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Is Buying a Franchise a Good Idea for Entrepreneurs?

StrategyDriven Entrepreneurship Article | Is Buying a Franchise a Good Idea for Entrepreneurs?You’re an entrepreneur. You always have been, and you always will be. But you are also interested in starting a business with some built-in brand recognition and stability, and you could benefit from the advice of someone who has been there before. So, should you consider a franchise?

Franchise ownership is unique in that it affords the opportunity to own your own business while benefiting from the franchisor’s history, structure and support. You are on your own – an entrepreneur in every sense of the word – but you also have a solid foundation upon which to build. However, while buying a franchise can afford several benefits, it entails unique risks as well, and if your franchise is unsuccessful, you could lose far more than if you had started a business on your own.

Key Aspects of the Franchise Relationship for Entrepreneurs

If you are an entrepreneur and you are considering a franchise as an alternative to starting a business from scratch, here are three key aspects of the franchise relationship to consider:

  • As a franchisee, you own your own business. You are responsible for hiring your own employees, and you are responsible for your own success.
  • While you own your own business, you must operate within the confines of the franchisor’s model. Although this promotes brand uniformity, it can also have undesirable consequences in some cases.
  • As a franchisee, you can rely on the franchisor’s support – to a point. Your franchisor will only provide so much guidance, and some are much better at supporting their franchisees than others.

5 Risks to Consider Before Buying a Franchise

Along with these key aspects of the franchise relationship, there are some important risks to consider as well. These risks include:

  1. Initial Investment: Since you will need to pay an initial franchise fee in addition to your other startup costs, the initial investment for a franchise can be much greater than that for an independent business.
  2. Royalty Fees: Your royalty fees (and advertising fund contributions) will take a chunk out of your monthly revenue, and if your franchise relationship ends prematurely, you could be on the hook for “lost future royalties.”
  3. Unanticipated Costs: Franchisors regularly make updates and modifications to their system standards. If your franchisor makes any updates or modifications, you will be required to comply at your expense—even if this means taking on more business debt.
  4. Termination: Your franchisor will have the contractual right to terminate your franchise for various reasons. If you lose your franchise, you will lose your investment, and you will likely be subject to a post-termination non-compete and other restrictive covenants.
  5. Non-Renewal: While your franchise agreement should include provisions for renewal, the franchisees’ right to renew is generally subject to the franchisor’s approval. As a result, there is no guarantee that you will be able to renew when your initial term expires.

Ultimately, whether it makes sense for you to pursue a franchise depends on your unique background, skills, risk tolerance and financing opportunities. If you are interested in a franchise, you should consult with an experienced professional who can help you make an informed decision.


About the Author

Jeffrey Goldstein is a franchise lawyer and the founder of Goldstein Law Firm. He has been exclusively representing franchisees and dealers for over 30 years. Mr. Goldstein represents prospective, active and terminated franchisees nationwide.

10 Things Every New Entrepreneur Needs to Know About Business

StrategyDriven Entrepreneurship Article | 10 Things Every New Entrepreneur Needs to Know About Business

So you want to be an entrepreneur? You have a great idea for a business and you’re ready to make your mark on the world? But before you quit your day job and jump headfirst into startup life, there are a few things you need to know. As much as you can see great leaders out there making a lot of money in business, it’s not always that easy to do. Being in business is a lot of work and so, it’s always a good idea to be prepared for that and to know exactly what you’re getting yourself into (as much as possible).

In this blog post, we’re going to take a look at the ten things you need to know about (and before) starting a business. So if you want to work out if this venture is for you, grab a cup of tea, get comfortable, and start reading!

Why is the Entrepreneur Lifestyle so Alluring?

For many people, the prospect of being their own boss and setting their own hours is incredibly appealing. The appeal of the entrepreneur lifestyle is easy to understand. After all, who wouldn’t want the freedom to work on their own terms? However, there’s more to it than that.

The entrepreneur lifestyle also offers the opportunity to forge your own path and create something that is truly your own. In a world where so many people feel like they’re just a cog in the machine, the chance to be your own boss and make your own decisions can be incredibly appealing.

Of course, the entrepreneur lifestyle isn’t for everyone. It can be unpredictable and stressful at times. But for those who are up for the challenge, it can be an immensely rewarding experience.

