Category Archives: Starting A Business

How Do I Start A Franchise?

Expanding a successful business can be done in many ways. The most common perhaps, is going into franchising. Franchising, in dictionary definition is a form of business in which a company with successful products or services enter a relationship with an individual or another company to operate under the trade name of the said company (franchisor) for a fee. In this case, you have the successful business, you are the franchisor and what you need is the proper guidance to franchise your business.

It is important to seek information about the franchising world before getting into one. The Franchise Council of Australia is a great resource.

You need to understand that although you are already an established trade name, getting into franchising is like being new in the business world. It will require patience and finances. There are requirements that need to be met that are vital for the credentials of your franchise business. Here are some of those requirements:

Legalities

In the legal department, like any other business, you need to get a good franchise lawyer to meet legal necessities such as requirement documents. First, you will need to prepare a document known as Uniform Franchising Offering Circular (UFOC); this is basically a disclosure document on the operation of your franchise business. The UFOC is an important document as it is required by the Federal Trade Commission for all companies that want their businesses to be franchise anywhere in the United States. Furthermore, there will be some states that would require you additional documents for you to be able to offer a franchise business in those states.

Accounts

Under one of the disclosure requirements mentioned above is an audited financial statement for the franchise company. This means that you will not be able to complete legal without preparing you’re audited statements. You will have to seek the help of an experience franchise accountant to audit your statements. These financial statements will need your final decisions on what the structure of the enterprise should be and on whether the franchise company will be on a different name or under the name of the already established company you have. You will have to seek advice from your accountant about this.

Systems

The system of your franchise company plays a vital role in making the company a success. Note that all your franchisee should offer the same experience as everyone else inside your franchise business. In order for the franchisees to do this, as franchisor, you need to develop four things for the franchisee. First, you need to develop the system itself that all franchisee will be able to use to ensure the success of their business. Second, you should be able to develop a great training program needed to educate franchisees. Third, make a great marketing plan that would enable the franchisee to learn the art of customer pleasing. Fourth and last, you need to devise a sales system that is easy to understand so it would be easy for you to recruit new franchisees. This part of the franchising business is a lot of work but it is also the most important and it should be given the attention it needs. You can’t do this all by yourself so you will have to ask assistance from franchise consultants that have a great track record.

Attitude

In everything that you do, you need to have the right attitude; the right mindset and the optimism that you need to become successful. Like everything, getting into the franchise business also needs this. A franchise business is different from having your own business. You will be dealing other businessmen in the franchise world, they are not your employees, treat them as if they are your clients, and like any clients, you need to take care of them. You work hard to recruit them and you will work harder to make them stay and to trust your brand name. There will be resistances and you will experience some bumps in the road, but with the right attitude, you will be able to get through with it. Take advantage in franchising seminars and industry meetings where you will be able to meet other franchisors, this way you will learn from them the ropes in the business. Deal with people with the right attitude and you’re on your way to success.

These four elements are the things that you need in order to produce a successful franchise business. Know that creating a franchise business would need extreme work, patience and finances. It is true that starting a franchise business is expensive. Never settle for mediocrity, and that’s why you will have to hire the best consultants, the best lawyer and the best accountants. Yes, it will be expensive and you’re probably going to work harder like you’ve never work in your life.

All these sacrifices will pay off. Keep in mind the satisfaction and reward you will be reaping after building your very own empire. It will be incredible and it will be the ride of your life, but like any ride, you will have to pay the price. Prepare for this journey and make sure you are ready for this ride.

Starting Your Own Business: The Essential Initial Lessons

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Once you have mustered enough courage, confidence and market information to really buckle up for an exciting self-employed new life, sit down a minute and learn some lessons established business owners ahead of you are willing to share so you can indeed be one step closer to becoming a prepared entrepreneur.

The Types of Money One Will Need

When finally starting that venture you can call your very own, know that in all business there two types of money – the start-up capital and the working capital. The start-up capital is the financial backing essential for you to realize your business from blue print plans to its actual operations. On the other hand, working capital is the money you will need to keep the day-to-day operations going. For most newbie business owners, it is very easy to fall into the illusion trap that it does not take much to jumpstart their dream and that customers will be flooding in once they open shop with the eagerness to pay for whatever they offer. The moral is simply, save up for that rainy day.

