Business Education

Common Franchise Pros and Cons

Franchises are a great way to get into business. But, these models aren’t for everyone. There certainly are pros and cons to the systems, regardless of industry. However, it’s an effective way to start a company and it’s a quite popular method. For instance, there are approximately 400,000 franchises in the United States alone, according to the International Franchise Association. These employee nearly 10 million people and range across 75 different industries. But, is it for you?

Most Common Franchise Downsides

Okay, let’s begin with downsides of owning a franchise. Perhaps the largest can easily be capital expenditure or start-up costs. Some are quite large but others are relatively inexpensive. Along the same lines are the fees. You’ll pay for marketing materials, royalty payments, and more. Speaking of costs, you might be subject to sole vendor sourcing. Meaning you must purchase certain materials and supplies from approved vendors.

If buying an existing business doesn’t sound right for you but starting from scratch sounds a bit intimidating, you could be suited for franchise ownership. New franchisees can avoid a lot of the mistakes startup entrepreneurs typically make because the franchisor has already perfected daily operations through trial and error. —Entrepreneur.com

You must also comply with the proprietary standards, set by the franchisor. Now, you might have some flexibility with said standards, but it’s usually limited. Additionally, you could also be locked into a contract. Then, there’s the ongoing success of the franchisor. In other words, the “parent company” must continue its track record. And then, there’s always risk involved with any endeavor.

Biggest Franchise Advantages

Of course, franchises have plenty of upsides. If they didn’t, there’s no way these models would routinely demonstrate such high levels of success. People simply wouldn’t waste any time (or money) and the entire notion would eventually disappear. But, franchises do largely succeed. So, here are the biggest franchise advantages:

It’s an already established brand. Here’s what attracts so many entrepreneurs to buying franchises — it’s a known quantity. Consumers are already familiar with the brand and its products and/or services. Which means you don’t have the burden of establishing it from scratch.
Marketing and operation support. Another big benefit is that you’re not out on your own. You receive marketing and operational support from the franchisor, which is a huge plus.
Proven system of employee training. Along the same line is there’s already a working system in-place for employee training. You don’t need to work your way through trial and error to refine a workable training system.
Access to proprietary operating methods. Speaking of an in-place system, you also don’t have to try to peel back the veil to learn how the system works. You’ll get all the information you need to open and run the business with actionable guidelines.

What other franchise pros and cons would you add to the list? What are your thoughts about buying a franchise? Please comment and share your ideas!

Interested in learning more about business? Then just visit Waters Business Consulting Group.

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Start the New Year Strong – Avoid Entrepreneurial Burnout

January 12, 2018 No Comments

Now that 2018 is upon us, it’s time to make good on your resolutions. As an entrepreneur (or soon-to-be business owner), you want your company to succeed. This requires a lot of hard work. It also requires dreaming big. Without those two elements, it’s very difficult to move forward. Unfortunately, being an entrepreneur means having to shoulder a big load. And, that can easily lead to burnout. The passion turns sour. It’s no longer a challenge but a burden. The good news is, it doesn’t have to be a reality. Make 2018 a Great Year for Your Business If you want 2018 to be a success for your business, you must avoid certain personality types. Additionally, you’ll have to keep the fire going inside. Entrepreneurs are complex people. They love to dream and can easily leap from one to another. What’s more, they really love to work and work hard. The reward is simply too good a feeling. But, even the hardest workers, the most disciplined business owners can fall victim to burnout. Being an entrepreneur is no mean task, and definitely isn’t meant for the fainthearted. Entrepreneurs have too much to do and a lot to prove, not just to their competitors, but also themselves. Dealing with the daily challenges and frustrations that come from running a business operations can take a toll on any sane person’s mental and/or physical health. —All Business.com In fact, this is actually one of the biggest (if not the single biggest challenge) entrepreneurs face. Long weeks with plenty of nighttime hours devoted to work takes its toll. Eventually, you feel less connected to personal relationships. And, strangely enough, less in-tune with your own business. How to Avoid Entrepreneurial Burnout Entrepreneurial burnout is a real thing. It’s a trap entrepreneurs unwittingly set for themselves. They don’t even know it’s happening until it’s too late. All of a sudden, there’s little to no reward. Things seem dull and routine — even monotonous. Fortunately, there are ways to avoid entrepreneurial burnout: Avoid falling into a rut. Okay, so one of the biggest challenges to running a business is to set and stay on schedule. But that very strategy can also turn against you. It goes from smart scheduling to rut and does so without warning. Seemingly out of the blue, you feel like you’re just doing the same thing over and over. So, change environments and scenery. And, do so regularly. Schedule regular breaks. Make no mistake about it, both long and short breaks are necessary. You not only need to get out of the office on a daily basis, you need to get away from the office regularly. And, take actual time away from the business. A simple weekend getaway without any work offers amazing refreshment. Stay away from time wasters. You probably fall prey to time wasters. Social media is a great example because it’s so prevalent. Or, it could be constant chit-chat. Whatever wastes your time, identify these and you’ll lessen the burden of feeling unproductive. Always be clear about what you want. Losing focus is a big problem. But, there are simple ways to deal with it. Every day should bring you closer to your next goal. But, if you’re unclear about that end, you don’t know where to begin. So, work with others and be cognizant of where you want to go next. What does it take to succeed as an entrepreneur as quoted by Tony Robbins. I listened to a great interview with Tony Robbins recently, and when asked about the characteristics that it takes to succeed, Tony shared in his interview: 1. HUNGER … dig deep to successful people, Steve Jobs, Bill Gates, Mark Zuckerberg … you will find that they are HUNGRY to achieve and push beyond the pain 2. Having a Mission larger than you … your WHY. Why do you do what you do? Pride of ownership, mission, joy, being able to give to our kids and others more than ourselves 3. You have to become Obsessed with Strategies or a Plan to succeed. For example; if you say you want to enjoy life on the beach and you start running North … you’re going the wrong direction because the beach are South! The right strategy can save you a decade and lots of losses. How do you avoid burnout? What other things do you use to stay focused and excited? Please share your thoughts and experiences by commenting and joining the conversation! Interested in learning more about business? Then just visit Waters Business Consulting Group.

