Franchise Focus Business News…

Starting your own business has additional perks other than reaping the rewards of your own hard work and setting your own hours. It can also help you save valuable time and money by shortening or getting rid of your daily commute.

New surveys show that people with their own businesses end up saving about three work weeks per year since they can choose where they work, which often significantly lowers the commute time. This also means the business owners have more time to invest in their business as well as their personal lives, including more time to spend with family and friends.

For one-third of small to medium enterprise (SME) owners, the commute is less than an hour a week, meaning many work from home. The survey indicates that an employee’s weekly commute time is about seven hours and 55 minutes, whereas small business owners commute approximately five hours and 25 minutes a week. That’s a total of 120 hours a week in commute time savings!

Less cars on the road at peak commuting hours have many benefits, including less congestion on the roads and the prevention of accidents on busy thoroughfares, which commonly happen on the commute home between 4-6 PM.

In fact, Work Wise UK even held a Commute Smart Week in late October to encourage commuters and their employers to consider alternatives such as coming to work a bit earlier or later to avoid traffic, telecommuting, carpooling, riding a bike or walking. They encourage this behaviour, which will not only save the commuter money but also promote green solutions to the traditional commute.

With all the benefits of shortening or getting rid your daily commute, starting a new business could save you the hassle and money… and give you the perfect reason to finally begin an independent financial future for yourself.

Taking risks isn’t for everyone. Many people are cautious about the decisions they make, especially decisions concerning their finances and their future. The word “risky” may even hold negative connotations for some people. But if you’re willing to make the leap and take a risk, you may be more likely to succeed.

According to new research from the University of Cambridge, risky decisions can lead to business success. Findings from these studies show that entrepreneurs tend to make riskier decisions when compared to managers who are employed by a company. And for these entrepreneurs, the risks pay off with the heightened potential to succeed.

What risks do entrepreneurs usually take? For starters, rather than working for another company, they are starting their own. By doing this, they are risking their:

• Finances
• Reputation
• Family stability
• Self-esteem

There is a lot at stake for entrepreneurs who decide to start their own business. However, these new studies prove that not all risk-taking is bad. According to professor Barbara Sahakian, lead author of the study at the Behavioural and Clinical Neuroscience Institute at Cambridge, “…risky or ‘hot’ decision-making is an essential part of the entrepreneurial process and may be possible to teach, particularly in young adults where higher risk taking is likely and age-appropriate.”

The published study shows that risk-taking behaviour can be taught, or even enhanced through pharmaceutical drugs.

However, it is important to engage in what prime minister Gordon Brown calls “responsible risk-taking.”

Franchises can mitigate some of this risk by providing a proven business system and ongoing support from the franchisor, who has already taken the leap and started a new business. By learning from their mistakes and using their tried and tested methods, you can take the risk to start your own business, but also have the assurance of back-up from an established company.

With the economic downturn causing capital to freeze up, The European Investment Bank (EIB), via Britain’s High Street banks, will make £4bn of funding available to small and medium-sized firms (SMEs). This will take the form of £1bn in loans per year for four years.

The EIB makes the terms of the loan more favourable to SMEs, as the EIB can borrow funds from money markets on favourable terms and pass on the savings in the loans that it grants.

Who can get a loan? What can it be used for?

Any independent businesses (businesses cannot be subsidiaries of larger companies) with up to 250 workers can apply for these loans, which can be used for investments or expenditures that help the SME grow. This can include spending on:

• Research and development
• Acquiring patents
• Buying another SME to keep that business afloat
• Building up or taking over distribution networks

However, company takeovers, which are considered purely financial transactions, are prohibited along with the purchase of land for property development. These EIB loans cannot be used in the following sectors: gambling, tobacco, arms, animal testing, morally or ethically controversial sectors (e.g. human cloning) and environmentally harmful activities whose impact cannot be offset or mitigated.

What are the terms of the loan?

The loans will range in amount, from SMEs that need money for smaller investments to businesses that are engaging in costly projects. The terms of the loans will range from two to 12 years, depending on the economic life of the project, and the maximum loan amount will be £9.8m.

How can a SME apply for a loan?

You will need to apply at a commercial bank for the loan. Although the EIB is supplying the money, it will be the responsibility of High Street banks to evaluate loan applications and decide whether or not to grant a loan.

According to the UK Federation of Small Businesses national chairman, John Wright, only one major bank - Barclays - is currently providing EIB financing. Since many other SMEs use one of the three other major banks, Wright says he hopes to see the money “filter down to small businesses.”

What about owners of very small businesses?

If you’re the owner of a very small enterprise, the EIB and the European Commission are working together to establish a pan-European microcredit fund for very small businesses. This fund will grant loans to very small enterprises through approximately 30 European microfinance institutions.

Despite the current economic climate, cleaning franchises are still performing well. People are more strapped for time than ever before, as they struggle to make ends meet by taking on second jobs or starting a new business for job security reasons. And they still need clean homes, so they are increasingly turning to domestic cleaning services for help.

In the last three years, the UK domestic cleaning market has grown at a rapid pace. In fact, 2.7 million UK households and 1.3 million Ireland households are spending approximately £11 billion on domestic cleaning. The cleaning industry’s overall immunity to the economic downturn is an attractive reason to consider investing in a cleaning franchise.

If you don’t want to actually do the cleaning, most domestic cleaning franchises offer the option of a ‘management franchise.’ This means you will find clients who want their homes cleaned and match them up with cleaners that you employ. You ensure that the clients are happy and take care of the administrative duties, such as scheduling, whilst the cleaners actually go to peoples’ homes and do the cleaning. This option is attractive for people who have more experience with management and administration, and want to apply those skills to a new business.

There are other benefits to cleaning franchises that will contribute to a successful business turning a healthy profit. They include:

• Abundance of niche markets. There are a plethora of domestic cleaning opportunities that exist, apart from the traditional residential maid services. There are carpet cleaning, window cleaning, tile cleaning and driveway brightening franchises available for those who either specialise in one of these areas, or who want to pursue a slightly different market from the traditional house cleaning market. You can always find a niche that has untapped potential in domestic cleaning, as there is no shortage of things to clean in a person’s home!
• Low overheads. Since you don’t have to rent out an office space and you don’t have to purchase a lot of inventory stock to sell, you won’t have to worry about high overheads that detract from your profits. Cleaning franchises usually give you the flexibility to work from home, so you save money on expensive leasing and commuting. They also are designed so that you won’t have cash flow problems, since you don’t have to buy lots of stuff that you have to sell to turn a profit.
• Flexible lifestyle. Working from home means you can achieve a greater work/life balance. It also allows you to spend time with your children, if you are a stay-at-home parent. The best part is you can usually operate a cleaning franchise part time or full time. That leaves you with ample time to pursue other important priorities in your life, or you can maximise on the opportunity to work full time and create a very large profit for yourself.

If you are interested in pursuing a franchise opportunity with these benefits, Franchise Direct’s comprehensive directory of domestic cleaning franchises is the best place to start your search.