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16 WHAT’S YOUR ENTREPRENEURIAL APTITUDE
22 HOME-BASED BUSINESS WINTER 06
America’s Resource For Entrepreneurs and New Businesses
BUSINESS TO BUSINESS FRANCHISE GROWTH
It’s Not About Golden Arches Anymore
20
PLUS
Reasons to pick a B2B franchise
MARKET MAGAZINE
BUSINESS SERVICES FRANCHISE DIRECTORY —inside
The Future of Franchising A Look Ahead to 2007
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Contents WINTER 06
Franchise [MARKET MAGAZINE ]
BUSINESS TO BUSINESS
FRANCHISE 22 GROWTH It's Not About The Golden Arches Anymore
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Business Services Franchise Directory From accounting & tax services franchises to those who offer staffing services, you are sure to find a franchise that is worth considering in our “Business Services Franchise Directory”
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The Quiet Giant Home-Based Businesses In today’s society, with the cost of technology plunging, large corporations downsizing, and the Internet becoming a universal force, the wave of people starting businesses at home has become a tsunami.
20 Reasons to Pick a B2B Franchise Many entrepreneurs who consider buying a franchise fail to consider the advantages of selecting a business-to-business (B2B) operation.
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Franchise [MARKET MAGAZINE ]
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A Look Ahead to 2007 Indicators pointing to good year for the Franchise Sector
14 From the Publisher
51 The Video
56 How the SBA
Franchising That's All Business
Business Card
Can Help You Start
An Idea Whose Time Has Come
From Sound Advice to Small Business Loans, the SBA can Play a critical role in your start-up
16 What’s Your Entrepreneurial Aptitude? Seven Questions To Ask Yourself Before You Start Your Own Business
52 Watching Out For You. The SBA Is Your Voice In Washington
Underestimate Build-out Expenses
SBA’s Office of Advocacy, examines small business’s role and status in the economy and independently represents the views of small business to federal agencies.
Changing a former hardware store into a restaurant can be a huge project.
55 SBDC
32 Don't
Network Over 1,000 local SBDC offices extend entrepreneurial education to meet small business needs
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The Future of Franchising
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64 Closing Quotes Quotes from those who have been there, done that.
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HOME
Finding the Right Franchise Online
FRANCHISES PRODUCTS MAGAZINE INTERVIEWS ADVICE EVENTS FRANCHISE SEARCH BY INVESTMENT SEARCH FOR CONSULTANT
INTERVIEWS
“Read Interviews With Top CEOs From Major Franchisors” READ FIRSTHAND WHAT MAKES THEIR BUSINESS OPPORTUNITIES WORK.
Go to: www.franmarket.com for details.
FIND A FRANCHISE
FIND FRANCHISE EVENTS www.franchiseshowinfo.com Las Vegas, NV January 12 & 13, 2007 Pasadena, CA January 27 & 28, 2007 Phoenix, AZ February 10 & 11, 2007 New York/New Jersey March 17 & 18, 2007
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www.franchiseexposouth.com Miami, FL January 19 - 21, 2007 www.ifeinfo.com Washington, DC March 30 - April 1, 2007
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FROM THE PUBLISHER
Franchising That’s All Business. As you can see, we are focusing on Business Services Franchises in this … our Dec/Jan issue. Most of us are so accustomed to restaurant franchises, like McDonalds, Wendy’s, and Subway, that we aren’t aware of a whole new sector of franchising that has been developing over the last five years … Business Services Franchises. And yet, if I mentioned UPS Store, H&R Block, and Fast Signs, most of you would acknowledge not only knowing about them, but having one in your neighborhood. The reason most people don’t pay much attention to these storefronts, is that these franchises serve predominantly businesses … not consumers. Oh yes, consumers occasionally need a sign for their church group or need packages shipped to a relative, but primarily it is the local business person or small company that depends on these businesses and frequently uses them as a service to their own business. Hence, the reference …. “Business to Business”. This new sector has grown so much that we not only made it a feature of this issue, we thought it would be helpful to produce a list of the top Business Service Franchises so you can easily see them all in one place. In the “Business Services Franchise Directory” you can see all the opportunities and how they compare to each other, listed by category. Additionally, many new technologies, the Internet, the saturation of computers, and the ability to work at home, have created new business segments that weren’t possible even 10 years ago. Today, in the U.S., computers have hit an all-time high of over 80 percent penetration. That’s over 90 million households with a computer. And over 50% of them have broadband. When you factor demographics into the equation, nearly 100% of households earning $75,000 or more, own at least one computer and nearly all have broadband. In this issue, we also take “A Look Ahead at 2007” and consider the factors that will affect small business growth as well as Franchise growth. And as we often do, we have a section devoted to small business start-ups featuring SBA’s (Small Business Administration) helpful advice and direction. Whether you’re considering a franchise … or any business opportunity … this issue will help you gain new perspective. And If you’ve only thought of the “Golden Arches” when someone said “Franchise”, your world is about to get a little bigger.
Robert Pitts George Byfield Rex Wilson Michelle Jerla Brenda Brader Diane Traylor Jennifer LeClaire Robert A. Sullivan Bruce Olans Jeannine Gage Hortense Leon ______________________________________ Publisher Research Manager Advertising Director East Coast Ad Manager Midwest Ad Manager West Coast Ad Manager
Robert Dallas bdallas@reni.net Cheryl Watwood Brandon Moxam bmoxam@franmarket.com Nicky Harvey Matthew Russell Kenna Rogers
Florida Sales Office: 150 3rd Street SW, Winter Haven FL 33880 Telephone: 863-294-2812 ___________________________________________
Webmaster Advertising Director
Jay Hook Brandon Moxam bmoxam@franmarket.com
Internet Sales
Deanna Pearce dpearce@franmarket.com ___________________________________________
Franchise Magazine is published quarterly by RENI Publishing, Inc. 150 3rd Street SW, • Winter Haven FL 33880 Telephone: 863-294-2812 Fax: 863-299-3909 President & CEO Group Publisher Operations IT Services
Joe Jensen Jim Phillips Denise Harwell Jay Hook
Information in this magazine is subject to change without notice. While every reasonable effort has been made to ensure that the information was accurate as of publication date, RENI and its employees, agents, clients and distributors shall not be liable for any damages arising from the use of or reliance on the information contained in this publication or from omissions to this publication. _________________________________________________
Bob Dallas Publisher
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Editor Art Director Assistant Art Director Managing Editor Associate Editor Production Manager Contributing Writers
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for starters
WHAT’S YOUR ENTREPRENEURIAL APTITUDE? 7 Questions To Ask Yourself Before You Start Your Own Business.
All the reasons for a business failure are too numerous to list, but they can be categorized into these major areas: Lack of Entrepreneurial Qualities Lack of Information Lack of Planning
FOCUS YOUR ENERGY Planning and starting a business is a little like climbing a mountain. It is a perilous journey, fraught with unknown dangers and influences outside your control. But if you keep your goal in sight and plan very, very carefully, getting to the top can be a most rewarding experience. We'll revisit this metaphor later. The statistics concerning survival rates of new businesses vary considerably depending on who's doing the reporting. For instance, the reported failure rate during the first three years ranges from 10% to 85%. The real figure is no doubt somewhere in between these limits. The point, however, is that considering there are nearly a million new business start-ups each year; many of them will fail. We're going to profit from these failures by learning the basis for the failures, adding this information to data we've gleaned from the successes, to give you a clear advantage. This guide contains a wealth of information that is based on many actual, hard-learned, and expensive lessons.
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One of the major elements contributing to business failure is the lack of entrepre-neurial qualities. So what are they? Do you fit the criteria? Don't put your head in the sand on this issue. Starting a business is tough and it is very important that you determine early on if you have the "right stuff." Better you find out now what qualities you may need to strengthen rather than finding out once it is too late. John and I were recently discussing the problems he was having with his new business venture. After chatting for a while it was clear to me that he should have never undertaken the venture. He simply did not have the entrepreneurial 'spirit.' John didn't discuss his venture with me even though he knew I was a business consultant. He knew that I would tell him not to do it. You see, John KNEW he needed to strengthen certain qualities, but was blinded by the dollar signs in his eyes! You need to be more honest with yourself than John, so let's take a little test. This test is an entrepreneurial aptitude test, a sort of "self-evaluation" checklist. A high score places you in the pro-
file more likely to succeed in starting and operating a business. Answer each question honestly! We will then discuss each question. Grade each question on a scale of 0 to 5, with 5 being yes, absolutely, and 0 being no, absolutely.
CHECKLIST #1: ENTREPRENEURIAL APTITUDE 1. Are you a leader? 2. Are you a high-energy person? 3. Are you self-confident? 4. Are you organized? 5. Are you competitive? 6. Are you prepared to work long hours, every day for an indefinite period? 7. Do you have adequate resources?
Now total your score ... Good news, there is no failing score! The list only serves to provide an "awareness" of what you need to be thinking about. Now let's look into each question with a bit more care.
1. ARE YOU A LEADER? It is hard to "define" a leader, but it is easy to know one when you see one. A good "manager," by the way, is not necessarily a leader. It has been said that leading is doing the right thing and managing is doing things right! An
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for starters entrepreneur must, of course, be a competent manager, but, more importantly, must lead the way to success.
direction, there's a town about 200-yards off to the left!" Harry was a good manager, but Paul is a leader!
