Characteristics Of Business Models Perfect For Franchising

When rapid business growth is on the menu, you might be considering franchising as a way to sky-rocket infrastructural development and revenue acceleration. For many this is a good choice, however for others it just isnt going to work. In this article we explore traits that make your business model suitable for franchising, and therefore allow you to put more thought into whether its right for your business.

Local Presence

One of the most popular reasons that businesses franchise off their assets is to grow a presence in other markets. Fast food chains are among the most popular franchise-dependant businesses as they require a local presence throughout the country.

You might wish to consider franchising if you need a sales team at a local level, a store-front at a local level, or even if you need the provision of services to happen at a local level.

Strong Brand

One of the strongest reasons why people opt to buy a franchise is the brand. When you buy a franchise from a popular brand, you can set up shop and expect people to know what you stand for right away. This is a privilege that most businesses would die for.

Brand Dependency

Its never usually a good idea to start franchising a commodity business. Although its possible that the business operates on low margins, its important that it has a means of differentiating itself. If it does not, then you have to step back and consider what value you are offering to the franchisee.

Scalable

Some business models scale better than others. For example, some people are extremely creative, and they will often use their creative talents to start a business. However, unless they can find lots of other creative people, just like them, they find that it is hard to allow their business to grow beyond a few staff.

Thats why you have to ensure your business is built in a way that means it scales well. This will often mean that systems and processes are in place that automates processes, and that a system is in place that allows for anyone to be replaced without it being detrimental to the success of the business.

Low Margins

Often franchise businesses will be low margin, high volume businesses. Franchising is a perfect fit for this model because the franchise owner only needs to earn themselves a good wage, and service their capital investment. The business is then able to grow in an, almost, risk-free way.

Economies of Scale

If your business is likely to have increased margin with scale, then this can often mean your business model is perfectly suited for franchising. Some industries, like business services, for example, often report decreased margins during certain phases in their growth cycle. Consider what your margins will look like as you grow.

Vested Management

Each of your franchise owners will have skin in the game. For some businesses this will be more important than for others. If it is important for your business, then maybe thats a sign that franchising is right for you.

Business Slogans

Businesses want to be ranked #1 in the eyes of their customers; they want their businesses to be talked about. However, there are many businesses in the same industry, targeting similar markets, fighting for the same potential clients’ attention. The same is true for politicians: they compete with each other for the same voters.

If you want your customers to select you instead of somebody else, you need to be different. It is not enough just to be different, but also different in a way your customers will appreciate. For instance, if you are the only one in your industry packaging the items in a blue case … this will make you different; but maybe is something your clients don’t care much. On the other hand, if you are the only one in your industry offering free shipping, chances are that you will be at the top if the rest of your service also matches your clients’ expectations. You have to find what makes your business unique (usually called “unique selling proposition” in marketing terms) and tell everybody.

The question now is how to articulate your “unique selling proposition” in a way that your clients and potential clients will not only understand, but effortlessly remember. The solution is: use a slogan. A slogan is a short sentence that explains what makes you unique. Good slogans are easy to be remembered, they stick on people minds. A slogan makes it easier for your business to be remembered and talked about. It can help setting your business in a privileged position in a competitive industry.

Finding the right slogan is both a difficult and easy process. While it is difficult to come up with good slogans, it is easy to recognize good ones. You, as business owner, can easily recognize if a slogan is appropriate for your business. No one else knows more than you about your business. The question is who can come up with the slogans? You could involve your employees for instance. After all, they know the message that you want to transmit … In fact, they know it so well that they most probably suffer from the “Curse of Knowledge” syndrome. The curse of knowledge means that they know so much about your business’ unique selling proposition that for them, an also for you, it is difficult to realize what it feels like not to know it. Any slogan crafted under the curse of knowledge syndrome effect will not take into account that potential clients do not know yet about what makes you unique.

Therefore, the slogan development process must include outsiders. You need sloganeers that are not affected by the “curse of knowledge”. They can provide you with their slogan suggestions and you can recognize what works for your business. It works best when the process follows an iterative refinement: sloganeers suggest slogans first, then you tell them what works for your business and what does not and sloganeers provide suggestions again. This way, your preferences are taken into account in successive slogan suggestions. It is hard to tell how many slogans suggestions you will need. Usually, business owners get the right slogan after 20 – 30 slogan suggestions, but more may be needed.

You have done already the hard work of building your business and differentiate from your competitors. Now, all you need to do is to communicate in an effective way what is especial about you, what makes your business unique. Find some outsider sloganeers and get a slogan for your business; it is a small investment with a huge return.

Business Management

Good management is the art of making problems so interesting and their solutions so constructive that everyone wants to get to work and deal with them-, these words are from renowned entrepreneur Paul Hawken. No human activity, be it associations, family, organizations, can be attained effectively without a thought of management. Increasing competition in business world and the pressure on organizations to boost the efficiency at all level clearly states the importance of an effective management. Since the productivity of every business is affected by the management factors, there is an increasing demand for qualified and skilled managerial professionals.

So a degree in business management or business administration with major in management will be a right career choice for the aspiring individuals. There are some important aspects that one should know before enrolling into a business management degree. Management is all about directing people and organization towards the goal.

Leadership skills play an inevitable role in managerial positions. They have to motivate the employees and make them feel inspired about their work. Managerial staffs should have sound knowledge in the technology and latest advancements to keep up the pace with the fast corporate world. All levels of management require a combination of conceptual, human relations, and technical skills.

