the line decide that they don’t wish to continue. A large percentage of these people are either impatient or they want the money to fall into their lap without any work whatsoever. I’m sorry to break it to you folks, but there is no “get rich quick” scheme. There is no way of making money without any work whatsoever. BUT there is a way to make a very decent living with minimal work so that you can enjoy life instead of working through it.…
There are several businesses you can start on the internet for little to no investment. You can do a lot of different things on the internet, selling advertising, selling products and other services. Whatever route you decide to use for making money online will depend a lot on your personality and the things you love to do.
Firstly, I am going to go through a few things you can do to make money on the internet and then at the end you can choose what direction you would like to take your business in.
Making Money by Advertising
A lot of the big corporations on the internet make money from advertising. These are companies you have heard of if you have ever been online; you probably use their services every day. Companies like Yahoo, Bing, Facebook, YouTube, Google all make the bulk of their sales from selling advertising. Now you don’t have to be a big company to make sales from advertising. You can simply perform advertising by doing something called blogging and attracting a lot of visitors to your personal blog.
The reason advertisers pay these corporations a lot of money for advertising is because these companies know how to get lots of visitors to their websites on a daily basis. Now you don’t have to be able to be able to drive millions of visitors to your site on a daily basis, if you can drive a few thousand visitors, that would be great. You want to do the same thing the big corporations are doing but you want to do it on a smaller scale.
The good news is that these companies will let you tap into their resources and profit with them. For example, Google has a program called ”the AdSense program” where they connect you with advertisers who want to advertise on your blog and split the revenues with you. Google also owns YouTube, a video sharing site where you can post videos for free under any topic under the sun. You can use this site to make a video on your subject matter and direct the visitors on there back to your blog. you can also use article directories like EzineArticles to write compelling content and direct the people from there to your blog. So this is how easy it is for you to make money from selling advertising on a blog. If you don’t want to partner with Google, you can contact website owners with information related to yours and offer to sell them advertising.…
The word seems to be out that network marketing or Multi-Level Marketing (MLM) isn’t what it used to be. Some people are saying “yeah!” and others are saying “oh no!”
Network marketing is just that; it’s marketing. Marketing is an ever-changing commodity. It’s influenced by media, advertising, transportation costs, customer demand, supply, climate, etc. Marketing is ever changing. Our world is ever changing. So, why should MLM be any different?
One thing that will always remain constant, however, is that it is based on developing relationships, and that is what makes it different from conventional marketing (manufacturer to wholesaler to customer).
This type of business is very appealing to anyone who enjoys interacting with people and wants to create another income stream. And, you certainly can’t argue that it’s a pretty sensible system – manufacturer directly to the customer.
The internet has had a major influence on MLM. Some have grabbed the explosive opportunity and run with it, and others are still wondering “what happened?” The internet is a tool that allows communication at levels that have never been seen before. There is an endless supply of systems, sales pitches, opinions, etc. Take them all with a grain of salt.
MLM compensation plans can sometimes be less appealing for those looking for a quick buck without much work because it usually takes time to build a downline that is really profitable and sustainable. Because of this, the attrition rate today can be cruel! We, unfortunately, are living in the age of “I want it now,” so people jump in and out at record rates – they’re looking for the “Big Thing” and will keep on looking, and looking and looking forever. They keep believing the “get rich quick” promises.
This particular industry is the same as any other business – it’s a business, and it has to be treated like a business and not a hobby. Unfortunately, many people who go into it don’t think about this, and many are not business savvy in any way. There’s plenty of information available on how to operate a successful business, but, hey, that’s work, too! Which then would mean it’s not instant riches.
Yes, network marketing has changed. There are opportunities that never existed before. Because of the internet, there are thousands of MLMs that are launched every year. How many of them survive or are legitimate? Not all, by any means. There’s a vicious fight going on among these marketers all the time for the dwindling supply of warm bodies looking for an MLM business. Because of that, there are some pretty ridiculous promises and sales hype being broadcast constantly across the internet.
For anyone looking with interest at creating another income stream or full-time business, this could be for you. It can be very profitable if you know what you’re doing. Make sure you check out any opportunity you are looking at VERY carefully, do your due diligence, get the business information you need and treat it like a business. And beware of anyone who says you only need to work a few hours a week. It just ain’t so!
I’ll leave you with perhaps the most exciting development of all – the advent of SOCIAL NETWORKING as a marketing tool! As I said, it’s a relationship business – always has been, always will be. It’s just different now. You no longer have to pitch your friends and family. Go to MySpace, Facebook, Twitter, etc. and meet all the people you want. You’ll make great friends, and everyone is looking for MORE MONEY!…
It takes a lot of courage to quit your job and run up your credit cards just to start a business. Some people would even say it’s downright risky. This is all before you even know if the business will be successful or not.
It’s normal to be risk averse. It usually means venturing out of your comfort zone. Most people like staying their comfort zone. Entrepreneurs can’t stay there. They have to take some risks.
A person’s risk-taking potential is influenced by several factors, including their environment, genetics, and their past experiences. What gives one person a thrill might make another run for cover. Some adrenaline junkies out there are hard-wired to take risks. You see them climbing up the sides of tall buildings or jumping out of airplanes. Most people will take small risks if they know there is going to be a good payoff on their investment at the end.