Effective Ways to Deal with a Setback

May 7, 2019 No Comments

Setbacks are inevitable. They come in many shapes and sizes and some appear from out of the blue. When you encounter a setback, it triggers different emotions. You feel shocked, unprepared, perhaps angry or down. It’s only natural to feel bad after a setback but it’s how you handle it that really matters most. How to Overcome a Setback Everyone experiences setbacks, large and small. During these times it’s easy to feel overwhelmed and maybe even unappreciated. (This is especially true when it involves an interpersonal relationship.) Minor setbacks throw us off for a few hours but others are much more significant and really throw us in a tailspin. While we will all experience roadblocks, we will differ in how we handle them. Some of us have the resilience to just pick up the pieces and move on. Others find it difficult to let go. Either way, how do we learn from the tough times? —Entrepreneur.com Whatever the cause and no matter the size, it’s important to understand you aren’t out of options. Sure, you feel helpless to one degree or another. And, it does bring into question what’s all that time and effort for, anyway? But, if you put things into perspective, you’ll begin to realize it’s not the end-all, be-all. Effective Ways to Deal with a Setback We all know adversary helps to build character. Although, no one welcomes tough times, whether in the form of a setback or something else. So, here are some effective ways to deal with a setback you can put to use: It’s only temporary. Very few setbacks are insurmountable. And, most are only temporary. Realize it is just a temporary situation that will pass. It will only linger and bother you the longer you allow it. If you put it into perspective, it’s merely one of many temporary obstacles. Your goals remain. Sure, it does bring into question what all your hard work is for in the first place. And, it undermines your sense of accomplishment and success. While these are certainly true, it doesn’t change your goals. Refocus on your goals to help you overcome. Reset the timetable. Any setback will throw off the timeline, there’s little way around this fact. But, that doesn’t mean you can adapt and readjust your timetable to make it workable again. Take action, right away. Of course, the worst response is to do nothing at all. It will not get you past the situation and will only serve to make it haunt you even more. Take action straight away and you’ll start to feel better immediately. What other methods would you suggest to get past a setback? Please share your thoughts and experiences by commenting! Interested in learning more about business? Then just visit Waters Business Consulting Group.

The Landlord is Seriously Raising My Business Space Rent – What are My Options?

July 13, 2022 No Comments

Commercial tenants can expect their rent to go up every year. In fact, it’s a bit unusual for the rate not to increase at the end of a lease. But sometimes, unscrupulous landlords will take advantage of their tenants’ naivete and exercise a somewhat obscure clause that allows them to up the rental rate substantially. So much, that it can increase by a relatively high percentage, thus making it virtually unaffordable. Fortunately, there are some options commercial tenants have in these situations. Business Owners, Know Your Lease Although it may seem completely obvious or self-evident, don’t just skim over any commercial lease. If necessary, pay an attorney to look it over and explain it to you on a very elementary basis. Or, go over it carefully yourself and if you don’t understand something, be sure to research it on your own – do not just take the landlord’s word for what it truly means. There’s no standard agreement for commercial leases. In fact, negotiating the terms of commercial leases is usually expected. Depending on the state of the commercial real estate market, a business may be able to obtain significant concessions from a landlord. A property owner with a largely vacant business park, for example, will most likely make allowances. On the other hand, the business renting the space will have less control over the terms of a lease in a hot rental market or when renting a premium space. —FindLaw Small Business We’re not going to get into commercial lease types, because there are many kinds. But, it is quite common for leases to contain various expenses besides just renting pure square feet, including common area maintenance and repairs, and other expenses. However, it certainly isn’t unheard of that tenants get stuck with even more expenses related to their business rentals. So, again, be sure to understand the lease before you sign on the dotted line in order to avoid any confusion or surprises in the future. What To Do When Your Business Rent goes Up Unexpectedly If the commercial space you’re leasing for your business goes up dramatically, you do have some options available, though they may not always be the best. Here are a few things you can do if the landlord raises the rental rate on your commercial space: Do your research first. Start by getting a firm grasp on your state’s commercial rental laws. This won’t necessarily be a fun task, but a very necessary one. If you understand how these laws work, you may find something in your favor. At the very least, you’ll have more knowledge about how the landlord-tenant laws work in your state and will be wiser to make better decisions in the future. Survey the local market. The next thing you should do is to start looking at other commercial spaces immediately. You just may find some deals out there that would allow you to either lower your current rental rate or be competitive. Because of the pandemic disruption, many commercial landlords are desperate for tenants, since so many businesses have adopted work-from-home and hybrid models. Try to renegotiate your current lease. Another option is to try to renegotiate the lease on the property you are currently occupying. You can use your newfound knowledge of the law and of the local market opportunities to your advantage. This is especially helpful if you really want to avoid the hassles of moving your operation elsewhere, and the landlord is willing to be reasonable. How else would you deal with a sudden commercial rent increase? Please take a few moments to share your thoughts and experiences so others can benefit from your input! Interested in learning more about business? Then just visit Waters Business Consulting Group.