Archive for the ‘Franchising’ category

How the Internet Affects the Franchise Industry

December 26th, 2011
In an age where everyone from your grandmother to 7-year you are online, it’s a no-brainer that the Internet is playing an important role in the business world. When it comes to franchising, is the World Wide Web to help or hinder the industry?

PROS

The most obvious benefit of using the Internet to benefit your franchise is that putting your name out there. In marketing, you need to advertise in places where most people will find it – so if people are online, which brand name you need to go. The trick in this arena are well familiarized with the demographics and what they use online platform. Are consumers up often? Twitter? Whatever it is, it’s where you need to.
The primary benefit of advertising on the Internet is that you can reach such a wide audience. As opposed to billboards, radio ads and television commercials, you don’t have to hope people will drive down a certain road or tune in to a specific station at a specific time. Because of sharing capabilities on the Internet, if people like your advertisements they can easily pass them along to their family and friends — effectively multiplying your audience. It’s kind of like someone being able to pick up a billboard and take it home to show their family, essentially.

Another primary advantage of advertising online is that it’s infinitely easier for customers to contact you. With traditional advertising, people who see your ads will need to remember what number to call or where you are located. If they’re driving by a billboard, they won’t be able to write down your info — meaning they’ll likely forget your company’s name by the time they get home.

CONS

The first con of using the Internet to market your franchise is that the online world is competitive. If you pay for a billboard, for example, it’s yours — competitors can’t take your space just because their billboard is flashier or more clever. With online searches, however, it’s all about who does it best. If you want your page to rank high in search engines, you’ll need to pay for good SEO marketing. If you want your videos to go viral, they’ll need to be more creative and memorable than your competition’s advertising.

If you’re looking to open a franchise, performing an online search might seem like the easiest and quickest way to browse your options. However, you might end up just seeing the franchises with the best advertising budgets that worked their way to the top of the search results — not necessarily all the franchise options that are personally best for you. This is one area in which traditional methods have an advantage over the Internet. Using franchise brokers to help you find the perfect franchise fit has a clear advantage over an Internet search because the assistance is personalized.

Katie Hawkes is a freelance blogger for Profit Street, an online resource of expert franchise brokers.

Small Business Ideas For The Enterprising Individual

December 26th, 2011

With the global economy in transition, opportunities abound for folks looking to go into business for themselves. Of course, the small business failure rate is always high and has been exceedingly so for the past few years as consumers and potential client businesses watch their expenses carefully, excising impulse buys and deferring large purchases until their confidence returns. In such an environment, why not adopt small business ideas that offer high potential payoff for relatively low risk? Owning and operating a proven franchise business is one such idea.

Many different kinds of franchises are available to the enterprising small business owner. The quick-service restaurant industry, for example, is dominated by successful franchise businesses. Whether it’s burrito joints like Chipotle and Panchero’s, upscale soup-and-sandwich outfits like Panera Bread and Zoup!, or guilty indulgences like Coldstone Creamery and Mrs. Field’s Cookies, in-and-out restaurants are a relatively inexpensive starter franchise that provides plenty of ownership experience and room for growth. Simple small business ideas like these provide owners with management and ownership experience as well as serious room for growth.

Restaurants are fast and easy to set up, but there are other small business ideas out there as well. Folks looking for a fulfilling source of business income need look no further than the many childcare and educational franchise opportunities currently available. Many different franchise businesses exist in this space, from more educationally-focused childcare concepts like Goddard Systems Inc. and Tutor Time LLC to concepts that focus on supervised playtime like Adventure Kids Playcare.

Separately, many franchisees make their living running nanny- and babysitter-placement services, which are far cheaper to start up than full-scale preschool concepts. For entrepreneurs just starting out on the road to financial freedom, these cheaper small business ideas may be the way to go.

While it’s true that starting any business requires a significant upfront investment, some small business ideas are more likely to pay off than others–especially when they involve a proven franchise concept. The actual investment required of a potential concept owner depends on many factors including the franchise’s success rate, its average per-store revenue and profit figures, the cost of setting up the business’s physical location, and the geographical location in which the business operates.

Proven franchises like McDonald’s and Taco Bell require a larger upfront payment from potential franchisees on account of their stellar reputations and low rates of failure. As with any investment, interested parties buying the rights to a coveted franchise name must pay a premium for the security offered by the name. While smaller or newer franchise concepts are not poor small business ideas, concepts just beginning to gain traction may not be able to offer the corporate-level support or troubleshooting that more-established businesses can. Thus, potential small business owners looking to get in to a new concept on the ground floor should expect to do more of their own legwork. Regardless of the franchisee’s ultimate choice of concept, it’s small business ideas like these that will drive the nation’s economic recovery.