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Monthly Articles Archives published by - Business Today Newsletter
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Work at Home - Start Your Own Home Based Business (Ezine Ready)
Work at Home - Start Your Own Home Based Business
Author: Paul Jesse
There are more and more people who are being drawn by the prospect of working at home. Technology has made it easier for people to have their own home based business by way of the internet. Many people find that they love the opportunity to be their own boss and have flexible hours; however, some do not realize how much work is actually involved in starting your own home based business. While having your own business at home can take some work, most people find it incredibly rewarding. If you want to starting working at home with your own home based business, then the following are some important tips that you will need to keep in mind.
Tip #1 - Do Your Research - Before you decide on what type of home based business you want to start, you need to take the time to do some research. There are many options available online, such as affiliate marketing, network marketing, and more. You want to find the opportunity that is best suited for you, so take the time to learn what opportunities are available and what ones will be most profitable.
Tip #2 - Come Up with a Plan - Once you do your research and decide what work at home opportunity is best for you, you need to come up with a plan. If you want your new business to do well, you will need to be organized and make some business plans. These plans that you make will help to keep you on track so you can be as profitable as possible. Decide when you are going to work, and how long you will work each day. Also take the time to learn from other people who have similar businesses online as well. Usually you can look in small business forums and talk to people who can give you some helpful hints and advice.
Tip #3 - Set Goals - If you want to be successful at your new home business, you are going to have to start setting some goals. While working at home can offer you a great deal of freedom, some people may find it easy to neglect their work. Be sure that you set daily goals, weekly goals, monthly goals, and long term goals as well. Setting the goals will help keep you on track so your business will be successful for you. Remember that it will take a good bit of work on your part to start a home business, so be ready to set realistic goals to keep yourself on track.
Having a home based business can be a great thing, especially if you keep these helpful tips in mind. Do your research, have a plan, and set some goals, and you will be able to build a successful home based business that will allow you to enjoy the advantages of working at home.
Source: Submit Articles at ArticlesBase.com
About the Author:
Paul Jesse is a lifetime student of internet marketing. He created SheaMarketing.com for those interested in working from home. He invites you to visit his website and check out some of the free work from home opportunities. http://www.sheamarketing.com
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Quickly Selling Your Investment Real Estate for Maximum Profit
Quickly Selling Your Investment Real Estate for Maximum Profit By Rhiannon Williamson
More and more people have become disillusioned with the stock market and disappointed by projected pension returns and have decided to take it upon themselves to actively invest in real estate to secure their financial future - and personally I do not blame them…in fact, I’ve done the self same thing.
Investing in real estate can be an excellent way to really make your money work for you and generate you an attractive monthly income or a lump sum in the form of a capital gain…but there will come a time when you’ve finished with one investment property and you’re ready to resell it – either to release the funds you’ve invested in it or to gain access to the profit you’ve accrued – in other words, to get your hands on the money all tied up in the property.
So, if you’re already investing in a second home and are now thinking about reselling it to release the accrued equity that you’ve built up then you’re going to want to know all about quickly selling your investment real estate for maximum profit…
The first thing you need to consider objectively is the state that the property is in.
The better presented the home when it comes to reselling it the quicker you will sell it and the higher the price you will get for it. Ideally, if you can present a home in as neutral and complete a fashion as possible, the more people you will attract, the fewer people you will repel and the more interest you will generate.
Ensure first impressions are good, paint shared hallways in an apartment block, clear your driveway of debris for a stand alone house and clean windows, polish door furniture and make your property worth viewing.
Once inside clear all clutter, remove all personal items such as ornaments and photographs – if you have spare furniture then furnish the property minimally but neatly to show off the home’s potential.
The next thing to consider is whether or not to use a realtor or to go it alone
Personally I would always recommend using the services of a regulated, professional and experienced realtor…they can be worth their weight in gold but there are pros and cons to each approach. For example, using a realtor will cost you money but then you will gain immediate access to their database of potentially interested clients. Going it alone will save you money but it will mean you have to shell out cash for advertising and you will have to make all the appointments for viewings etc. – boring!
