Small Business Tips

June 2016 Archive
Effective Logo Design for Small Businesses

Effective Logo Design for Small Businesses

McDonald’s has the golden arches, Coca-Cola the scripted font, and Apple… a multicolored apple. A logo is probably one of the most important elements of marketing your business. As your business develops, your logo will become synonymous with the quality of service you provide.

Your logo also conveys information to new clientele. The style and dynamics can speak volumes. Take Coca-Cola’s logo for example. The scripted text not only gives the familiarity of hand-written words, but also provides and indication that the drink is cool and refreshing. The style of the logo makes you want to say “aaahhhhh,” and I’m sure that’s something they were going for.

Continue Reading: “Effective Logo Design for Small Businesses”


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The Importance of a Logo
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By Michelle Cramer
Thursday, June 30th, 2016 @ 12:04 AM CDT

Marketing |

Why Your Business Isn’t Growing

As we can all probably guess, most of the growth a business will undergo occurs in the beginning. And it is much easier to grow a small business than a large one. Therefore, if your small business isn’t seeing much growth, it’s likely because you’re missing a necessary element.

Examine these areas of your business:

Continue Reading: “Why Your Business Isn’t Growing”


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By Michelle Cramer
Wednesday, June 29th, 2016 @ 12:02 AM CDT

Marketing |

Fire Bad Clients to Increase Profits

Are your profits being hindered by deadbeat clients?

Examples of client bad-habits you should consider cutting loose:

• Non-paying or Low-profit Clients
If they’re not paying you for your services, then they are obviously not worth working for. There is, of course, an exception to this rule. If a client is generally appreciative and can’t afford their entire bill, make payment arrangements that work for both of you. If they still won’t pay, even after you’ve given them a break, then drop them and consider suing them for the unpaid balance.

Continue Reading: “Fire Bad Clients to Increase Profits”


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By Michelle Cramer
Tuesday, June 28th, 2016 @ 12:00 AM CDT

Money, Operations |

Technology Could Make Waitresses Obsolete

Within the past ten years, most restaurants have installed touch-screens at the server work stations, for the servers to enter in the order for their tables. Now, technology has taken things one step further by recently giving restauranteurs the opportunity to put touch-screen ordering terminals at the table, replacing waiters and waitresses all together.

uWink Media Bistro, which opened in a Los Angeles area mall in October 2006, is the first of it’s kind. The restaurant was founded by Nolan Bushnell, who also founded Atari and Chuck E. Cheese’s, and he hopes to begin franchising this year.

Diners order on a touch-screen terminal at their table, and runners bring the food when it’s ready. In the interim, the terminal doubles as a video-game console to pass the time. If you need a refill on your drink, you simply touch “refill,” and 30 seconds later you have a full glass in front of you.

Lets weigh the pros and cons, shall we:

Continue Reading: “Technology Could Make Waitresses Obsolete”


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By Michelle Cramer
Monday, June 27th, 2016 @ 12:03 AM CDT

Technology |

Learning from Google’s HR Techniques

Fortune Magazine released it’s “100 Best Companies to Work For 2007″ and Google’s Mountain View, California campus was number one. Their employees are exceedingly loyal. “A team of wild horses couldn’t drag me away,” says one employee. They’re even more than willing to work all night without question or complaint.

What would make someone want to enjoy working that much? Check out these college-like incentives:

Continue Reading: “Learning from Google’s HR Techniques”


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By Michelle Cramer
Sunday, June 26th, 2016 @ 12:00 AM CDT

Human Resources |

What Ever Happened to Customer Service?

Customer service is hard to come by these days. So much so that advertising agencies are coming up with ad campaigns that emphasize the effective customer service a business provides. Instead of it being an expected part of everyday business dealings, quality customer service has become a commodity. I know I’m not the only one who finds that appalling.

Let’s look at recent news for an example, shall we. How about that American Airlines flight the Friday before New Year’s, traveling from San Francisco to Dallas (usually a 3.5 hour flight). The flight was diverted to Austin, Texas because of bad tornado weather in Dallas.

Continue Reading: “What Ever Happened to Customer Service?”


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By Michelle Cramer
Saturday, June 25th, 2016 @ 12:00 AM CDT

Customer Service |

Pulling Your Teen Out of the Financial Hole

Regardless of how old your child is, it’s never too late to teach him how to properly handle his money. The lessons that you can teach your teenager are vitally important. He is on the verge of being on his own. If he doesn’t know how to handle his money the right way, you are going to have to watch him endure years of financial woes. Take what little time you have left as an authority in his life and show him how it’s done.