What You Need to Know About Entrepreneurial Life

So now we’re actually going to dig into the details of life in the world of business. Although it has many pluses, there are things that you really need to know in order to understand whether this path is right for you. Let’s take a look at the good, the bad, and the ugly.

1. It’s Not All Glamorous

Being an entrepreneur is a lot of work. Don’t let anyone tell you otherwise. Yes, it can be exciting and rewarding, but it also requires long hours, dedication, and sacrifice. Be prepared to put in the hard work if you want to be successful. There’s no such thing as an overnight success—even if that looks to be the case. It’s a long journey that isn’t always uphill. So prepare yourself for a wild ride.

2. You’re Going to Make Mistakes

And that’s okay! Making mistakes is part of the learning process. What’s important is that you learn from your mistakes and use them to improve your business. It doesn’t matter what happens or what seems like the biggest failure—the only thing that matters is your reaction to it. Learn from what happens, apply it to your business, and see success as a result!

3. It’s Not Just About the Money

Yes, making money is important, but it shouldn’t be your only goal. Passion is what will keep you going when times are tough, so make sure you’re passionate about your business and its mission. The money won’t get you out of bed in the morning—drive will. So make sure that you start something that lights you up and makes you excited about being in business.


4. You Need a Support System

Building a successful business takes a team effort. Surround yourself with people who believe in you and your vision. This could include family, friends, mentors, employees, investors, and so on. As much as you may be alone in the beginning (this is where the family and friends aspect comes in), you can then start to hire staff, get mentors, and take on investors over time. As your team starts to grow, so will your business!

5. You Have to Believe in Yourself

If you don’t believe in yourself, no one else will. Believe in your idea and have faith that you can make it happen. This positive attitude will help carry you through tough times. Most of the time, when it looks like you’re about to fail, the success you’re looking for it only one step away. And it’s that self-belief that will keep you going!

6. Be Prepared for Setbacks

There will be bumps in the road along the way to success—but don’t let them get you down! When we choose to see setbacks as opportunities to learn and grow, the game changes. You will lose money, have customer issues, have to give refunds, and so much more. It’s just part of the game. But it helps if you can be prepared. Choose to learn more about Visa Rapid Dispute Resolution, understand how to improve your customer service, and always make sure that you have a contingency fund, just in case anything goes wrong!

7. Know When to Ask for Help

Asking for help doesn’t mean you’re weak or incapable—it just means you’re smart enough to know when you need assistance. Don’t be afraid to reach out to others for advice or guidance when needed. This is where the idea of having a mentor can come in handy. It’s all about learning from someone who’s a few steps ahead of to so that you know what you’re doing in moments when things feel hard or confusing.

8. You’ll Need Thick Skin

Entrepreneurship isn’t for the faint of heart! You’ll need to develop a thick skin if you want to make it in this competitive field. Be prepared for rejection and criticism—and learn how to use it constructively to improve your business. You will have your highs and your successes, but there can be a lot of hurdles to get there and you may fall down from time to time. Being able to brush it off and keep going will drive you to where you want to be.

9. You’ll Work Long Hours

Expect long hours, especially in the beginning stages of starting your own business. As much as you can see some entrepreneurs online that work a few hours a day for millions a year, it never started off that way. These people put the graft in early! When you’re still working a job, that means early mornings and late nights. It can still mean both even when you quit your job to take your business full-time. Remember—you get out what you put in!

10. It’s Not Going to Be Easy

Building a successful business takes time, energy, dedication, and determination. It’s not going to happen overnight, so don’t get discouraged if things aren’t moving as quickly as you want them to. Rome wasn’t built in a day and neither is a thriving business! Have patience, stay focused on your goals, and never give up on your dreams. If you keep these things in mind, you can achieve anything you set your mind to! And remember, the harder you work the luckier you get!

Are You Ready For it?

Entrepreneurship is not for everyone, but if it’s something you’ve been thinking about, this blog post should be able to give you some insight into what to expect. It’s absolutely hard work to run your own company—but it’s also very rewarding. Just remember these key points, stay focused, give yourself some grace, and go out there and achieve greatness. It’ll be worth it!

9 Keys to Success Strategy Guide

StrategyDriven Entrepreneurship Article | 9 Keys to Success Strategy Guide1. Start with a Clear Purpose.

