Analyzing your business
In order to keep your small business competitive, you need to analyze your business to make sure you are staying a step ahead of the competition. If you are just barley keeping up with them, your business will not be able to last too long. So what does it mean to analyze your business so you can continue to stay in business for many years to come? You must start with a few basic questions pertaining to your business:
How to choose a franchise opportunity.
So many options are available when looking to own a franchise. Do you like hamburgers, gym equipment, coffee, kids or cars? It is all up to you when you choose a franchise opportunity.
Make sure you choose a franchise business opportunity that fits with your personality and interests. You will most likely be working for the next 15-20 years so make sure it will continue to hold your interest.
Choosing a franchise opportunity has many pluses that starting your own business does not have.
- 97% of all franchises are still succeeding after 5 years.
- The income varies, but typically makes from $100,00 to $150,000 yearly.
- The beginners guess work is eliminated.
Five Questions to Ask about a Franchisor's Training Program
So you have decided to operate a franchise.Now that you have decided to buy a franchise, make sure that you are pleased with the franchisor's training program.Ask questions to determine what will be expected of you and how you can be prosperous.Obviously there are going to be a lot of rules to follow since you are going to be operating under and in behalf of another already established business.But you feel confident that you will receive all of the necessary training.But wait, are you going into this blindly?Have you really asked the important questions?Below are five questions to ask a franchisor about their training program:
Small business franchises
Many people want to own their own business.Some are really into the thought of running their own store, some want to be their own boss, some really like a product or store and want to be a part of it, and some just really want to own a business.You can always start up your own store, but owning a franchise can give you some of the same rewards, without having to worry about starting from the ground and working your way up.Let's look at some things you should know about small business franchises.
First off, you will probably have to take out a loan to become a franchisee. You need to make sure that you are financially sound to do so and that you are willing to accept the risks.Just because it is a franchise doesn't mean that everything will be ok.You still have a possibility of failing and losing a lot of money.
The best business models to help you revitalize your business
One of the best ways to come up with a successful business model for your small business is to copy an already existing business model when you are starting up your own small business.While it is always possible for you to look at a small business model that you admire and then try to copy that exact same business model into your own small business-opening a small doughnut shop along the model of Krispy Kreme, for example-one of the most popular ways for owners to copy an existing business model and turn it into their own successful small business is to purchase a franchise.
Learning the value of cash flow
Cash flow measures the amount of money your company makes and spends during a specific period of time. It is generally used as a way of measuring your company's wealth and net worth. Understanding your company's cash flow is very fundamental to keeping it running in this very competitive business world. Having adequate cash flow can help you evaluate your business needs and meet your common obligations such as payroll, accounts payable and loan payments.
A healthy cash flow is very important for any business to succeed. Let's say that you fail to satisfy a customer's expectations, you will probably lose that customer's business to that of someone else. This is not the end of the world because you can always work harder to find another customer and try your very best to please him. But if you fail to gather enough cash to pay your suppliers, creditors or even your employees, you will soon be out of business. Managing your cash flow accordingly is very essential for the success of your business.
If you are seriously considering going into business, you must gain some type of knowledge about accounting and computer software that is needed and used to support your specific business. Any financial tools paired with the understanding of how to use them will tremendously help you in managing your business properly. Without this understanding, the chance of your business surviving and succeeding is very minimal. As a business owner, you need to feel comfortable reading the balance sheets that tell you how much the business is worth. You need to have a good understanding about your profits and loss statements and you also need to know how to read your cash flow statements to help improve your ability to make better financial decisions in the future. Any small business owner can have the greatest plan, product or service and will still fail if he doesn't manage money in and out of his business.
How to estimate your quarterly taxes
Once you become self-employed, even if this means opening up a small business, you are going to be in charge of having to pay self-employment taxes. These taxes, which represent the Social Security tax that employers must withhold is paid in addition to any other taxes, state and federal income taxes that you might owe at the end of the year. Something else that you need to know is that most people who are self employed pay their self-employment taxes on a quarterly basis rather than just paying it in one lump sum at the end of the year. But what you have to do will depend on a variety of factors and you should consult with a tax professional before making any final decisions about when you pay your self-employment taxes. If you pay your taxes in one lump sum at the end of the year you will not have to worry about estimating your quarterly taxes because you are going to know exactly what you owe in self-employment taxes. But if you need to pay your taxes quarterly you are going to need to estimate your self-employment taxes for the entire year.
Difficulty rating: Moderately difficult to difficult
10 ways to assess a franchise
f you've always wanted to own your own business, one of the easiest ways to do so is to own a franchise.They are great because you are the manager/owner-the boss, but you don't have to come up with your own business plan.It's already laid out for you.With a franchise, you are given the freedom to run your business, but you have the support of a larger company to back you up.Franchises come in all shapes and sizes.McDonald's fast food restaurant is a franchise.So is Curves for Women (a women's fitness center).So is UPS.There are many to choose from.So let's just say that you've decided you want to own a franchise but you're not sure what type.Or maybe you've decided on the specific franchise you want to open, but you're not sure if it's going to be as profitable as you originally thought.Before you go rushing into any major decisions, let's review 10 ways to assess a franchise.This way you'll be sure you're getting a good deal (or not).
1. What is the business?Think about exactly what you'll be doing.Is it something you're interested in?Do you think it has the potential to yield a decent profit?
Continue reading "10 ways to assess a franchise"Top questions to ask a franchisor
Franchising is huge. It is because of franchising that you see a McDonalds in every city, and you see some smaller companies grow quickly. If you have the money you can buy a franchise, however, when you buy a franchise, you're putting big dollars on the line, and you have to be careful. One of the pitfalls of buying a franchise is you are not the only one that determines whether or not you succeed. Other stores, other franchises, and the overall policies are often out of your control and can reflect either negatively or positively on you.
So, when you buy a franchise there are some important questions you will want to ask the franchisor. The quality of the company that stands behind your franchise matters, so before you spend your money, ask the following questions:
Continue reading "Top questions to ask a franchisor"How to choose a franchise opportunity.
So many options are available when looking to own a franchise. Do you like hamburgers, gym equipment, coffee, kids or cars? It is all up to you when you choose a franchise opportunity.
Make sure you choose a franchise business opportunity that fits with your personality and interests. You will most likely be working for the next 15-20 years so make sure it will continue to hold your interest.
Choosing a franchise opportunity has many pluses that starting your own business does not have.
Continue reading "How to choose a franchise opportunity."