Checking and Savings
Start by opening checking and savings accounts under your teen’s name. Whether she have a part-time job or just does some babysitting on the weekends, use the opportunity to show her that its better to use a checking account so that you can keep track of where the money goes.

Sit down with her each month when the account statement comes in and be sure she understands how to balance her checkbook. Explain the importance of recording every transaction in the register and figuring the current balance after each purchase or deposit.
Be sure that she understands the ATM balance shown after a withdrawal is rarely accurate and to never depend on it.

These tasks may seem common sense, but many people have no idea. I have a close friend who works in banking and she could tell you crazy stories. For example, she has many people who have bounced checks and swear by the fact that they thought there was still money in the bank just because there were still checks in their checkbook (Hello!)

Establish a Budget
Help your teen come up with her own budget to determine how her personal earnings will be spent. Determine whether she will be responsible for paying the insurance on her car, what she will be putting in savings each month, if she will be responsible for buying her own new clothes, etc. Compare her budget to the family budget so that she gains an understanding of how easy she really has it at this stage in her life.

Make a chart, indicating each spending category and how much each is allotted every month. Have your teen keep tabs on how much is left in the budget by writing down what she spends in each category and how much remains after that purchase. This will help her to know where she is overspending and to see how she can stick with it. It may be difficult for her in the beginning, but she’ll get it eventually.

Teach Real Debt
Nothing gets me more that parents who buy their teen a brand new Mustang for their 16th birthday… and, when he totals it, a Mustang convertible to replace it. Grrr. Those parents aren’t teaching their kids anything except that they can always count on daddy to get them whatever they want.

If you want your teenage to understand the real world, then teach him what it means to really be in debt. Go ahead and buy him a car, if you have the means, but get something more reasonable (say, less than $5,000) and have your child pay you back, with interest.

Make a monthly payment plan — something that is feasible based upon your teen’s income. Predetermine a percentage rate that won’t overwhelm him, but will convey the weight interest bears to him. Five percent is a good number.

Put the entire matter in writing, and be sure to include what the consequences will be for a late or missed payment (loss of driving privileges, TV time, etc.). Having a written document as a reference point helps to eliminate excuses. Also, map out a “loan payoff” chart, showing when each payment should be made and what remains on the loan after its application, all the way to zero. This will help your teen to see how much they will really be paying in the end and just how long it takes to get out of debt.

I also recommend you show them how long it would take to pay off (and how much more it would be) if they purchased the car on a credit card with the average 18-21% interest rate. I would imagine this would deter your teen from ever wanting to use a credit card for anything they couldn’t pay off each month.

In my opinion, this method is far more effective than the “prepaid card” that many parents use because the prepaid card is not teaching them the reality of debt. All it teaches is that prepayment is different from debt, but not the consequences and hardships debt can bring. Many teens end up getting a credit card anyway when they move out, without the proper education on how to handle one.

Truthfully, the possibilities are endless for teaching your teenagers about money. Anything you can do to help them understand being on their own (anything comparable to what you do) will help tremendously. Just don’t give up and don’t get frustrated. It will be well worth it to see them succeed.

Related Readings:
• BusinessWeek.com: Teens, young adults need money skills
• About.com: Teach Your Teen Financial Responsibility
• FamilyEducation.com: 5 Steps to Teach Your Teen to Budget
• FinancialLiteracy.com: Teaching Your Teen About Money


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By Michelle Cramer
Friday, June 24th, 2016 @ 12:01 AM CDT

Family Business, Money |

Teaching Your Child About Money

For most of my life I knew very little about how to handle money. My examples growing up were usually of living paycheck to paycheck, and, when finally on my own I followed suit for a long time. The only advice I ever received was from my grandmother who told me regularly to “save, save, save,” but never told me how to get to a point where I could actually do that.

Unfortunately, my story is all too common. Today’s children are tomorrow’s business owners and many of them will go through years of financial struggles because they were never taught by their parents how to properly handle money. I firmly believe that teaching our children about money from the moment they are able to count (around 2 years old), is vital to their future happiness and survival.

The Boxes Method
When you’re little one can count to 10, she can begin to understand money. Remember, kids learn by observation and repetition. Give her a small allowance in increments that can be divided. I recommend starting with three pennies each day. I know, pennies sound small, but that is about all that will hold their attention span at a young age. Provide her with three small boxes and label them: spend, save and give. Show her each day that she should put a penny in each.