If you do decide to use a realtor make sure you’re aware of their commission and aware of what it is that they will do for you to get your home sold. Don’t be afraid to tie them in tight to a contract based on their performance…after all, the harder they work, the better price they will get for you and the more commission they will make for themselves.
Now you have to set the price
This part is not as easy as you might think – ask yourself this, ‘how much is my property worth?’ Do you know the answer? The answer is – it’s worth as much as anyone is willing to pay for it!
I can guarantee you could sell your property in five minutes if you put if on the market for fifty dollars! But one of the keys to successful property investment is gauging the market right and setting your property at exactly the right price so you get maximum interest and plenty of positive offers.
Here are a list of factors that can affect house prices…you might want to consider these when pricing your property…
Negative factors
A local economic downturn or recession
Higher interest rates affecting the cost of borrowing
Over-supply of real estate
Location has gone out of fashion
Badly presented property
Positive factors
A booming economy
Affordable cost of borrowing
Shortage of quality real estate stock
Location is going up in status and becoming fashionable
Your real estate just stands out in terms of quality or appeal
Figure out where your home fits into the local market, price it accordingly and get it onto the market quickly. You can also get in a few realtors to give you an idea of what they think your home is worth before you set the final price and it’s worth asking them for their opinion about any last minute improvements you can make to the presentation of your home as they listen day after day to the reactions of buyers and so they really know what sells a particular property like your own.
If you follow these guidelines and are not too inflexible in terms of changing the layout of a room or the guide price of a property based on professional and market feedback, you will sell your investment real estate quickly and for maximum profit enabling you to move onto your next investment project.
Rhiannon Williamson writes about investing in real estate and buying property abroad on her site http://www.ShelterOffshore.com - you will find a wealth of top tips and fast facts relating to everything to do with real estate investment on her site.
Article Source: http://EzineArticles.com/?expert=Rhiannon_Williamson http://EzineArticles.com/?Quickly-Selling-Your-Investment-Real-Estate-for-Maximum-Profit&id=502011
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Home Business Success Secrets
Home Business Success Secrets By Julie Jones
We've all heard about people who have created their own success by working at home. It seems so perfect. Being home to care for your family, a beautiful home office where you run your small business for clients who appreciate you. Enough time to pick up the kids from school or tend to family activities around your work schedule.
Do you ever wonder if those stories are real? Well don't loose hope, because I am here to tell you that these types of success stories are real, and that YOU can achieve the same lifestyle and work at home success with some focused effort and the right mindset.
Here are some work at home success secrets that will help you get started on the road to your work from home dream life.
*Passion. It's possible to be successful at a business that you are not passionate about, but if you want to really enjoy your work, choose a home business that involves your interests and passions.
*Motivators. If you have the right motivation for running your business it will propel you to success. Making money is important, but if you are motivated to share your business with others because it can benefit them, you will find that your business will be in great demand. Instead of "selling" your business you will find that you are sharing your skills or products with others who seek your help. Plus you will have great satisfaction knowing that you are helping others.
*Clear Goals. Having clear goals can help you to persevere as well as to stay on track. Write down your reasons for having a home business and keep them where you can see them for reference. Do you want to stay home for your family? Are you trying to get out of debt? These are great motivators that can help you to stay on track.
*Business Values. Having clear business values can also help you reach home business success. Do you want to help work at home moms be successful? Maybe you want to help create a beautiful memory for people getting married. Defining your business purpose and values will help you to create a successful home enterprise.
*Be a good listener. By listening to others you can learn a lot about their needs and wants as well as the needs and wants of their acquaintances. You will be surprised how much you can learn about someone by simply listening. People appreciate being heard and if your home business is able to help them with thier situation they more than likely will want to be your client.
*Integrity. Many businesses seem to lack integrity and honesty these days. If you would like to stand out and get noticed, plus feel good about your work at home business always conduct your business with integrity and honesty. You will be glad that you did and your home business will prosper.
*Attitude. Keeping a good attitude is vital to your home business. Even the perfect home business can become difficult at times. Remember to take a break when things get tough and to refocus on your goals and values.
*Respect your "Off Time". Keep regular business hours and respect the time that you set aside for yourself and your family. Be sure to focus on yourself and your family and put your work away when you are finished for the day. Don't forget to take regular vacations and enjoy your work at home lifestyle.
