Food Franchise

Posts Tagged ‘Small Businesses’

The myth that nine out of ten small businesses close in their first year may or may not be completely true. According to more recent Dun and Bradstreet data, 76 percent of new companies were still in business after two years. But since these statistics are based solely on the number of business license applications forfeited, they may not be entirely accurate. Many business owners don’t immediately contact their licensing office; some never do.

Studies show businesses that do survive longer had more cash up front to invest. Other survival factors include the owner‘s age, higher education, and previous experience in their field. The number one cause of small business failure is “lack of planning,” and the most common mistake in planning falls with making poor financial choices right from the start.

Most people believe that to have a successful business you need to start with a large sum of money and acquire those start-up funds by taking risky business loans or mortgaging your home. That’s simply not true. In fact, 25 percent of business owners needed no dollar amount to start up.

Reports show that only 27 percent of business owners have borrowed the money they needed to start their business and 36 percent of owners used their savings for their business start-up. It is always better to save the money you need up front if you are able. A total of 69 percent of new businesses were started or acquired without any need to borrow money.

So if it’s that easy, why do so many businesses fail? It may be that new business owners spend more time planning a vacation than they do their new business venture. Many don’t calculate into the equation how their personal financial responsibilities will be met while their new business is growing legs. They will still have rent or mortgage, electric bills, phone bills, and other household expenses. A new business just can’t support home life for an estimated need of 1-2 years. This is where we fail to plan.

Starting a small business should be looked at as just that, a “small” business. The founder of Dell Computers was a college dropout. Starting small out of his garage, he managed to excel above all of the world’s top computer manufacturers. One in three computers sold today is a Dell.

Just over 32 percent of new business owners needed less than $5,000 to start or acquire their business. Businesses opening without a huge financial debt show a much greater chance for success. If you have a business idea, you need to keep it in proportion to the amount of money you have to pursue it. Instead of building a $400,000 franchise store, you might need to look at buying a $15,000 coffee cart that you can drive around to local events. There’s always a way to work out your idea without exceeding your means.

Successful businesses are started with proper planning. Spend the time needed to plan your business idea and do the research needed to ensure you have all your ducks in a row before you open up the pond for customers.

A successful business first begins with an idea. However, every idea does not become a successful business. The E-Myth, written by Michael Gerber, provides a fresh approach to developing the idea into a success. In an ever changing market, we need to get back to basics to take our business to the next level by reflecting on what we are trying to accomplish.

In the world of business, a predictable amount of small businesses fail within their first year. Within five years, a successful business is facing new challenges that could easily shut their doors. Innovative ideas and constant development are needed to expand and support the successful business. Michael Gerber provides us with a powerful resource to accomplish this outcome.

The E-Myth, containing expertly worded concepts, guides you through the necessary steps of growing a business. From the infancy of the idea to the development and mindset of the successful business owner, Michael Gerber exposes an “out of the box” thinking process. It is these old, traditional ideas that will hamper or even destroy the budding entrepreneur. Unlike the traditional beliefs most have when starting and running a business, The E-Myth provides a guiding light changing our conformist business perspective to that of an entrepreneurial thinker. And, Michael Gerber implies, it is the budding entrepreneur who is our future.

What ideas stimulate the incubation of entrepreneurs? Which concepts best serve our future? With The E-Myth, we are in a unique position to explore and embrace our business survival. Michael Gerber’s The E-Myth, dispels the myths of who can become successful in running and expanding a business by sharing the secret of duplication. Growth through duplication creates a predictable and productive way to success according to Mr. Gerber, and the franchise model which is exemplified applies to any business no matter how large or small. By helping you focus on the mechanics of your business, you can forget about them and move your business to the next level. Gerber takes you through the necessary steps, explaining the stumbling blocks and directing you in a unique new way of thinking.

According to Gerber, mindset plays an intricate part in the vision of the individual and his success. For those who feel they do not possess the qualities to succeed in business, his book, The E-Myth, gives a refreshing new look at what it takes to achieve greatness. The E-Myth describes the development of a precise business system which produces consistent results that have been tested and proven.

Michael Gerber, a bestselling author, is the founder of E-Myth Worldwide which is based in California. He is looked upon as a revolutionary force within the business community. His writing style is smooth and causes you to reach past the traditional way of thinking, pushing you to new growth both personally and in business.

For an innovative and refreshing way of developing a business that works for you, The E-Myth by Michael Gerber should not be overlooked.

If you are looking for a franchise opportunity, the choice is mind boggling. There are literally hundreds if not thousands of different types of franchise available for you to invest in, with the same variety in cost. Each have their own benefits and usually the more you pay the more potential to earn. You obviously want to select a profitable business venture so it is important that you thoroughly research.

The major benefit of starting a franchised business is that the business model has already been proven. As a result, only 5% of franchises fail in a year compared to the 30% to 35% of non-franchise small businesses. This means that franchises are the most successful way to set up your own business.

Selecting the franchise that’s right for you.

Types of business franchises.

Have you ever wanted to take control of your life, run your own business from home and spend more time with your family? If you have you’ve probably already searched on the Internet using keywords like ‘Home Business Opportunity’ or ‘Work From Home’, and you’ve probably also failed miserably only finding scam opportunities and sites that want to take your money for nothing in return.