Connections Cannot Be Spelled Only With F-R-I-E-N-D-S

Surely, friends will be giving you their encouragement and congratulations once you explicitly express your desire to finally strike it on your own. And yes, they shall be sincere about it too. But when it comes to openly helping you with opportunities for your new baby business, very few will lay their necks on the line by endorsing you work until they themselves are satisfied that you have established a mark on your own. The lesson to be learned here is for your business to get started towards the level of thriving, never stop establishing your network.

Research Does Not Consider Baseless Assumptions

So you’re confident what you can offer will be invaluable to your target market – that is good. But before waking up tomorrow and banking on that unique selling proposition, take time to make sure that what you are about to sell is indeed unique. Many start-ups assume that what they can offer the market has never been offered before only to realize that the niche they have chosen to establish in is already popular and moreover, populated to the hilt with competition. When preparing for battle in the marketplace, it is essential that all possible information be obtained, every likelihood studied – whether that of the battle ground terrain, the battle implements involved or the strength and weakness the enemy, the so-called threat himself, carries.

Passion Needed for Self-Motivation

Once you start your own business, you will most probably be working alone. With no peers beside you to keep you encouraged or challenged so yes, there will be days of self doubt. Fear not those days if you have the passion for your chosen path in your heart. Why? In that passionate heart of yours lies perseverance. When those dark days hover over your head, it will surprise you that your enthusiasm to continue your contribution to the market will tide you over till the silver linings of the dark clouds appear once again.

Whoever is with You Should Agree to Be Your Partner

Yes, once self-employed and your business success turn ripe and ready for harvest, all the wealth luck and lifestyle comforts will be yours and your life partner’s to reap and enjoy. Like everything else though, there is a yin to a yang. While undergoing birth pains essential for start-ups to survive and eventually prosper, your life partner has to agree to be with you for the long haul because the burden of business at times will be theirs to share as well.

Time Measurements and Allocations

Fall not into the illusion that self-employed people, because they no longer have to report to others for their productivity and performance, will have lots of free time to do leisurely activities to their heart’s content. Once you start your own business, it may take up more time than you think. But the beauty of it all is that this time, unlike an employee, the sense of ownership is truly genuine! By finally handling your own work of art – your business – calculations of time spent for it versus time spent for yourself alone becomes immaterial.

When finally starting your very own business, learn from the ways of a humble airplane. An airbus burns more fuel taking off from the runway of an airport than when it goes on cruising mode once it has achieved its desired altitude. But once on that gliding cruising mode, the flight will be enjoyable. Sure, there will be bumpy air pockets along the way, but don’t be afraid of it because with perseverance, one will eventually reach one’s desired destination: success.

How To Create a Franchise

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A franchise is a legal and commercial agreement between two parties in which allows one party, called the franchisee, to market the product or services of the other party, the franchisor, using the franchisor’s trademark and operating methods.

Becoming a franchisor can be a smart and cost effective way to expand your business. Investment is only done for the initial unit and franchisees will pay to use your business concept. They will manage and finance their businesses but will give you royalties based on their turnovers. As a result, there’s less liability and involvement on your part for running several operations of your own.

Here are some things you need to consider to get you started:

1. Assess. Check if your business is franchise-friendly. Are you profiting enough to expand? Is your product or service marketable on a long term basis? Are the margins enough to make it profitable for both you and the franchisee? Can your business be replicated easily on other locations in terms of resources and potential customers?

2. Research. Create a market research report to know what the effective strategies in attaining profitability. You can start by going around to competitors posing as a customer to get a general idea of their operational methods that you can adopt.

3. Innovate. After having the data from your market research, develop a unique business concept that sets you apart from other competitors. Although you may offer a similar product or service, having a unique concept will set you apart from them.

