Category Archives: Small Business & Entrepreneurship

For the small business owner.

Using LinkedIn For Your Business?

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I have been paying a closer attention lately to the way in which franchise professionals utilize social media platforms. Specifically this week, I wanted to take a closer look at how LinkedIn is being used in the franchise industry. LinkedIn is a hot topic in the social networking realm right now. Everyone wants to know how to best leverage LinkedIn for their various needs. Franchisors, franchisees, and suppliers all see opportunity in the networking site, but many question how exactly they can use the platform to their benefit.

With a database of more than 238 million individuals, LinkedIn provides a great pool of prospective franchisees and customers. How can franchise professionals tap into this resource? They can start with their profile page. A new article in Franchising World’s November issue gives some tips about how you should go about revamping your page. First, look at your page from an outsider’s view. Does it read like a resume? If you’re seeking employment, that is one thing. But if you are not, it may be time to rewrite your profile to target whichever prospect or customer or prospective employee that you would like to engage.  People are using LinkedIn to better know you. You must actively choose a message: what do you want people to know about you and your company?

The article says that as you read through your LinkedIn profile, you must ask yourself whether your profile answers these questions that the reader may have:

–          Should I pay this person money?

–          Can I trust this person?

–          Can this person help me with my objectives (franchise ownership, employment, doing business)?

–          What benefits does this person and his company provide?

–          Does this person have the ability to help me make a significant decision?

–          Does this person look trustworthy and credible?

 

What is all really comes down to is making your profile a welcome mat to your company. You want to seem approachable, communicable and transparent. People want to do business with people they like and feel at ease with. Let your LinkedIn profile be a peak into your company’s missions and future goals. What LinkedIn tips do you have for fellow franchise professionals?

Business Opportunity Profile: ToMM TV

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ToMM TV is the fastest way to start your own digital signage business. ToMM TV has been successfully running Digital Signage Networks for over 3 years. As entrepreneurs themselves, the owners of ToMM TV saw the potential for other ambitious entrepreneurs to own their own business in this exciting industry. ToMM TV has streamlined an affordable and proven model that includes everything you need to be successful in your new business.

 

 

Why ToMM TV? It’s simple… ToMM TV will give you the tools and training you need to be successful – based on REAL LIFE EXPERIENCE. You will be trained and supported by people who have working knowledge and experience in the industry. The ToMM TV Distributor package includes all of the equipment and marketing materials you need as well as 4 days of LIVE TRAINING and ongoing support.
You can earn up to $7,000 or more per month with this incredible Home-Based Business. Your low one-time investment includes Ten LCD TVs and all the training and materials you need to start your own ToMM TV Digital Signage Advertising Business. With some excitement and hard work, you can quickly be earning $7,000 or more per month – residually, with your very first network! Your distributorship comes with a protected territory with room for up to 10 networks – so do the math… With ToMM TV you can earn live changing income doing something that you love!

Place your ToMM TVs in local hotspots like restaurants and health clubs, then start talking to local business owners to sell them ads on your ToMM TVs. If you are a hard-worker and are not afraid to talk to people then ToMM TV is an excellent way for you to earn a great living doing something you love to do. You could quickly be earning up to $7,000 or more per month with your initial investment with growth potential to earn up to $70,000 PER MONTH!

To learn more about the ToMM TV business opportunity, please visit: http://www.franchisebuy.com/franchise/ToMM-TV

Funding a Franchise

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If you have decided to become a franchisee, you need funding to get your doors open. Before you proceed, you should know how banks view franchises and what information you will need before approaching the bank for a loan.

 

Banks find loans for those interested in purchasing a franchise more appealing than those looking to start their own business from scratch. Statistically speaking, franchisees are more likely to succeed than the average small business owner: 99% of all franchise operations succeed within a five-year period of time where as 65% of all general businesses succeed in that same five-year time period. Banks view franchisees as having prior history because the entire franchise is already established.

 

If you are going to purchase a franchise and are in need of financial aid, the bank will need as much information as you can possibly provide. In order to grant you the most aid possible, the potential franchisee must provide information about the franchise business you are interested in purchasing, the business plan, his or her financial information, the franchise agreement, and information on the local area.