A few years ago while consulting for a relay manufacturing business I met with the founder and owner. It was easy to see he was an excellent manager and organizer. He had effectively set up his company, found satisfactory help, and was quickly manufacturing small runs of high quality electromechanical relays. When he called me, the company was in trouble - Poor sales, decreasing order backlog, etc. We determined the problem was that the market had been slowly moving towards solid-state relays and the electro-mechanical units simply were no longer being designed into equipment. In overlooking (or not being aware) of this fact, the owner, although a good manager, was not LEADING the company in a successful direction.
To be a good leader you must focus your energy. If you are going to start a business, be prepared to focus on your objectives. If you feel you lack leadership qualities, read one or more of the many good books available on the subject. No one really knows if a leader is born or made, but it is possible to focus on those qualities that most leaders seem to possess. The reference section at the end of this chapter suggests some reading material on this subject.
TRUISM 1
It takes a leader to successfully start, run, and grow a business.
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A group of surveyors was lost in the jungle and had been wandering for a number of hours under the hot sun. They were following instructions from Harry, who was carefully organizing their route through the dense jungle underbrush. He made sure they were not going in circles, assigned one member of the party to keep the long knifes sharpened that they carried to cut the brush, ensured rest breaks were periodically taken, that water was being rationed, and so forth. Finally, Paul, nearly exhausted and anxious to end this adventure, climbed a tall tree, took a look, and yelled down to the group, "Hey, we're going the wrong
2.ARE YOU A "HIGH ENERGY" PERSON? Starting and running a business requires con-siderable energy and the ability to focus on your objectives. Long hours will be required which, if you are already employed full time, quickly takes its toll. A high-energy level is a must.
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for starters If you know in your heart that you're a ball of fire, but just can't get off the couch in the evenings, you might want to look into your diet and exercise programs. Note at what times of day you are at your best. Some of us are "morning people" and others are "night people." A morning person might not do well running a business that requires late hours and conversely, a night person should not consider an early morning delivery business!
3.ARE YOU SELF-CONFIDENT? You must believe in what you are doing. Get involved in something you are GOOD at doing. Familiarity and ability breed confidence. Don't make the mistake of getting into a business because it looks like a good money maker or it is the "business of choice" this year. If you know absolutely nothing about the restaurant business, don't start a restaurant! If your business encompasses one or more of your hobbies or other longterm interests and/or exper-tise, your self-confidence will be enhanced. Your level of confidence is important ‌You must believe in what you are doing and be confident of attaining your business goals.
4.ARE YOU ORGANIZED? You need to be organized in order to make good use of your time. Rest assured, you will never have all the time you think you need to accomplish what you feel needs to be done, but organization allows you to use time in the most effective manner. In other words, you will get more done in less time. How organized are you? Do you get things done on time ... always? Can you always find what you're looking for? Do you keep a schedule? A "to-do" list? Are you on time for appointments? If you "feel" organized, you probably are. If you need some improvement, start by keeping a detailed schedule of your activities. Refer to references at
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end of this chapter for suggested information resources on this topic. Time saving tip: Use e-mail rather than the telephone --no more "telephone tag."
5.ARE YOU COMPETITIVE? From day one, you and your business will be in competition. A competitive spirit is almost man-datory. Are you competitive? Do you strive to be first or the best? Your hobbies and sporting interests can tell you a lot about your competitive nature. You are your own best judge. Give it some thought ... If you're a fighter, your chances for success are improved.
6.ARE YOU PREPARED TO WORK LONG HOURS? During a recent lecture I asked the participants why they were contemplating starting their own business. One of the people in the audience responded by saying she was tired of being required by her supervisor to frequently work late. She wanted her own business so that she could have more free time and work her own hours. There's an old joke that says an entrepreneur only works half time ... 12 hours a day. The fact is, 12 hours a day might be a little light. Building and operating your own business is considerably more time intensive then working for someone else. You can set your own hours all right ... From about 6AM to midnight! The typical entrepreneur does, like the old joke, work an average of 12 hours per day, six and sometimes seven days a week. However, this hard work can bring rewards and a feeling of accomplishment like nothing else can.
7. DO YOU HAVE ADEQUATE RESOURCES? Have you thought out what kind of monetary investment will be required? Do you have it? Can you borrow it? Lack of adequate resources is one of the major causes of business failure.
TRUISM 2
Your business is likely to operate at a loss for the first year of operation. There are many excellent references that provide details about resources required and where and how to borrow what you need. The following list will give you a few preliminary guidelines to keep in mind: Prepare a listing of start-up costs and first year expenses. Assume NO sales will be made and that you will be operating at a loss. You should have this much capital available the day you open your door for business. These expenses include, but are not limited to, items such as equipment, office supplies, deposits for utilities, legal fees, licenses, advertising, operating cash, wages, repairs, shipping, rent, utilities, insurance, and taxes. Many of these expenses can be reduced or eliminated if your business is conducted from your own residence. If your personal financial resources are not adequate, line up other sources before the cash is required. Don't forget to obtain formal commitments. TRUISM 3
A personal guarantee will probably be required if you borrow money from a bank. Think very carefully about personal guarantees before you decide it is worth the risk. Remember that most investors are more likely to invest in an entrepreneur that puts up some personal cash than one who is looking for 100% financing.
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HOME OFFICE
THE QUIET GIANT Home-Based Businesses
veryone has heard about the advantages of working at home. You can work in your pajamas, there’s no commute and you can be there for your kids when they come home from school.
E
But in today’s society, with the cost of technology plunging, large corporations downsizing, and the Internet becoming a universal force for communication and commerce, the wave of people going to work each day by
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—BY HORTENSE LEON
simply turning on their home computers has become a tsunami. But not all home-based businesses look alike. “There is some confusion regarding home-based businesses,” said Brian Headd, economist for the office of advocacy at the U.S. Small Business Administration in Washington, D.C. Three-quarters of businesses counted by the U.S. Census Bureau have no employees. But while these are oneperson operations, many of the owners of these businesses don’t actually work
in their homes. They may be real estate agents, taxi drivers or computer consultants, who only do their paperwork at home and do the main part of their jobs outside the home, he said. According to a Census Bureau report put out in September 2006, 49% of businesses in the U.S. are home-based. “Home-based businesses collectively generated a remarkable amount of economic activity, especially for women and minorities,” said Census Bureau Director Louis Kincannon. The infor-
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HOME OFFICE
" According to a Census Bureau report put out in September 2006, 49% of businesses in the U.S. are home-based." mation was derived from the 2002 Survey of Business Owners conducted by the bureau. While 49% may seem large, the percentage is roughly the same as it was in 1992, said Mike Bergman, spokesman for the Census Bureau. Today, there are 19.5 million businesses with no paid employees out of the nation’s 27 million businesses, he said.
enforced” unless a neighbor complains, he said. In Minneapolis, the regulations governing home-based business take a live-and-let live approach, said Ron
Wacks, president of the American Association of Microbusinesses, who is based in that city. “It is a matter of balancing neighborhood livability and economic interests,” said Wacks, in describing the city’s approach to regulating homebased business. Certain occupations like motor vehicle repair and painting are prohibited in residential neighborhoods, “but in general, as long as you don’t bother anybody, you are allowed to operate,” he said.
While the percentage of home-based business hasn’t changed much in the last decade and a half, the number of so-called non-employer businesses (those without employees) — many of which are home-based enterprises — has grown 26% in seven years, said Headd. There were 19.5 million of these businesses in 2004, up from 15.4 million in 1997, he noted. “The spike in gas prices has pushed some people into home-based businesses,” said Headd. Then there is also the declining price of technology and a tax system that helps home-based business owners. If you use a room in your home exclusively for business, you can deduct expenses related to that room as well as utility costs, he said. Of course, not all home-based business owners take those deductions, said Dawn Rivers-Baker, editor and publisher of the Web-based MicroEnterprise Journal, based in Sidney, N.Y., and herself a home-based entrepreneur. About a third don’t take the home office deduction because they think it is too hard to qualify, she said. “What the home-based business allows new business owners to do is to get in for less than $10,000,” said Headd, “The only limit to home-based business is that some places have zoning laws against it, but often they are not
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Looking at the country as a whole, Wacks said that he has seen a trend over the last 10 years or more of cities and municipalities becoming more permissive. There are seeking a balance between people making a living and maintaining a good quality of life in the neighborhood, he said. But in New Jersey, it is not easy to operate a home-based business, said Rivers-Baker. “That state is a mess,” she said. “My understanding is that the way zoning laws work in New Jersey, most home-based businesses are ille-
gal in the state,” she said. “Although there have been some efforts to change that, activists haven’t had much luck.”
" the number of so-called non-employer businesses (those without employees) — many of which are home-based enterprises — has grown 26% in seven years"
“The real issue, when it comes to zoning, is having a retail establishment,” which produces a lot of foot traffic in the neighborhood, said said RiversBaker, adding most people today sell online. Because working online has made it so much easier to operate as a homebased business, said Rivers-Baker, “In any random group of businesses, most will be micro-businesses unless they are selected according to revenues.” Rivers-Baker believes that the U.S. Census Bureau finding that 49% of businesses today are home-based is an under-estimation, which she attributes to many home-based business owners not returning the survey. “A good portion of non-employer business owners also work as employees,” said Rivers- Baker. The owner of a home-based business is in a good position to learn without risking his life savings, she said. “I think that the degree to which (working at home) is advantageous depends on your personality,” said Rivers-Baker. “Some people complain about the isolation, while others want to get away from distractions at the office. “I like working at home because it lets me be a whole person all day, every day. I don’t think you should try to strictly separate your business and professional life from your real life.”
