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8 Procedures to Take Control of Sales and Marketing
The Cash to Cash Cycle Part Three of Series Part One : Inventory Part Two : Accounts Receivable Next Week : Accounts Payable We’re sprinting toward that million dollar mark...and we’re only a couple strides away… Decreasing inventory...
A Couple Of Killer Internet Marketing Techniques
There are many simple, infallible ways to earn income, and one of the surest ways is through marketing your business on the internet. When you learn basic internet marketing techniques, you'll wonder why you haven't already jumped on the bandwagon....
Direct Response - The Fast Track to 6 Figure Freelance Copywriting
Why is freelance direct response copywriting so lucrative? Because it drive immediate sales. And if you can show that your writing will get people reaching for their credit cards, you'll have no shortage of work. It's not complicated. Companies...
E-Z-MRP Allows Small Manufacturers to Grow Enterprise with New Upgrade System
E-Z-MRP, the leading manufacturing software system for small manufacturers, announced effective April 15th, there will be a new pricing and product structure. According to Rocky Smolin, founder of Beach Access Software, makers of E-Z-MRP, “We see a...
Let The Market Choose Your Price?
Setting the correct price is hard for any on-line business, and there are plenty courses and manuals dedicated to this delicate subject. You want to have a price that will make you a profit, obviously. But you also want to have happy customers...
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What To Consider Before Buying a Franchise
Here are some useful tips on what to consider before buying a franchise. Before investing in any franchise system, be sure to get a copy of the franchisor's disclosure document. Sometimes this document is called a Franchise Offering Circular. You should read the entire disclosure document.
The following outline will help you to understand key provisions of typical disclosure documents. Get a clarification or answer to your concerns before you invest.
Business Background: The disclosure document identifies the executives of the franchise system and describes their prior experience. Consider not only their general business background, but their experience in managing a franchise system. Also consider how long they have been with the company. Investing with an inexperienced franchisor may be riskier than investing with an experienced one.
Litigation History: The disclosure document helps you assess the background of the franchisor and its executives by requiring the disclosure of prior litigation. The disclosure document tells you if the franchisor, or any of its executive officers, has been convicted of crimes involving, for example, fraud.
Bankruptcy: The disclosure document tells you if the franchisor or any of its executives have recently been involved in a bankruptcy. This will help you to assess the franchisor's financial stability.
Costs: The disclosure document tells you the costs involved to start one of the company's franchises. It will describe any initial deposit or franchise fee, which may be non-refundable, and costs for initial inventory, signs, equipment, leases, or rentals.
Restrictions: Your franchisor may restrict how you operate your outlet. The disclosure document tells you if the franchisor limits the supplier of goods from whom you may purchase, the goods or services you may offer for sale, the customers to whom you can offer goods or services or the territory in which you can sell goods or services.
Terminations: The disclosure document tells you the conditions under which the franchisor may terminate your franchise and your obligations to the franchisor
after termination. It also tells you the conditions under which you can renew, sell, or assign your franchise to other parties.
Training: The disclosure document will explain the franchisor's training and assistance program. Make sure you understand the level of training offered.
Advertising: You often must contribute a percentage of your income to an advertising fund even if you disagree with how these funds are used. The disclosure document provides information on advertising costs.
Current and Former Franchisees: The disclosure document provides important information about current and former franchisees. Determine how many franchises are currently operating. A large number of franchisees in your area may mean increased competition. Pay attention to the number of terminated franchisees. A large number of terminated, cancelled, or non-renewed franchises may indicate problems.
Earnings Potential: You may want to know how much money you can make if you invest in a particular franchise system. Be careful as earnings projections can be misleading. Insist upon written substantiation for any earnings projections or suggestions about your potential income or sales.
Financial History: The disclosure document provides you with important information about the company's financial status, including audited financial statements. Be aware that investing in a financially unstable franchisor is a significant risk; the company may go out of business or into bankruptcy after you have invested your money.
Hire a lawyer or an accountant to review the franchisor's financial statements. Do not attempt to extract this important information from the disclosure document unless you have considerable background in these matters. Your lawyer or accountant can help you understand the information.
You may freely reprint this article provided the author's biography remains intact:
About the Author
John Mussi is the founder of Direct Online Loans who help UK homeowners find the best available loans via the www.directonlineloans.co.uk website.
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