 

Funding a franchise, while considerably easier than getting a loan for an entirely new business, takes research, time, and planning. Make sure you have all of the proper information before proceeding, and take advantage of any local resources for business owners that are available while you are trying to get your new franchise up and running.

 

To find a franchise that fits your budget, visit a franchise directory such as http://franchisebuy.com.

Can You Succeed with a Work-at-Home Job?

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Along with the upsides of working from home – like being your own boss and working your own hours – there are downsides, namely, being your own boss and working your own hours. You may have the talent to work at home but you also need the discipline. Ask yourself these three questions to decide whether working at home is for you.

 

Do I take the initiative?
Rather than waiting for tasks from an employer, at home you have to make work for yourself. Whether it’s finding new clients or brainstorming a new product, you are solely responsible for keeping your home business going.

 

How well do I manage my time?
You’re free to check your social networking accounts all day when you work at home, but one simple fact remains: no work, no pay. Time management skills are a must for maintaining a steady rate of production.

 

Is my family supportive?
Relatives may have a hard time understanding that you aren’t free just because you’re at home all day. If you aren’t comfortable setting clear boundaries regarding your work schedule, be prepared to deal with constant interruptions.

 

Answering ‘no’ to any of these questions is a sign that you aren’t ready to work at home. Working at home part-time can allow you to see for yourself whether you have what it takes to work at home for good.

To learn more about independent business and franchise opportunities, many of which will allow you to work from home, visit www.FranchiseBuy.com.

Financial Update: Franchises See Increase in Lending, Sources

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Lending has been a thorn in the franchise industry’s side since the recession. Though capital is difficult to produce for any startup, joining the franchise industry presents its own special obstacles. As many concepts require a franchisees possess a certain net worth or liquid assets, entrepreneurs must satisfy two sets of prerequisites, jumping through countless hoops. Despite a franchise concept’s history of success many banks remain hesitant to loan.

 

That said, the tables are turning and franchise lending numbers have been slowly increasing since 2010. After a one month hiatus at the beginning of 2013, the International Franchise Association and Boefly are both reporting that lending has increased almost 3 percent from February to March. Year over year, the Franchise Business Index is up 1.28 percent.

 

While traditional lending is increasing, non-traditional lending sources are also becoming popular: the franchises themselves. Franchisors are becoming increasingly involved in the lending process, helping franchisees find capital by lending directly, guaranteeing loans and signing as equity partners.

 

Franchisors aren’t handing out money to just anyone. Much like a bank, franchisors will only lend to those who are qualified. For example, Hurricane Grill & Wings created a $10 million dollar fund to help qualified current and new franchisees develop new units.  Jersey Mike’s doles out funds to franchisees whose locations need an update so all units appear uniform. And, much like a bank, each franchise concept has their own requirements.

 

The current lending environment’s changes should signal to all the aggressive stance all franchise players have taken. Though the franchise industry continues to grow, competition for consumers’ dollars remains stiff.

Why a Down Economy is the Perfect Time to Become an Entrepreneur

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Anyone who recently graduated from college or lost their job through layoff knows how difficult it can be to find a new job. Not only are you competing against other graduates and laid off workers for the few available positions left in this down turned economy, but you have to hope that if you are lucky enough to land a new position you won’t wind up out on the street again in a few months.

 

So naturally the question has to be asked: Why would anyone want to put themselves through all that? And most people will probably say they wouldn’t, but they don’t know what else to do. Well, if you have ever contemplated starting your own business, now is the perfect time.

 

Resources are Less Expensive in a Down Economy

 

It’s happening at grocery stores and retail outlets, car dealerships and real estate offices. It’s happening in businesses all across the country. Prices are coming down, deals are being struck, and discounts are being offered. That’s why now is the time, when resources are less expensive, to strike out and start a new business.

 

The Small Business Administration (SBA) Office of Advocacy reports that since the mid-1990s, small businesses have generated over 60 percent of new jobs. A small business is defined as one with 500 or less employees. Plus the 2009 Recovery Act eliminates fees to borrowers and allows the SBA to guarantee up to 90 percent of each loan. Naturally having a conservative financial plan can help keep overhead costs low.