A degree in business management opens up vast career options in diverse fields. So you have to decide from where to start your career. There are so many choices such as human resources, sales and marketing, finance, production and technology. Even you have options in selecting the type of organization which includes business for profit, not-for-profit and government sectors. Online and campus programs are offered by the prestigious business schools, but most of the employers require the professionals with certain amount of work experience. Hence you should start working from the bottom level of an organization. With great talent and skills, one will get promoted to the senior levels in the organizational hierarchy. The main responsibility of managers is to accomplish the business tasks by utilizing all their skills and professional experience to attain the goals.

Qualified managers who have great managerial ethics and awareness can expect a better future. However you need to gain the skills and education to get into the job market that will be available mostly through excellent academic institutions. So start now and walk towards your smart career.

Grow Your Home Based Business By Outsourcing

As your home based business grows, you are going to quickly discover that you cant do it all. Wouldnt it be a relief to find reliable people that can help your business grow while you focus on more important issues? When you outsource to the right company, this can free you up to focus on tasks that make you the most money.

A popular solution is outsourcing. When you outsource, you hire experienced people and let them use their creative talents while you focus on other tasks. Another benefit is that the workers you hire may be more up to date on the latest information and technology in their specific fields and can be assets to your clients, as well, offering improved quality service.

The first step in outsourcing is looking at all the major tasks that you do to run your business. Look at your To Do list and office area and ask yourself, what do I do that someone else can do?

Look at your business and see what is piling up. Do you struggle responding to your customer service emails? Do you have articles to write but cant get finish them? Is your office dirty and you need someone to clean it? Do you have a software project that you need developed? These are a couple things that you can outsource.

Write out a description for each task that you think that you would like to outsource. Then write out exactly what you want done, when you would like it completed and how you would like the end product to look when completed.

Once you write out exactly what you want done, you need to research to find companies that can do the tasks that you need done.

Call around and surf the Internet and ask other home based business operators which companies they recommend. Check forum posts and inquire for advice and suggestions. Shop around for comparisons. Do your due diligence. You want to make sure that you choose the right outsourcing companies.

You want to take the time to research each company that you are considering, because if you choose the wrong company it could cost you a lot of money and time.

Remember, you are in charge. Set up a trial period with these companies. Dont lock into a contract. Look for people that communicate well and are flexible. Dont be afraid to try another company. Remember to always treat people kindly. Treat people the way that you would want to be treated. You may choose to go back to them later. Be thankful.

Keep in mind that you are spending money when you are outsourcing. You want to make sure that you are getting a good return on the investment that you are making. Is the time that you are saving being used wisely?

Outsourcing can be extremely expensive and can completely wipe out your budget. Make sure that you plan and research before you spend any money. There are many companies that will do what you want. Ask a lot of questions. Before you hire anyone, make sure that they can do the job that you need done.

When you are outsourcing a software development project, make sure that the companies that you choose to work with have developed similar software. Before you outsource software projects, you want to make sure you know exactly what you want the software to do, because you can spend a fortune on making changes.

If you are outsourcing software development, you can break up the payments that you need to make to them in four installments. This will keep the software developers motivated to work.

It is easy to just go with the first company that looks good. Dont be lazy. Do the research. Do your due diligence. It will pay off in the end.

Outsourcing can save you a lot of time and can help you make a lot more money, but if you choose the wrong company you could lose a lot of money. Keep charging ahead with your business. Dont quit. God bless you. Jesus loves you.

Defining The Distribution Channels For Your Business Startup

Whether you are still developing your business idea or already know exactly what you want to do, it is important to define the best distribution channels for your product, for your customers, and for you. The distribution channel is the way your product gets to your customer. Traditionally, businesses relied on a single distribution channel. These days, the most successful startups use multiple routes to reach a broader customer base.

For some products, the route to getting it into customers’ hands is self-evident. For specialized, service-only ventures, you or your employees will personally deliver to the client, either on-site or at your place of business. Examples of these types of businesses are cleaning services, auto detailing, personal coaching, consulting, personal training, and training. Restaurants and other food service ventures also fall into this category.

Selling retail products, on the other hand, allows multiple options for distribution — online sales, brick-and-mortar storefront, direct sales through sales reps, festivals or shows, etc. Consider the distribution routes used by your closest competitors. Are they using the most effective channels? Is there any way to modify or improve on the standard methods that will still be appropriate for your product? Will you start with one channel, such as brick-and-mortar and then move into other channels, such as online?

Your target customers also play an important role in the distribution channels you select. If you are selling directly to the end user, you probably have more options than if you are targeting distributors to market your product. Think about it from your target market’s perspective. What is the easiest way for them to access your product? Under what circumstances are they most likely to be looking for what you offer? If your product is new to the market, consider where your target market currently purchases similar products. If it is easier for your customers to buy from you than your competitors, they will come.

Your own work style and personality are also relevant in considering distribution channels for your product. If the idea of spending your days chatting up strangers is distressing to you, then a brick and mortar storefront is probably not the best option. If spending countless hours in front of your computer sounds agonizing, avoid any wholly web-based options. Be honest about your preferences — one of the greatest advantages of starting your own business is the freedom to choose how you get work done. Don’t sabotage yourself by choosing a business that requires you to be out of your comfort zone for every sale.

No matter what your business idea is, there is usually a way to adapt your idea to a distribution channel that works for you and for your target customer. Take a chef that loves to prepare fine dining food but doesn’t want the large crowds of a restaurant. This chef could base their business on a catering model or a personal chef model.

Many modern startups have a broad range of choices about how to distribution their products. Consider all three factors — your product, your customers, and yourself — before deciding the best routes for your business. If possible, consider developing multiple distribution channels within your startup, even if you only start with one initially. The more ways your product can get to your customers, the bigger your potential market.