|Small Business Information|
Franchise Companies Come and Go
Each day we hear of companies entering the franchising industry. This is good news for America, right? Well, yes and know. Yes, because franchising is the closest thing to the spirit of free enterprise as any other method of doing business and because franchising offers small business people advantages that they would not normally have in pursuing their American Dream. However it is unfortunate but true that the average Franchisor failure rate is 5:1 in five years. Meaning they are gone out of business in that short amount of time. This is horrific news really. Why is this? Well most often it is due to over regulation, junk lawsuits, under capitalization or greed. Having played in the franchising industry I have seen it all.
Recently I had, had enough of the crap of beating my head against the wall, sure the money is excellent if you have a good concept and we certainly do; www.CarWashGuys.com ; but we found it was easier to make more money and keep more by not growing thru franchising. In franchising you can grow faster, in a 4-year period we went from 4 states to operations and franchised outlets in over 23 states. My point is that there are just too many lawyers and regulations for one to actually believe that anyone in government actually believes in free enterprise, to think they do is a bogus notion indeed.
In our company we are not currently offering franchises to the public. Our focus is to set up company owned units across the US and eventually the world and since I have retired the team will have to do it on their own, sure a few phone calls here and there for moral support or advice, but it just is not worth dealing with that level of bureaucracy and over lititigiousness. We may franchise in other countries but the United States being regulated by the Federal Trade Commission has their heads up their asses and it makes no sense in America anymore. Generally this business decision was made due to many following factors, some of which are listed below:
Sarbaines Oxley Law and Accounting Reporting Cost Increases,
Over Regulation in Franchising and Litigation,
Multiple State Franchise Registration Laws Out of Sync,
Disclosure Laws Hurting Company Proprietary Information,
Required Disclosures which Might Help International Terrorists,
Disclosure Laws, which Require the Giving Out of Personal Information About Franchisees.
Litigiousness of Franchising and Absence of Tort Reforms in the US and Canada,
Higher Profit Margins for the Company Running Our Own Units,
More Efficiency to Corral Our Competition,
More Latitude to Take on New National Account Business,
Better Service Standards for Current and Future Car Wash Customers,
More Control of Business Model and Less Red Tape
We have chosen a new strategy along the lines of a Starbucks, Home Depot, Enterprise Rent-A-Car, Federal Express type scenario where we can exert more control and less red tape to insure higher standards and smoother business operations. Regretfully this does impact the small business community, franchise model and those who dream of owning their own franchise business. Over regulation usually does hurt the little guys and stifle competition and creates barriers to entry.
We are not the only franchisor who feels this way and if the failure rates for franchisors in our country are 5:1 it would behoove new entrants to the franchising industry to think long and hard before getting into the franchise game. If you do not have a million dollars going in, you should not go. If you have not proven your concept in many markets over various business cycles forget it. Additionally you may want to look at alternatives to franchising, because with all this over regulation you are not going to have any fun doing it. Think on this.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
In Home Daycare Businesses for Profit
To have one of the popular in home daycare businesses. Many people think all you have to do is love kids and have a home. But to have a successful daycare business, it takes a little more than that. Actually, it takes a lot more.
Survival Tips For Small Businesses
You may be in Mail Order, Direct Mail, or you may be a local merchant with 150 employees; whichever, however or whatever---you've got to know how to keep your business alive during economic recessions. Anytime the cash flow in a business, large or small, starts to tighten up, the money management of that business has to be run as a "tight ship."
11 MONSTROUS Small Business Marketing Mistakes and How To Avoid Them
Increase your profit potential by identifying ? and avoiding ? these 11 marketing mistakes.
Serious About Writing A Business Plan... Start A Business Plan Library
Tap these treasures of ideas. The best money you can spend is money invested in your business plan education. Don't shortchange yourself when it comes to investing in your dream. Start gathering samples of business plans and collect business plan books and get a business plan library started, it can change your future. Here's what your library needs to show: that you're a serious student of business strategy and planning, finance and economics, selling, and writing.
Your Small Business Suggestion Box
A suggestion box is a really good idea for your business. It can help you get valuable feedback from your customers -- feedback that they don't normally think to share with you. Whether your business is a brick and mortar location or purely virtual, it's important to hear from your customers. Here are some tips for success.
When and Why YOU Are the Best Writer for Your Business Plan
WHEN you are operating or planning a small business that is seeking funding for less than five million dollars, it's wise to consider writing your own plan.
Are You Making the Most of Your Intern?