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F O R EC A ST
THE FUTURE OF FRANCHISING
A Look Ahead to 2007
pointing to a good year for the sector Indicators
—BY JEANNINE GAGE
y all accounts, 2007 looks to be a good year for franchising. A more accessible global marketplace, new technological advances and a strong economy will allow the continued growth of the industry.
B
“2007 is going to be a good year,” said Darrell Johnson, president of FRANdata, a company that researches and provides information to the franchise industry. “Franchising is alive, vibrant and growing.”
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MARKET GROWTH “There has definitely been a growth in service companies, targeted toward both the business and residential markets,” —Johnson said.
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F O R EC A ST
The two programs that the SBA operates that help finance small businesses include the Section 7A general business guaranteed loan program, which has $17.5 billion allocated for 2007, up from $14 billion last year; and the Section 504 certified development company program, which has $7.5 billion allocated, up from $6 billion the previous year.
One of the elements keeping franchising in the black is the continued growth of options for potential franchisees. While food is, of course, still the biggest segment of the industry, hundreds of different types of businesses are now out there and available to entrepreneurs. “There has definitely been a growth in service companies, targeted toward both the business and residential markets,” Johnson said. “A lot of them are computer and technology related.” There are more new concepts every year than there were the year before. According to FRANdata, computer and technology companies grew almost 120% between 2003 and 2005, beauty-related companies grew more than 90%, and child-related businesses grew about 65%. Johnson said while the economy looks good, the fact that there are many options available is a good thing for people who may rely on traditional means of raising capital.
“The economy is good right now. Inflation is low, unemployment is low, and consumer confidence is up,” Hammersley said. “From that perspective, the Congress has shown that they’re willing to provide us with adequate authority to help finance small business.” A lot of the businesses helped by the SBA are franchises, Hammersley said, and with good reason. “There are many companies, both coming into the U.S. and expanding outside of it,” he said. “That has not slowed down.”
" The economy is good right now. Inflation is low, unemployment is low, and consumer confidence is up.”
“With housing prices down, many people who rely on their home equity for capital may not be able to afford their first choice for a franchise,” he said, “But since there are so many different types of businesses, they may be able to afford another one with similar potential.” Another continuing growth area in franchising is the entrance of companies into the global marketplace.
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CAPITAL Also important, of course, is money. There are billions of government dollars out there for franchise and small business financing — $25 billion to be exact. “We are well-funded for 2007,” said Jim Hammersley, director of loan programs for the U.S. Small Business Administration. “There’s plenty of money available, and the outlook is good.”
“The nice thing about franchises is they take advantage of the owner’s expertise and experience. A business plan has already been developed,” he said. “Of course, lenders are happy to see an idea that has already been proven.” But start-up ideas will bode well too, Hammersley said, as long as a comprehensive business plan has been developed. “That is absolutely the most important thing,” he said, “A well thought-out business plan.” There are more and more resources out there to help budding entrepreneurs put their ideas on paper. The SBA Web site contains a wealth of information on local and regional organizations that can help. “People should take advantage of all the resources available to them,” Hammersley said. ”It can really help move you forward.” Some of the people Hammersley thinks will be taking advantage of the
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F O R EC A ST
resources this year are returning veterans. Coming home from being stationed overseas, a lot of them will turn to entrepreneurship as a way of getting back into the workforce. There are special programs to help veterans through the SBA and Veterans Administration. “It’s only natural that some of them will want to own a business,” he said. “And franchisors are reaching out to them as well.” So, with a well-developed business plan, there’s a good chance of getting financing for a franchise in 2007. There is one way to fail, however. “If you’re an electrician and you want to open a restaurant, that is not going to impress the bank loan officer. Just because you like to eat there doesn’t mean you can necessarily run it,” Hammersley said. “Lenders will want to see that you’ve put some effort into learning about the business you want to go into. Take
“2007 is going to be a good year,” said Darrell Johnson, “Franchising is alive, vibrant and growing.” some classes at the local community college. Study up.”
ness advocacy group based in Washington, D.C. “Everyone will need to be aware of these changes.”
REGULATORY
Gaudio’s main concern is the minimum wage. In the recent elections, six states raised their minimum wage rates beyond the federal rate of $5.15 per hour. She expects several more to follow suit.
The recent mid-term elections and the change in power in Congress have independent business legal experts cautiously optimistic for the year in franchising and small business. “There will definitely be changes made that will affect business people,” said Elizabeth Gaudio, senior executive counsel for the National Federation of Independent Business, a small busi-
“The democrats have said the minimum wage is an overarching concern for them,” Gaudio said. “This is something that is going to happen sooner than later.” Another area in which small business owners will need to be aware of changes is immigration. “There will be a push in Congress to get an immigration bill through,” she said, “and I think we’re going to see a heightened level of enforcement on the existing laws.” Gaudio urges business owners to be more vigilant with their eligibility verification process. Business owners who do business on the Web should be more aware of protecting their customers’ privacy.
Computer and technology companies grew almost 120% between 2003 and 2005
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“The Fair and Accurate Credit Transactions Act, which passed a few years ago, really required businesses to revamp how they retain credit card receipts,” Gaudio said. “I think you’re going to see an even more focused awareness with all of the new technology, and there must be a constant effort to prevent credit card fraud and identity theft.”
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O N LO C AT I O N
DON’T UNDERESTIMATE BUILD-OUT EXPENSES Changing a former hardware store into a restaurant can be a huge project. —BY BRUCE OLANS Recommendations from the outsourced build-out company are crucial to making the project successful. If the company does simply what the client says, it is not doing its job.
hen would-be franchisees run the numbers on that dream business opportunity, they sometimes fail to calculate both the cost and the headaches involved with transforming the space they'll need, into something useful.
W
Unless your franchise lends itself to working from home, odds are you'll have to find some type of commercial space from which to run the show. And therein lies the rub — because it's practically a given that the space you plan to occupy will need some renovation. You may need to work with several contractors to accomplish the task, but the hassle of a multi-vendor buildout is only multiplied by missed deadlines, blown budgets and shoddy workmanship, all a result of miscommunications between the many parties. Often franchisees spend months serving as the overseer of the project and the middleman between the architect, general contractor and fixture suppliers. Countless issues can slow down a project or complicate a build-out: lease restrictions, a drawn out permitting process, signage issues, cost overruns, under-bidding and misunderstood expectations. More and more franchisors are offering real estate and construction support to their franchisees. If a franchisor does not offer these services, look to find a company that can provide everything you need to open a store. If there’s not a company
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like this in your area, hire an experienced foreman to oversee the job, and spend your time running your business.
Outsourcing the build-out of your space will ease expansion woes in several ways:
For example, new interior design configurations might ease space problems; switching to more durable flooring might better handle the rigors of customer foot traffic; and something as simple as using stainless steel instead of aluminum trim on service counters will make them more attractive and dent-resistant.
5
things to make your build-out a success
The streamlined process allows retailers to spend their time where it matters most, hiring new staff, scouting the competition, deciding promotions, deciding on signage and preparing for the opening.
Listen to the recommendations of your franchisor and other franchisees. Recommendations can be made that can trim costs and increase efficiency during a build-out.
Outsourcing your store’s build-out
Hire a company with a minimum
puts the responsibility in the hands of a company with experience and expertise.
of 10 years of experience in designing and building out the type of facility your franchise requires.
A staff of one (YOU!) can suddenly grow five times in size with employees dedicated to only one task: opening your store. Outsourcing your build-out is more cost and time efficient, but it is imperative that the company has experience in the field. It is important that the build-out partner be attuned to each detail of the project, with long-standing industry knowledge to back its recommendations.
Make sure the company you select can provide a thorough analysis of the project, in addition to architectural drawings and construction services.
Ask non-competitive franchisees in your area for recommendations on store build-out partners.
Most importantly, focus on opening your store — not building out your space.
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BUSINESS TO BUSINESS FRANCHISE GROWTH
It’s Not About Golden Arches Anymore — By Jennifer LeClaire
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COV E R STO R Y
When you hear the word “franchise,” you probably think of the golden arches, the king of burgers or perhaps an athletic shoe chain or a low-cost barber shop. However, as more entrepreneurs launch businesses, more business-to-business service franchises are springing up to accommodate their every need. “Every need” is hardly an understatement. For every type of business that hangs a shingle — in the form of an illuminated sign or a cutting-edge Web site — you are sure to find another business that provides support services. Consider the needs of the business market, and the possibilities are virtually endless for franchised concepts.
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COV E R STO R Y
THE B2B OPPORTUNITY Indeed, opportunity abounds in business-to-business service franchising. The sheer volume of new small business start-ups each year is staggering. The Small Business Administration (SBA) reports an average of more than 600,000 new small businesses have launched each year since 2001. In fact, small businesses represent 99.7% of all employer firms. Last year, there were approximately 25.8 million small businesses in the United States — and 53% are home-based business owners. Some franchised concepts, like directmail advertising and pack and ship, are especially hot because they free business owners from having to purchase equipment or hire a full-time employee to handle a task they need performed only occasionally. Others, like IT consulting and custom publishing, post steady growth in their respective niches. As diverse as business service franchises are, they have one thing in common: a vast target market that is hungry for what they deliver. “Franchising as a delivery model has exploded, and people are moving beyond the knowledge of McDonald’s or Subway as being a franchise,” says Lori Kiser-Block, president of FranChoice, a franchising consultancy based in Eden Prairie, Minn. “There are hundreds of franchise brands today that were not around 10 years ago.” There are multiple factors driving the explosive growth of business-to-business service franchises, from the rise of the Small Office/Home Office (SOHO) to pervasive technology to the overall outsourcing trend. There are also multiple factors driving franchisors and franchisees. Still, there are legal liabilities that are much different from traditional franchises that must be addressed, especially where a service failure could cost the client thousands — or even millions — of dollars. The bottom line: Business service franchising is growing along with the small business community, and it promises to diversify even more in the years ahead.