*Have Fun. Even if you have a passion for the topic of your home business, it still may not be the right home business for you. You may love to sew as a hobby, but having to sew for a business may just take the fun out of your passion. Be sure to consider this point when choosing your home business.
*Set specific time goals. Write down goals and the times that you intend to complete them. These should be daily, weekly, monthly as well as yearly and long term goals. Being focused and committed to accomplishing your goals will insure that your home business is a success.
The right attitude and motivation, combined with the right home business opportunity will allow you to realize your true potential as a work at home entrepreneur. To your work at home success!
Julie Jones is a successful work at home mom. For free work at home ideas and advice visit her blog at http://www.WorkAtHomeWealth.blogspot.com
Article Source: http://EzineArticles.com/?expert=Julie_Jones

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Individual Retirement Account (IRA) Investment - Mutual Funds
Individual Retirement Account(IRA) Investment - Mutual Funds By K Kovacs
You are invested in Individual Retirement Account (IRA) certificates of deposits and bonds for your retirement. These are excellent investments; but you do not want all of your IRA investments in these type of savings because you can get locked in with low annual percentage yields. It was just a few years ago that you were fortunate to get a certificate of deposit with 2.75% yield.
You are looking for another type of retirement investment that provides a higher annual return and you want to exercise caution. Your goal is to maintain a comfortable life style whether the market goes up or the market goes down.
A excellent IRA investment option is a Mutual Fund — the common name for an open-end investment company. Like other types of investment companies, mutual funds pool money from many investors and invest the money in stocks, bonds, short-term money-market instruments, or other securities. Mutual funds issue redeemable shares that investors purchase directly from the fund or through a broker for the fund. As an IRA investment in your portfolio, you want a mutual fund to meet certain conditions such as:
1) Return over long-term (5 years) should be above the average CD yields. An example would be a mutual fund that provided 32.5% or 6.5% average for 2002 through 2006. There is no guarantee of past performance but it can help you assess the fund's volatility.
2) Risk has to be minimal. The risk ratings of mutual funds ranges are low, below average, average, above average, or high. Risk is a standard deviation of the return on total investment.
3) Distribution the mutual fund gives its shareholders income and/or capital gains. All distribution should be reinvested and thereby increasing the number of shares owned. Taking this action enables you not to be taxed for the income or capital gains received. You acquire shares of the mutual fund at a lower net asset value price (the nav is reduced by the amount of distribution).
4) Total Expense ratio should be low or should exceed the average of other mutual funds serving the investment classification. The total expense ratio is the fund's total annual operating expenses which includes management fees, distribution (12b-1) fees, and other expenses is expressed as a percentage of average net assets.
Mutual Interest Data Service (www.largedividends.com) screens and analyzes thousands of mutual funds every year that distribute large income/capital gains. A data base of more than 900 mutual funds is established on the best five-year total returns.
On September 15, 2006, $10,000 was hypothetically invested among four of these mutual funds.
The objective for this investment is: 1) achieve performance growth, 2) increase the shares owned, 3) minimize the risk, and 4) maintain a comfortable lifestyle in all market conditions.
• $2,000.00 (114.92 shares @ $17.36 nav) Balanced
• $2,500.00 (89.22 shares @ $28.02 nav) Equity Income
• $2,500.00 (139.60shares @ $16.82 nav) Multi-Cap Core
• $3,000.00 (20.19shares @ $148.60 nav) Specialty Health
•$9,843.08 (-1.56%)shares purchased after initial fees
As of March 30, 2007, the total return on these funds is$10,657.67 +6.58%. If distribution was not received and reinvested, the total return would be $10,144.85 +1.44%. You can see the actual distribution and reinvestment for these investments at www.largedividends.com Mutual Funds Model.
Mutual funds are not guaranteed or insured by the FDIC or any other government agency — even if you buy through a bank and the fund carries the bank's name. You can lose money investing in mutual funds.