KEEPING INTEREST HIGH: Supervision is key to the success of the program. Interns like direction, but don't like to feel they are being constantly checked on. Even this small amount of direction, however, can take a great deal of time. It is important to be willing to set aside this time to give the intern direction. One method that seems to work calls for a briefing at the beginning of each day and a "where-do-we-stand?" briefing at its end. Throughout the day, the manager is on hand to answer any questions that might come up -- remember this is a learning experience! There should also be additional time set aside throughout the duration of the internship during which the manager receives feedback from the intern on his or her satisfaction with the assignment and suggestions for future directions. Equally important, interns should receive feedback on their progress. They need to know if they are performing to the manager's expectations. Additionally, many interns have chosen to keep diaries and time logs documenting their involvement. These can be reviewed at the conclusion of that person's internship.
Pressure Washing at Golf Courses
There are many potential niches for pressure washing companies that often go unchecked. Some are quite lucrative and are worth investigation if you own a pressure washing business. One such niche is the pressure washing of golf courses, clubs houses, golf carts and facilities. To target this specialization of services you will need to slightly modify your sales approach.
Analyzing Customers in Your Business Plan
The Customer Analysis section of the business plan assesses the customer segments that the company serves. In it, the company must 1) identify its target customers, 2) convey the needs of these customers, and 3) show how its products and services satisfy these needs.
Motorcycle Detailing Procedures Manual Sample Outline
If you are a motorcycle detailer and need to expand your business you will need to have several crews working for you. Each team will need a team leader and/or manager. The motorcycle crowd is indeed a close nit bunch and groups of riders will provide you with endless referrals providing you do what you say you are going to do and lay off the BS. We just do not need any more wannabe, fast-talking, no performance motorcycle detailers in the field.
Business Valuation is Critical
What is Business Valuation? The term business valuation is the method by which the business worth is determined. This usually happens when the business is for sale, when the business is looking for extra funding from the banks, when the business is considering taking on extra investors, or where the business is looking at merging with another organisation.
Fleet Washing Expansion Considerations
Many times small businesses want to expand their businesses and are not sure when the best time to do that might be. The key of course is cash flow. Will your current and brand new accounts afford you the cash flow to expand? Let us run thru a scenario with you and just so you know this is good advice, I own the Truck Wash Guys and have been doing this a while. Each time a franchisee wished to expand and ask for advice, I would look at their situation and determine if it was a wise idea. Sometimes it was, but often it was not. So let us look a hypothetical scenario for a moment:
Small Business 101: Deadly Ignorance
American small business is again in transition. Many employees, now working from home, are no longer tied to a geographic office and the woes of commuting. This is a relatively new phenomenon with hints of explosive sector growth in the days ahead. As this turbulent economy has forced downsizing, offshore restructuring and closures in large companies, many new entrepreneurs have been born. These are people, who instead of tirelessly attempting to find new employment and possibly enduring the same fate as previously experienced, are now starting small businesses and enjoying the benefits and perils of self-employment.
Secrets to Washing Fleets of Trucks from a Nationwide Fleet Washing Service
Washing the exterior of a truck. Sounds easy right? Well, it's not really. When you soap a truck, it is very important that you are careful to soap around all the handles, turn signal lights, steps, and wipers. You want to soap all that stuff by hand. Use a one-foot by one foot lamb's wool square-not a mitt, they don't work well. You can use a brush for the rest of the truck, but you have to get in around the handles and stuff by hand. There is no shortcut if you wish to maintain quality.
Successfully Adding a Service To Your Business
There will come a time in your business where you feel ready to add another service offering. To make this successful, there are ten tips to consider before moving ahead.
Motorizing for Profit - The Craftsmen Have Left the Building
In the summer, I can't drive two blocks without seeing the activity of the construction industry. Road contractors, house builders and landscapers are everywhere.
Business Debt Collection Letter Writing Secrets
Debt collection letters--an overview
Franchises Offer Shortcuts, But Not Control
Q: I will be retiring this year at age 60 and intend to fulfill my lifelong dream of owning my own business. I'm too old to start from scratch, so I'm looking at several franchise opportunities, including fast food, auto parts, and an accounting service. What should I consider before choosing one? Anthony R.
Make Your Business More Profitable
More sales and more profit. Isn't that what you want from your business? It's not hard to achieve if you follow these 4 simple tips.
6 Ways Small Businesses Can Survive In A Crazy Economy
Contrary to popular belief, small businesses can survive a crazy economy by taking some proactive steps. Provide spectacular customer service -- every time. Have a friend or colleague visit your business and provide feedback from a customer's perspective. This person should be unknown by your staff and willing to provide a candid assessment. Make sure your front and back office work like a well-oiled machine. Are the front line and the back office telling your customers the same thing? Manage your customer relationships -- return customers take the least amount of effort -- use that to your advantage. Keep in touch often. Review your strategic plan monthly (weekly is even better). Make sure you're doing the things that will get you where you want to go. Adjust your strategic plan as necessary. Your "smallness" makes you more flexible. Communicate, communicate, communicate -- with your employees and your customers. Nurture those relationships. Ask for feedback often.
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