Franchise Focus Business News…

If you’re looking to start your own business, there are a lot of factors to be considered. One of them is your local market and if you are living in a rural area or a small town, this can rule out a significant number of businesses such as large scale restaurants which simply will not attract the large customer base it will need to survive. However, with the development of internet services and the manner in which society has changed to embrace the internet as not only an information source, but also as a method of communication and interaction with one another, the ability to work from home online is increasingly easy to achieve.

According to HomeWorking.com, working at home is becoming more popular with an estimated 1.7 million people in the UK working from home at least 1 whole day per week for their employer. Freelance workers working at home represent about 9% of the working population in the UK. Whilst figures for the self-employed at home are difficult to determine, it has been suggested that as many as one in 6 of the working population are working from home running their businesses or enterprises. This all means that starting your own business from home is now a very popular option.

The internet has expanded so much that many businesses are now operating entirely online. So while there are many businesses depending on online traffic to sell their products to, there are also online services helping these online businesses attract the right traffic and also provide the appropriate online experience to their customers. In this regard, home based marketing has really taken off as those running their marketing businesses from home have the unique opportunity to provide a top service to businesses literally anywhere in the world if those businesses are based online. While skills in search engine optimisation and online marketing are important as well as a great internet connection, starting your internet business from home is not too difficult and can be extremely low on overhead costs. With a franchise, you can benefit even more, as the franchise can provide you with all the training and knowledge you will need to provide a top service, as well as ongoing support as your develop and grow your own business from the comfort of your own home.

Let’s take a look at what’s important in starting up your own business from home:

Children

Starting your own business from home is often recommended to women – which us women always think is a bit sexist as nowadays it can apply to both men and women. For women or men who have had children and taken a few years out of the workplace to rear their children, and now are exploring other avenues of working without going back to a full time workplace situation; starting your own business from home can offer you the flexibility and freedom to work how and when you please and to what degree you really want to immerse yourself in working life. However, there are things to consider about being a mum or dad working from home.

Will your children, if they are not of school going age, be ready to give you time alone while you work? One of the biggest complaints from working mums is that they tend to get easily distracted from their children while they are still in the home, and often the devil finds works for idle hands and that report you just printed off could end up as a perfect doodle canvas! Make sure that both you and your children are ready for a situation where you are present but not always available to them and that they understand when “Mummy or Daddy is working” and cannot be disturbed … unless absolutely necessary.  It can be a huge mistake to think that you can mind your children and run a business both full time, therefore you should be prepared to have your children attend a crèche or playschool for a few hours a week to give you the chance to run some work errands and attend meetings with local clients if necessary.

Internet connection and PC

For most businesses operated from home, you will need your own PC or laptop. Some franchises include this in the franchise fee and the machine will come with all the necessary programs and applications installed. However, some franchises don’t, so you will need to work out what kind of PC you will need, if any at all, as well as what programs and applications you will need for the operation of your business, for example, for the administration of the business you might need an accounts package such as Sage or Big Red Book. In addition to this, if you are thinking of starting your own web design business, some designers won’t use any computer other than a Mac.

Hardware and software aside, you will also need to think about your internet connection. Running your own business from home while living in the countryside can be idyllic however; this dream can be smashed easily if you can’t secure a quality broadband connection. Working from home, a lot of your communication with clients will most likely be through email and phone calls, so a good broadband connection and a good telephone line. You should ensure that you will be able to secure and support both of these if you want to be able to run your own business efficiently from home.

Dedicated area in your house

You will need to be able to find a dedicated area within your own home that is your dedicated workspace. Preferably this would be another room where you can have your own office; however it can also be a work desk in a quieter area of your home. Most people find that having all their work materials organised in the same way can maximise their work performance as they can easily access everything they need and also, the same surrounding every day is less likely to distract you than if your workspace is in a different location every day. It can also help you achieve a proper work life balance, as you can literally shut the door of your office in the evening and spend some quality time with family or friends.

The ability to work on your own, and set your own deadlines

When you are in an office or workplace situation, your fellow work colleagues as well as your boss will always secure your dedication to the job – if you’re not doing your job properly they’re going to notice and question your lack of motivation. Therefore if you have any doubts about your self-motivation, you really should think twice before starting your own business – especially from home. Those working from home battle daily with the temptations to sleep late, watch day time TV, take sunny days off, give too much attention to children or housemates and shock horror – work in their PJs! Before taking the plunge, you really should make sure that you will be able to motivate yourself and set your own deadlines and restrictions in place. Just like any other business person, you should be getting up early every morning, setting certain times for breaks and lunchtimes and also be able to block out whoever else is in your home.