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New business service franchise concepts are emerging to meet just about any task a small business might choose to outsource, from hourly office space to cleaning to sign manufacturing. If a small business might need it, visionary franchisors seem to be providing it. A quick glance at Entrepreneur magazine’s 2006 Franchise 500 proves it. Three of the top 10 franchises are business services: UPS Store/Mail Boxes Etc., Jackson Hewitt Tax Service and Liberty Tax Service.
Business consulting is gaining momentum in the franchise world, for example, because it helps small businesses become bigger. Shipping franchises are growing because they make life more convenient for busy entrepreneurs. Sign-making franchises are popular because most new businesses need a sign to tell the world who they are. Financial services and tax services are a must-have for entrepreneurs who are already wearing too many hats without adding the accountant’s visor. As small businesses grow, they may seek a staffing and training franchise to recruit and train employees.
DRIVING DEMAND FOR THE BRAND Franchises offer consumers a trusted brand. Historically, franchises post
If 2005 was the year franchising became a trend (Entrepreneur reported
“There are hundreds of franchise brands today that were not around 10 years ago.”
the total number of franchise units for the top 500 companies grew 11% from 2004 to 2005 compared to just a 4% increase from 2003 to 2004 and a decline the year before that), then 2006 was the year entrepreneurs jumped on the bandwagon with new concepts like the do-it-yourself meal preparation franchises, the emergence of new kids’ specialty services and, of course, the growth of business service franchises. While the majority of franchises are still restaurants, the delivery model fits the business-to-business sector like a glove.
greater success than non-franchised business. There are some economic cycle considerations, though. Everybody has to eat and wear clothes — even in a down economy — but businesses do not necessarily have to spend on advertising, consulting, signs or financial services. The demand for business service franchises, then, can closely mirror the growth of the economy. Still, with so many new small businesses starting up each year, there seems to be a constant flow of new customers for business service sectors
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COV E R STO R Y
Three of the top 10 franchises are business services: UPS Store/Mail Boxes Etc., Jackson Hewitt Tax Service and Liberty Tax Service. to tap into. One especially lucrative area for business service franchises is the Small Office/Home Office (SOHO) market. Home-based business is a $427 billion-a-year industry. In 2005, nearly 20,000 entrepreneurs grossed more than $1 million operating from a home-based environment, according to the SBA. A good number of them probably outsourced copying, mailing, printing, sign-making capabilities and other types of business services they need to project a professional image. The Internet and technology are key enablers of the SOHO market. These businesses may have the appearance of being larger than they are thanks to brilliant Web design, but the truth is they need to outsource many functions that larger corporations would keep in house. These SOHOs are likely to turn to a trusted franchise for their needs because spending $4,500 on a printer that sits in a small home office is not a wise time or space investment. When they need binding, packing, shipping and like services, they outsource them
feel comfortable with the safety of a brand like McDonald’s. Business services franchisors are trying to create that same level of consistency and reliability of service with their brands.” Established business service franchises are demonstrating that there is a demand for trusted brands. New franchisors are entering into the fray each year. Jack Eberenz, chairman of the Arizona Franchisors Association and senior partner of Lundstrom-Eberenz & Co. in Phoenix, points to an executive coach who had developed a treasure trove of intellectual property over the years. She tried to hire employees to extend her business, but they
demanded too much of her attention. She turned to independent contractors for some help, but they ran away with her models and started their own firms. Finally, she launched a franchise. “Now, this executive coach has full disclosure and a very tight agreement with non-competes to protect her intellectual property,” he explains. “Her strategy is to target moderately successful executive coaches as franchisees. She helps them become wildly successful by using her materials and models. This is a common scenario among franchisors in the business services sector.”
DRIVING FRANCHISEES Altogether different factors are driving franchisees to buy into the brands. For
to business service providers and focus on their core competencies.
DRIVING FRANCHISORS “Fortune 500 companies and small businesses alike are outsourcing business services to franchises because it can be more cost-effective than keeping the service in-house,” Kiser says. “Consumers
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COV E R STO R Y
“Fortune 500 companies and small businesses alike are outsourcing business services to franchises because it can be more cost-effective than keeping the service in-house” starters, business service franchises often do not require the same level of investment as a restaurant would because many business services, such as advertising and direct mail franchises and tax and accounting services, don’t require machinery. The type of businessperson who might launch a business service franchise is also somewhat different from a retail or restaurant franchisee, according to Eberenz. “People who have been employed in the corporate world want to venture into something they are familiar with,” he says. “The franchise they buy often
allows them to use the skill sets they already possess rather than learning about a new industry. A corporate consultant who wants to launch his own firm may choose a business consulting franchise rather than going it alone just for the brand recognition.” Corporate downsizing has led to executives starting business service franchises, according to Joel Libava, a Cleveland, Ohio-based advisor with FranNet, a network of franchise consultants. These executives are attracted to the business service model over a retail or restaurant model because they
want to maintain their Monday through Friday, 9 a.m. to 5 p.m. lifestyle. “Corporate executives who start tax services or consulting services are dealing with high-level people — and they are used to doing that,” he says. Location, location and location are three more considerations. While traditional restaurant and retail franchises demand high visibility, business-tobusiness service franchises are not as dependent on finding a strategic spot on the corner of Main and Main. That means land costs or rents could be lower and profits margins higher, Eberenz says. “I believe we’ll see much more growth in business service franchising as people realize they possess valuable intellectual property and want to find ways to leverage that more broadly,” Eberenz says. “Franchisees are a different breed than entrepreneurs. Entrepreneurs want to invent that new idea. A franchisee may be highly motivated to go out and compete and be successful, but they really want that security blanket of knowing that it's been done before.”
LEGAL LIABILITY 101 One franchise lawsuit can erode years of profitability. While business service franchises may not have to worry about slip and falls or food poisoning, they do have to worry about poor product delivery that could cost their clients big bucks. Avoiding such scenarios works the same way with a franchise as it does with any other business service firm: contracts that clearly outline what the service firm is and is not responsible for. “The franchisor should have a contract
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20 that puts forth what the franchise is and is not responsible for and what funds might be returned in the wake of errors,” says franchise and distribution attorney Jan Gilbert, a partner with Haynes Boone LLP in Washington, D.C. “The contract should make a provision for consequential damages to be waved.” Liability should not go beyond rectifying the problem, according to the contract, but the franchisee should have insurance nonetheless because Gilbert says some businesses insist that lawsuits are the best way to solve a problem. Lawsuits are distracting for both sides, possibly disrupting the core business for weeks and costing far more than the case is ultimately worth. But, Gilbert says, that doesn’t always stop them.
THE FUTURE OF BUSINESS SERVICE FRANCHISING Michael Seid, founder and managing director of Michael H. Seid & Associates, says almost any type of business service can be franchised. His company is consulting a franchisor that is about to launch a business service franchise to remove birds from the roofs of major office buildings. The point is business services franchises not only abound, they are diversifying to meet needs. “I expect business service franchising to get into places where it’s not today. It’s going to grow,” says Seid, who is also the co-author of Wiley’s Franchising For Dummies. “You see commercial plumbing franchises, property management franchises, relocation services franchises. You can’t franchise a friendship. You can’t franchise a brain surgeon. But you could franchise a CPA practice. It’s called H&R Block.”
Reasons to pick a B2B franchise
Many entrepreneurs who consider buying a franchise fail to consider the advantages of selecting a businessto-business (B2B) operation. Following are just a few of what could be a long list of perks to picking a B2B franchise opportunity:
1 Better hours, sometimes, with the option to work-at-home. 2 Fewer competitors. 3 Lower franchise fee. 4 Low (sometimes no) residual fees. 5 No lengthy training for the franchisee or the employees. 6 Larger territories (sometimes limitless). 7 Greater opportunity to start small, sometimes as a one-person company.
8 More technology-based. 9 Greater future possibilities as technology expands. 10 Greater freedom (not strapped to a storefront). 11 More time with family and friends. 12 Weekends free. 13 Clients are often larger companies, not consumers. 14 The business sector is virtually untapped. 15 Less investment in equipment means less need for outside funds — with debt service costs and long-term burdens.
16 Higher net income. 17 Higher per-sale income reduces pressure and the need for more labor.
18 Profitability can be reached sooner. 19 Greater opportunity to buy additional franchises. 20 Greater chances for success.
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INSIDE
BUSINESS SERVICES FRANCHISE DIRECTORY Accounting and Tax Services Advertising/Promotions and Direct Mail Business Consulting
Are you interested in starting your own business services franchise? Or maybe you just want to explore the many different types of opportunities that exist within this growing sector of the franchise industry. Well, we’ve done the
Computer Services Financial Services Mail/Shipping and Printing/Copying
work for you. From accounting & tax services franchises to those who offer staffing services, you are sure to find a franchise that is worth considering in our
“Business
Services
Franchise
Directory”. Enjoy!