4. Study cost. You need to study the cost for funding the franchise. You will also need enough capital to help the franchisee invest in the property since you are responsible in helping them start their franchise. It is in your best interest to ensure that the franchisee is successful since you will receive royalties based on their turnovers. Getting a business loan or grants from the government or entrepreneurs who support your industry can be the best option.

5. Develop a clear business plan. Have a prospectus that’s directed to the franchisees. It should provide a detailed description of your product and service, what sets you apart from other competitors, target locations, initial franchise fees, support set-up, and estimation of potential revenues.

6. Work out the legalities. It is important to fill out a standard disclosure agreement as required by the Federal Trade Commission and have it registered if needed with the state. You might need to consult a lawyer that specializes on this.

7. Send audit reports. Get an accountant to provide audit reports so that franchisees will gain more knowledge on your company’s worth.

8. Make an operations manual. It is important to have a comprehensive operations manual for the franchisee’s reference. It will guide them how to run the business, how to set-up and manage a new outlet, and will detail any marketing initiatives and training that you will finance.

9. Look for the right people. It is imperative to find people with good business experience to uphold your business reputation. You can conduct interviews and ask for references to gauge potential franchisees. If your franchisees fail to provide good service or product, your brand will surely suffer.

10. Advertise. Market that opportunity for franchising your business. Fund campaigns directed to this cause either by print mail or attending on tradeshows and other public relations events.

Hindrances to Starting Your Own Business Success

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To most people, finding and securing a career is the utmost priority after formal education. To be hired and deemed as the most deserving of a position among a stream of applicants, that is the aim and goal to start one’s travel towards success in life. But a few years down the line, throw them a question whether or not they dream of starting a business of their own and more often than not, a major chunk of this so-called successful workforce heads would eagerly raise their hands in agreement. Throw them another question as to whether or not they are ready to chuck their employment status and start one now and many, if not most, will suddenly pull back their hands in hesitation.

Why have they not started a business if they really dream of starting one? Now that is the question.

While this website is abuzz with starting and established business owners and entrepreneurs, we all know that somewhere behind them are the anonymous faces are aspiring people who also wish to follow their lead. This article will attempt to explore what the hindrances are to one who wishes to take that first step towards business ownership success.

First is the financial aspect. Given the security of a job and thus the regularity of the receipt of a paycheck, fat or thin, people ask themselves if by giving up their current bread and butter position, this new venture – a business entirely of their own – will this duplicate the amount they are currently enjoying or maybe even surpass it? After all, in the age of mortgages, monthly bills, fast-paced lifestyles and health care protection, will one really be able to sustain one’s self without a regular salary? And the more important question is, how long or quick is the return on investments? This is the first, and to most people, the most glaring of all hindrances to starting businesses of their own.

The next to face is one’s self-confidence. Am I really good enough for people to want to get what I will offer? What if someone out there has better skills than I? One writer once said that on his first few years in business, he’d always dread client feedback and would be almost always convinced that every project on his lap will be his last. If one is not self-confident enough, there are only two ways one can go – either sink in desolation and prove unproductive or strive harder enough and actually make it.

The third boulder is the fear of failure. To most people, childhood was spent being taught that failure is not an option. Putting a lot of weight on what other people would say if one does not achieve success at the first strike in launching a self-employed career is what feeds this fear. Unknown to many, the successes of our times are a result of a lot of trials and failures. To achieve perfection, coal must undergo the test of fire first to turn into a diamond.

Somewhat connected to the fear of failure is the next stumbling block: peer pressure. Amongst the ranks of employees, if one expresses a desire to start one’s own business, the usual retort by colleagues would be, “Why drop a perfectly comfortable, nicely-paying job for something uncertain as that?”

Difficulty in determining passion, that’s the next problem for failure to launch one’s own business. Almost everyone agrees that for a job to cease being a job, one has got to love what he is doing. Same goes with starting one’s own trade – passion has got to be in it because without passion, perseverance won’t be coming in next.

Last but not the least is courage – or the lack of it. It doesn’t matter if you have the savings, the self-confidence, the tolerance for other people’s opinions, or if you have a sufficient enough experience to start on your own – if you don’t have enough courage, you are bound to stay within your current comfort zone. Reality check: starting a business on your own can indeed be daunting.