The “spend” box is, of course, the money that she gets to spend. Buy some stickers and new barrettes or, for your little man, a packet of baseball cards or bubblegum. Give him the opportunity to buy a piece of gum immediately, or wait until tomorrow so he will have two cents to buy a baseball card. What seems like an insignificant process will help him to understand how spending works.

The purpose of the “save” box is obvious as well. Give him ideas of things he can save for and buy at the store within the next month, such as a matchbox car. Tell him how many pennies it will take and remind him how close he is to buying it each day.

Avoid the temptation to help him along by adding extra funds. At such a young age, he may get the idea that mommy and daddy will always help him get what he wants. You want him to learn personal responsibility, not dependence on you.

Using the “give” box depends on your preferences. I am a firm believer in giving to charity, whether it be offering at church or donating to the local shelter, so it’s part of my teaching strategy. I believe that giving will eventually produce a return.

For example, the Rockefellers are an extremely well-known and wealthy family. What most don’t realize is that from John D. Rockefeller on down, the family has always been predominately givers. John Rockefeller gave over half of his $1 billion fortune during his lifetime, and the tradition continues through the generations.

Get Them Involved
As your child gets older, expand the financial lessons (and the amount of allowance) accordingly. Make her aware of your family’s position on finances – explain where your money goes.

Too many parents feel that it’s none of their child’s business how their money is spent, but that attitude is all wrong. You child learns by watching you. Your attitude about finances will become hers as she gets older. Openness will only help her to learn more and be more responsible with her own money down the road.

Let your child have input on what the family saves for, such as a family vacation, summer camp, or new family bikes. Map out how much you will need to set aside as a family each month in order to reach your goal, and have the kids contribute some of their allowance savings (such as $5 a month). Show them how even a small amount helps you to get there that much quicker.

Teach Debt Early
It’s also important to start teaching your child the shackles of debt. When you child begins to ask for a luxury item, such as an X-Box, agree to purchase that item with the understanding that your child will pay you back out of a portion of his allowance (Christmas is an exception, of course).

You may even consider adding a small percentage of interest, say 2%. Seem harsh? Well, it might be to some, but it’s highly effective. He will soon realize that it’s better to save up for something big and be patient than to spend money that you don’t even have yet. This will also begin to teach him the difference between needs and desires.

But what if your child is already a teenager and you are starting to witness the repercussions of not teaching her earlier about finances? Don’t worry, it’s not too late. As long as she is still under your roof, you still have ample opportunity to teach her how to handle money correctly — before she gets in trouble out on her own.

Tomorrow I will cover how to reach a teenager about finances, even when it seems impossible.

Related Reading:
• FamilyEducation.com: 15 Ways to Teach Kids About Money


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By Michelle Cramer
Thursday, June 23rd, 2016 @ 12:04 AM CDT

Family Business, Money |

Relating to NBC’s “The Office”

If you haven’t seen NBC’s “The Office yet, and you’ve ever worked in an office, then you should definitely catch an episode. Its Nominations for two golden globes this year are not surprising, as the show just keeps you rolling. It’s one of my favorites and I think the appeal is not only in it’s humor, but that at least one of the characters on the show reminds each of us of someone we’ve worked with.

Angela from Accounting
I think I can probably generalize that everyone has unfortunately had the pleasure of working with someone like Angela. There have been too many to count for me.

The woman is tiresome. Her holier-than-thou complex is just down right rude, not to mention obnoxious. She is absolutely convinced that no one can do anything as well as she can — that everyone in the world but her is a moron. We could all do without the “If I were you” statements that continually spill out of the mouths of the Angelas in our office.

Inevitably, however, everyone puts up with Angela, doing nothing about her behavior. Despite the fact that we couldn’t help but feel relieved if the soda machine tragically fell over on her (or is that just me?).

Face it, when it comes to the Angelas in our office, we all just roll our eyes, mumble obscenities to ourselves and move on. We don’t say anything because the boss clearly sees something in them that keeps them around and we don’t want to risk losing our job by pointing out the elephant in the room. Say la vi.

Michael, The Manager
Incompetent is the word that comes to my mind. How the man obtained the position of manager, I’ll never understand. How did he kept a job at Dunder-Mifflin long enough to even be considered?