Sign Products Staffing Services
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ACCOUNTING & TAX SERVICES • ADVERTISING/PROMOTIONS & DIRECT MAIL
Accounting & Tax Services COLBERT/BALL TAX SERVICE 888-288-8675 www.colbertballtax.com Investment Range: $7,500 - $15,000
PADGETT BUSINESS SERVICES
DISCOVERY MAP INTERNATIONAL
800-723-4388 www.smallbizpros.com
877-820-7827 www.discoverymap.com
Investment Range: $25,000 - $75,000
Investment Range: $41,800 - $60,800
TAX CENTERS OF AMERICA 800-364-2012 www.tcoa.net Investment Range: $20,000 - $50,000
EMBROIDME 800-727-6720, ext. 1368 www.embroidme.com Investment Range: $175,000 - $180,000
ECONOTAX 800-219-7943 www.econotax.com Investment Range: $10,000 - $15,000
Advertising/Promotions and Direct Mail
GOTCHA MOBILE MEDIA 866-9GOTCHA www.gotchamobilemedia.com Investment Range: $95,000 - $145,000
EXPRESSTAX
INFINITE MARKETING
904-262-0031 www.expresstaxservice.com
888-596-7353 www.infinitemarketing.com
Investment Range: $12,400 - $19,050
Investment Range: $15,000 - $18,000
FIDUCIAL 800-323-9000 www.fiducial.com Investment Range: $25,000+
H&R BLOCK 800-HRBLOCK www.hrblock.com Investment Range: $2,500
INSTANT TAX SERVICE 888-870-1040 www.instanttaxservice.com
AWARDS FOR ANYTHING 877-583-7955 www.awardsforanything.com Investment Range: $95,000 – $130,000
Investment Range: $41,600 - $84,400
BILLBOARD CONNECTION JACKSON HEWITT TAX SERVICE 973-630-0900 www.jacksonhewitt.com
866-257-6025 www.billboardconnection.com Investment Range: $27,000
HOMETOWN THREADS
Investment Range: $75,000
LIBERTY TAX SERVICE 800-790-3863 www.libertytaxfranchise.com Investment Range: $33,350 - $59,900
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CROWN TROPHY, INC. 800-583-8228 www.crownfranchise.com Investment Range: $90,000 - $120,000
877-893-3393 www.hometownthreads.com Investment Range: $171,000 - $220,000
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ADVERTISING/PROMOTIONS & DIRECT MAIL • BUSINESS CONSULTING
MONEY MAILER, LLC 800-508-6663 www.moneymailer.net
Business Consulting
Investment Range: $54,000 - $74,000
ACTION INT’L. BUSINESS COACHING OUR TOWN AMERICA
702-795-3188 www.action-usa.com Investment Range: $75,000
800-497-8360 www.ourtownamerica.com Investment Range: $29,000 - $45,000
PRINTWEAR XPRESS 888-241-0337 www.printwearxpress.com Investment Range: $60,000 - $114,000
DEI SALES TRAINING SYSTEMS 800-224-2140, ext. 226 www.dei-sales.com
PROFIT-TELL INTERNATIONAL 888-366-4653 www.profit-tell.com
Investment Range: $70,000 - $90,000
Investment Range: $30,000 - $40,000
THE ENTREPRENEUR’S SOURCE 800-289-0086 x2171 www.TheESsource.com Investment Range: $68,500 - $76,500
PROFORMA 800-825-1525 www.ConnectWithProforma.com Investment Range: $2,500 - $52,000
BUSINESS ADVISORS INTERNATIONAL
EXPENSE REDUCTION ANALYSTS
800-892-1085 x2171 www.BAIopportunity.com
877-872-3721 www.allaboutera.com
Investment Range: $69,000 - $82,300
Investment Range: $54,100 - $69,250
SUPERCOUPS 800-626-2620 www.supercoups.com Investment Range: $26,000 - $50,000
BUSINESS ALLIANCE, INC. 800-557-4850 www.businessallianceinc.com Investment Range: $19,900
THE GROWTH COACH 888-292-7992 www.thegrowthcoach.com Investment Range: $31,200 - $49,400
VALPAK DIRECT MARKETING SYSTEMS INC. 800-237-6266 www.valpak.com Investment Range: $75,000+
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CRESTCOM INTERNATIONAL, LTD. 888-273-7826 www.crestcom.com Investment Range: $58,500 - $75,000
LEADERSHIP MANAGEMENT, INC. 800-568-1241, ext. 244 www.lmi-usa.com Investment Range: $35,000 - $42,500
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BUSINESS CONSULTING • COMPUTER SERVICES
WE THE PEOPLE
EXPETEC TECHNOLOGY SERVICES
866-429-2785 www.wethepeopleusa.com
888-297-2292 www.expetecfranchise.com
Investment Range: $123,200 - $169,500
Investment Range: $70,000 - $120,000
Computer Services
FASTTEKS ON SITE COMPUTER SERVICES 800-262-1671 www.fastteks.com Investment Range: $19,500 - $34,500
RESCUECOM 800-737-2837 www.rescuecom.com Investment Range: $26,500 - $45,500
“PARTNER” ON CALL NETWORK
TEAMLOGICIT
561-776-2515 www.PartnerOnCall.com
866-TeamLogic www.teamlogicit.com
Investment Range: $56,000 - $76,000
Investment Range: $58,500 - $121,000
COMPUTER TROUBLESHOOTERS 877-704-1702 www.comptroub.com Investment Range: $25,500 - $38,500
CONCERTO NETWORKS 866-551-4007 www.concertonetworks.com Investment Range: $34,000 - $52,000
CM IT SOLUTIONS VR BUSINESS BROKERS 954-565-1555 www.vrbusinessbrokers.com Investment Range: $50,000 - $150,000
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800-399-2648 www.cmitfranchise.com Investment Range: $63,500 - $101,000
WSI INTERNET 888-678-7588 www.wsimarketing.com Investment Range: $49,700
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FINANCE SERVICES • MAIL/SHIPPING AND PRINTING/COPYING
Financial Services
EXPRESS FINANCIAL CENTERS
UNITED FINANCIAL SERVICES GROUP, INC.
253-565-3932 www.expressfc.com
800-626-0787 www.unitedfsg.com
Investment Range: $34,500
Investment Range: $225,000 - $325,000
ACE CASH EXPRESS 972-550-5175 www.acecashexpress.com Investment Range: $176,650 - $282,850
FAMILY FINANCIAL CENTERS 877-236-5508 www.familyfinancialcenters.com Investment Range: $125,000 - $500,000
WIRTH BUSINESS CREDIT 800-567-6600 www.wirthfranchise.com Investment Range: $47,000 - $75,000
CASH PLUS, INC. 949-433-5130 www.cashplusinc.com
LIQUID CAPITAL OF AMERICA CORP. 877-228-0800 www.liquidcapitalcorp.com Investment Range: $250,000
Mail/Shipping & Printing/Copying
COLLEGE ASSISTANCE PLUS
UBS GROUP, INC.
585-582-1846 www.collegeassistanceplus.com/franchise/
ALLEGRA PRINT & IMAGING
888-388-3435 www.profitallianceinc.com
800-726-9050 www.allegranetwork.com
Investment Range: $30,000 - $35,000
Investment Range:
Investment Range: $207,000 - $295,000
Investment Range: $175,000 - $244,000
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MAIL/SHIPPING & PRINTING/COPYING • SIGN PRODUCTS
ALPHAGRAPHICS
KWIK KOPY
POSTALANNEX
800-955-6246 www.alphagraphics.com
888-280-2053 www.kkbconline.com
800-456-1525 www.postalannex.com
Investment Range: $238,000 - $375,000
Investment Range: $173,684 - $251,355
AIM MAIL CENTERS 800-669-4246 www.aimmailcenters.com Investment Range: $180,000 - $200,000
Investment Range: $128,000 - $191,000
POSTNET BUSINESS SERVICE CENTERS MAILBOX IT 877-744-7480 www.mailbox-it.com
800-338-7401 www.postnet.com Investment Range: $174,000 - $195,000
Investment Range: $60,000 - $80,000
CABOODLE CARTRIDGE LICENSING CORP.
THE UPS STORE
888-793-9596 www.caboodle.com
877-623-7253 www.theupsstore.com
Investment Range: $93,000 - $119,000
MINUTEMAN PRESS INTERNATIONAL INC. 800-645-3006 www.minutemanpress.com
Investment Range: $153,954 - $266,754
Investment Range: $122,000 - $142,000
CARTRIDGE DEPOT 800-914-5828 www.thecartridgedepot.com Investment Range: $75,000 - $150,000
SIGNAL GRAPHICS THE ONLINE OUTPOST 866-881-3229 www.theonlineoutpost.com
CARTRIDGE WORLD
GOIN’ POSTAL 800-504-6040 www.goinpostal.com
SIR SPEEDY PACKING AND SHIPPING SPECIALISTS (P.A.S.S.)
888-465-9481 www.inktone.com
800-894-7498 www.sirspeedy.com Investment Range: $262,000 - $290,000
800-877-8884 www.packship.com Investment Range: $90,000 - $138,000
Investment Range: $40,680 - $114,950
INKTONE
Investment Range: $159,000 - $201,000
Investment Range: $15,000 - $75,000
866-473-5623 www.cartridgeworldusa.com Investment Range: $104,100 - $172,100
800-852-6336 www.signalgraphics.com
Sign Products
PAK MAIL
ASI SIGN SYSTEMS, INC.
800-833-2821 www.pakmail.com
800-274-7732 www.asisign.com
Investment Range: $117,200 - $150,900
Investment Range: $255,000 - $295,000
POSTAL CONNECTIONS OF AMERICA
FASTSIGNS INTERNATIONAL INC.