In a nutshell, the one thing that stops most aspiring business owners from proceeding is cold, paralyzing fear.

Agreeably, some fears are well founded but then again, most apprehensions are irrational as well. Like all things unknown of which fear emanates from, this sickening feeling can be alleviated with the proper education, planning and information gathering. Make the unknown known so that fear can be controlled, if not eradicated. The key is to identify what stops you from realizing your own business dream first. Once identified, categorize and understand these fears and determine if they are indeed real or otherwise. Lastly, muster the courage to actually deal with them appropriately. Once these fears are laid to rest chances are, one will be ready to start a whole new exciting business life of which one could call his very own.

Vision Board

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There is no better opportunity of having a clear vision than grabbing an instantaneous moment of forming your resolve. You have to have focus in everything, and focus is nowhere to be found without vision, so create one now, and post it in a board.

If you find yourself in the middle of deep contemplation, but without the single idea what exactly to do, or you have hundred other things that need attention but you have no hint where to start and what to prioritize, it only means you lack vision and you needed one, so badly. Your plans will only make sense if you know exactly where you are going. I do not even think it is possible to craft sensible plans without a sensible vision.

About 30 years ago, I learned about making up ‘vision board’ from recycled materials of used magazines. It is quite simple. You secure for yourself some magazines (this should not be hard, there could be plenty in recycle bins) with pictures of the things that you want. The pictures could depict cars, jewelry, town houses, universities and top rated vacation destinations. Cut out anything that appeals to your senses, anything that you envision of possessing, make small cut outs of them and then paste it on some board. To make the objective somehow worthwhile, the board has to be ideally large and have it hung on a wall on an area that can easily and readily be seen.

All those things that you place and pasted must be consisted of the projections of your life, current and future. It has to give off an idea of the life you wish to live: successful, happy and full. The images have to be powerful to convey a strong message of self determination on your part. It has to make a statement; statement of success and happiness.

Just recently, I uncovered my own vision board that I made a couple of years ago. It contains images of people and things that project the life that I have now. Most of the projections I placed there indeed became a reality. The people I wanted to work with then indeed exactly became the people I work with now. The success I wished to have is now progressively becoming a reality.

Make your own vision board, and make things happen. Have the life you wish to have. Project the life you wish to live .And in time, it will be yours.

Simple strategic plan that works

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The effectiveness of your plan is not dependent on its complexity but it is in how it is being implemented. Your goals need not to be vague and wordy; it is your commitment that counts.

A lot of people are having difficulty of crafting a plan; all the more of devising a plan that is workable yet simple in structure. This prompted me to craft simple steps to help you craft simplified plan but rich in wisdom and one that really works. What you need is a guide in how to come up with this plan, so I have prepared the following to make it easier for you:

Reinforce your Vision

Reinforce your vision from time to time. Remind yourself everyday about your vision. Update your vision continually, make changes, and make it grow as you also grow. Your vision must become a part of your system, and not just a composition of useless statements. Consult with it when deciding on important matters, and make it your inspiration for striving.

Identify possible ways to gauge results

You must craft strategies of measuring results. It will help you identify the key areas for which your business is strong and where it is weak. This you could give you enough preparation to make improvements.

Make your strong points stronger

After you have identified the strength of your business, you have to craft ways to make it way better and stronger. You must not get lax with your successes. Continually seek for improvements.

Prioritize things

You must know the things that you consider relevant so that you could give it priority over the others. The tendency is when things begin to improves, a businessman get entangled with so many affairs that he gets lost as to what is important and what is not. Devote your resources to things that you consider relevant. And for you to do this, you must be clear with your vision.

Keep track of things

It helps to keep track of everything that you employ with your plan. Record your progress and setbacks. Mention the specific details for future reference. As much as possible, do not left things out, include even the minute fact. This will help you to have a solid reference once you start analysis of your business.

Act and React

You need to act accordingly and react to feedbacks appropriately. The reason of having a plan is so you could organize your actions. Be prompt with your responses. If you have seen things that need rectification, attend to it immediately.