Mutual Interest Data Service http://www.largedividends.com was created September 26, 1999. The purpose and objective is to become a resource based on exclusively finding top mutual funds that 1) distribute large income/capital gains and 2) maintain performance growth for a 5 year period. Thousands of mutual funds are screened and analyzed every year and a new data base of more than 900 mutual funds is created based on 5 year performance. Within the data base, the best 44 stock mutual funds serving 22 investment classifications are than selected. To validate our niche, the mutual funds model was created. Data sheets offered for the 44 mutual funds provide extensive and valuable information. Always contact the mutual fund and read the prospectus before making an investment.
Article Source: http://EzineArticles.com/?expert=K_Kovacs http://EzineArticles.com/?Individual-Retirement-Account--(IRA)-Investment---Mutual-Funds&id=502984
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Personal Finance - Managing Your Own Personal Finances
Personal Finance - Managing Your Own Personal Finances By Dave Fletcher
Feeling financially secure in your future is a comforting thought. Learning how to manage your personal finances is a goal everyone should strive to as it brings about rewards rather than despair.
To help get you started you should first assess your current financial status. This is the essential first step as it outlines where all you personal finance sits. This can be a daunting task for anyone, and something most people avoid, however a basic understanding of your financials can improve your lifestyle and reduce your stress ten fold.
Understanding of your personal finances requires three things: current expenses, current income and awareness of any financial problems and desires.
Take note of how much you are spending. Make notes on your monthly expenses and match them off with your total income.
If you find your expenses are more than your income then you need to make some decisions about reducing your expenses in order to avoid taking out unnecessary loans to get by.
A good approach to have when creating your personal finance plan is complete honesty. Be honest with yourself when deciding on how much you can really afford and your total expenses. By doing so you will have an accurate overview of your financial standing. If you are not honest then your assessment will be skewed and the possibility of worsening you financial situation is a high possibility.
Perhaps the single most important factor in your personal finance plan is discipline. Admittedly this is easier said than done, however strong discipline will allow you to decide on what you should spend your money on and what you should not. Discipline is imperative if you strive for a stress free financial future.
Build a solid understanding of financial terms and money saving methods. Before investing be sure you understand the market or deal.It is never too late to for a financial education and by doing so will allow you to make decisions surrounding your personal finance much easier. Seek out financial advisors such as your accountant, or financial planners. Research and understanding will allow you to achieve your financial goals much sooner.
Visualize you facial dreams as this provide the motivation to discipline yourself and stay on track. You will be able to decide on which financial desires are achievable and within realistic reach. Focus on realistic goals as they will provide success and keep you motivated to continue.
Without question, spending wisely is a very effective method of improving your personal finances. Very simply do not spend more than you can earn or make sure your outgoings are less than your incomings. You can easily manage your own personal finance matters with a bit of honesty, discipline and financial knowledge.
Dave Fletcher is a Finance Loans consultant specializing in personal finance solutions
Article Source: http://EzineArticles.com/?expert=Dave_Fletcher http://EzineArticles.com/?Personal-Finance---Managing-Your-Own-Personal-Finances&id=498561
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5 Keys to Successful Investing
5 Keys to Successful Investing By Mika Hamilton
We all dream of being successful investors and being able to enjoy the benefits of the money we have earned. So when it comes to investing your hard earned money, you will want to be sure that you take the necessary steps to protect your investment. This starts with learning about some simple steps you can employ in order to help your investing strategies to provide you with successful results.
First, be sure that you are thinking long-term when it comes to making investments. Realize that there are very few cases of people earning large sums of money quickly (and legally) through investing, but many cases of people who have become millionaires by investing their money long-term. These people also know that they can’t react to short-term fluctuations in the market. They need to expect them, and understand that if they are investing regularly, then those dips in the market will recover.
This is related to the second key, which is to invest continuously. By investing regularly and consistently, you are able to take advantage of compounded interest to achieve amazing growth in your funds. But you are also able to take advantage of dollar cost averaging – which means that during those dips in the market mentioned above, the dollars that you are investing are actually able to buy more because prices are lower. Then when the market recovers, you’ve actually gained more shares than you could have if the market had never dipped.
The third key requires that you know the difference between investing and gambling. One is based on educated research, or the advice of those professionals that have done that research. The other is based on reacting to market tips that may not be reliable or placing too much of your investments in high-risk ventures. Remember that all investments entail some level of risk, which is why you are being paid a return, usually in the form of interest, in order to participate. The higher the interest, the greater the potential return – but also the greater the potential loss. Be sure that you understand how to balance your investments so that you don’t place all your eggs in one basket.