800-767-8257 www.postalconnections.com
Investment Range: $208,000 - $322,000
Investment Range: $120,000 - $150,000
ISLAND INK-JET SYSTEMS 877-446-5538 www.islandinkjet.com Investment Range: $99,000 - $140,000
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Investment Range: $119,115 - $153,900
800-827-7446 http://franchise.fastsigns.com/
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SIGN PRODUCTS • STAFFING SERVICES
SIGN*A*RAMA 800-776-8105, ext. 1369 www.signarama.com
Staffing Services
EXPRESS PERSONNEL SERVICES 877-652-6400 www.expressfranchising.com Investment Range: $116,850 - $164,300
Investment Range: $135,000 - $140,000
SIGNS BY TOMORROW
10 TIL 2 – THE PART-TIME PLACEMENT SERVICE
800-765-7446 www.signsbytomorrow.com
303-909-3868 www.tentiltwo.com
Investment Range: $202,000 - $263,000
Investment Range: $25,000 - $38,000
800-840-6568 www.interimhealthcare.com
SIGNS FIRST/MONOTAG CORPORATION
@WORK MEDICAL SERVICES
LABOR FINDERS INTERNATIONAL
800-852-2163 www.signsfirst.com
800-383-0804, ext. 236 www.atworkmedical.com
Investment Range: $48,000 - $137,000
Investment Range: $70,000 - $100,000
Investment Range: $80,000 - $120,000
SIGNS NOW
@WORK PERSONNEL SERVICES
800-356-3373 www.signsnow.com
800-383-0804, ext. 236 www.atworkpersonnel.com
Investment Range: $141,000 – $290,000
Investment Range: $70,000 - $100,000
INTERIM HEALTHCARE Investment Range: $51,700 - $250,000
800-864-7749 www.laborfinders.com
LINK STAFFING SERVICES 800-848-5465 www.linkstaffing.com Investment Range: $85,500 - $156,000
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STAFFING SERVICES
RIGHT AT HOME
TRC STAFFING SERVICES, INC.
877-697-7537 www.rightathome.net
800-488-8008 www.trcstaff.com
Investment Range: $50,000 - $60,000
Investment Range: $100,000 - $150,000
SANFORD ROSE ASSOCIATES
TRIBORO STAFFING
800-731-7724 www.sanfordrose.com
866-539-6868 www.triborostaffing.com
Investment Range: $32,100 - $100,300
Investment Range: $104,600 - $308,500
SNELLING STAFFING SERVICES 800-766-5556 www.snelling.com Investment Range: $89,000 - $180,000
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M A R K ET I N G
THE VIDEO BUSINESS CARD An Idea Whose Time Has Come. Edward Zito, the creator of the VBC and President of Infinite Marketing, the company providing the distributorship opportunity says, “Just handing them out creates a positive reaction. People are always saying, ‘Wow, what a great idea’, and typically ask permission if they can keep it. The perceived value is amazing. When was the last time anyone asked you if they could keep your marketing materials?”
re you looking for a business, but don’t want to be in the service industry, or work the long hours of retail? Are you looking for something new and different, and has the WOW factor? Then you might want to consider a Video Business Card Distributorship. The Video Business Card (VBC™) is one of the hottest new marketing tools for small businesses and professionals available today, as featured on NBC and ABC NEWS.
A
The VBC is a CD about the size of a paper business card, and it has all the standard contact info on the label, but that’s where the similarities stop. This 21st Century marketing tool has a 60-90 second personal video message from the business person or professional stating the reasons people should do business with him or her. It also drives people to the business web site because there is a direct link to the site, as well as a direct e-mail link so prospective clients can easily contact you for more information or to schedule an appointment. It is even possible to put the company brochure right on the card and people can read it or print it out directly from the VBC.
VBC clients are also touting the benefits and return-on-investment they are realizing. Dr. George Waring, a leading LASIK eye surgeon based in Atlanta, purchased 15,000 VBCs to send to his former patients and to hand-out to his current patients for the purpose of promoting new patient referrals. He has a printable “Complimentary Exam” certificate on his VBC to monitor the results. Dr. Waring said, “I know we get a lot of business directly from the VBC because people bring in the certificates. And, it is a contemporary way to communicate, much better than a paper card. I just reordered another 15,000 VBCs”.
John Kailunas, President of Regal Financial Group, LLC, a nine million dollar, independent financial consulting firm in Michigan, saw so much potential in the VBC, he purchased the exclusive rights for the entire state. Kailunas uses the VBCs himself to promote referral business from his personal clients. Kailunas said, “I recently got a $300,000 sale as a direct result
from giving my VBC to an existing client who passed it along to a friend. The friend came in after watching my VBC and moved $300,000 into our brokerage”. Rick Mylenbusch, Infinite Marketing’s COO, says the VBC is not just for small businesses and professionals. He said, “We have a distributor in Florida, Holly Woolsey, who has written three different orders for Port Canaveral to promote their cargo and cruise ship business”. The Port previously used a glossy, 48-page brochure costing $8.00 each to hand-out at trade shows. The Port’s Director of Marketing said she was tired of seeing her beautiful brochure tossed in the trash before people got to the end of the aisle. Now, they use the VBC, which cost less than $2.00, yet has a video message on it from the Port CEO, the web and e-mail links, and the entire 48-page brochure. Bill Butler, a VBC Distributor in New Jersey says he is having excellent results with retail businesses. Butler has clients ranging from a Window retailer to a motorcycle dealer who reordered 1000 VBCs a month after he received his initial order. Pat Barrett, owner of Level 10 Power, a high performance transmission shop, said “This is the greatest marketing tool I’ve ever seen. It is perfect to add to our parts mail order business, when we ship out an order." Infinite Marketing provides a complete turn-key distributorship package for $14,900 (at publication time). The package includes all the video equipment, a five-day training class, and marketing materials. To learn more about a VBC Distributorship, contact Infinite Marketing directly at 888-5967353, or www.infinitemarketing.com.
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A DVO C AC Y
Watching Out For You The SBA Is Your Voice In Washington tory concerns of small business by monitoring the impact of federal and state policies at grassroots level. Advocacy’s head, the Chief Counsel for Advocacy, is appointed by the President and confirmed by the U.S. Senate.
OFFICE OF ADVOCACY SBA’s Office of Advocacy, examines small business’s role and status in the economy and independently represents the views of small business to federal agencies, Congress, the President and federal appellate courts. Advocacy compiles, interprets and disseminates small business data. Advocacy also funds outside research into small business issues and produces publications informing policy makers about small business’ important role in the economy and the impact of policies on small business. Advocacy also monitors federal agency compliance with the Regulatory Flexibility Act – the law that requires agencies to analyze the impact of proposed regulations on small entities (including small businesses, small gov-
Learn more about the Office of Advocacy at: www.sba.gov/advo.
ernmental jurisdictions and small nonprofit organizations), and consider regulatory alternatives minimizing economic burdens on small entities. Advocacy’s representatives in SBA’s 10 regions are direct links to small business owners, state and local governments, and organizations that supporting them. Regional advocates help identify regula-
REGULATORY FAIRNESS FOR SMALL BUSINESS If excessive fines, penalties or unfair regulatory enforcement by federal agencies are problems for your small business, the SBA’s Office of the National Ombudsman can help. The Ombudsman receives comments from small business owners, nonprofit organizations or small government entities. Comments are forwarded to federal agencies for review. In some cases fines may be lowered or eliminated and decisions changed in favor of the small business. Each year the National Ombudsman files a report with Congress on how federal agencies have treated small businesses. For help, send the National Ombudsman a complete Federal Agency Comment Form. You may do this by fax at (202) 481-5719, online at the Ombudsman’s Web page: www.sba.gov/services, then select “National Ombudsman” from the “Laws & Regulations” column at the bottom, or by mail at: 409 Third Street S.W., Mail Code 2120, Washington, DC 20416. The Ombudsman also coordinates 10 regional regulatory fairness boards which meet regularly to receive comments about federal regulations affecting small businesses. Learn more about the National Ombudsman from the Web site above or call (888) REGFAIR.
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S B D C S U CC E S S
ASBDC NETWORK Association of Small Business Development Centers strengthen small/medium business management, thereby contributing to the growth of local, state and national economies.
•SBDCs
Small Business Development Centers Established through a public/private
help small businesses increase sales. SBDC in-depth clients* generated $6.1 billion in new sales in 2004.