We all have an enzyme in our brains called monoamine oxidase (MAO). This is what keeps our impulses in check. People who have a shortage of it are more likely to be risk takers.
So, to answer the question about whether entrepreneurs are risk takers… it depends. Are you someone who always chases after the “get rich quick” schemes? Are you the kind of person who takes calculated risks to make your business better? If you don’t take some risks, you’ll never know your true potential. In that sense, all entrepreneurs are risk-takers. It just depends on the degree.
You can’t be stuck in neutral for fear of making the wrong decision. You might miss the best opportunity out there.
Entrepreneurs have to make decisions every day. Make the right decision and you could become very wealthy. Make the wrong one and you could become bankrupt. It’s enough to stress out the calmest of us. It’s always going to have some uncertainty associated with it. If we could predict the future we would all be rich.
A good entrepreneur will learn from the bad decisions and correct them quickly. They will also be less likely to repeat the bad decisions. And they will learn to trust their gut to figure out the right path.
Copyright (c) 2010 Julie Austin…
If you wanted to ask someone you know to recommend a locksmith they know, they probably would just stare blankly ahead. This is because many people are ill prepared for an emergency involving keys or locks. Make sure that you take the necessary precautions. Continue reading to find out how to hire a great locksmith.
Do not choose a locksmith who automatically recommends replacing the lock as the only way to get into your locked home. Skilled locksmith professionals should be able to unlock just about any door without having to replace the lock. Lock replacement costs additional money and should be avoided if possible.
A locksmith who quotes one price and tries to charge another may be scamming you. Unfortunately, there are some locksmiths that are scan artists. If you’re being told the job is going to cost more than the price you were quoted, tell them to leave and find someone else.
Even if a locksmith is something you will never have need for, it is good to be prepared. Spend some time researching in advance and locate a skilled professional you can trust in emergency situations. Keep their number on hand for when an emergency strikes.
Avoid additional fees by using a locksmith during regular hours. If they come outside business hours, you’ll pay extra. For example, if you get locked out of your car, the standard cost for the service is about $50; however, after hours this fee can double.
Research with the BBB to ensure your locksmith is reliable. This can help you avoid scammers. Also, check the ALOA site, which determines the validity of U.S. locksmiths.
Choose a tradesman who is an active participant of his professional community. Although it is not absolutely necessary, it is always good to know that the locksmith you select is well-versed on current technology and trends. In addition, it lets you know that he is more likely to be a legitimate locksmith who will not abscond with your money.
Find out how long a locksmith has been in business. Also, check to see if they’ve always used the same location. Try to find a locksmith who has been in business for at least 5 years.
Check the reviews of locksmiths on the web. You can find many reputable websites that provide reviews online. Make sure the site you check for reviews is not however tied to any locksmith service or sponsor. Check with the BBB before you hire a locksmith.
Check a locksmith’s credentials before you let him inside your home. Double check the address listed is real and connects with the phone number you were given. Make sure that you go online to read reviews and anything else you can to check a locksmith’s reputation because it’s well worth it!
Few folks know which locksmith to call unless they had troubles in the past. The trouble with that approach is that you could get overcharged or receive shabby service. Avoid situations like this by being prepared. Use this article to help be ready when the need arises. You will be glad you did!…Read more
Earning money on the Internet can be quite easy. It may be that all you really need is a computer and a connection to the Internet. Just keep in mind that knowledge is the key to unlocking the Internet’s money-making potential. Start your education by checking out the tips presented below!
Find a niche that uses your unique talents to make the money online. Is writing one of your passions? Use you writing talents and become a content writer. Is graphic design something you are good at? You can get hired to develop website and promotional materials. Do not hesitate to look inward.
Organize your days to include specific work hours. Online income is something that you will need to do consistently. You won’t make a ton in a short time. You have to put in the time necessary. Determine a time frame in which you work each and every day. Just an hour daily will add up with the passage of time.
Search on Google if you want to maximize your earnings. Your search should yield many results. When you come across a company that is of interest to you, make sure to check out the reviews with regard to the organization. No matter what your choice is, you should take your time with things.
Make good use of your down time. You don’t need to be too focused on certain online money-making ventures. Especially small tasks on websites like Mechanical Turk (mturk.com). Try doing some of them while watching TV. You will not make a lot of money by doing this, but you’ll spend less time wasting your time and you’ll make a little bit of money as well.
Do not pay money when you are just starting up. No reputable source of Internet income needs money from you to work for them. They will most likely take your cash and leave you with nothing. Stay away from such companies.
Try your hand at creating an ebook. This is a fantastic way for you to tell everyone what you know about a certain subject and make some money off of it in the process. Recipes are a great place for you to start with your E-book.
Consider the money-making potential of writing and selling an e-Book. Publishing your own ebook is a very popular online income tactic. The opportunity to make money is very good, provided you can write or offer expertise in a particular topic or field. Various online publishing portals are available, with some offering very high commission rates.
Get into the self-publishing business. You can sell it in digital form on a site such as Amazon. Many people have been able to sell their tomes this way and make a lot of money.
Blogging is a great way to earn money. Many people who blog for fun do not realize they can earn money online. Your blog makes money via advertising. When one of your readers clicks the ad, you will profit.
Remember these considerations as you set out to bring in revenue from online sources. The more time spent learning, the more you’ll be ready to actually do it. Keep learning all you can, and prepare yourself for success.…Read more