 

Talented People are in Abundance in a Down Economy

 

The fact is that there are a lot of people out there looking for the right business opportunity and not all of them have a great idea for starting a new company. But they do have talent and are eager to get onboard with a winning idea. Donnie Deutsch of the television show “The Big Idea” indicated in an interview that now is the time to find people “on the cheap,” whether that means employees or vendors.

 

That means savvy entrepreneurs need to put their networking skills to work and make a connection with people who they can partner with and who can help make the company a success. In fact, 64 percent of entrepreneurs surveyed for the book “Upstarts: How Gen Y Entrepreneurs are Rocking the World of Business” indicated they started their company with a partner.

 

The Larger Companies Cut Back in a Down Economy

 

According to Julie Lenzer Kirk, award winning entrepreneur and author, “As the economy is struggling, so are all those businesses with overhead and large payrolls. They’re busy bailing the water to keep their ships afloat. Starting up now, when you can be flexible and nimble means that you can float right by those sinking ships. After all, customers still need stuff – they’re still spending money, just not enough. The new business can be created to give them what they need – whatever that is – while everyone else is busy bailing.”

 

Plus as larger, established organizations cut their budgets because of decreased revenues, they are in no position to start a new venture. That means now is the perfect time for entrepreneurs to get started before someone else steals their great idea.

 

New Entrepreneur’s Have Less to Lose in a Down Economy

 

It may be scary, but college graduates especially have less to lose right now mainly because most of them don’t have a lot of financial commitments (except perhaps their student loans). They may still be living at home, without a mortgage or family to support, their needs are few and their willingness to sacrifice their own comfort is high.

 

In his article, “How Can Your Small Business Grow in a Down Economy?” small business coach Dave Westfall suggests that entrepreneurs not limit themselves. He illustrates how to expand a company by exploring other options, such as a private personal trainer now offering group training or a real estate property manager offering services to mortgage companies that want to rent out foreclosed homes.

 

It’s all about exploring options and finding those niche markets that others have overlooked or walked away from. And while it’s important that entrepreneurs select an opportunity that matches their interests and take the time to investigate it thoroughly, it is possible to become an entrepreneur in a down economy.

From Freeing Your Toes to Freeing You From Stress

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The CEO of one of our long-time clients, Flip Flop Shops, gave us a shocking and abrupt scare last year when we learned he was to undergo open heart surgery. While serious surgery is shock enough, Brian’s age made it more astonishing: he was only 38.

Now fully recovered, Brian has taken the time to examine what motivated his necessary, lifesaving surgery. After great introspection, he’s realized that the fast pace of entrepreneurship and a successful corporate career is nothing without health.

Through “Heart to Sole: Creating a Stress-Free America” Brian and Flip Flop Shops are dedicated to “freeing your toes” and to freeing your workplace of stress.

 

Stress, Work and Heart Disease: One Company President’s Mission to Stop the Madness

Flip Flop Shops teaches Americans to “Pace” Not “Race”; Offers Five Tips to Slow it Down

ATLANTA (March 18, 2013) – It took a recent scare involving lifesaving open-heart surgery at age 38 to make Brian Curin realize that stress – most likely from a previous, fast-paced career – had taken its toll on his relatively young heart. But because he had been in fast mode, he missed the signs – until it was nearly too late.

 

Never known to do anything small, the President and Co-Founder (Size 10) of Flip Flop Shops has embarked on a massive, passionate mission – alongside the American Heart Association (AHA) – to help Americans reduce stress, a common link to heart disease. Through “the Heart To Sole: Creating a Stress-Free America” campaign, officially launched last month, Curin has pledged to help the nation create a more balanced lifestyle, and is raising money online and at Flip Flop Shops locations to support the AHA’s My Heart. My Life. ™ healthy living initiative.

 

The Heart To Sole campaign’s overall message is: “pace” not “race.” The theme fits well with the Flip Flop Shops brand personality, which encourages a Free Your Toes® mentality and a balanced, active lifestyle.

