Archive for May, 2010
Owning a franchise lets you own a business without the pitfalls normally associated with a new company as you have access to all the resources from an already successful business to help you. The business model has already been tested, any necessary training and advice is supplied to get you started and your supplier can be trusted. The likelihood of failing is minimal, as long as you fit the type of qualifications the franchisor is looking for you are ready to go.
So what are the essential characteristics that will make you a successful franchisee?
One of the most important aspects of running your own business is good people skills. Your customers and staff are who make your business a success and how you treat people will reflect on your relationships with them and your business reputation. Treat your staff and customers with trust and respect and they are likely to return the favor and remain loyal to you. Your staff will be more motivated if you show them you value their opinion and take time to listen to their point of view.
Running a franchise is not easy, it takes a hard worker and a great deal of drive to make it successful and reap the rewards. Those franchisees who achieve the most are not afraid of hard work and happy to put in the hours required to get the job done.
When you buy a franchise opportunity you have to be willing to follow the franchise system, it is there for a very good reason as it has been tried and tested before by many others and is known to work. Thinking you know better and fighting against the system will likely lead to failure. Trusting in the system by following it carefully can make your business accomplish much more, follow the marketing techniques and strategies that are proven to work and you can’t go wrong. Look over the system carefully to see if you think you can agree to the conditions before making any final decision.
It is essential to be highly motivated if you are considering owning a franchise business. If you want to succeed it is important to ask all the right questions of the franchisor, effectively you need to pick their brains to get a good understanding of the business and how it can be run effectively. You need to have a good attitude towards work and show that you can work alongside your employees, whether it is in the office on the store floor or out in the field. If your employees see that you are not afraid to get your hands dirty it will motivate them to work harder and you will earn their respect.
The ability to delay gratification is also a key to a successful franchise business. Generally you should not expect to make much profit the first year, so if you are serious about owning a franchise business you will have to tighten your belt, don’t book any expensive trips and delay buying that new car for a year or two. You will also need to ensure you have sufficient working capital to tide you over in the first year and cover costs until you start to see a profit.
When a franchise is run correctly and has a motivated and energetic owner who listens to advice, then there is nothing to stop it from being successful. It takes a creative thinker and a determined character to achieve in this business, but you must also realize that there are people to help who have been through it all before and learn to call them for assistance. Owning a franchise is a full-time role and you have to be committed to joining in every task that needs doing. If you are interested in franchises for sale then look online to see what is available.
Have you noticed how much you hear the “R” word lately? There certainly isn’t a shortage of news reports on negative financial news out there. As the threat of an U.S. recession continues to grow, you need to ask yourself a question:
“Would you struggle through an economical recession or would you thrive in it?”
There are several products and services that do well in recessionary times. Even as people cut back on expenses and frivolous items, there will still be some products and services that will do well in recessionary times. In fact some will actually thrive in a recession.
- Online Businesses
Online businesses are simple and inexpensive to start up and can be very profitable if done right. It is estimated that U.S. online spending will increase 17% in 2008. This double digit growth is expected to continue for many years as consumers become increasingly comfortable purchasing online and enjoy the conveniences and cost savings of not driving to the mall. Almost every aspect of starting an online business can be outsourced and with almost no overhead, profits tend to be much higher then a high risk retail store.
- Credit and Debt Management
As more American’s lose their jobs to downsizing and lose their homes to foreclosures, credit ratings and debt levels are directly affected. Marketing these services is ideal but doing the actual credit repair or debt collections/negotiations can be rather difficult. By finding the right business model within these industries you can have a product in high demand.
- Healthcare
Despite a lagging economy, people will continue to need healthcare. As the baby boomer generation continues to age, so does the need for services in this industry. By finding a profitable niche in this industry you are assured to see increased demand over the next 30 years.
There are many opportunities for entrepreneurs during a recession and we have just touched upon what to look for. The secret to your success is “finding the right business model” to explore.
You could just as easily start a new business in any of the 3 above categories and be dragged down by a business that requires all of your time, doesn’t have the profit margins needed or has high start up costs & high risks.
Don’t make the mistake of starting a flawed business. Play particular attention to the type of business model you get into when looking at the above 3 industries.
With people on the news throwing around words like “recession” and “financial crisis” some may think that the last thing you want to do right now is start a business. This is actually a great time for someone to start a business for several reasons.
First, tough times make tough companies. If you are in a struggling economy, you watch every penny that you pay out and take in. You want to get the most for your money, and that will lead you to make the best decisions for you and you company. There are many large companies that started and thrived during recessions (think of Disney in the 1930’s). One thing to be careful about is everyone else is doing that too, so make sure your business is in an industry that is still getting a share of the money people are spending.
Recessions also create a drive for entrepreneurs. When people lose jobs, they are more willing to go out on their own and start something themselves. In some industries, like specialty advertising, you sell to other startup businesses and established businesses that are being more careful with their advertising dollars and want something that is low cost, but high return. As a specialty advertising business owner you can offer small quantities with quick turn around, which is very attractive to prospective clients.
There are more small businesses started during recessions, as people who are laid off or cut back strike out on their own. If you are in a business-to-business industry you can do very well selling your services to others. Everyone has to buy certain things to make their business work, if you get into one of those fields, then you have the potential to do well.
Above all it takes work. Anytime you start a new business it will take work for you to plan, market, and actually get things done. Be very wary of “get rich quick” promises and offers that are based on principles that are dishonest or illegal. Very few small business owners become millionaires the first year. Most work very hard for what they have, but there are other benefits besides just money. Do not get discouraged because of the economy, there is still money to be made and there are still opportunities to be had running a small, home-based business. Do your homework, find something that you are interested in and take your future into your own hands.