There are virtually no free opportunities on the Internet anymore. You just can’t get something for nothing. You can, though, buy the franchise for an established company and run it how you want to.

Some franchises, like Press-A-Print will offer you full training so that you can truly hit the ground running. Press-A-Print are a printing company and you get full training helping you become fully skilled at printing any image onto any product. Hands on sessions mean you will learn all the tricks of the trade, and the easy to use equipment is, of course, provided. This lucrative opportunity is available for around $20,000.

There are many different types of franchise businesses available including computer service businesses and even car repairs. There are a few examples at the end of this article.

Costs of buying a franchise.

There are other costs associated with buying and running a franchise of your own. There are usually less costs associated with beginning a home business; there are no building costs, no utility costs and no purchase costs but an online home based business isn’t for everyone and there are franchises to suit all your needs and requirements, whatever those needs may be.

There are always costs associated with setting up your own business, and owning a franchise is no different. The big difference, of course, is that you are buying a business that already has a proven brand and often popular well known name.

You will have to pay the initial franchise costs as well as the purchase of land or buildings or a security deposit on rented buildings. Often your dream location will need a little work to make it your perfect dream and this will all cost money. If your new franchise business is a produce selling business you may need the initial outlay to purchase goods or raw materials to create the goods. Shipping, sales tax, insurance, labour cost and solicitors and accountants fees may all play a part too and should be budgeted for but don’t let this put you off buying a franchise. They can be extremely profitable in the right hands. These costs can combine to total anything from under $50,000 right up to $1,000,000

Examples of franchises available.

V2K has a product that really sets itself apart from the rest of the competition. They specialise in creating window fashions, and their selling point is the virtual shop window. They create a computerized graphic representation of the window so that potential customers can see for themselves exactly what it would look like. Previously one of the main reasons that potential customers wouldn’t become paying customers was because they couldn’t ‘visualize’ the end result.

The V2K program means there is no need to purchase premises, and should you wish to do so, a simple storefront would do. No need to purchase any inventory thus saving you a little more money. No need to purchase a special company vehicle. Initial training is included in the start up fee along with ongoing support. The average total investment for this franchise is approximately $50,000.

Looking on the Internet for franchise opportunities you will see plenty of success stories pertaining to ‘The Little Gym’ franchise. As a stand-alone business, The Little Gym has been in operation since 1976 so you really are buying a proven business. The Little Gym helps children develop motor skills and builds confidence as well as burning energy and keeping fit and healthy.

The average outlay needed to own and run The Little Gym as a franchise is approximately $150,000 but you are not only buying into a proven name you are also helping make a difference to children in your area. A small price to pay.

The key to making a success in a franchised business is to choose a franchise that matches your interest. Is it food, automobiles, fitness perhaps? These days there’s a franchise for just about everything. Then, narrow down your options , taking into account the capital you can invest, the track record of the brand and the success stories of other franchisees. Due diligence is the key – thorough research at this stage, is the solid foundation for a successful business.

©2005 Nick Carter

It’s really not hard to figure out which franchises are the most successful. You see them advertised on television and on billboards, hear them advertised on the radio, and cannot drive through a shopping center anywhere in the US without passing one or more of them.

Not only do you know who they are, you have probably been in some of them so many times that you know exactly what they have to offer. These franchises, in other words, have succeeded wildly in branding their products. What are they?

Franchise restaurants, of course. Anybody borne after 1955 probably cannot remember a world in which McDonald’s didn’t exist, and they were only the beginning. If you are one of the millions of people thinking about breaking away from the nine-to-five routine and starting your own business, you could do much worse than a franchise restaurant.

Why? Because given the choice of trying to establish a loyal customer base for a new, unfamiliar product of your own choosing, and going with a restaurant franchise with food already familiar and proven to keep the customers coming back, the odds are definitely on the side of the franchise restaurant.

The Pros and Cons

There are, of course, big risks in starting a restaurant of any kind. Only those people who have a genuine love for the business usually stick with it long enough to make a profit; while having a franchise restaurant may ease some of the concerns, there are some realities you need to face before you start.

First, buying a franchise restaurant can be very expensive; they can include actually buying the land on which you will build your operation. You may be able to get help with your financing from the franchisor, and banks also realize that a restaurant franchise is one of the less risky small businesses, so may be willing to give you favorable terms.

On the positive side, you will have the advantage of selling only those foods which are proven moneymakers, so you can limit your inventory, which will be ordered from the parent company’s preferred suppliers. You and your company’s other franchisees in the area can share the costs of joint advertising. For more info see http://www.startfranchisehelp.com/Franchise_Broker/ on Franchise Broker.

On the downside, be prepared for long hours at your franchise restaurant; as a franchisee you will have certain standards, both service and financial, to maintain, and you will be giving regular reports to your franchisor. If you have personnel shortages, you and your family members will have to fill the gaps.

Be Prepared

You can almost count on having personnel problems; low pay and unchallenging work will make it hard to keep employees for extended periods. Restaurant employee turnover is extremely high. But if you and your family are willing to supply the elbow grease, your chances of succeeding with a well-established franchise restaurant are better than they would be in any other business you could start.