Becoming a Franchise Owner; Having Realistic Expectations

There are two words used in the franchise industry that can be downright dangerous for some folks that are considering franchise ownership.

The words that I’m about to share with you are what I call, “visual words.” You’ll “see” why, in a moment.

The two words that I’m referring to are “turn-key.”

What was the first picture that came into your mind when you saw those two words?

For me, I saw a key going into the door of an anonymous retail or food franchise. Then, thoughts of instant business success soon followed in my little franchise vision. 

Now, I’m going to attempt to snap you out of your own personal franchise vision that you undoubtedly had when you read the words “turn-key.” Snap!

A “turn-key” business doesn’t mean that everything is all setup for you. It also doesn’t guarantee that you’ll own an easy business to run.

When you purchase the rights to a franchise business, even if the marketing/advertising literature (online or offline) says that you’ll be buying a “turn-key business,” please remember that it’s you that’ll be “turning the key.” (Every day.)

Business.gov contributor, *Caron Beesley, reminds us, “franchisors and franchise associations are very good at persuading would-be franchisees that franchising is generally a lower business risk, than independent business ownership.” Read what else Caron says about a franchise.

I happen to feel that buying a franchise can be lower risk than doing a pure start-up business, in the right situation.

                                    The Right Situation

• The would-be franchise owner has the right personality for a franchise-type business.

• The prospective franchisee’s family fully buys into the idea.

• The geographical location is right for the franchise business that’s been chosen.

• The financials of the prospective franchisee are strong.

If you’re going to start exploring becoming a franchise owner, please make sure that you remain grounded. By “grounded,” I mean that you need to have realistic expectations of what your “franchise life” is going to look like, and feel like.

If you think that all you’ll have to do is “turn the key,” you will have a rude awakening. (Rude awakenings in franchising usually come into play around month #6.)

Your life as a franchise owner will have its ups and downs, along with some twists and turns. It’s not going to be easy. You’ll be working harder than you ever have. Your stress level will enter the red zone. You may doubt your own abilities if the business takes longer to become profitable than you thought it would. (If you *talk with existing franchisees before you sign your franchise contracts, you’ll find out when you can expect the profit to start trickling in.)

On the positive side of the franchise ownership ledger, you’ll be (in most cases) glad you did it. It’s a great feeling to finally be more in control of your own destiny. Working for yourself beats working for someone else, hands down. There’s just a certain power to it, and you won’t know it until you try.

The money part can be good too! Once you become profitable, thoughts of growth will become your new visual. Maybe you’ll become a multi-unit franchisee. Who knows? You’ll have options. Options are nice to have.

As long as your expectations of life as a franchise owner are realistic, and you can be patient while your new franchise business ramps up, the decision to be more in control of your life, via franchising, will be one of the best decisions you’ve ever made. 

Does your Website Need a Refresh? – 6 Tips for Keeping your Site Relevant and Engaging

To the outside world your website is the equivalent of your storefront, and your customers expect it to be eye-catching, well-maintained, and always offering something new. However, when you’re on the inside and are caught up in the day-to-day operations of your business, finding the time to focus on your website is easier said than done.  And, like a neglected storefront, it can quickly become out-of-date, unappealing and, at worst, ignored.

Here are some tips to help you keep your website up-to-date, relevant and attracting customers.

1. Does your Site Meet Your Business Objectives?

It’s likely that you know your website intimately.  You helped get it started, had a say in the design, content and so on. You might even live and breathe your website. But it’s a good idea every now and again to step back a bit and assess your website in  light of where your business is and where you want it to be. Does your site reflect your brand and corporate culture? If not, it should.

For example, when you started your business you may not have had a huge budget to invest online and built a skeleton site that had basic information about your business and its products and services. But does that start-up site still meet your needs?

Do you have things to say about your business that you aren’t doing through your website right now? For example, if you hold special events, offer regular specials or discounts, are you using your website to promote these?

