Franchise Focus Business News…

When thinking about their career choices, many people overlook the franchise option. Franchise ownership presents a variety of choices to suit many different types of talents and people — whether young and thinking about college; a college graduate looking for a corporate job; a middle-aged executive made redundant; or even a retiree eager to continue working.

Franchise ownership is a rewarding as well as challenging career choice that offers many advantages — the first and foremost being an independent business owner who works for one’s self. But unlike those who start their own businesses completely on their own, franchise ownership comes with a proven system and a trademarked brand that typically conveys instant recognition. It is a way of being part of a larger corporate company while still maintaining your own independence as a business owner.

First of all, what is a franchise? It is an ongoing, legally binding relationship with a “Franchisor” who licenses the right to operate a business according to established operational systems; and who typically provides training, support, and supplies. And that also sums up the inherent advantages of franchising as a career choice. Because it is based on proven systems, tested in the real world and refined and improved through experience, franchising has a far greater success rate than new businesses started from scratch.

Although the franchise owner makes day-to-day decisions about various aspects of the business, there are guidelines and operational procedures that must be followed. Franchisors want Franchisees to be successful, so there is generally extensive system support in place for franchisees, who reap these advantages:

* Training – almost all Franchisors provide detailed training in their systems as part of the franchise fee. It’s possible to buy a business that you have no experience in at all, and still learn the ropes through the franchisor’s carefully planned training program.

* Operational support – many Franchisors offer access to a network of support administrators, managers and other franchisees to answer questions and give advice. Additionally, some franchise companies have their own centralised administrative support for different functions, like lead generation, marketing, supplies procurement etc.

* Tested quality standards – as a franchisee business owner, one doesn’t have to continually test products, services and processes. It’s been done for you.

* Marketing and name recognition – most often the fees paid by the franchisee include some portion of the cost for advertising, both nationally and locally. And again, the franchisor usually has the proven perspective on what makes the most impact and draws attention to your business.

* Discounted buying power – as a franchisee, you’ll probably get access to low-cost goods for your business because of group buying power.

There are a wide range of franchises available suited to just about anyone – no matter what your age, stage of life, financial situation or interests. For instance, a college graduate with some work experience, and even college loans to pay, is probably a good candidate for franchise ownership. The same goes for an older senior who wants to find a part-time business to run after leaving the full-time work world. Just look around, and you will see that so many of the businesses we patronise everyday – from morning coffee, to child day care, to lunch time sandwiches, to yard care, auto repair and home décor – are franchise businesses. Franchise ownership offers the possibility to follow your own passion, be it plants, pets or computers, and create financial independence as a business owner.

Of course, there are pitfalls and mistakes to avoid. And some folks are just not temperamentally suited to “go by the book.” But for many people, franchise ownership is an attractive career alternative to a typical corporate job.

After you have invested in a franchise or business opportunity and you have received the necessary training, tools, resources and so forth to get your business up and running, there can be some problems that will occur despite the careful initiation program started from the outset by both you and the franchisor.

These problems will occur in any type of business, whether it is a franchise or independently owned business.

However, remember that in a franchise business you will always have the back-up support from the franchisor, head office and franchisees, the Franchise Association and other leading franchise organizations set up to help franchisees. This is an important point to remember. Always seek advice from your franchisor before making any decisions about the business when you are unsure of a solution and possible outcome.

View the following list of problems you may encounter within the first year of your franchise operation:

 1. Not Enough Capital

This has to be the biggest problem franchisees encounter within their first year in operation. Ascertaining how much capital you will need at the beginning of the franchise start-up can be quite difficult to determine. But if you gain the advice of an expert financial consultant prior to the franchise investment, he/she will be able to calculate how much everything will cost to set up and operate your business in its first year.

It is vital you understand and are clear about your financial resources from the start so that your financial advisor can make the best cost-decisions for you and factor in any future financial eventualities so that you are covered for the business year…

2. Business Sales

I know that I am not a big fan of cold calling, I prefer emails! But if you are intending on operating your own business, then you will have to either cold call customers for sales purposes or partake in some sort of sales during the business operation. You must be able to retain customers and attract new customers to your business and the best way to achieve this is, of course, implementing effective sales techniques.

A lot of franchisees can be anxious or nervous about selling products and services in a business if they have never encountered sales before, but if the business sales aspect of the business makes you nervous, then perhaps you really shouldn’t be in business in the first place. If you are determined to be in business consider employing a sales rep to help you achieve your necessary sales targets for the business to be profitable in its first year.

3. Staff/Employees

Another problem many first time franchisees encounter in their first year in operation is hiring, firing and the retaining of staff members. Often it can be difficult to hold onto good employees but if you provide employees with work incentives, benefits and other types of employee packages, then you will have a much lower rate of employee turnover.

Implementing employee benefit packages prior to your business launch will ensure you have the necessary procedures in place when you come to the stage of hiring and retaining key employees.