 

“It’s no secret that Americans work longer days, take less vacation and retire later than any other country in the world,” Curin said. “With stress playing a role in so many different diseases and accounting for more than half of the country’s healthcare-related expenses, it’s time to take stress reduction seriously.”

 

Flip Flop Shops offers the following five tips to reduce stress at home and in the workplace:

 

1)       Schedule “You” Time – It’s easy to get caught up in pleasing everyone else – your boss, your co-workers, your wife, your kids. Making time for you will alleviate stress big time. What do you like to do? Make sure you do something solely for yourself at least once a day even if it’s just for 15 minutes.

 

2)       Laugh … a lot! – A simple laugh can go a long way. Laughing enhances your intake of oxygen-rich air and stimulates your organs, circulation and aids in muscle relaxation. So next time you feel stressed, find your favorite comedian on YouTube or visit a funny co-worker. Is there a photo that always makes you laugh no matter what? Keep it in your drawer and pull it out when needed.

 

3)       Get Moving – Any form of exercise will act as a stress reliever, and being “too busy” is no excuse not to get moving. Exercise is proven to boost endorphins and for some people, acts as an opportunity for meditation. Regular physical activity may improve sleep, increases self-confidence and lowers symptoms of depression and anxiety – all things that correlate to stress levels. You can fit exercise into every day even if you only have a 10 minute break that reduces sedentary time such as taking a brisk walk, running the stairs in your office building or doing jumping jacks in place.

 

4)       Slow it Down (“Pace” Not “Race”) – Life is not a race, so why rush? Slow down and your stress levels will drop significantly. Leave plenty of extra time to get places. Plan ahead for work deadlines so you are not always cramming under pressure. Even simple tasks like eating … slow down and enjoy your food. Take a moment to enjoy the company of those around you at work, your family, or a quiet night at home.

 

5)       Just Do It! – While it might feel good to put off a task that you don’t feel like doing, procrastination eventually catches up with you and creates tremendous stress. Piles of work and lengthy to-do lists that never get crossed off are huge stress triggers. Try to get important tasks done in a timely, efficient manner. Keep your desk and your inbox clean at all times and keep checking things off the list. When you find yourself putting something off, stop yourself. Use a post-it note that says, “just get it done!” as a constant reminder.

 

About the Heart To Sole: Creating a Stress-Free America Campaign

Starting last month, customers who donate $5 to the campaign through www.FlipFlopShops.com will receive 20 percent off their next online purchase. In June, during Flip Flop Shops’ newly declared “Stress-Free America Month,” Flip Flop Shops customers can make donations at the register in increments of $1, $2, and $5. Plus, Flip Flop Shops will donate $1 for every pair of SANÜK Yoga Mat or Beer Cozy flip flops purchased throughout the month. For more information about Flip Flop Shops and “the Heart To Sole” campaign visit the company’s Facebook page at https://www.facebook.com/FlipFlopShopsFanpage. More information on reducing stress can be found on the American Heart Association website.

 

About Flip Flop Shops

Founded in 2004, Flip Flop Shops is North America’s first retail chain exclusive to the hottest brands and latest styles of flip flops and sandals from big names such as SANÜK, REEF, Cobian, Quiksilver, ROXY, OluKai and Cushe. Flip Flop Shops began franchising in January 2008 and continues to be recognized by industry leaders as one of the fastest-growing franchises and retailers in the nation. Company accolades include: the International Council of Shopping Centers’ prestigious “Hot Retailer Award” and ranking No. 170 in the 2012 Inc. 500 | 5000 list of fastest-growing private companies in the United States, as well as the sixth fastest-growing franchise and ninth fastest-growing retailer in the nation.

 

Growing the brand to more than 70 shops in operation and 110-plus in the development pipeline, the executive team boasts more than 50 years of franchise experience building and growing some of the world’s fastest-growing franchise concepts, category leaders and some of the world’s most well-known brands, including Cold Stone Creamery, Moe’s Southwest Grill, Nike and OfficeZilla.com. The lifestyle franchise is an Environmentally Responsible Retailer™ encouraging the nation to Free Their Toes®. For more information on the franchise opportunity, visit http://franchise.flipflopshops.com/.