Industries particularly suited to home based business models

Internet Franchises – including web design, web services and online business franchises
Marketing Franchises – including online marketing and telesales
Vending Machine Franchises – administrating your business from home, while spending a significant amount of time “on the road” stocking and servicing your machines
Education Franchises – offering home tutoring either in your home or in your customers’ homes.
Cleaning Franchises– administrating your business from home, with a team of cleaning staff to carry out the work in your customers’ homes

As long as you make the right decisions and choices, the operation of your own business from home; can help you transcend the problems of ridiculous house prices in the urban areas, along with the exhausting commute, kids in tow to and from work every morning, as you can still achieve success running your own online business from your own home in the middle of the countryside. Click on the following link to find out more about opportunities to work from home.

Many people believe that starting a business through a franchise opportunity means jeopardising your chances at career satisfaction, however studies have proven that this is not necessarily the case. It has been proven that job satisfaction depends on individual personality and attitude along with the most suitable workplace environment. This means that achieving job satisfaction depends on your own attitude as well as making the right decisions for you! Starting your own business can put you on the right road to achieving your ultimate level of job satisfaction, but it’s not for everyone. To achieve your ultimate level of job satisfaction, you must first of all consider what you deem to be career success and also how you can achieve that based on your abilities. A franchise can offer you the chance to start your own business, as well as ongoing support as your business grows and develops. However, you must ensure that you carry out a significant amount of research about a variety of franchise opportunities before investing any hard earned cash.

Tough Times

During the current economic downturn, small businesses are finding themselves in a difficult situation. While it was important previously to offer your customers a top service and great product, with so many consumers now finding themselves with a lower income, more and more consumers are becoming more and more price driven. Overhead costs haven’t come down enough for small businesses to start reducing prices however, so small business owners must become more creative when developing ways to attract customers back. David Miller, the managing director of start-up business Ruby recommends that “specialising in all channels during a period when clients are tightening their budgets seems to be a key trend among start ups, as the work becomes more consumer focused and less channel focused” ( Kimberley, 11). So anyone starting a small business must ensure that they consider important factors before starting a business such as potential market, competitors, overhead costs and opportunity for growth. Having the desire to succeed and displaying an entrepreneurial mind isn’t going to guarantee your success.

Employee, Franchisee or Entrepreneur?

There are a number of choices facing individuals when it comes to career path. You can choose to go into general employment, which a large section of the population chooses. Alternatively, you can choose to become self employed. This means starting your own business, either through entrepreneurship or through a franchise opportunity. Each path offers its own benefits and pitfalls. Going down the PAYE route can offer you security and the chance to work your way up within a company, and taking risks without risking your own income. Starting a business through a franchise opportunity means becoming your own boss but also running a business according to the established standards and processes of the franchise which some can find restricting, others comforting as they can rely on the support and expertise of the franchisor. Starting your own business as an entrepreneur is probably the most risky decision, as you are going out on your own without the benefit of having a franchisor to consult when decisions are difficult to make, however you are wholly and completely your own boss and you have the freedom to make decisions how and when you want, and you also take home every penny you make. Each of these benefits and pitfalls should help you decide which path is for you. Once that path is chosen, there are a lot more decisions to make!

The Myth of the Entrepreneurial Mind

Let’s first of all dispel with the myth that only certain people are destined for the entrepreneurial path! A report by academics in Vienna University found that the myth of an entrepreneurial personality was most probably untrue, stating that the stability of a personality in general must be questioned along with the acknowledgement of the different personality traits needed at different stages in a business’ lifetime. To begin with, the personality of an individual at certain stages in their life cannot be relied upon to remain fixed, because individuals change, as influenced by events in their life.

Therefore the entrepreneur who begins a business may not, and most likely will not have the same personality after 10 years of running the business. This means that a personality will not remain stable and therefore a fixed entrepreneurial personality cannot be identified. Secondly, while certain enthusiasm and risk may be required in order to start up a business, as that business develops other traits are required in order to grow the business at a stable and healthy rate such as the ability to identify problems within a business process and enough energy and innovation to be able to implement change. The report concluded that “it is not possible to predict the long-term success of a business by evaluating the personality factors of the business founder in early stages of the start-up process” (Frank et al, 227), as the founder will no doubt change as the business changes also.  Walter Kuemmerle writes that “real entrepreneurship is a far cry from managing an established business and farther still from the sanitised model that became popular during the late 1990s.” (122), meaning that any individual looking to start their own business must first and foremost be ready to changes in line with changes in environment, market and economic conditions. Job satisfaction can only be achieved by the individual’s drive and desire to achieve goals for their business which they have already defined in line with market conditions – in other words, be realistic!