I have most definitely had managers like him, especially in the food service industry. You’d be surprised how many managers in a fast food restaurant stand around dumb-founded most of the time (well, maybe you wouldn’t).

I’ll have to give it to him though, he tries. Well, he doesn’t try to do the job, he tries to get everyone to like him. Granted, his attempts are often ridiculous, but the occasionally margarita party would probably bode well in any office.

Michael is genuinely concerned about what people think of him. He lacks the self-confidence that most stereotypical managers thrive on. He’s a rarity in that regard, at least in my experience.

Dwight, the…. Uh…
What does he do again? Besides brown-nose, that is. Much like the Angelas, we could all do without the suck-up Dwights of the business world. When was the last time we heard anything about Dwight’s actual job on the show? While he deems his position “Assistant Regional Manager,” Michael is often quick to correct him, noting that he is “assistant TO THE regional manager.”

The basic scenario is all too familiar — Dwight’s desire to be more than he is requires him to spend too much of his time at the bosses beck and call to get anything done. And guess who is stuck with picking up the slack, while the Dwights try and take all the credit? But we keep on doing the work, with the meager hope that someone will notice.

Pam, The Receptionist
Now she is the type of co-worker that everyone could get along with. The co-worker we all wish sat next to us. And she is a rare jewel. Pam is sweet, caring and even funny. When Michael is down, despite the fact that she often loathes him, she will help to pick him back up. She even covers him when he’s messed up (as usual).

If we all just strived to be like Pam, work would be much more bearable. The reality is, however, that there will always be someone you work with whose personality clashes with your own. That’s just how it is. The best way to cope is to watch “The Office” and find some laughter in the familiarity.

Related Readings:
• Entrepreneur.com: Is Your Office Like “The Office?”


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By Michelle Cramer
Wednesday, June 22nd, 2016 @ 12:06 AM CDT

Operations |

Baby Boomers Expected to Lead Business Boom

Baby boomers, those born between the years 1946 and 1964, represent 75 million of the nation’s population. And, in 2008, the first of that generation will hit the early retirement age of 62. Many boomers, however, don’t plan to retire. The new wave of business start-ups that is expected in the next couple of years will probably not be headed-up by 20-somethings as in recent years, but, rather, by potential retirees.

I Dream of Ownership
Of over 2100 people surveyed in a Yahoo poll conducted last year, 55% checked “own my own business” as the work they would prefer to do late in life. And 37% of those plan to start their businesses in the next five years. Ten percent of the general population owns their own business and, as a basis of comparison, 16% of baby boomers do. They make up 54% of all business owners.

Is there something in the water these days that has caused the boomers to keep on working through their golden years? You could say that. Many have a love of labor (who would of thought). But overwhelmingly it is their desire to be free and independent. Baby boomers are known to have what is called a “Peter Pan Complex.” They reject growing old in the traditional fashion, instead seeking new stimulations and challenges in their lives.

I can’t help but think about those commercials for retirement investments that talk about how, these days, retirees are looking at retirement in a whole new way. Instead of sitting in the rocking chair watching TV and darning socks, boomers reaching retirement age are taking motorcycle trips across country, skydiving, and just overall living the life they always wanted to. Why not add starting a business doing something you love to the list?

Want-to or Have-to?
Many boomers are going into business for themselves at retirement age out of necessity rather than desire. It’s the only way they will have an income during the latter part of their life. An unfortunate 90% of 45-54 year olds have less than $250,000 saved up for retirement. That equates to less than $10,000 annually to live on for 30 years.

You may be asking what the baby boomers have to offer that can lend to their success as entrepreneurs. Well, the typical stereotype associated with those reaching retirement age generally doesn’t apply to the boomer generation.

Baby Boomers:
1. are better educated that previous retiree generations.
2. are more willing to take on challenges.
3. have more funds available that younger entrepreneurs because they typically don’t have kids at home to support and have their mortgage paid off.
4. have more time available to develop their business correctly.
5. have years of experience in the real world.
6. have a vast network of connections from, frankly, years of being a part of this world.

I can’t help but cheer the boomer generation on. That’s what retirement should be… doing what you love. And why not make money doing it to support you in the years ahead? And let’s not forget, the successful businesses to come from the boomer generation will help the rest of us too, by creating new jobs, decreasing the tax burden and aiding the economy.

All I have left to say is, in the words of the 20-something generation to which I belong: “More power to ya!