 

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Which holds more weight in franchising: an MBA or experience?

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Graduate business programs gained popularity after the Great Recession as exiled corporate executives sought to bolster their résumés, recent young bachelor degree recipients attempted to ride out the unemployment wave, and everyone tried to avoid the embarrassment of moving back in with their parents. For some, the many hundred-thousand dollar experiments worked. For others, they found that experience mattered more to prospective investors and employers than ever before.

 

When it comes to franchising, a business model that often weaves Main Street and Wall Street, which matters more: an MBA or experience?

 

One thing that every franchise wants is an entrepreneur that possesses two important things: capital and a mind for business. The need for capital is obvious; franchising is not an inexpensive undertaking. The need for a business mind is not so easily identifiable, which is why franchises spend weeks interviewing possible franchisee candidates. But, which is a better fit for franchising– the degree or the experience?

 

For some, an MBA fills the gaps left behind by work experience. Not every career path provides equal training in finance, marketing, management and accounting. An advanced degree in business can easily supplement an undergraduate degree or lessons learned on the job. The more you know certainly can’t hurt when you’re looking to become a franchisee.

 

Of course, getting an MBA does not guarantee any particular professional pathway. Harvard Business School, which has produced what some of the most prolific business minds of all time (Warren Adams of Patagonia; Michael Cavallo of the Clinton Climate Initiative) has also turned out some of the least successful. Of Harvard’s own list of their 19 most renowned graduates, 10 were fired and only five had clean records.

 

Very often entrepreneurs want to change direction after a decade or two in the same industry. If you want to change directions completely or apply your professional experience to another career, “It can be somewhat inefficient if you venture forth on your own and have to learn everything as you go,” said Thomas Robertson, dean of the Wharton School of Business at the University of Pennyslvania, in an interview with Entrepreneur magazine.

 

Something that MBA programs offer that most jobs do not is business knowledge and experience on a global scale. As so many franchises head overseas to Asia, South America, Europe, Australia and Africa, an understanding of the global economy is becoming increasingly valuable. For example, McDonald’s operates an average of 31,000 units in 118 countries bringing in $41 billion in sales. That said, unless you want to work with major franchise brands on a corporate level or to open franchises outside of the U.S., a global MBA might not be the most useful.

 

Some feel, like Henry Mintzberg, that the MBA of today is a waste of time as it does little to prepare candidates to become effective managers or for the ethics of business.

 

In conclusion, an MBA is a good route to take if you’re new to the business world and want to own your own franchise, as many require some kind of business experience. If you’re looking to change industries, like moving from retail to automotive, but do have managerial or business experience  attending graduate school may not be necessary. Keep in mind that a masters in business can prove to be expensive and you might not want to be paying off student loans while trying to start a business.

 

At a Glance: Franchise and Small Business Situation in America

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First, the election. Then, the Fiscal Cliff. Now, as the nation faces the repercussions of the proposed sequestration, franchise and small business owners prepare themselves for what may or may not happen next. Here’s a look at the good, the bad and the undecided for franchise and small business owners across the U.S.

 

THE COULD GO EITHER WAY:

 

Several industry experts feel the sequestration could severely hit small business owners, which includes franchisees, harder than other businesses because of their dependence on the local economy and, in some cases, government spending.

 

Why is this a concern? Well, for the most part small businesses are specialists– they’re not the Proctor & Gambles of their communities. You would be hard pressed to find an accountant who also happens to share his office with the dry cleaning franchise he owns. Also, small businesses are often hired on a contractual basis for government projects. If and when government spending is significantly reduced small businesses contracts could be among the first to go. In turn, small businesses often have a harder time securing lines of credit. As we saw during the Great Recession, that becomes even harder when economic times are tough.

 

If the sequestration does happen, that could result in $35 billion in payroll costs and $50 billion in procurement expenses. Those added expenses could result in 1.4 million lost jobs for the private sector, half of which would come from small business and franchise owners.

 

Groups supportive to small businesses, like the Small Business Administration, would have to scale back programs turning away an estimated 33,000 small business owners looking for help and guidance.