Successful entrepreneurs are driven by a purpose bigger than themselves. While they realize they need to make money to be sustainable, none of the 100 entrepreneurs we interviewed mentioned money as a primary driver. It is not what motivates them. Instead, they want to do something they are passionate about, solve a problem that intrigues them, create jobs in their town, provide phenomenal customer service, and change the world in their own way.

2. Build on What You Know.

Successful entrepreneurs build companies in industries they understand. About one-third of the entrepreneurs we interviewed worked in the industry in which they started their business. Another third had worked in a related industry. The remaining third were serious and frequent users of the products, so they understood the industry from the customer’s perspective. The better you know your industry, the greater your chances for success.

3. Launch Opportunities Not Ideas.

Ideas and business opportunities are not the same thing. Our business failure rate is high because people launch ideas. A true business opportunity meets the conditions of the NERCM test: (1) Need, (2) Experience, (3) Resources, (4) Customers, and (5) Model. Your chances for success go up significantly when you prove there is a need for your product, you have adequate experience, you bring together sufficient resources, you have customers committed to buy, and your business model is sound.

4. Develop Your Supporting Cast.

Successful entrepreneurs thrive on the experience of others. They recruit talented individuals to fill in the gaps in their skill set. They build teamwork at three levels: (1) they create a “Brain Trust” of mentors with expertise they need, (2) they build a core team of partners who join them in the venture, and (3) they develop strategic partnerships with individuals and companies who can help them grow their business. Talented teams can go further and faster than any individual working alone.

5.Maximize All Available Resources.

Effectiveness is achieving important company objectives. Efficiency is doing it with as few resources as possible. Successful entrepreneurs are masters of efficiency – they have a real knack for finding and utilizing a host of resources other than money. They borrow rather than buy, defer compensation, partner with their first customers, negotiate excellent terms with suppliers, and use someone else’s plant rather than build one – they think resources first, cash second.

6. Work with a Zealous Tenacity.

Successful entrepreneurs are high energy people. They have two related and vital qualities: (1) a tremendous zeal for their business, and (2) a dogged tenacity to win. Zeal is the fire that fuels the venture, and tenacity is the trait that produces the results. These two qualities combined get you through the challenges of building a business and dramatically increase your chances for success.

7. Build a Community of Raving Fans.

Customers approach companies with preconceived notions of how they should be treated. If their expectations are met, they are basically satisfied. The problem is, satisfied customers are not always loyal customers – they will patronize competitors’ businesses as well. Giving customers more than they expect to receive will set you apart from your competitors and help you create a community of raving fans that love your business.

8. Pivot to Multiple Revenue Streams

Winning entrepreneurs continue to seek out and develop multiple streams of revenue. They do this by (1) offering related products to their growing customer base, (2) finding new markets for their growing product line, and (3) utilizing their growing resources to create new ventures. Over time, they end up juggling a reasonable number of projects in the same or related industries. Having multiple revenue streams reduces the vulnerability of a single product line, and increases the chances for long-term success.

9. Serve Your Broader Community

Successful entrepreneurs are intimately involved in the fabric of their communities. They are using their resources to assist individuals and organizations that need their skills, experience and expertise. They are addressing issues in education, literacy, health care, and the environment. Their communities end up saying, “This business supports us, so let’s support this business,” even though this was not the original intent of the service offered. Serving communities is good for everyone.


About the Author

Mike GlauserMike Glauser is an entrepreneur, business consultant and university professor who has built successful companies in the retail, wholesale, and consulting industries. His passion is helping people create successful businesses, gain financial freedom, and live the life of their dreams. His latest book, Main Street Entrepreneur: Build Your Dream Company Doing What You Love Where You Live (Entrepreneur Press), is a roadmap for doing exactly that. Learn more about Mike at: www.mikeglauser.com.

A Few Ways To Start Your Entrepreneurial Lifestyle

StrategyDriven Entrepreneurship Article | A Few Ways To Start Your Entrepreneurial Lifestyle

Being an entrepreneur is something that you ever want or you don’t. When you are an entrepreneur you commit to working for yourself and do whatever you can’t make yourself and your company or companies in some cases succeed. There are lots of different ways to become an entrepreneur and lots of different levels to start at, you need to find what’s right for you with your age and budget that you have and what level of investment you want to make, to begin with. Being an entrepreneur is a wonderful thing. It gives you flexibility, freedom to choose how you spend your days as well as a better work-life balance. It also allows you to further your career as much as you want to without any restrictions from companies that have their own rules. Where is it a normal 9-to-5 job he may only ever reach 40,000 a year whereas when you’re an entrepreneur the possibilities are endless.