4. Time Management

Perhaps one of the biggest problems franchisees face in their first year of business, is the ability to time manage, prioritise and organise the business with familial and social obligations. But if you prioritise your skills in what you can do best for the business — for example, managing the accounts, hiring employees or ordering supplies — then you can employ other people to join your team to take care of the tasks you are unable to cope with. Knowing how and when to delegate power is one of the biggest challenges a new franchisee will experience.

Finally, remember that in business there will always be problems and as a Franchisee operating your own business you must account for these eventualities and handle them in a professional and effective manner. One thing to remember is — if a problem becomes too large to handle — always seek the advice of your franchisor, who has years of business and franchisee experience.

When you decide to invest in a franchise or business opportunity, you will need to create an effective business plan if you hope to be accepted by the franchisor as a new franchisee or if you want to acquire funding for the franchise investment. Here you will find a brief outline of what a business plan should contain. Use these details as a reference point when you are creating your personalised business plan.

Cover Page

Include your Name, Address, Telephone and Name of Business.

Summary

Brief statements of the following: business description (products or services), overview of industry, franchise profile, amount of loan request or investment capital needed, intended use of capital, repayment details.

Business Description

Legal business form; names and addresses of parties involved and general information on franchise, franchisor, franchise sector and industry.

Marketing Plan

Customer base demographics; rationale for site selection and/or location of franchise business, analysis of market competitors, advertising and PR campaign plans.

Financial Forecast

Pro Forma Balance Sheet; Projected Cash Flow and Projected profit and loss accounts for the first year in business.

Investment or Loan

State the amount of your loan or investment needs, use of the funds and terms on why you are requesting this amount.

Other Documentation

Anything else that will help your case in understanding the business you hope to invest in.

The latest trend occurring within the franchise industry relates to an explosion in senior care franchises and the baby boomer generation retiring in the next few years. The care industry in the UK is worth over £17 billion and is rising annually, according to Bluebird Care Franchise.

The UK population is ageing and will continue to do so for the next decade or so, and this means a very rewarding and profitable industry for care franchises to capitalise on. This makes the senior care franchise industry the next big trend to be extremely profitable within the franchise industry.

The baby boomer generation is the most profitable market group for franchise businesses within the senior care industry. Why? Because the baby boomer generation controls 70% of the nation’s disposable income, making them more affluent than any other generation that came before them. This means when the baby boomer generation retires - they will be able to afford in-home senior care services such as cooking, cleaning, grocery shopping, medical assistance and much more.

Potential franchisees should consider investing in senior care franchises that are established now to provide in-home support services when this generation retires. Invest in the next big franchise trend and ride the wave to franchisee success!

For most small and medium sized franchise businesses, environmental concerns can take a backseat to the very real need to ensure profitability, sustainability and growth of the franchise business. However, most franchisors and franchisees are unaware of the advantages of going green can have for the long term profitability and success of the franchise.

In many cases, you can actively reduce your businesses “carbon footprint” without costing your business much money. Not only will you benefit from introducing green initiatives to your business by saving money on energy and heating bills, but you will also increase your consumer base.

Take a look at the following inexpensive but highly effective green business measures you can introduce:

1. Make sure all lights are switched off when leaving the workplace and turn the thermostat down by 1 degree and you will cut your heating bills by 10%.

2. Computers should be switched off when not in use. Millions of dollars are wasted each year by PC’s left on unnecessarily.

3. Fitting low cost energy light bulbs which can last for 8,000 hours will have a dramatic impact on your savings for your electricity bills.

4. Encourage staff to only print documents and emails when absolutely necessary and re-use paper that’s printed on one side.

5. Set up a company recycling scheme for all recyclable waste and instead of disposable foam cups for coffee and plastic cups for water, use reusable cups and glasses.

6. Encourage staff to use public transport. Or set up company organized car-sharing schemes; grants or loans for bicycles and secure on-site parking can all help minimize the carbon damage created by commuting.

7. Franchise businesses with fleets of vehicles should consider investing in biodiesel about 60% less carbon than normal.

8. Better use of IT in the office can reduce the money spent on business travel expenses and the carbon omission. Why not set up video conferencing in your work place, which reduces the need for colleagues to travel and increases your business profitability.

9. Re-use and recycle electrical equipment and reduce the amount going to landfills. Old computers can be donated to charity for use in developing countries but make sure you securely delete sensitive data before recycling.

10. Other unwanted office furniture ad supplies can be sold- perhaps on eBay, an online resource for giving items away.

By implementing energy saving measures in your workplace and providing incentives for your staff to cooperate with your “green business” initiatives will save you up to:

- 20% on your bills;

- enhance your business reputation as a “builder of eco-friendly measures” and;

- drastically cut your carbon footprint.
Industry analysts argue that not only will you save money on your energy bills by introducing some of the measures outlined afore, but you will also increase your brand recognition with consumers.

According to industry analysts, consumers regularly contemplate about their own carbon footprint and how they can make a difference to tackling climate change. These consumers, as a result are more likely to buy from a company they think is taking action to tackle climate change than a business that is not.

So if you’ve turned green, or you are going to turn green, you should shout about it and you could boost your profits!!

Frantrepreneur