Power to the People?

Lawmakers in Maine, California, Pennsylvania and Massachusetts have introduced bills that would give franchise owners a lot more leverage. These new rights and options would offer new opportunities to franchisees, including allowing them to join and support franchisee associations, as well as make renew agreements with their franchiser under the current terms much easier. While there are mixed opinions on the legislation, it seems many are in favor of the new bill giving franchisees more power in their businesses. Others have issues with the bills, feeling that giving franchises more freedom could potentially “tarnish the brand.”

Maine’s new legislation bill is perhaps the most far-reaching. LD 1458, which includes a series of big stipulations, if passed, could do the following:

  1. Allow franchisees to close their stores between 10 p.m. and 6 a.m.
  2. Let franchisees renew their licenses without an increase in royalties or new fees
  3. Give franchisees the power to set their own prices on products and services

The new laws had me question what might be empowering this recent movement. Perhaps, at least in part, the desire for more flexibility for individual franchisees may be fueled by the fairly recent local movement in most communities. Locality is becoming highly valued, in terms of sourcing (ex: food) and workers. People want Joe down the road running his frozen yogurt restaurant, not the frozen yogurt’s corporate headquarters. Secondly, I think that the internet may play an influential role. Today, franchisees are able to communicate more effectively than they were a decade ago because of the rise of social media. Accessibility to one another thoughts and ideas are bringing people closer, and therefore strengthening their case.

How do you feel about the proposed legislation? Leave your comments below!

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

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.