Client Profile Martha Flechas, owner Assisted by the SBDC in Miami
• SBDC
clients’ sales grow faster. Small businesses that received SBDC assistance experienced sales growth of 18.5% between 2003 and 2004 – compared to 6.6% for businesses in general.
partnership by Congress in 1980, the Small Business Development Center program is the most comprehensive, efficient and effective business assistance network in the nation. The mis•SBDC clients create more businesses. sion of the SBDC program is to help More than 60% of all pre-venture new entrepreneurs realize their SBDC clients started dream of business ownership and 16,140 businesses. existing businesses remain comTHINGS TO KNOW petitive in the complex market• SBDC clients find out place of an ever-changing global where to get money. SBDC in-depth economy. SBDCs helped clients clients* generated Over 1,100 local SBDC offices obtain an estimated $2.6 $6.1 billion in extend entrepreneurial education billion in financing in new sales to meet small business needs, 2004. through free individual counselGo on the ing, training and research assisSmall business owners Web and visit tance while serving over 700,000 and aspiring entrepreneurs asbdc-us.org clients annually, creating over can go to their local 74,000 new jobs, and generating SBDCs for free, face-toover $500,000,000 in combined face business consulting new tax revenues for the federal governand at-cost training on writing busiment and state governments . ness plans, accessing capital, marketing, regulatory compliance, international trade and more. The SBDCs are a partnership that includes Congress, the U.S. Small Business Administration (SBA), the private secThe ASBDC (Association of Small tor, and the colleges, universities and Business Development Centers) represtate governments that manage SBDCs sents the collective interest of America’s across the nation. Small Business Development Center Network. ASBDC seeks to improve the SBDC national network by promoting, * Source of Statistics: SBA; and the “Economic Impact of Small Business Development Center Counseling Activities informing, and supporting the work of in the United States: 2003-2004,” by Professor James J. all state SBDC programs. ASBDC Chrisman of Mississippi State University members as a national network deliver nationwide educational assistance to
ASBDC Mission Statement
Chocolate Empire Company
When Martha Flechas came to the United States in 1997, she made it her personal goal to own a company. Toward this end, in June 2003, she began attending classes put on by the Small Business Development Center at Florida Atlantic University. Miami Office. At the same time, she discovered the art of producing different sorts of chocolate products from someone with whom she attended church. Among the products she imagined selling: chocolate souvenirs for all occasions. Today she does just that, as owner and operator of her own company, Chocolate Empire, Inc. While taking SBDC classes to increase her knowledge of small business operation, Martha met with Certified Business Analyst Nancy Orozco. During their first meeting, Nancy advised her to concentrate her marketing and manufacturing efforts on just one of her current products, the chocolate souvenirs. This allowed Martha to focus her efforts on growing her business more efficiently. Sales have steadily increased, and now Martha has two private investors willing to provide the financial injection her business needs to move to a commercial location and grow.
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HOW THE SBA CAN HELP YOU START Maybe your business idea will be a franchise in itself. ongratulations on thinking about starting your own business. Each day thousands of people across the United States exercise their independence by creating small businesses.
C
Whether your target market is global or just your neighborhood, the U.S. Small Business Administration and its partners can help at every stage of turning your entrepreneurial dream into a thriving new business. If you’re just starting, the SBA and its resources can help you with loans and busi-
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ness management skills. If you’re already in business, you can use the SBA’s resources to help manage and expand your business, obtain government contracts, recover from disaster, and have your voice heard in the federal government.. You can access the SBA help online 24 hours a day at www.sba.gov or visit one of their local offices for assistance. You can find your local office at our Web site or by checking the government pages of your phone book. You can use SBA resources to help organize your thoughts on what type of business you want to open.
HOW TO USE THE RESOURCE? SBA resources include district offices in every state and territory, nearly 400 offices of SCORE – Counselors to America’s Small Businesses, and more than 70 Small Business Development Centers primarily located on college campuses. More information about SCORE and the SBDCs is detailed later in this publication, or you can go to: www.score.org or www.sba.gov/sbdc/index.html
for SBDCs. These professionals can also help you with writing a formal business plan, filling out loan applications to finance your business, managing and
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success. Thomas Edison, the great American inventor, once said, “Genius is 1 percent inspiration and 99 percent perspiration.” That same philosophy also applies to starting a business. First you’ll need to generate a little bit of perspiration deciding whether you’re the right type of person to start your own business.
START BY EVALUATING YOUR STRENGTHS AND WEAKNESSES.
receive their activation orders. The SBA offers special low-interest-rate financing to small businesses with essential employees called to active duty. The Military Reservist Economic Injury Disaster Loan Program provides loans to eligible small businesses to cover operating costs that cannot be met due to the loss of a key employee called to active duty in the reserves or National Guard. Small businesses may apply for MREIDLs of up to $1.5 million if they have been financially impacted by the loss of an essential employee. The SBA has created a special web page specifically for Reserve and Guard members at: www.sba.gov/reservists. To ensure that veterans, service-disabled veterans and Reserve and National Guard Member entrepreneurs receive special consideration in all its entrepreneurial programs and resources, the SBA has established a fully staffed Office of Veterans Business Development. OVBD develops and distributes various informational materials for entrepreneurship such as the Veterans Business Resource Guide, VETGazette, and Getting
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Veterans Back to Work, and various other materials. Veterans may access these resources and other assistance from OVBD by visiting the Web site at: www.sba.gov/VETS/.
Native American Business Development The SBA also features programs for American Indians, Native Alaskans and Native Hawaiians seeking to create, develop and expand small businesses. These groups have full access to the necessary business development and expansion tools available through the agency’s entrepreneurial development, lending and procurement programs. More information is at: www.sba.gov/ managing/special/native.html.
Most new business owners who succeed have planned for every phase of their
• Are you a self-starter? It will be up to you – not someone else telling you – to develop projects, organize your time and follow through on details. • How well do you get along with different personalities? Business owners need to develop working relationships with a variety of people including customers, vendors, staff, bankers, lawyers, accountants and consultants. Can you deal with a demanding client, an unreliable vendor or a cranky staff person? • How good are you at making decisions? Small business owners are required to make decisions constantly, often quickly, under pressure. • Do you have the physical and emotional stamina to run a business? Business ownership can be challenging, fun and exciting. But it’s also a lot of hard work. Can you face 12-hour workdays six or seven days a week? • How well do you plan and organize? Research indicates many business failures could have been avoided through better planning. Good organization – of financials, inventory, schedules, production – can help avoid pitfalls. If you haven’t already done so, after you’ve answered those questions you’ll need to decide what type of business you want to start, and where it will be located. Do you want a home-based business? Want to buy an existing business? How about opening a franchise of a chain business? Each type has advantages, and SBA’s professionals can help you sift through it all.
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expanding your business, finding opportunities to sell your goods or services to the government, recovering from disaster or acting as advocates for small businesses with Congress and regulatory agencies. The SBA also has programs for helping special audiences, such as women and veterans become small business owners.
Women Business Owners Women entrepreneurs are changing the face of America's economy. The SBA serves women entrepreneurs nationwide through its various programs and services, some of which are designed especially for women. There are women’s business ownership representatives in every SBA district office to help women access all of SBA's programs and services, including loan guaranties, federal contracting opportunities, training, counseling and more. These local representatives can also provide information about other local resources available for women entrepreneurs. Another valuable tool available for women business owners and entrepreneurs is the Women's Business Center Program, funded in part through a cooperative agreement with the SBA. Located across the country, approximately 100 WBCs provide training, technical assistance, counseling and mentoring specifically to women, especially those who are socially and economically disadvantaged.
Veterans Business Development The SBA offers a variety of services to American veterans who have made or are seeking to make the transition from soldier to small business owner. Each of SBA's 70 district offices throughout the country has
Small Business Development Centers and SCORE also provide management assistance to veterans who are current and prospective small business owners, offering one-stop assistance to small businesses by providing a variety of information and guidance in easily accessible branch locations. SCORE provides resources and counseling services online at: www.score.org.
$17.5 billion allocated to 7a loan program for 2007, up from $14 billion last year.
designated a Veterans Business Development Officer to help veterans prepare and plan for entrepreneurship. The Veterans Business Outreach Program provides entrepreneurial development services such as business training, counseling and mentoring to eligible veterans owning or considering starting a small business.
The SBA offers special assistance for activated Reserve and Guard members and the small businesses they work in or own. Any self-employed Reserve or Guard member with an existing SBA loan can request from their SBA lender or SBA district office, loan payment deferrals, interest rate reductions and other relief after they — continued on page 60
Mindful of the special needs of women entrepreneurs, the centers offer their services at convenient times and places. In addition, some centers provide child care, and many provide their materials in Spanish and other languages, depending on the unique needs of the communities in which they are located. Many classes offered by the centers are either free or charge a small fee. And often there are scholarships to help those who need them. If you can’t get to a Women’s Business Center, the full range of services is available through the SBA’s Web site for women entrepreneurs, which provides access to all of the SBA's online services, including its extensive library of information, training courses and electronic tools designed to help small businesses. This site also contains information about the services available in local communities. It can be accessed at: www.sba.gov/women.
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Working under the same roof where your family lives may not prove to be as easy as it seems. It’s important to work in a professional environment. One suggestion is to set up a separate office in your home to create this professional environment.
ASK YOURSELF: • Can I switch from home responsibilities to business work? • Do I have the self-discipline to maintain schedules? • Can I deal with the isolation of working from home? • Am I a self-starter?
FINDING YOUR NICHE Choosing a home business must be approached carefully. Before you invest time, effort and money.
ASK YOURSELF: • Does my home have the space for a business? • Can I identify and describe the business I want to establish? • Can I identify my business product or service?
• Is there a demand for that product or service? • Can I successfully run the business from home?
LEGAL REQUIREMENTS Ahome-based business is subject to many of the same laws and regulations affecting other businesses.
