Food Franchise

Posts Tagged ‘Rest Of Your Life’

Most entrepreneurs know that setting goals is crucial to business success. If you don’t know where you’re going, how will you know when you’ve arrived? Or, more importantly, when you’re heading in completely the wrong direction?

If you’re the owner of a small business, what is your goal? To make it to the end of the month with enough money in the bank to cover the compensateroll? To take a holiday for the first time in five years?

Every small business owner should have the same goal – sooner or later, to become independent of the business. Small businesses turn into big businesses only when they are able to operate smoothly without the owner being present. When you can stay away for a week, or a month, or a year, and return to find the business running better than before you left, you have the opportunity to do whatever you like – sell the business and start a new one, retire, buy a yacht and sail around the world.

True financial independence is the ability to live your life doing what YOU want to do. Do you really want to show up for work an hour early every day, leave late at night and never take a holiday, for the rest of your life? Surely not.

What is the key to being able to walk away?

It’s simple. You need a system in place so that everyone in your business knows exactly what’s expected of them.

When you take on a new employee, how do they learn what they’re expected to do? Does an existing employee take them in charge, explaining how things work? How can you be sure that the new employee is learning what you want them to know?

As the owner of the business, it’s your job to ensure that a system is put in place as the business grows. The system will ensure that everyone knows what they need to know to do their job effectively.

How do you think companies like McDonald’s are able to manage thousands of restaurants across the planet? McDonald’s Head Office doesn’t sell hamburgers. They sell franchises, and their customers are the franchisees. The most valuable asset they have is their system. It regulates what employees wear, the words they say to customers, how many seconds a patty is left on the grill. to variables within their business, every contingency is dictated by the system.

The system makes it possible for new employees to fit in. They are educated on ‘how we do things around here’. They are taught the specifics of their job. They may be required to sign a performance agreement.

In a well-designed system, there is still space for individual creativity. Better ways of doing things should always be sought out and encouraged – and written into the system for the future.

The system provides the framework for ensuring that the business is never entirely dependent on any one person. If you own the business, your future depends on the quality of your system.

Many people sometime in their lifetime consider starting a business of their own. Lately, these entrepreneurs at heart tend to resort to the internet as the medium for their businesses. Unfortunately, most of them fail drastically. The reason for that most of these people fail is not lack of effort, knowledge or business background; it is their business plan. Some of these eager individuals are so enthusiastic about their new quest, that they forget to stop and come up with a plan. Now, I don’t recommend you over-plan things to the extent that your idea will sound impossible. But do consider whether or not your business idea has the following parameters.

First of all, your idea has to be something that excites you and drives you. You have to be completely passionate about what you want to do in order to be successful at it. It is very hard to find a successful entrepreneur that doesn’t like what he is doing. When you think of a business idea, consider whether you would be happy doing that for the rest of your life. Is your investment buying you freedom or is it buying you a job? It is interesting to me to see the number of people that invest their life savings in a business that doesn’t appeal to them; you see them buying franchises to become professional burger flippers, pizza toppers and chicken fryers, and they slave away firing manager after manager in order to make their business successful.

Once you have found an idea that sounds exciting, you should try to determine whether you can afford to carry it out. In this stage of the process it is necessary to find out how much will it cost to launch the business, but most importantly, how much it would cost to keep the business running. At first it is very likely that you will not be profitable; you have to make sure you have enough capital to run the business for at least two or three months without making a penny. It pays to be pessimistic when it comes to this. You should find out whether you are going to need partners, investors or creditors in order to finance your operation.

Another point to consider is how much work (labor) will take to keep the business running. If you are going to require a customer service department, or shipping department, then you must see how many people you will need to employ. This will be closely related to the budget aspect of your business plan; the more people necessary to run the operation, then the more money you will need to start out.

Last, but not least you must consider the most important aspect of all –the one you have no control over: time. Do you have the time to manage your business or will you have to hire somebody else to manage it? The more time your business takes out of you, then the less time you will have to start another venture.

In conclusion, you want a business idea that drives you, something that is within your budget, it doesn’t take too much labor to keep it running and it is time friendly. Only with a business model like this will you be able to succeed online.