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Added for You - Financing A Franchise - The BIG Error
The most effective marketing gifts or items can be a slogan, joke or saying that sticks in potential clients’ heads. Reinforce this by choosing promotional printed pens that advertises your business, service or product in a humorous or unique way.Get Them Smiling Do you remember the last time you opened a fortune cookie and read the “fortune” only to realize that it could mean just about anything? A good slogan or catch phrase should be unique to your product or company name. If you don’t h
3) Take your proposition along to a local accountant or book keeper. They will give you their advice for a fixed fee and it needn’t cost the earth. If you are worried about the cost, try to compare the cost with the amount of money you could lose. I suddenly looks a little better doesn’t it.
4) When you are lying in bed in the still of the night ask yourself if you are really sure that the numbers stack up. Are you really certain that you are being realistic rather than optimistic.
5) Take another look at the numbers that the franchisor is giving you as an example. Ask yourself exactly
A careful management of your telecom bills and their audits in respect of the use of the voice, data and wireless devices is essential to check the loss of a big chunk of your revenue. Proper management can help you track your assets and invoices and reduce your costs, which would otherwise add reduce your overall profits. For this you need to streamline your audit management and audit your telephone bills to find overcharges, wrong charges, and oversight errors that may total up to heavy costs on your
Then you come up against the $64,000 questions…
1) How much will it cost?
2) Can you afford it?
Now if you are at all human you will have done what every prospect on the path to making a purchase of any sort does. You will have pictured what it will be like to own that franchise. Which is perfectly understandable.
BUT
You are also laying yourself open to the biggest mistake that prospective franchisees can possibly make. You see you can be in danger of letting your judgement be affected by a fatal affliction that is the cause of huge misery in many walks of life, but especially in Franchising. That affliction is
OVEROPTIMISM
Even the most level-headed individual is prone to it from time to time. Most of the time you get away with it, but in franchising there are several things that make this a hugely dangerous problem. That’s because of the following points:
1) The prospective franchisee (You?) is often not experienced in the world of small business finance, so they are leaning heavily on others to provide that experience. The major supplier is frequently the franchisor. A person or company who has a different agenda to you. They want to grow their business and while they don’t want you to fail they are certainly more willing to risk your future they you might be.
2) You may not be experienced in finance and cannot pull together a cash flow forecast.
3) You may know exactly how much you’ve got to spend and believe that it ‘should be enough’.
4) Your optimistic assumptions are based on doing as well or better than others already in the field.
5) You haven’t factored in what you really need to live on. What will see you on the short road to bankruptcy is a failure to recognise that these problems have to be acknowledged and dealt with. Optimism will mask these unpalatable facts sometimes until it is too late.
So to avoid disaster:
1) Create several cash flow scenarios. Yes, be optimistic, but also be neutral and pessimistic too. Then look at the pessimistic forecast. Now be even more pessimistic. Can you afford to fund the franchise and yourself at that rate of profit?
2) When you think you’ve covered the options take your thoughts along to a friend or somebody who’s opinion you value and who you can trust to give you their real thoughts rather than what you want to hear. Tell them you need to check the reality of the deal.
3) Take your proposition along to a local accountant or book keeper. They will give you their advice for a fixed fee and it needn’t cost the earth. If you are worried about the cost, try to compare the cost with the amount of money you could lose. I suddenly looks a little better doesn’t it.
4) When you are lying in bed in the still of the night ask yourself if you are really sure that the numbers stack up. Are you really certain that you are being realistic rather than optimistic.
5) Take another look at the numbers that the franchisor is giving you as an example. Ask yourself exactly h
Job interviews are a right of passage for young adults and a real pain in the you know what for everyone else. They are preceded by stress, nervousness and uncertainty. The problem is that your prospective employer is looking for certain things out of you and you have no idea what they are. For all you know, they’re looking for a supremely flexible person that can wing certain things and you present yourself as a regimented go getter that will follow company policy to the letter. You’re never going
OVEROPTIMISM
Even the most level-headed individual is prone to it from time to time. Most of the time you get away with it, but in franchising there are several things that make this a hugely dangerous problem. That’s because of the following points:
1) The prospective franchisee (You?) is often not experienced in the world of small business finance, so they are leaning heavily on others to provide that experience. The major supplier is frequently the franchisor. A person or company who has a different agenda to you. They want to grow their business and while they don’t want you to fail they are certainly more willing to risk your future they you might be.
2) You may not be experienced in finance and cannot pull together a cash flow forecast.
3) You may know exactly how much you’ve got to spend and believe that it ‘should be enough’.
4) Your optimistic assumptions are based on doing as well or better than others already in the field.
5) You haven’t factored in what you really need to live on. What will see you on the short road to bankruptcy is a failure to recognise that these problems have to be acknowledged and dealt with. Optimism will mask these unpalatable facts sometimes until it is too late.
So to avoid disaster:
1) Create several cash flow scenarios. Yes, be optimistic, but also be neutral and pessimistic too. Then look at the pessimistic forecast. Now be even more pessimistic. Can you afford to fund the franchise and yourself at that rate of profit?