How do you keep your customers “in the know” using your website? Have you considered a blog, or using social media to help engage with and even educate your customers in a “social” way?

Take a look at what your competitors are doing. Do some sites seem to work while others don’t? Where’s does yours fit in the line-up and what do you think you could do differently?

2. What do Your Customers Think?

Don’t forget to ask your customers what they think of your site? Do they visit it? Does it appeal to them? What don’t they like? How can it be made more useful to them?

3. Add some Bells and Whistles

If you determine that your website meets your needs, but just needs a mini shake-up to help you meet your objectives, consider introducing these elements:

• Add Lead Capture Devices – Use your website to get more information about your customers, and offer them something in return – whether it’s a newsletter subscription, a white paper, or just another download. Use the data to establish regular communications and outreach to your customers. But be sure to adhere to SPAM laws and customer privacy laws.
• Start a Blog –A blog isn’t right for every business, but it is a great way of keeping your site fresh and engaging.  And because search engines love new content, a well maintained blog can help boost your rankings. Well written and thoughtful blogs can be a great way to introduce the human element of your business as well as position you as a trusted expert in your field. So whether you offer tips, how-tos, or share success stories of how you’ve helped your customers – just about every business owner has expertise and insights to share. To get you started read: “Thinking of Starting a Blog? Tips to Help You Start, Maintain & Grow a Small Business Blog”.
• Embrace Social Media – Another great way to generate traffic back to your website and get the word out about your business (what you offer, what’s new, what’s going on) is to get out there on social networking sites.  To help you determine, which social media channel is a good for your business, read “ Twitter, Facebook or LinkedIn? Finding the Right Fit for Your Small Business” and get started with this “Ultimate Small Business Guide to Social Media Marketing”. Of course, don’t forget to add links and icons to your website that let people know that you are active on social media.

 4. Rearrange Your Site Architecture / Design

Whether you need to improve your site navigation to help people find the information they need, or you have new content (such as a blog) that you want to showcase, make sure your site architecture easily supports this. Many content management systems make it easy for site managers to do this without the help of a web developer. But be sure you have that capability before you start out.

5. Get Outside Help

If you don’t have experts on staff, consider hiring a consultant to do the job. This one-time investment doesn’t have to break the bank and might be worth it. Remember, to make it easier for you to manage and make changes to your site down the line, make sure your designer builds a site that has a robust and easy-to-use content management system (CMS) on the backend.  This article provides some basic “need-to- knows” about CMS options: “How to Find the Right Content Management System and get More Out of Your Web Site”.

6. Measure Your Improvements

As you roll any changes out, use free website analytic tools to measure and monitor site traffic and assess ROI. How are people finding your site? What pages are attracting most interest or otherwise? Why?

Six Tips for Rewarding Employees When Cash is Tight.

As small businesses have struggled to survive during the recession, it has been difficult to reward employees with raises and/or bonuses.  In fact, many small firms found it necessary to cut employee salaries, perks and benefits in order to survive financially.   As we approach the end of 2010, the picture doesn’t appear to be appear to be getting any better.  Only a small percentage of small businesses say they’ll be offering salary increases this year.  And those who do, plan for the increases to be very small.

So how can you reward employees for outstanding performance without breaking the bank?   Here are some ideas that can help you reward and motivate your team without breaking the bank.

Cash vs. Recognition:  Research has confirmed that many employees are motivated as much, if not more, by recognition as they are by cash.  Personally, I know people who make a good salary and regularly qualify for bonuses, but they are miserable in their jobs.  On the other had, I also know talented individuals who work for less money than they might earn somewhere else because they enjoy their work environment and feel as though they are recognized for their contributions.  As a result, they are loyal and committed to the companies with which they work.

Reward Throughout the Year:  A lot of companies fall into the pattern of rewarding employees once a year -- usually in conjunction with a performance review. A better approach is to reward your team sincerely, and freely throughout the year.  That helps motivate your team and keep them energized.