How We Believe in Ourselves

Other studies carried out by academics world-wide have linked job satisfaction to a number of factors including general personal stability and the ability to adapt to new and varying situations. A report by academics in Oxford University found that difficulty in settling into a new situation may often hinder the achievement of job satisfaction as a changing work environment can upset mood balance. It identifies the importance of Core Self Evaluations (CSE), which are the methods by which we perceive ourselves, our ideas of who we are and what qualities we believe ourselves to display. These evaluations determine the path we choose in life and how we perform in certain situations. For instance, an individual who perceives themselves to be an entrepreneur will seize the opportunity to start their own business, whereas an individual who perceives themselves as a carer, will most likely opt more towards a more appropriate role such as a doctor, hospital nurse or a home carer. 

In specific job situations, it is believed the CSE also “influence what types of environment we seek and whether [we] successfully attain this environment (i.e. type or quality of job). This then leads to specific experiences at work, which determine the level of job satisfaction.” (Dormann et al, 29). CSE comprises of self-esteem, generalised self-efficacy, locus of control (LOC), and low neuroticism. These personality traits all influence how we perceive ourselves and how we feel about situations in which we find ourselves. For instance, an individual with a high LOC will feel that they have the ability to take charge of their life and implement change should they feel it needed, whereas an individual with a low LOC will feel that they are powerless in their situation, and therefore may be unhappy with where they find themselves but not be inclined to make a change.

Employers gravitate towards recruiting individuals with a stronger and more balanced Internal Locus of Control (LOC) as these individuals will function better on a team and within a workplace environment. Individuals who are more adaptable and motivated therefore will be selected more easily for jobs for which they apply and therefore will be more likely to achieve their desired level of success. Therefore, in terms of starting a business through a franchise opportunity; a franchisee with a well balanced Internal LOC will be more open to a new franchise method and be better prepared to negotiate changes with the franchisor, achieving more for their franchise business than those who aren’t willing to adapt to a proven business method.

Operating as a Franchisee

Studies into job satisfaction has also found that Core Self Evaluations play a major influence on job satisfaction but these cannot be linked to the long term success of a business, this comes by making the right decisions at the right moments. Common reasons for dissatisfaction amongst franchisees revealed in a study by Kimberley A. Morrison suggest that dissatisfaction may come about from misconceptions about franchise support and marketing initiatives made prior to the signing of the franchise agreement. This strengthens the advice that researching a franchise opportunity thoroughly is extremely important before signing anything. Dissatisfaction can also come about because franchisees feel that the franchisor doesn’t listen to their needs and implements changes in business processes that the franchisee is not entirely happy with and may actually damage their business’ performance. Speaking to previous and current franchisee is also important in this regard. Morrison’s study found that while 75% of franchisees surveyed had contacted existing franchisees, only 16% had contacted former franchisees. Both groups can offer a valuable insight into the operation of the franchise and in particular former franchisees can give information on the possibility of resale should you will to sell on your franchise business.

Morrison’s report continues to state that the majority of franchisees surveyed “did not seek information from potentially key sources such as former franchisees, UFOC documents, bankers, accountants, or lawyers” (Morrison, 38). These sources must be consulted when considering investing any amount of money into a franchise or business opportunity. Any individual investing in an opportunity like this is hinging their career and future along with the future of their family and any other dependents to the success of their business and therefore must ensure that they will have to ability to achieve their desired success. Individuals shouldn’t make a decision based on a franchisor’s pitch and should also carry out the maximum amount of research beforehand. This also means that you will make the best decision for you and therefore will invest in a franchise with which you are most compatible and most likely to achieve job satisfaction. The failure of franchisees is most likely as a result on the mis-information provided before the franchise agreements are signed or mis-interpretation of information provided. The golden rule to abide by when researching franchise opportunities is “if it looks too good to be true, then it probably is!”

Job satisfaction cannot be determined by a business model alone as it depends on the personality of the individual and their ability to achieve success. However, business success does depend on making the right decision prior to making an investment and this means carrying out an enormous amount of research before investing any funds, as well as consulting with industry professionals. Therefore, franchising should be viewed as a very viable opportunity to strengthen your career and establish a successful business. There are a large variety of franchise opportunities available on the market offering good and not so good opportunities, but with the right attitude and street smarts, you will be able to make the right decision selecting the right opportunity for you.
 

List of Works Cited

Dormann, Fay, Zapf & Frese. “A State-Trait Analysis of Job Satisfaction: On the Effect of Core Self- Evaluations”.  Applied Psychology: An International Review, 2006, 55 (1), 27–51.  Oxford, UK:  Blackwell Publishing (2006).

Frank, Lueger & Korunka. “The significance of personality in business start-up intentions, start-up  realization and business success”. Entrepreneurship & Regional Development, 19th May  2007, 227–251. Austria: Vienna University of Economics and Business Administration,  Austria  (2007).