The fourth involves your taking responsibility for your investments and not losing sight of your goals. You will need to keep track of your funds in order to be aware of when it is time to change your strategy. You don’t want to lose years of valuable compounding interest due to an investment that is simply not paying out the way you believed that it would.
Last, keep your investments simple, meaning that you should only invest in things that you understand or have some knowledge in. If you invest in a company or product that you don’t understand at all, you won’t be able to judge the progress it is making against what it should be making. Not only that, you won’t know what questions to ask in the beginning in order to make sure you’re choosing well. As your investing knowledge grows, you will be able to grow the breadth of your investments as well.
Visit the Global Investment Institute and signup for our free Investing For The Beginner E-Course at http://www.Global-Investment-Institute.com
Investment webmasters or publishers, please feel free to use this article provided this reference is included and all links remain active.
Article Source: http://EzineArticles.com/?expert=Mika_Hamilton
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8 Direct Mail Secrets for a Higher Response Rate
8 Direct Mail Secrets for a Higher Response Rate By Peter Geisheker
To be successful with direct mail sales letters, there are several strategies you can use to increase response rates:
1. At the top of your sales letter, use a strong headline that states the most important benefit you are offering. This headline should be bold and a larger font size than the font size you use for the body text in your sales letter.
2. When writing your sales letter, use a friendly conversational style. Do not try to write "corporate" where you use large words and try to impress your prospects with your command of the English language. All that does is turn people off. Instead, write your sales letter as if you were talking to your best friend.
3. Use a P.S. in your letter and restate your most power benefit and sales offer in it. Most people will read a P.S. first before reading the sales letter, so it is important to make your P.S. have a very strong sales message and a call to action.
4. Your sales letter needs to explain the benefits your potential customer will receive. Understand that everybody cares about one thing in life - "What’s in it for me?" Put yourself in your customer’s shoes and ask yourself, "If I was receiving this letter, why would I want to buy the product or service being sold? What’s in it for me?"
5. Ask your prospect to take action such as to call you for more information, to visit your website, to complete and order form and mail you a check, etc. If you do not ask your prospects to take action, they won’t.
6. To get your sales letter opened, use a standard white business envelope and handwrite the recipient’s name and address. Yes, this takes a lot more time than using mailing labels, but mailing labels scream junk mail! The first key in a successful direct mail campaign is to get your envelope opened, and by handwriting the recipient’s name and address, you can almost guarantee that your envelope will be opened.
7. Make your envelope "lumpy" by enclosing a small, inexpensive free gift. Make sure the gift has your company name and contact information on it and that the gift is something a person would want to keep - such as a nice pen, a good highlighter, etc. And, the promo gift should have your company information on it – your company name, phone number, and website address.
8. Here is the most important direct mail tip. Repetition. You will not have success with your direct mail campaign if you only send out one mailing. Each prospect on your contact list should be contacted a minimum of three to six times during a 12-month period. Properly used, direct mail can be one of the most effective and cost-efficient marketing strategies you'll ever find for your business.
As a final thought, understand that the national average direct mail response rate is only 1%. What that means is if you send out 100 letters, the average response rate is for one customer to contact you. However, one way to greatly increase your response rate is to use the tips I mentioned in this newsletter and to make follow-up calls to the contacts you sent your letters to, especially if you are marketing to businesses.
Peter Geisheker is the CEO of The Geisheker Group Marketing Company and has been a marketing consultant for over 12 years. Peter specializes in developing and implementing strategic marketing programs and copywriting. For more information and a free marketing plan ebook, please visit
http://www.marketing-consulting-company.com
Article Source: http://EzineArticles.com/?expert=Peter_Geisheker
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Software Development Training For Aspiring Engineers
Software Development Training For Aspiring Engineers By Mayoor Patel
We all know that computers have become one of the most indispensable pieces of equipment in the lives of modern men. As the number of computer users increases, the need for various types of software products increases too; thus, the need for more software developers to come up with unique software products to satisfy the need of computer users.
