Franchise Money Maker

This article is written and owned by Mike F Morgan

One of the more popular options for investing in and starting a new business is the franchise model. This is in some cases quite a lucrative way to get into the world of business because you do not have to launch and establish a new brand. In most cases the company will charge you a marketing levy as well as a royalty to promote the brand for you. Some very well known franchises have a well established name so at least you will have a fairly instant customer base.

There are a couple of major disadvantages with this business model though. Firstly the buy in price is normally substantial and the return on investment slow. It will usually take up to 5 years to begin to make any real profits. Secondly you are at the mercy of the marketing department as to how much and how often marketing is undertaken in your area. There are a few horror stories of franchise companies making all sorts of promises re: marketing in the lead up to a sale, then announcing a change of plans after the documents are signed and the money has changed hands.

We have a franchise business in New Zealand known as Mr Whippy which is a soft-serve ice cream truck business. My Whippy trucks are easily identifiable because as they drive around the neighbourhoods the trucks play a short passage from “Greensleeves” over and over again. This is played at quite a volume to let all the kids know that the ice cream truck is in the area.

The other day I was in one of the wealthier suburbs of Auckland. I heard the familiar refrain from Greensleeves and soon enough one of the trucks pulled up not far from me. It was cold with squally showers blasting through at regular intervals. Not exactly weather most conducive for sales of ice cream. I observed the driver and business owner as he sat and waited for customers who would fail to materialize.

He did not look very happy and Greensleeves played over and over again. After a few minutes he pulled out and moved to another spot a distance down the road. Same thing here - no customers. I really did feel for him.

When I got home I decided to do a bit of research into the startup costs for this type of franchise. To buy into the business it will cost you $140,000. You will pay 7% of your turnover in royalties and marketing fees. You are responsible for maintaining the vehicle and you can only buy your product from the franchise company. How many ice creams do you think you would have to sell to get a return on investment? Summer in New Zealand lasts for about 3-4 months at best so a large portion of the year is fairly unproductive. Interesting statistics to analyze really.

Compare the risk factors in franchise business with setting up an internet marketing home based business. Here are some of the advantages. Low startup costs, zero inventory, no vehicle maintenance or retail outlets, no huge administration costs such as legal fees and insurance and an extremely fast return on investment. The other interesting advantage with the online marketing business is that it never rains on the internet. Here you have access to a potential market of a billion and a half people and your marketing system works for you 24 hours a day, 7 days a week, 365 days a year.

And the best thing is you don’t have to play “Greensleeves” to attract customers to your business!

Mike Morgan is an internet entrepreneur, mentor, business coach and marketing strategist who runs his business from his home at Muriwai Beach in New Zealand. Mike works with a team of top global entrepreneurs who have developed a powerful online business system which you can find out more about at http://www.roadmapforwealth.com/?t=ezine34.

Article Source: http://EzineArticles.com/?expert=Mike_F_Morgan

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Kellie D’Andrea
http://www.kelliedandrea.com

5 Strategies to Grow Your Business Now
In today’s economy, many businesses are struggling to keep
their heads above water. They find themselves under a lot
of stress and looking for ways to recession-proof their
businesses. I love Michael Gerber’s book E-Myth because it
teaches entrepreneurs how to systematize their business so
it runs smoothly and as expected. In times like these,
business owners often find themselves wondering what they
could do to protect them for the future. Here are 5 tips
that you can use right now:

1. Perform a Financial Makeover Now is the time to be
financial focused and trim the fat! As business owners, we
sometimes have a tendency to set and forget, but in a
recession, it is critical to focus on every element of the
business’s finances. Look at what is essential to you
business and identify wasteful spending. How can you save?
What can you leverage? Renegotiate all contracts (even if
the contract isn’t up yet). Bottom line - eliminate
expenses that are not essential to your business.

2. Automate, Outsource and Redistribute Now is the time to
be working on your business, not in it. It is so easy to
fall into the trap of doing everything yourself - don’t do
it. Look for solutions that add value, make sense and can
be leveraged. Your time should be focused on building your
business and developing strategies to grow your business.
Bottom line- automate, outsource, and redistribute the
tasks that take you away from growing your business.

3. Create More Value For Your Customer

Now is the time to tell your customers you love them! Show
them why they should continue to do business with you and a
simple way is to create more value for the same price. Take
a look at what little bit extra you could throw into the
pot. A free service? A free widget? An extended contract at
current prices? Whatever works for your business. Bottom
line - Do everything you can to keep your clients and
attract more.

4. Network Like a Maniac

Now is the time to reach deep into your network and make
connections. Building up social capital is one of the best
marketing strategies a business owner could use to build
their business. To be an effective networker, you need to
be genuine and not be looking for something in return.
Offer your gift of knowledge, compassion and connections to
help out others. The ROI on that action will pay off for
years to come. Bottom line -Friends give friends work.

5. Stay Focused on The Future

Now is the time to position yourself for the future and in
order to do that, you must remain focused. Although these
are tumultuous times, begin smart and strategic will bring
you out ahead of your competition. You should always be
thinking about what action you can take that will move your
business forward. Bottom line - never lose sight of the
prize.

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Kellie D’Andrea is the creator of the BLAST 9O Day Coaching
Program and teaches biz owners how to build the business of
their dreams for a life of freedom, profits and
fulfillment. Interesting in growing your business, sign up
for her FREE mini course “The Empowered Entrepreneur” and
learn how to take the journey to freedom, profits and
fulfillment at http://www.kelliedandrea.com
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