Make your plan work. Improve on areas that need improving, and celebrate with your successes.

Make your business plan work

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Many people have no problems crafting plans. It is in sticking with the plans and making it work that makes people go gaga.

Plans are an integral part of running and grooming a successful business venture. Nothing is greatly achieved in the absence of a sensible plan. It has to be a part of the system of every business entity. It is the blueprint of a business, without it, things could really get chaotic in the process. Plans however, no matter how grand, are rarely implemented the way it is designed to be implemented. Sometimes people craft plans just out of necessity and not really for the sake of making it as a concrete guide as it really is. Businessmen make carefully crafted plans, with impressive goals and strategies, and then leave it as it is. They come up with great plans at the start, and then come up with petty excuses when implementation is called for.

If you wish to succeed in your business, you really have to learn to stick with your plans. Make it useful. Or should I say use it as it is designed to be used. It could be your map of driving your business towards the path that you want it to take. Having a plan and implementing what it says makes it easier for you to manage your business and will give you desirable results. If plans are so crucial, then why so many people ignore implementing it? To help you in making your plan work for you, remember these:

Put your plans into writing. It makes it easier for you to implement it if the details are written.
Make your goals specific. Leave nothing in ambiguous terms.
Keep your focus at all times. Never be swayed by the threats and challenges along the way. Think of it as natural occurrence of nature.
Make your plans practically sound. Meaning that it is workable under any circumstances. If the point is to make your goal achievable then make your plan doable as well.
Share your plans with like-minded people. Withhold no details. Explain your plans and ask for their feedback how to make the plan better.
Keep track of all your victories and challenges. This will help you gauge the soundness of your plan and it could also tell you whether you need to do some revisions with the plan.
Gauge the results objectively. Any unfavorable results should be met with a positive attitude to make it work somehow
Never give up!

So if you have a plan, make it work!

Due Diligence with Chinese Suppliers

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China is a new and emerging market; it pays to exert due diligence if you wish your business to flourish in its domain.

No such thing as Cinderella story in business especially if we talk about China. Overnight success simply does not happen here. The Chinese market has entirely different influencing factors than those from the West. Unplanned haste may just give you unnecessary setbacks. So learn well.

Due diligence definition

‘Due diligence’ is the effort you exert to confirm the given facts. It serves well in business if you care to practice this simple yet effective principle. As established, China is a new market, so there is no point of rushing decisions. Yeah I believe in the importance of grabbing opportunities, but it is also entirely different from jumping blindly. You must have done your assignment well of comprehensive market research. If your business is importing, then at least you have already have made some research on all the potential suppliers, otherwise you will be wasting a lot of time and resources. Another challenge of doing business in China is the language barrier. Communication is always at the risk of misinterpretation. So you must again apply the principle of “due diligence”, you could hire local professionals to help you out with the outsourcing.

Why would you consider doing it?

“Due diligence” helps you come up with better decisions. And better decisions apparently lead to a successful business venture. Many businesses neglected to practice it which led to their frustration or even demise. It could really cost so much money once a project goes crazy because of lack of planning. Aside from resources, it could also mean a huge setback on the schedule of the deliverables.

China offers great opportunities to succeed as long as you know how make things work. You just have to make careful planning for everything that you will undertake. When you have made your research well you will be given the right suppliers to work with. And good suppliers mean:

Your partners can be trusted and you could be assured that gross business violations are farfetched.
Your terms expressed in the contract are followed to its minute detail
You will be assured of quality products

Things to consider

There are certain things to consider in choosing a good supplier:

Make sure they are a legitimate business entity
Make sure they are law abiding and regulations compliant
Make sure they take social and environmental responsibility seriously
Make sure of their integrity
Make sure they are experienced enough
Make sure you know the owners enough
Make sure they have a competitive price
Make sure they are capable of supplying your bulk requirement.

Doing business in China is not that easy but it is definitely doable as long as you do your part.

