Advantages and disadvantages of Franchise

There are two primary advantages to franchising. First, early in the life of an organization, capital is typically scarce, and rapid growth is needed to achieve brand recognition and economies of scale. Franchising helps a venture grow quickly because franchisees provide the majority of the capital.13 For example, if Comfort Keepers were growing via

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Buying a Franchise

Now let’s look at franchising from the franchisee’s perspective. Purchasing a franchise is an important business decision involving a substantial financial commitment. Potential franchise owners should strive to be as well informed as possible before purchasing a franchise and should be well aware that it is often legally and financially difficult to exit a

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Steps in Purchasing a Franchise

Purchasing  a  franchise  system  is  a  seven-step  process,  as  illustrated  in Figure 15.3. The first rule of buying a franchise is to avoid making a hasty de- cision. Again, owning a franchise is typically costly and labor-intensive, and the purchase of a franchise should be a careful, deliberate decision. Once the decision to purchase

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Legal aspects of the Franchise relationship

According to the Federal Trade Commission (FTC), a franchise exists any time that the operations of a business involve (1) the selling of goods or services that bear a trademark, (2) the retention of significant control or assistance by the holder of the trademark on the operation of the business, and (3) royalty pay-

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Franchise Ethics and International Franchising

There are a number of additional issues pertaining to the franchisor–franchisee relationship. Three important topics, for both franchisors and franchisees, are franchise ethics, international franchising, and the future of franchising as a method of business ownership and growth. 1. Franchise ethics The majority of franchisors and franchisees are highly ethical individuals who are interested

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Why do you start a business?

1. Your Current Position Most of you reading this book will have some employment situation you are trying to remedy. There are many, and we will go through what each means and how it may impact your life as an entrepreneur. The key thing is to analyze and acknowl­edge what your own personal situation

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Benefits and Disadvantages of Startup

1. Benefits of Working for Yourself The benefits of working for yourself are phenomenal and potentially endless. There are vastly more benefits, in my view, than drawbacks. Like many of you may decide to do, I quit my day job with a new home and heavy mortgage, less income from my new Accidental Business

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Common Myths of Startup

Small business owners are often put off by lots of myths—the unimaginable consequences of owning your own business. I hear every excuse or reason from “I don’t want to pay so much in taxes” to “I can’t afford to start a business” to “if I go into business for myself and things don’t work

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You Have a Startup Idea, Now What?

You Have an Idea, Now What? Chances are, you are picking up this book because either you had an idea and weren’t sure how to implement it, or you are intrigued by the idea of becoming your own boss and want to learn how to realize “the American dream.” In either case, you will

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Deciding on an Initial Startup Strategy

To begin any project, you need to decide on an initial strategy for developing your business. This involves many things, from deciding when to quit your day job (or stop looking for a job if you are unemployed), to when to commit full time to your business, to how to get your first customers.

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Deciding If Your Startup Plan Will Work

After you’ve decided that you want to make the jump, you need to figure out if your plan—the one you have by now fully documented, including short-term goals—will work. To do that you need to talk to people—lots of people—and you need to get the advice of experts—lots of experts! You also need to

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Startup Costs

Every business has startup costs; how much and what type will depend greatly on what you’re going to do for a living. If you are going to be office-based or you’re going to have a storefront, your costs will differ than someone who is going to run an Internet operation. Here are some basics

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Types of Startup Businesses

There are four primary types of business models and many sub­types. Your accountant can help you determine which one is best for you; even if you use this book and do your own research, you should run the ramifications of your choice by a tax accountant or legal advisor (I recommend both), because individual

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No Such Thing as a Bad Idea in your Startup

Now that you know what your options are and will be consulting with experts about your own situation, we will move onto ideas and inspiration, the next step on your path toward entrepreneurship. We’ve all heard our teachers tell us that there is no such thing as a stupid ques­tion or a bad idea!

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Doing Starttup Business with Family and Friends? Home Based or Office Based?

1. Doing Business with Family and Friends Many times the best ideas come to mind over a family dinner—and they belong to the family member or two or three who decide to run with it. Sometimes you need inexpensive labor, so you bring on the 17-year-old cousin you rarely saw to help with the

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Legal Advice and Paying Yourself in Your Startup

1. Legal Advice As you proceed with your business, you will want and need to get legal advice. When exactly to do that is up to you, but I recommend planning with at least a tax accountant. Remember, tax accountants aren’t bound by client confidential­ity. If you have potentially sensitive tax questions, a tax

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The Basics of Business Planning for Your Startup

1. The Basics of Business Planning Details matter! You should be as detailed and as thorough as you can be when drafting your business plan. Although you can simply lay out a two-page plan on where you are, where you want to be, and bullet steps you need to take to get there, it

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Managing your Startup Business Plans

1. What to Do When the Plan Comes Together At some point during your writing, you will have time to reflect on where you’re at. You should have a flow chart or map that indicates what you need to do, including tasks as detail-oriented as you can handle or want to plan for. (This

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Types of Capital-Raising Endeavors for Your Startup

There are many ways to raise capital, whether you have a new business or you have a business that you want to grow and expand. It isn’t easier or more difficult to raise capital in either case, but the methods can be somewhat different. 1. Hard Money Loans Hard money loans are often not

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Managing your Startup Business Situation

1. Keeping an Eye on Economics We already know that economic conditions—from home sale prices to the cost of money (the worth of the U.S. dollar)—affect us as individuals. But they also affect our businesses and in many cases, more so. In particular, taxes have a great impact, particularly on small businesses. Small businesses

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