SOME GENERAL AREAS INCLUDE: • Zoning regulations (including certificates of occupancy). If your business operates in violation of them, you could be fined or shut down. • Product restrictions. Certain products cannot be produced in the home. Most states outlaw home production of fireworks, drugs, poisons, explosives, sanitary or medical products and toys. Some states also prohibit home-based businesses from making food, drink or clothing. • Copyrights. Protect thoughts and original writings, recordings, broadcasts. • Federal self-employment tax • Immigration Act. Verifies the eligibility of new employees. • Adequate insurance. Covers liability, property, business interruptions, key persons, autos. • Workers’ Compensation Be sure to consult an attorney and your state’s department of labor to find out which laws and regulations will affect your business. Additionally, check on registration and accounting requirements needed to open your home-based business. You may need a work certificate or license from the state. Your business name may need to be registered with the state. For home-based businesses, a separate business telephone and bank account are normally required. Also remember, if you have employees you are responsible for withholding income and social-security taxes, and for complying with minimum wage and employee health and safety laws. — continued on page 61
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Franchising Franchisees have been active participants in the SBA's small business loan program for many years. There are primarily two forms of franchising: 1) product/trade name franchising and 2) business format for franchising. In the simplest form of franchising, while you own the business, its operation is governed by the terms of the franchise agreement. For many, this is the chief benefit for franchising. You are able to capitalize on a business format, trade name, trademark and/or support system provided by the franchisor. But you operate as an independent contractor with the ability to make a profit or sustain a loss commensurate with your efforts. There are more than 3,000 franchised businesses. The challenge is to decide on
one that both interests you and is a good investment. Many franchising experts suggest that you comparison shop by looking at multiple franchise opportunities before deciding on the one that's right for you. Some of the things you should look at when evaluating a franchise: profitability, effective financial management and other controls, a good image, integrity and commitment, and a successful industry. If you are concerned about the risk involved in a new, independent business venture, then franchising may be the best business option for you. Remember that hard work, dedication and sacrifice are key elements for success. For more information visit the SBA Web site at: www.sba.gov/starting_business/ startup/franchise.html or visit the Franchise Registry at www.franchiseregistry.com/ or call your local SBA office.
Home Based Business Considerations Going to work used to mean traveling from home to a plant, store or office. Today many people do some or all their work at home. Garages, basements and attics are being transformed into the corporate headquarters of the newest entrepreneurs – the home-based business person.
GETTING STARTED Before diving headfirst into a homebased business, you must know why you are doing it. To succeed, your business must be based on something greater than a desire to be your own boss. You must plan and make improvements and adjustments along the road. Ask yourself these questions – and remember, there are no best or right reasons for starting a home-based business. But it is important to understand what the venture involves.
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If you’re convinced that working from home is for you, it’s time to create your business plan. The SBA and its resource partners, such as SCORE and SBDCs can help make the process easier.
Choosing Your Business Structure You may operate your business under one of many organizational structures generally chosen for liability and tax reasons. The most common organizational structures are sole proprietorships, general and limited partnerships, C and S corporations and limited liability companies. Each structure offers options appropriate for different personnel situations and which affect tax and liability issues. If you’re uncertain where to start, contact
the SBA first and you’ll be referred to the proper source.
SOLE PROPRIETORSHIP – One person operating a business as an individual is a sole proprietorship. It’s the most common form of business organization. Profits are taxed as income to the owner personally. This rate is usually lower than the corporate tax rates. The owner has complete control of the business, but faces unlimited liability for its debts. There is very little government regulation or reporting.
GENERAL PARTNERSHIP – a partnership exists when two or more persons join together in the operation and management of a business. Partnerships are subject to relatively little regulation and are fairly easy to establish. A formal partnership is recommended to address potential conflicts, such as, who will be responsible for performing each task; what, if any, consultation is needed between partners before major decisions, etc. Under a general partnership each partner is liable for all debts of the business. Profits are taxed as income to the partners based on their ownership percentage.
LIMITED PARTNERSHIP – Like a general partnership, this is established by an agreement between two or more individuals. However, there are two types of partners. • A general partner has greater control in some aspects of the partnership. For example, only a general partner can decide to dissolve the partnership. General partners have no limits on the dividends they can receive from profit so they incur unlimited liability. • Limited partners typically receive a share of profits based on the prorated amount on their investment, and the liability is similarly limited in proportion to their investment.
“C” CORPORATION – A “C” corporation is a legal entity made up of persons who have received a charter legally recognizing the corporation as a
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business plan will be one of the first things the lender or investor wants to see.
separate entity having its own rights, privileges and liabilities, apart from those of the individuals forming the corporation. It’s the most complex form of business organization and is comprised of shareholders, directors and officers. The corporation can own assets, borrow money and perform business functions without directly involving the owners. Corporations are subject to more government regulation and have the advantage of limited liability, but not total protection from lawsuits.
• Preparing a business plan forces you to think through every aspect of your business. If you need outside money, your
• A business plan serves as an assessment tool for the owner. A comprehensive business plan is not done on the spur of the moment. It can be a long process, and you need good advice. The SBA and its resource partners, including Small Business Development Centers located on many college campuses, and SCORE, Counselors to America’s Small Business, have the expertise to help you craft a winning business plan. You can find the nearest SBDC at: www.sba.gov/sbdc/. — continued on page 64
SUBCHAPTER “S” CORPORATION – This is a special section of the Internal Revenue Code and permits a corporation to be taxed as a partnership or sole proprietorship, with profits taxed at the individual, rather than the corporate rate. A business must meet certain requirements for Subchapter C status. Contact the IRS for information.
LLCS AND LLPS – The limited liability company is a popular business form. It combines selected corporate and partnership characteristics while still maintaining status as a legal entity distinct from its owners. As a separate entity it can acquire assets, incur liabilities and conduct business. It limits liability for the owners. LLC owners risk only their investment, not personal assets. The limited liability partnership is similar to the LLC, but it is aimed at professional organizations.
Writing a Business Plan After you’ve thought about your business, the next step is to develop a business plan. The business plan is a formal document explaining in some detail your plans to develop a financially successful business. It’s vitally important for two reasons:
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The nearest SCORE chapter can be located at www.score.org. You can also find business-plan help on the SBA’s Web site at www.sba.gov/starting_business/index.html.
• Discuss ownership of the business and its legal structure. • List the skills and experience you bring to the business. • Discuss the advantages you and your business have over competitors.
MARKETING
Here’s what a good business plan contains: INTRODUCTION • Give a detailed description of the business and its goals.
• Discuss the products and services your company will offer. • Identify customer demand for your products and services. • Identify your market, its size and locations. • Explain how your products and services will be advertised and marketed. • Explain your pricing strategy.
FINANCIAL MANAGEMENT • Explain your source and the amount of initial equity capital. • Develop a monthly operating budget for the first year. • Develop an expected return on investment and monthly cash flow for the first year. • Provide projected income statements, balance sheets for a twoyear period. • Discuss your break-even point. • Explain your personal balance sheet and method of compensation. • Discuss who will maintain your accounting records and how they will be kept. • Provide “what if” statements addressing alternative approaches to problems that may develop.
OPERATIONS • Explain how the business will be managed day-to-day. • Discuss hiring, personnel procedures. • Discuss insurance, lease or rent agreements, and issues pertinent to your business. • Account for the equipment necessary to produce your goods or services. • Account for production and delivery of products and services.
CONCLUDING STATEMENT Summarize your business goals and objectives and express your commitment to the success of your business. Once you have completed your business plan, review it with a friend or business associate or SCORE counselor or Small Business Development Center representative. When you feel comfortable with the content and structure, review and discuss it with your lender. Remember, the business plan is a flexible document that should change as your business grows.
BUSINESS.GOV Business.gov provides 24/7 access to the critical information businesses need from the federal government. Business.gov is managed by the SBA in partnership with federal agencies providing business-oriented programs and services. You can find links to accurate information on how to comply with federal rules and regulations; all the government forms you’ll need; and tax information from federal and state tax resources, including forms and assistance. Business.gov has thousands of forms issued by more than 40 federal agencies.
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You’re just a computer click away from help 24-hours a day at www.business.gov You’re just a computer click away from help 24-hours a day at www.business.gov
SMALL BUSINESS DEVELOPMENT CENTERS Small Business Development Centers, in coordination with federal, state, local and private-sector resources, including funding through a cooperative agreement with the SBA, meet the needs of small businesses and promote economic development in local communities by helping create and retain jobs. SBDCs provide services such as development of business plans, manufacturing assistance, financial packaging assistance, contracting assistance and international trade assistance. Based on client needs, SBDCs tailor their services to meet the evolving needs of the local small business community. As the SBA’s largest non-finance program, SBDCs meet the counseling and training needs of nearly 1 million startups or existing business clients annually. For more information, visit the Web site at: www.sba.gov/SBDC
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[ CLOSINGQUOTES ] Quotes From Successful People
“
The creation of a thousand forests is in one acorn.
A clear vision, backed by definite plans, gives you a tremendous feeling of confidence and personal power. — Brian Tracy
—Ralph Waldo Emerson
High expectations are the key to everything. — Sam Walton
Only buy something that you'd be perfectly happy to hold if the market shut down for 10 years. —Warren Buffet
Make your product easier to buy than your competition, or you will find your customers buying from them, not you. —Mark Cuban
The three great essentials to achieve anything worth while are, first, hard work; second, stick-to-itiveness; third, common sense.
The key to success and the key to failure is... We become what we think about.
Failure is the opportunity to begin again, more intelligently. — Henry Ford
—Earl Nightingale
The best vision is insight. — Malcolm S. Forbes
When we take the responsibility for our failures, we turn the corner towards success. — Erica Wilson
I feel that luck is preparation meeting opportunity. — Oprah Winfrey
Opportunity is missed by most people because it is dressed in overalls and looks like work. — Thomas Edison
—Thomas Edison
I quickly learned that if I kept at it and plowed right through the rejections I would eventually get somebody to buy my wares. —Charles Schwab
The tragedy in life doesn't lie in not reaching your goal. The tragedy lies in having no goal to reach. —Benjamin Mays
As we go forward, I hope we're going to continue to use technology to make really big differences in how people live and work. — Sergey Brin
The real source of wealth and capital in this new era is not material things.. it is the human mind, the human spirit, the human imagination, and our faith in the future. —Steve Forbes
Talk does not cook rice. —Chinese Proverb
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is missed “byOpportunity most people because it is dressed in overalls and looks like work.
”
—Thomas Edison
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