 

On the other hand, members of the National Federation of Independent Business (NFIB), feel it is impossible to predict what will actually happen and that, most importantly, a large percentage of small businesses do not work in for or in concert for the government.

 

THE GOOD:

 

The Franchise Business Index (FBI), which indicates the health of the franchise industry, increased 0.7 percent in January, a 2.1 percent rise from January of last year. Nearly all components (listed below) improved.

 

In a statement released by the IFA, association President & CEO Steve Caldeira commented that, “The uptick in January is reflective of pent-up demand for growth felt by many franchisors and franchisees who held back on investments in the second half of 2012 because of the uncertainty surrounding the Fiscal Cliff.”

 

The IFA expects to add over 10,000 new establishments and 162,000 new jobs this year.

good time to buy a franchise

MORE GOOD:

 

Finding adequate sources of capital has plagued the franchise industry and other hopeful small business owners. Now, thanks to the dramatic increase in deposits, banks are more liquid and desperate for growth. (Aren’t we all?) Commercial and industrial loans were up 4.4 percent in the fourth quarter and up 16 percent overall in 2012. Competition amongst banks has made the loan environment more palatable for small business owners as bank loan rates decrease.

 

 

How Do Food Franchises Keep Growing Despite Economic Challenges?

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It’s no secret that food franchises are often the most searched for and requested on franchise directories and portals. It’s what we all think of when someone says “franchising.” But, is the most popular kind of franchising really doing well?

 

Why do I ask? Well, maybe you heard of this little thing called “The Great Recession” and, in its wake, the tightening of our collective belts. How have food franchises fared? Has development for food franchises slowed? If not, how is that possible when food costs have risen and disposable income has decreased for most families?

 

Fast-Casual Food Franchises Are On the Rise

 

Research suggests that fast-casual franchise restaurants, which are a subset of quick-service restaurants, rank as one of the five best franchises to open due to high demand. Presumably as a result of the Great Recession, consumers are concerned with maximizing their time and money when it comes to eating out. Eating establishments that are less expensive but still allow consumers the ability to escape the kitchen and feel as though they’re treating themselves.

 

The number of quick-service restaurants are expected to grow 1.7% in 2013, the third largest growth percentage according to the International Franchise Association.

 

The Franchising is On the Rise– How? Why?

 

A recent study by the IFA shows that the number of franchise establishments increased by 1.5% last year.

 

Why? How? Simply, the economy is why and how.

 

Unemployment and underemployment (taking lower pay and lower-level jobs) are still unfortunate realities for the U.S.’ economy. As such, more Americans are mindful of their spending. Dinners at high end dining establishments have become increasingly rare. In addition, many individuals and families are working multiple jobs or longer hours resulting in a need for fast, inexpensive meal options– especially if you’re traveling between places of employment. This increased demand for quick-casual and quick-service establishments (think Five Guys and Burger King respectively) has permitted the franchise industry a growth coveted by many other economic sectors.

 

Exiled corporate executives and those who lost a substantial portion of their savings due to the Great Recession face the unfortunate reality of a shortened or no retirement at all. In order to earn a living, many entrepreneurs have chosen franchises as a means of business because of each concept’s proven track record.

 

What’s Behind Rising Food Costs?

 

Despite a reputation for quick and inexpensive meals, franchises are facing rising food costs because of four important reasons: increased fuel and transportation costs, reduction of food availability, and a continuation of economic circumstances that created 2011’s food price inflation.

 

  • The U.S. government’s subsidization of corn for bio-fuels has removed substantial amounts of the grain from the food supply, increasing overall prices.
  • The World Trade Organization limits the amount of stockpiling the U.S. and the European Union may do of corn and wheat in case of extenuating weather circumstances. As such, the price of corn and wheat remains volatile. (Note: wheat prices in 2011 more than doubled.)
  • As more of the global population becomes affluent, the demand for meat increases. In accordance with this demand, the need for animal feed– primarily grains– increases driving up the cost of both items.
  • The increase in oil prices means high food prices, as much of our food isn’t grown locally but shipped across oceans and nations.