2) When you think you’ve covered the options take your thoughts along to a friend or somebody who’s opinion you value and who you can trust to give you their real thoughts rather than what you want to hear. Tell them you need to check the reality of the deal.
3) Take your proposition along to a local accountant or book keeper. They will give you their advice for a fixed fee and it needn’t cost the earth. If you are worried about the cost, try to compare the cost with the amount of money you could lose. I suddenly looks a little better doesn’t it.
4) When you are lying in bed in the still of the night ask yourself if you are really sure that the numbers stack up. Are you really certain that you are being realistic rather than optimistic.
5) Take another look at the numbers that the franchisor is giving you as an example. Ask yourself exactly
Most of the time, competition stimulates us, gets our juices flowing, generates creativity, a sense of excitement, and motivates us to perform at our best. Looking for work is another matter! When it comes to financial survival, to regaining independence and self-worth, competition can be crippling.We apply for a job in the fervent hope that hundreds of others are not also applying. Finding work is too serious an issue to be considered a game or a sport. We need to find that position that will m
2) You may not be experienced in finance and cannot pull together a cash flow forecast.
3) You may know exactly how much you’ve got to spend and believe that it ‘should be enough’.
4) Your optimistic assumptions are based on doing as well or better than others already in the field.
5) You haven’t factored in what you really need to live on. What will see you on the short road to bankruptcy is a failure to recognise that these problems have to be acknowledged and dealt with. Optimism will mask these unpalatable facts sometimes until it is too late.
So to avoid disaster:
1) Create several cash flow scenarios. Yes, be optimistic, but also be neutral and pessimistic too. Then look at the pessimistic forecast. Now be even more pessimistic. Can you afford to fund the franchise and yourself at that rate of profit?
2) When you think you’ve covered the options take your thoughts along to a friend or somebody who’s opinion you value and who you can trust to give you their real thoughts rather than what you want to hear. Tell them you need to check the reality of the deal.
3) Take your proposition along to a local accountant or book keeper. They will give you their advice for a fixed fee and it needn’t cost the earth. If you are worried about the cost, try to compare the cost with the amount of money you could lose. I suddenly looks a little better doesn’t it.
4) When you are lying in bed in the still of the night ask yourself if you are really sure that the numbers stack up. Are you really certain that you are being realistic rather than optimistic.
5) Take another look at the numbers that the franchisor is giving you as an example. Ask yourself exactly
The process of receiving orders and shipping and tracking goods sold through direct marketing is called fulfillment. Common sense suggests that every company cannot produce or market products to suit every person, purpose and purse in the market place. People may differ in their buying motives, in the features and benefits they seek from a product and in their buying habits. People living in different places may vary in their buying of the same product. In pricing too, consumers differ in what they can
So to avoid disaster:
1) Create several cash flow scenarios. Yes, be optimistic, but also be neutral and pessimistic too. Then look at the pessimistic forecast. Now be even more pessimistic. Can you afford to fund the franchise and yourself at that rate of profit?
2) When you think you’ve covered the options take your thoughts along to a friend or somebody who’s opinion you value and who you can trust to give you their real thoughts rather than what you want to hear. Tell them you need to check the reality of the deal.
3) Take your proposition along to a local accountant or book keeper. They will give you their advice for a fixed fee and it needn’t cost the earth. If you are worried about the cost, try to compare the cost with the amount of money you could lose. I suddenly looks a little better doesn’t it.
4) When you are lying in bed in the still of the night ask yourself if you are really sure that the numbers stack up. Are you really certain that you are being realistic rather than optimistic.
5) Take another look at the numbers that the franchisor is giving you as an example. Ask yourself exactly
Have you ever seen all the illegal aliens at the local car washes? Did you know that they are completely exploiting that labor? They are and do you know how they do it? Simple really they tell all the illegal aliens to come to the car wash at opening. Then they put them on the clock as the place gets busy you see.Next if the business gets slow they start taking people off the clock. The illegal aliens hang around hoping it will get busy. Many are paid in cash under the table, not withholding tax
3) Take your proposition along to a local accountant or book keeper. They will give you their advice for a fixed fee and it needn’t cost the earth. If you are worried about the cost, try to compare the cost with the amount of money you could lose. I suddenly looks a little better doesn’t it.
4) When you are lying in bed in the still of the night ask yourself if you are really sure that the numbers stack up. Are you really certain that you are being realistic rather than optimistic.
5) Take another look at the numbers that the franchisor is giving you as an example. Ask yourself exactly how you are going to replicate the numbers that they are quoting. If they are suggesting that you can make quarter of a million in the first year, ask yourself whether you can really make that money – where are the customers coming from in the real world rather than on paper.
6) Look again at the assumptions you are making and decide what would happen if the assumptions were slightly out? Would it be a disaster or would it be OK.
Finally make sure you do every bit of research you can think of, and get a really good guide to help you create the structure for your investigations. You may want to consider my book – www.realworldfranchising.com it covers all of these items in more depth and a lot more too.
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