For a few people who love math and the algorithms, it would be wise for you to enroll yourself for software development training and be part of the booming IT business. We know that the computer technology is here to stay, and equipping yourself with the programming knowledge through software development training, you have afforded yourself a lifetime's worth of employment opportunities.
There are numerous IT schools where you can get software development training and a diploma. These software development training schools, of course, have a pricey matriculation fees; however, having a diploma from these training schools will help you land on engineering jobs at fortune 500 corporations, fast.
If you are, however, short in the budget but want to undertake software development training, you can learn the basic to advanced programming lessons from online programming courses that are offered for a fee or for free. Just browse and search around the Internet to find these e-schools. There are also books available on how to teach yourself to become a guru programmer. You will be amazed that a few gifted programmers, without any software development training from a reputable technology school, become respected software engineers through those self-help programming books. Large technology corporations open their doors to these few talented and gifted programmers. In fact, Bill Gates is a college dropout. He did not have a formal training in programming and did software development during his high school days through his old IBM computer.
Mayoor Patel is the writer for the website http://www.software-development.wares-are.us/. Please visit for information on all things concerned with Software Development Training
Article Source: http://EzineArticles.com/?expert=Mayoor_Patel http://EzineArticles.com/?Software-Development-Training-For-Aspiring-Engineers&id=506049
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Three Home Buying Secrets
Three Home Buying Secrets By Steven Gillman
Looking for a home? Take a look at these three home buying secrets. They might just save you several thousands of dollars.
Home Buying Secret - The Agent Is Not Your Friend
Okay, maybe your real estate agent is your friend, but that doesn't mean she will be looking out for your best interest. First of all, she can't, if she is working for the seller. Unless your agent specifically is working as a buyer's agent, he or she is likely legally obligated to work for the interest of the seller. This means that anything relevant you say ("Oh, I might go $10,000 higher.") will be passed on to the seller.
Even if the real estate agent is working for you, be careful. People talk - even good agents. Don't say too much that you don't want known by all. In addition, keep in mind that an agent makes money only when there is a sale - and makes more on a larger sale, or one with a higher commission. This can mean less than perfect objectivity in helping you choose a home.
Home Buying Secret - A House Is Not Always A Good Idea
You may have the impression that buying a home is always a good idea. This is a convenient belief for real estate agents, title companies and bankers. The problem is that it just isn't true.
I know of towns where the home values are the same as they were twenty years ago, and others where they have dropped in value in the last year. Real estate does not always go up in a given year or even several. Even if real estate is appreciating, though, a home isn't necessarily a good investment, if rents are low relative to home prices.
In some towns appreciation has slowed, and home prices are very high, while at the same time, the rents in the area are low. For example, in Tucson, Arizona, a two-bedroom home can sell for $200,000, while you can rent one for just $750 per month. If you rent for half of what it costs to buy, and bank the difference, you may be further ahead financially three years from now.
Also think about how long you will be in the home. Transaction costs for real estate have gone up steadily over the years. You might spend 10% of the home value in buying costs, and selling costs, if you pay commission to sell it. This means that it will have to go up about 10% in value before you even break even - not likely if you move in the first couple years.
Home Buying Secret - Low Offers Work
Real estate agents will hate me for this one. Low offers are embarrassing for them to present to a seller, and even embarrassing for you to write. On the other hand, I have a friend who recently embarrassed himself into a lakefront home for about $40,000 less than it is worth. How would you like to buy a home AND immediately increase your net worth by $40,000?
Okay, low offers work, but here's how they work: rarely. You have to accept that if you want a bargain, you will lose a lot of potential homes, spend a lot of time making offers, and annoy real estate agents. Unless you are under time constraints, or have the fantasy that there is one "perfect" house for you, this isn't so bad. On the other hand, if none of your offers are even countered, you may really be wasting your time and trying to go too low.
Copyright Steve Gillman. To see a photo of the house we bought for $17,500, get a free ebook on how to buy Cheap Homes, and more, visit: http://www.HousesUnderFiftyThousand.com
Article Source: http://EzineArticles.com/?expert=Steven_Gillman
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Buying A Franchise Versus Starting A Business
Buying A Franchise Versus Starting A Business
Author: Raymond Lawrence
Starting a business can be an exceedingly rewarding endeavor. From its inception you have complete authority on all decisions big and small - something as imperative as planning a restaurant menu, for example, to choosing what color and style of blinds to hang in the windows, you control everything.