Sources:
• AgeTimes.com: Start-Up Explosion on the Horizon
• BusinessJournal.com: Most Americans Dream of Starting Business
• PowerHomeBiz.com: Entrepreneurship and the Retiree
• RealtyTimes.com: Baby Boomers Boost Home-Based Business Market


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By Michelle Cramer
Tuesday, June 21st, 2016 @ 12:02 AM CDT

Ownership |

What to Expect from Technology in 2007

Have you seen Apple’s PC vs. Mac commercials (click to view ads)? You know, the ones where:

Two men stand side by side in front of a featureless, white background. “Hello, I’m a Mac,” says the guy on the right (who is much younger and dressed in jeans). “And I’m a PC,” says the guy on the left (who wears dorky glasses, ill-fitting khakis, and a jacket and tie). The two men discuss the many advantages of using a Mac and seem to agree that Macs are “better” than PCs [description courtesy of Slate.com].

I love those commercials, and I’m utterly a PC fan. But they are so well made and appealing (which, of course, is the idea). In fact, the ad campaign is rather brilliant, I’d say.

And, with 2007 being a war of new technology release between Microsoft and Apple, I would say that we’ll be seeing this ad campaign for awhile. Both companies will be releasing new versions of their main computing operation systems this year. The releases are expected to lead to upgrades to both the inside and outside of computers as we know them, as well as increase the selling price, for the first time in nearly 10 years, by 20-25%.

Microsoft will be releasing Windows Vista toward the end of January. The new operating system boasts features such as Windows SideShow, a technology that enables laptop manufacturers to include a secondary or auxiliary display in future laptop designs, which can be used to easily view the critical information you need (such as e-mails), whether the laptop is on, off, or in sleep mode.

Other Windows Vista features include voice recognition and Windows Backup, which allows you to access lost elements of your hard-drive more readily, even if the system crashes.

Apple’s new operating system is called Leopard. Some features include Time Machine, a similar program to Windows Backup, which allows you to search for deleted or lost files. Another feature, Spaces, organizes your on-screen windows into categories such as “work” and “play.”

Apple is also due to release iTV, a video-streaming technology, this year. This unit, a box similar to the Mac mini and designed to send video from a computer or iPod to your television screen, is expected to sell for around $300.

Intel has jumped on the release train as well. Due to release this year is their new wireless technology, Santa-Rosa, which will feature the latest Wi-Fi as well as greater power saving capabilities and faster access to memory. Robson, another innovation that is designed for Windows Vista, helps to speed up the start-up and application loading processes, making them up to two times faster (finally!).

There is also expected to be a boom in the ultra-mobile PC industry that Sony and other electronics manufacturers have already tapped in to. A cross between a notebook and smart phone, ultra-mobile PCs are designed for the consumer to be able to take their entire computer absolutely anywhere.

I don’t know about you, but I’m looking forward to the innovations coming our way in 2007. It never ceases to amaze me how rapidly technology advances right under our noses. Who knows, maybe we aren’t far from the world of The Jetsons afterall.

Source:
• BusinessWeek.com: Tech – The Look Ahead to 2007


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By Michelle Cramer
Monday, June 20th, 2016 @ 12:03 AM CDT

Technology |

Business Trends in 2007

Ah, the joyous time for New Year’s resolutions. Dieting to getting fit, spending more time with your family, redecorate a bedroom… the list goes on and on. I’ve made more of a commitment than a resolution this year. I plan to start my own business.

I know, it seems kind of odd that I would write all of this information about small business and not have my own. But I have learned so much writing this blog the past few months. Enough, in fact, that I have the confidence to really follow my dreams and start something.

Some 671,800 small businesses started up in 2006, two-thirds of which can expect to be in business for at least two years. So, now it’s our turn. Are you ready? 2007 is our year, right?

Okay, so you may be with me on a positive outlook for starting a business this year, but your enthusiasm may be lacking due to the fact that you don’t know what kind of business to start. We all have ideas, but whose to say that our ideas land in a flourishing market? Don’t worry, help is out there.

The most important key to picking the right business to start in 2007 is to pay attention to the world around you. Find a trend and revamp it to fit your style and a specialized market. If ideas are scarce, Entrepreneur.com is ready for you with their Hot Center — a list of the hottest business trends for 2007. And it’s a long list. You’re bound to find something you would enjoy.