Write Your Business Plan, Make It Count

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Business plans seem just like a mere theory to some, with nothing much to offer. However, business plans really count in business, here are simple ways in making your business plans a reality:

Some of you may not feel the necessity of going through the process of writing your business plans, pretty much confident that you know your business well. And if ever there was a point that you wrote a business plan, it was for formality sake and a requirement for a loan. After you made and wrote your business plans do you even bother to consult with it? It is a sad reality but a reality nevertheless.

Business plans are your business’s map as it treads along the tricky path of the business world. It crystallizes your goals and the ideal time for which you achieve your goals. It helps make you see it as clear picture. An ideal business plan includes methods and strategies you are about to employ in running your business. It even lists down the risks and threats your business is about to meet, and states your contingencies whenever those risks occur. It is your detailed guide towards business success.

The real question there is whether do you regularly refer to your business plans? For some, it is tossed aside as easily as if it doesn’t matter. Even if you have crafted such grand business plans, do you really see the whole idea? Is it really indeed making a difference? As long as you do not live by your business plans, it will not become a part of your system, and it will surely drift away. So let me help you by pointing out key simple steps to make your business plans count in a span of a year:

1. Itemise your goals into small achievable ones

To make it not seem overwhelming, you do not need to project your goal as a whole. You can break it down to pieces into small achievable goals. If your wish to accomplish your goal, you can break it down to a monthly process. Or achieve your goal by phases. This makes easier and practical of living by your business plan and achieving your goal.

2. Make your business plan a part of your system

Remind yourself of your business goals daily.
Associate and meet regularly with like-minded people who are of the same quest as you do.
Make your business goal the screen saver or desktop background of your computer
Place your business plans in your mobile phone
Write it down in your whiteboard

You need to make your business plans and your goals to be a part of your daily routine; you have to make it belong to your system.

3. Have fun while doing it

There is no point of trying to succeed in achieving your goals if you are not having fun. You may try these following stuffs to make things enjoyable:

Make your self-reminders humorous.
Reward yourself every time you achieve a goal
Place inspiring messages and quotations around your business plans
Treat yourself somewhere while reviewing your business plans.

You have to remember that life is short. Do everything in joy and in fun.

There are other things to make your business plans work, if you have any ideas please let us hear it out.

Legal woes in Starting a Business

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In every business transaction, legal issues always loom around. It is in fact one of the most challenging things to consider when starting a business.

It pays to have even an easy grasp about the law. You might not be so keen in learning all of it, but if you are in business, legal woes are part of your routine. You need to have some knowledge and understanding on some of its provisions especially if it concerns your business. If however you are caught in a situation of which you deem is already far beyond your capacity to handle, you might be better off if you ask help from a lawyer.

First things first

As you establish your business, your knowledge of the legal issues may not necessarily be as comprehensive as you might think. You only need to learn on a gradual process by prioritizing the things that need immediate attention such as:

Business name application
Securing business registration number
Securing business license

These things do not need complex understanding nor does it require elaborate procedures. These kinds of information are readily available in business sites or among other resources in the web.

Do not allow ignorance

Everybody has heard the phrase that says: “ignorance of the law excuses no one”. In business, you cannot allow ignorance to deter you from performing your best in conducting your business. And you definitely cannot allow complex business legal issues to keep you from growing freely. That is why; it is recommended that you acquaint yourself with some of the laws’ provisions if its jurisdiction covers your business entity. You can even outsmart your competition by learning the ins and outs of the law. This way, you lessen the possibility of a nasty entanglement with the law. When you have certain knowledge about a given law, it gives you the chance to study its extent and boundaries; otherwise, you will have to face the consequences of every trespass which could also be detrimental to your business.

Doing the right thing

After you have crashed out ignorance by acquainting yourself about some extents of the law, the next best thing for you to do is to act on it. You must decide to do things according to what you learned about what the law says. And to give you a much greater perspective on the legal issues, it is advised that you seek professional legal help to aid you on complex issues. Your actions must be based solely on doing the right thing according to what the law says. Sometimes you even have to formulate and throw yourself some self pointing questions just for you to realize some of the key points you have to remember.

Legal issues need not be a problem as long as you have given thought of addressing it as early as possible. It may be hard at first, but when the things keep going, all the rest become easy already.