Additionally, for those lacking the start-up capital to purchase or rent a location, you can start a business from home with little more than a computer with Internet access.
As attractive as this autonomy seems, however, starting a business from scratch is not without pitfalls.
For instance, there are high failure rates for new businesses. It takes time and effort to develop your business plan, secure financing, acquire the necessary licenses and get a clientele base. Indeed, it is wise for new business owners to have six months to one year of income set aside to subsist on while the business gets its footing. And, unless you have a wholly unique business idea, you will likely find yourself in competition with franchise businesses that enjoy vast brand awareness and customer loyalty.
This brand awareness is one of the major pros of buying a franchise business. You will be working within a proven system and enjoy instant brand awareness and credibility.
Additionally, a network of support is available to franchisees. This includes technical and managerial support from individuals who are knowledgeable about your specific business as well as the benefit of shared marketing.
And, if another franchisee in your area airs a commercial or sponsors an event, it stands to reason that your franchise location would share in the customers purchased by your neighbor's advertising dollars.
All of these facts add up to a quicker return on your investment because your franchise business is recognized from the moment you open its doors for the first time. Also, should you find that you are enjoying great success with your franchise business; expansion is far easier with franchises than with a small business.
Finally, if it's the food, hospitality or retail industry in which you're interested, franchise businesses have a much greater success rate in all of these areas.
Despite all of these redeeming qualities, a new business owner should remember that a franchise business is not a guarantee for success, and the start-up can be quite costly. A franchise business requires the same initial investment as a new business where location, supplies, inventory and employees are concerned, but it has the added cost of a franchise fee which varies widely but can be as much as several hundred thousand dollars.
Franchise Red Flags
Entrepreneur.com lists five red flags that should alert a new business owner to a potentially poor franchise choice:
One is the franchise's litigation history, which must be made available to prospective franchisees in the Uniform Franchise Offering Circular, or UFOC. A new business owner should look for how many cases the company has been involved in with franchisees. Anything greater than one or two cases per hundred franchisees is cause for concern.
Second, you'll want to examine the turnover of units in the company, also available in the UFOC. How many franchisees have left the company and why? Was it due to failure or the sale of a successful unit to a new owner? The answer to this question can help determine-at least partially-how successful you might expect your unit to become.
Another factor that should disquiet a prospective franchisee is, after sincere research, an inability to come up with any substantial numbers concerning things like sales and profits. If it seems that this issue is skirted around, another franchise may be a better option.
Additionally, before buying a franchise business, you should ask around about the relative happiness of other franchisees. Talk to other franchise owners. Are they happy with the support provided to them by the company? Are they pleased with the success of their own units? A preponderance of unhappy franchisees suggests that you may be unhappy in this franchise as well.
Finally, although it seems simple enough, a brief look into whether your cultural and moral values mesh with those of the franchise might be easily overlooked. Is the franchise run by individuals whom you deem to be honest and that share your ethical guidelines? If not, it may be a difficult system in which to work.
Top Franchises of 2007
The Franchise 500® is a list compiled by Entrepreneur.com using the same criteria to judge each company, no matter what the size. These factors are "objective and quantifiable" and include, but are not limited to, the company's financial strength and stability and the growth rate and size of a company.
Entrepreneur.com examines the start-up costs for each franchise, the length of time the company has been franchising, as well as some of the factors on their red flag list, particularly litigation and turn-over rates. They find out whether the company provides financing and use an independent CPA to audit its financial data. They insert all this data into an exclusive formula and assign each company a cumulative score. Then, the companies are simply ranked based on those scores.
Just a few of the franchises you'll find on the Franchise 500® are: UPS Store/The Mail Boxes, Etc., Liberty Tax Service, Super Cuts, Two Men and a Truck, Golds Gym, Arby's, Microtel, Beef O'Brady's and Chem-Dry Carpet, Drapery and Upholstery Cleaning.
While the Franchise 500® can be a valuable resource for someone considering buying a franchise, Entrepreneur.com does not evaluate subjective criteria, and these areas-such as franchisee satisfaction-will need to be researched independently.
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