Here are some possible ideas to get you brainstorming:

Home Sales Parties
Many stay-at-home moms are tuning into this trend in order to add a little adult time to their lives, as well as bring in some extra funds. Pick a product you believe in, whether it be makeup, jewelry, spa treatment supplies, home décor, scrapbooking supplies, etc., and arrange to have “parties” at other people’s homes. You get a certain percentage of the profits and your friends who host the party get special incentives as well.

Personal Service Industry
Put simply, saving time for someone else. It could be anything from a grocery shopping service, to walking their dogs, to putting together the scrapbooks others can never seem to get around to (one of the areas I plan to make part of my business).

Writing
If you have the talent, then put it to good use. One of the largest growing internet industries these days is a need for copywriters. Businesses want their webpage text to draw the consumer in, and they need good writers to do that. One of the best parts is that, typically, it’s a freelance job so the possibilities are endless.

Landscaping
This is an industry that will probably never go out of style. People want beautiful yards, whether it be for their home or business location. If you have a talent for sculpting the spectacular from rocks, water and flowers, then you should definitely consider this industry.

Coffehouses
In a category all their own, despite the fact that you can practically find one on every corner. Thing is, if you have a block near you that doesn’t have a coffeehouse, chances are that you could start one there and be very successful. Everyone’s got to have their coffee. And if you can beat the prices and selection of “those other guys,” you’re in business.

I could go on and on. There are so many wonderful possibilities for a successful business in 2007 that, as long as you stick to the trends, you really can’t go wrong.

HERE’S TO A PROMISING NEW YEAR!

Sources:
• Entrepreneur.com: What’s Hot for 2007?
• Entrepreneur.com: 13 Niches to Investigate for Part-Time Business


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By Michelle Cramer
Sunday, June 19th, 2016 @ 12:02 AM CDT

Ownership |

Elements of a Franchise Agreement

If you’re planning on investing in a franchise, it’s important to know what you’re getting into. Though I can’t speak from experience on this issue, it’s clear from my research that most Franchise Agreements (which I will hereafter refer to as “FA”) are complicated and highly weighted toward the favor of the franchiser.

Entrepreneur.com defines a FA better than I could as representing a license to use a specific business operating system employing registered brands and trademarks for a specific period of time in exchange for a specified payment structure. And there is no doubt that a FA is specific about every little detail.

A Franchise Agreement does not mean that you are becoming part owner in the company. On the contrary, all rights to the brand, trademarks and operating systems remain solely the property of the franchiser. As a franchisee, you are more or less an investor, often temporarily.

Be sure that the terms of the FA reflect how the business is portrayed in the UFOC mentioned in yesterday’s post, Finding the Right Franchise. Though every FA varies tremendously based upon the company and product or service provided, most contain the following basic elements:

Operation of the Business
The rules, restrictions and obligations of the franchiser and franchisee regarding the successful operation of the business from the franchiser’s perspective. This includes the repair and maintenance that you are expected to contribute as well as the regulations regarding trademarks, patents, advertising policies, etc.

Territory
Where your specific business will operate and any exclusivity rights that may apply. Be aware that part of your investment in a franchise may be the purchase of real property for the business location. Many FAs require that, upon the termination of the agreement, the property be sold to the franchise company, often under market value.

Support
The training and operational support provided by the franchiser throughout the lifetime of the FA. However, this is typically at some cost to the franchisee.

Duration and Renewal
The initial duration of the agreement and your renewal options. The initial term can range from 5-20 years, more frequently toward the shorter end with multiple renewal periods. Most franchisers prefer this policy because any changes made to the FA during the initial term are automatically put into effect upon renewal, and you typically have no idea what those new regulations will be beforehand. Therefore, the longer the initial duration of the FA, the better it is for you, the franchisee. Also remember that, the better your performance, the more favorable the changes will be.

Royalties
Typically ongoing and usually 4-8% of monthly sales.

Selling
What your rights are regarding the sale or transfer of your franchised unit. Usually this contains an option for the franchiser to buy back the unit or have “right of first refusal.”

Dispute Resolution & Termination
The franchise regulations regarding the policy for resolving disputes between franchiser and franchisee, as well as the process for termination of the FA, if necessary.

As a legal assistant, I cannot stress enough how important it is that you have an attorney assist you with your review of the Franchise Agreement. An attorney can interpret the legal jargon usually found in a FA, and consult you accordingly to avoid an unfavorable situation later on.