Kimberley, Sara. “Is a recession the right time to launch a start-up?”. Precision Marketing, August 8th  2008, 11.

Kuemmerle, Walter. “A Test for the Fainthearted.” Harvard Business Review, May 2002, 122-127.  USA: Harvard University (2002).

Morrison, Kimberley A. “An Empirical Test of a Model of Franchisee Job Satisfaction”. Journal of  Small Business Management, July 1996, 27 – 41. USA: Blackwell Publishing Limited (1996).

Online Networking – the best way to meet fellow entrepreneurs

Online networking may have started off as a social phenomenon amongst teenagers, however with the obvious benefits of such a trend – social networking has now become extremely popular amongst small business owners and entrepreneurs. It can be a great way of exploring a franchise opportunity further.

Facebook is now playing host to a variety of individuals and groups all looking to meet and exchange ideas about entrepreneurship and franchising. This is a great opportunity to interact with individuals; who are either thinking about investing in a franchise, in the middle of investing, just starting out or well developed franchisees. It is all carried out in an informal setting and it is fast becoming the best way to meet people of similar interests. Franchise Direct now has its own Facebook page which you can join and meet budding entrepreneurs and franchisees. The page is called “Become a Successful Entrepreneur through Franchising” and if you are interested in joining you should follow this link. It is a great way of getting in touch with people who are also interested in the franchise industry.

Usually, blogs are short and snappy news bites or short editorials which are easy to read and are less formal that a feature length article.  Blogs are also a great way to read regular and up to date news on the franchise and entrepreneurial industry. To maximise the benefits of blogs, sign up to Rss (Really Simple Syndication) feeds to be notified of regular updates to blogs and web pages. Franchise Focus now features a Rss service so that you can be notified of a new post, or receive the new post in an email.

The dawn of the internet has brought along new and innovative ways of communication. While face to face meetings with franchisors and franchisees are important, the social networking sites are also a great way of interacting with like-minded individuals.

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.

The most common reason small business owners and franchisees set up their own business is in order to achieve a better work-life balance. This has been proven time and time again, in polls by SmallBusiness.co.uk and in a recent study by the Franchise Relationships Institute.

In fact, in the UK, employees are becoming burnt out from constantly being available for work. A new Standard Life study shows that 70% of people leave their phones on all night long, and 15% cut their workouts short so they can check their BlackBerrys. And the Trades Union Congress released figures that 3.3 million people in the UK work more than 48 hours a week.

However, new business owners fail to remember that starting up a new business is hard work … and can be very time consuming as well! That’s why we want to make sure you have realistic expectations about being your own boss, and that you take into account that your new business won’t necessarily be easy or less time-consuming.

You’ll have the perks of a more flexible lifestyle (working different hours, taking days off or vacations when you want, etc), but you will also be called to attend to the needs of the business and put in the effort required to generate the level of income you want.

So in order to take advantage of the flexible lifestyle and better work-life balance a franchise can bring, here are some tips to help achieve that elusive work-life balance we all want:

• Make yourself a daily routine. Try to wake up at the same time everyday and then schedule some working hours for yourself so you’re not stretching work out all day long.
• Schedule your work for the time of day when you’re most alert. That might mean the morning (for most people, as bleary-eyed as they may feel, it is!) or the afternoon, but if you can do work when you’re most alert and productive, you’ll get more done in less time.
• Take a lunch break. Even if you are overloaded with work, you need to eat! So take a break and grab something to eat with friends (that’s what flexibility is for, right?) or make something for yourself.
• Get out of the house if your franchise is home-based. It’s hard to get out of your pajamas sometimes, but try to make it out of the house at least once a day. Whether that means getting rid of your coffee maker and visiting a coffee shop or making a lunch appointment with friends, it’ll be good to see some friendly faces.
• Set aside time for your family. That might mean a nightly family dinner, or taking a walk and exercising together at night. Whatever you enjoy doing together, set aside some time to do it.
• Set aside time for yourself. You need some time to read a book, take a walk or do the things you love. Don’t forget to give yourself that “you” time as well!
• Turn off your computer at night. You might get the urge to check it when you wake up in the middle of the night, so make sure you turn it off when you are done with work for the day. There’s rarely something that can’t wait until the morning…
• Make one day a week a “technology-free day.” That might mean turning off your phone, your computer and TV for a day. But that will free up a lot of time for you to spend time with the ones you love, and concentrate on your wonderful life!

If you’re taking the plunge to become a business owner, enjoy the flexibility it affords you! But remember to try for a work-life balance you and your family can be happy with… after all, you’re the boss!