Make it Public.  Don’t recognize employees behind closed doors.  Do it publicly.  Everyone enjoys  being acknowledged for their efforts in front of their peers.

Give the Gift of Time.  As the mother of four step-grandchildren, I can tell you the gift of time is as appreciated as expensive presents.  The same is true with employees.  Give a high-performing employee an extra day off or allow him or her to work a flexible schedule.  You may want to consider offering the employee an opportunity to tele-commute for all or part of the work week.

Be Spontaneous:  Rewards and recognitions don’t have to be dolled out at specific times.  Be spontaneous and fun.  And don’t do the same thing all the time.  Shake things up.  For example, bring a massage therapist into the office as a special reward or have an outstanding employee’s car washed on site.

A Small Thank You.  Small gifts bring big smiles as a thank you for a job well done.  A gift card to a favorite restaurant or spa could be a nice treat.  Tickets to a sporting event or theatre performance are also a nice way to say thank you. Remember, you can get discounted certificates on many websites so you don’t have to pay full price.

Most employees understand the current economic climate and will appreciate your creative efforts to recognize their contributions.

http://community2.business.gov/t5/The-Industry-Word/Six-Tips-for-Rewarding-Employees-When-Cash-is-Tight/ba-p/43393

Section 179 Deduction

A company should consider leasing rather than buying certain business equipment. Leasing may offer increased tax advantages. Under Section 179 of the IRS Tax Code a small business may deduct the full price of leased or financed equipment, according to Section179.org. In some cases the deduction will be more than the total loan or lease payments for the year. Most equipment qualifies for the Section 179 deduction. However, the equipment must be leased within dollar amounts specified by Section 179.
Being aware of federal tax laws can help a business make wise decisions regarding workers and managing business assets. The more a business owner knows about taxation rules, the more the company will be able to save money and maximize assets and resources.


Read more at Suite101: Money Saving Business Tax Tips http://www.suite101.com/content/money-saving-business-tax-tips-a300736#ixzz13OajVjDV

Section 530

If a company wrongly classifies a worker, it may still avoid employment tax under Section 530 of the Revenue Act of 1978. The IRS auditor will provide written notice of these provisions. Section 530 relieves business tax but not worker’s employment tax liability. The consistency test and the reasonable basis test are the two requirements for Section 530.
The consistency test requires a business to have treated all workers in similar jobs in the same manner as workers in question, according to the IRS website. The reasonable basis test requires that a company treat the worker as a subcontractor due to relying on a court case or ruling, a prior IRS audit, a long-standing industry practice, or any other reasonable basis for treating the worker as a subcontractor.
If a business is unsure about whether it should classify a worker as an employee or a subcontractor the company can request an IRS opinion on your situation, according to the IRS website. A Form SS-8 may be filled out and sent to the local IRS office.


Read more at Suite101: Money Saving Business Tax Tips http://www.suite101.com/content/money-saving-business-tax-tips-a300736#ixzz13Oae1LuE

Worker Classification

Correctly classifying workers as employees or independent contractors may help avoid future conflicts with the Internal Revenue Service (IRS). If the IRS finds a worker has been misclassified, a company may have to pay for missed employee tax benefits, according Tax Resolution University. The IRS loses over $14 billion per year due to underpaid employer taxes. Some businesses may incorrectly classify workers to avoid paying for health insurance and 401K plans. Other business owners may simply be ignorant.


Read more at Suite101: Money Saving Business Tax Tips http://www.suite101.com/content/money-saving-business-tax-tips-a300736#ixzz13OaZqrTB

Subcontractors vs Employees

There may be tax advantages in using subcontractors rather than employees for skilled or semi-skilled services. Using subcontractors rather than employees can shield a business from employer paid taxes, such as Social Security and Worker’s Compensation Insurance, according to Financial Web.


Read more at Suite101: Money Saving Business Tax Tips http://www.suite101.com/content/money-saving-business-tax-tips-a300736#ixzz13OaSqEux