Sources:
• Free Advice.com: What’s in a Franchise Agreement?
• Entrepreneur.com: Buying a Franchise – Ready to Commit?
• AllBusiness.com: Ten Key Provisions of Franchise Agreements


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By Michelle Cramer
Saturday, June 18th, 2016 @ 12:00 AM CDT

Business Law, Startup |

Finding the Right Franchise for You

McDonald’s, Two Men and a Truck Movers, AlphaGraphics printing — well known national franchises whose appeal can be quite positive to the potential businessperson. With more than 5,000 franchise opportunities spanning the globe, knowing where to begin can be a bit cumbersome.

Should you invest in a franchise?
You must first determine if a franchise is even the right business endeavor for you. It’s important to understand that franchises are all about consistency. Each franchise unit is run by the same standards as the rest of them. If you are interested, you need to be able to answer “yes” to the following questions:

1. Am I willing to follow and embrace someone else’s business system?
2. Am I capable of being a follower?
3. Am I willing to be part of the franchise network, including accepting decisions that benefit the whole network, but not necessarily me as an individual?

It’s also important to evaluate your professional strengths. A franchise owner must have strong management and customer service skills to fully succeed in this type of business.

What franchises are you interested in?
With so many choices available, you will have to narrow your search to those options you are most interested in. The International Franchise Association and The American Association of Franchisees & Dealers provide franchise directories, reviews and guides to help you sift through the options. The Franchise Business Review provides reports on franchises based upon surveys taken by the franchisees themselves.

There are franchise consultants out there, but before you rely on one, be aware of the fact that franchisers pay them for the new prospects they bring in, so a consultant’s motivation may be a bit biased in favor of the companies they are working for.

What do the details tell you?
Once you’ve narrowed it down to the few franchises you are interested in, it’s time to dive into the details for each of them and figure out which is best for you. Be sure to obtain a Uniform Franchise Offering Circular (UFOC) from each franchise. The UFOC contains information regarding how the business is ran, any litigation or bankruptcy filings, investment costs and fee requirements, the franchise rules and restrictions, and contact information for each of their franchise units.

Take advantage of the fact that you have the contact information for those who have been where you are. Contact other owners in the franchise and get feedback from them. Find out how long it took him to earn a profit. Ask her if the franchiser is as helpful and supportive as he should be. And most importantly, has it been worth the time and money — would he do it all again?

How do you make it official?
Once you’ve determined which franchise you would like to get involved with, you should hire an attorney who specializes in franchising. It’s important that you don’t make a final decision until you’ve consulted an attorney and he/she has examined the Franchise Agreement thoroughly on your behalf.

Franchise Agreements can be tricky and, depending on the details, can turn you off to the idea completely. If you go it on your own, you may not know the fine print requirements. An attorney will help you to comb through the details so that you can be certain that the potential franchise is the right fit for you.

Check back tomorrow for more information on what a Franchise Agreement should contain and what snags to look for.

Sources:
• Business Week Online: Finding the Perfect Franchise Fit
• AllBusiness.com: How Can I Tell if Franchising is Right for Me?


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By Michelle Cramer
Friday, June 17th, 2016 @ 12:05 AM CDT

Startup |

MasterCard Global Small Business Survey 2006

Mastercard Corporation has posted an interesting global survey of small business owners and their outlook for the future.

A total of 4000 small business owners from around the world who manage businesses with 1 — 99 employees were polled. A total of 500 respondents were surveyed from eight countries, including the United States, United Kingdom, Mexico, France, Brazil, China, Hong Kong and Australia.

Small business owners around the world have differing views on the current business climate but feel more optimistic (28%) than not (21%) about the upcoming year. They work a little more than 50 hours a week but spend 18 of those hours on administrative tasks. While competition was seen as the top challenge they will face next year, half of small business owners around the world feel that globalization will help their business, rather than hurt it.

The section that stuck out the most to me was the question of what motivates small business owners to run their businesses:

Globally, small business owners say that making enough money to cover living expenses (70%) and having more control over the future (64%) are important motivations for running their own business. Small business owners in Brazil are the most likely out of all those surveyed to say that providing employment (71%) and contributing to society or the community (64%) are important motivations, while small business owners in China are the most likely to say that building something that can be passed on to their family (59%) is an important motivation. Those in the United States are the most likely to say that being their own boss (67%) is an important motivation.

MasterCard Global Small Business Survey 2006


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By Chris Brunner
Thursday, June 16th, 2016 @ 12:02 AM CDT

Ownership |