When you starting at the very beginning of wanting to become an entrepreneur and work for yourself most people start with a side hustle, this normally goes alongside their normal 9-to-5 job which they are looking to scale and grow their business to a point where they can leave their normal job and follow their passions and their own company. There are lots of different ways you can do this and the top tips everywhere for entrepreneurs and advice to help you start. There are lots of different ways you can become an entrepreneur. There are things like social media managers and virtual assistants. These are service-based companies and something that you can do in the comfort of your own home or even sitting on holiday as long as you have a laptop and Wi-Fi. As a social media manager, you are stuck at the capacity of how many clients you can handle but you are also able to then further and outsource clients to people who can then work for you. Prices vary all over the world in the US the average is about $1000 a month per client so if you have 10 clients a month that’s $10,000 a month before tax. There are lots of online courses to help you train and learn to do these roles and some of them are free too.

If you’re ready to look at more of a commitment and have a bigger investment amount you’re able to put in you could look at buying a business that’s already there and making it your own. There are lots of businesses for sale all over the place as well as franchises and it’s not a look at the top places where the businesses are. This will give you a bit of a head start into being an entrepreneur and having a business as all the base and foundation work is already done. You’ll be able to come in and take over and make it your helping to scale and grow the business which will increase profits, turnover and the growth of the company.

Essential Tips For First Time Business Owners

StrategyDriven Entrepreneurship Article | Essential Tips For First Time Business OwnersRunning a successful business can be one of the most rewarding endeavors an individual can pursue, both financially but also due to the satisfaction it can bring. With that being said, running a business, be that a small start-up, mid-sized enterprise, or a global brand, managing your business is not easy, especially if you’ve never been in that position before.

Many exciting and budding entrepreneurs see their first-time businesses have to fold year after year, all because they may not have been prepared in some way and, due to that, mismanaged the business. If you find yourself in charge of a business for the first time, here are a few vital tips to ensure that you can excel in the role and grow your business too.

Get An Education

One of the best ways to ensure that you’re prepared for all the different responsibilities involved with running a business is to get an education and understanding of everything you’re expected to do. One of the best ways to do this is through a business degree, as this will give you solid foundations in all departments, such as business analytics, finances, team management, and more.

However, this option might not suit everyone, especially those who have too many responsibilities that they can’t give up to get an education. If that’s the case, the next best thing is to learn as much as you can through online learning and tutorials (LinkedIn Learning and Skillshare is fantastic for this). You can also attend seminars, both in-person and online, and read books from industry experts.


Make Sure Your Business Is Efficient

Time means money within business. This means that if you can perform tasks quickly at a good standard, your business will serve more customers and generate more income. One of the best ways to ensure that your business is prepared and efficient is to invest in automation software. With this type of software, you’ll be able to perform certain tasks quickly, giving you more time to work on other things. Automation software can help with financial management, organize calendars, and so much more. Click here to find out some of the best business software you need.

However, with this emphasis on software and digital solutions, you need to make sure that your IT and computer hardware is up to scratch. Furthermore, as you will be utilizing digital platforms, you need to ensure that you are protected and that your hardware and software are well maintained. This can be hard for a new business to do in-house, which is why it’s a good idea to invest in the small business IT support London companies like Computer Being offer.

Listen From Others

It can be easy, as a new business owner, to dismiss the naysayers and doubters. However, it’s actually a good idea to listen to these concerns if they’re coming from people more experienced than yourself. Understanding why people might not support your business proposal can help you tackle the problem head-on and ensure that your business starts with a more solid foundation.

Furthermore, when you hire your first team members, be sure to listen to them, including their advice, concerns, and ideas. These people will likely grow with you and the business, so it’s a good idea to get their insight, as it can be helpful. There’s nothing wrong with being confident in your abilities. However, you should never dismiss and ignore valid criticism and concerns.

With these tips, you should be more comfortable with the prospect of owning a business and should be in a better position to be successful within it. However, these tips are not the be-all and end-all, and it’s a good habit to continue learning and developing as a business leader, as this will drive you forward and be more successful.