Posts Tagged ‘Business’
Franchising Right Choice For Your Business
Costs:
Obtaining the right to use the franchisors name and its assistance may require several thousand to several hundred thousand dollars. The following is a breakdown of fees involved in operating franchises (Franchising World 2005):
Initial Franchise Fee and Other Expenses – This is the initial franchise fee, which may be non-refundable, and includes other costs such as:
Business or operating licenses and insuranceCosts to rent, build, and equip an outlet and to purchase initial inventoryGrand opening or other initial business promotionsProduct or service supply costsReal estate and leasehold improvementsTraining costs Financial and accounting adviceLegal feesDiscretionary equipment such as a computer system or business alarm systemAdvertising fees- Franchisees may have to pay into an advertising fund, with some portion of the advertising fee going for national advertising or to attract new franchise owners, but not to target the franchisee’s particular outlet.
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Get Free Stuff for Small Business Owners
Starting a small business can be very expensive. Many times, entrepreneurs put their financial stability on the line to launch their new venture. While small business owners can spend a lot of money within the first few months, there are many resources available that are absolutely free. The trick is finding these free resources for your small business.
Small Business Resource #1 – Free Business Cards
Business cards can be one of the most valuable tools for small businesses when starting out. It provides a means to quickly and easily distribute your contact information. There are some companies, like Vista Print, that offer to print your business cards for free. In exchange for the free cards, you simply need to allow them to print a small image of their logo on the back of the card.
Small Business Resource #2 – Free Accounting Software
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Small Business or Franchising – Which do You Want?
Small Business or Franchising
Franchises: Levels of Opportunity
Franchising offers franchisees a level of opportunity which is not possible in regular businesses. A start-up venture with an established brand, as well as with the support of seasoned professionals, is a tremendous advantage to a business person. Yet many do not realize that varied levels of opportunity are available within franchising. Franchisors can offer the ‘standard’ franchise but there are also additional options for franchisees.
Types of Franchises
• A mini-model – suitable for those with less capital
• An ‘in advance’ option – allowing franchises to take on additional units based on future performance of the first location
• A large territory option – allowing an entrepreneur to become an area developer
• A master licensing option – in which an entire country or State is your playing field
Ideally, franchisees should enter at the most suitable level for their skills. Most franchisors will enjoy a challenge but nobody thrives in a business if they feel overwhelmed by the commitment. When you are exploring and comparing different franchises, understanding yourself is an invaluable asset. Remember that a franchise is a long term commitment – maybe five or ten years. Although in regards to franchises, ‘commitment’ can be a relative term. Within the contractual commitment, the standard franchise is five years with the possibility of renewal for every 5 years subsequent to that period.
