How Do I Know If Business Ownership Is Right For Me?

This is possibly a burning question as you consider different options, especially if what you are currently doing is not rewarding and want to do something else. What are your options? Do you find a new job, stay in your current position, or move into business ownership? As you look for answers to this question I suggest there may be many suggestions from those around you. Ultimately, the final answer will come from you and you alone. Deciding if business ownership is right for you includes many emotions and motivations. These may include:

• No more layoffs
• Having control of your work and personal life
• Having balance with work, family, and friends
• Financial security
• Personal fulfilment
• Success
• Creating and building something
• Contributing to the community
• involvement
• company politics
• Less frustration and job stress
• Getting away from the corporate life

Perhaps I forgot the most important motivation - money. I think a major reason most people enter business ownership is because they believe they can make more money than what they currently earn and perhaps what they will earn in the foreseeable future. What's interesting is that according to the book, the Millionaire Next Door, five out of six millionaires earn their fortunes through business ownership.

How else do I decide?

Part of the purpose of this guide is to take you through the decision-making process so you can decide if buying a franchise makes sense to you We'll explain shortly how I use a consultative process to go through franchise ownership options to help you understand the buying process, determine what's important to you, and work through your options so you arrive at the decision that makes sense for you. Notice I said "arriving at the decision that makes sense for you." That's the purpose of this guide or workbook and that is, allowing you to arrive at the decision that makes sense to you. Not your spouse. Not your parents, family, best friend, neighbour, accountant mentor, coach, consultant, or advisor... but YOU. ....

Read more at: http://www.businesses2sell.com.au/blogs/2014/02/how-do-i-know-if-business-ownership-is-right-.php

THE 'PERSONAL PROPERTY SECURITIES ACT'-IMPLICATIONS FOR 2014

Hi Guys

The 'Personal Property Securities Act'-the PPSA- introduced in 2012- is arguably the largest change to the definition of ‘ownership’ in 200 years, essentially replacing 'Title' with 'Interest'.

A core outcome of the PPSA is the consolidation of all 40 odd assets registers into one-the ‘Personal Property Securities Register’-the PPSR. The PPSR is now the ONLY register for business assets such as shares, loans, securities, equipment, machinery, intellectual property and so on. Think of it as the old REVS register for motor vehicles having been expanded to now include every other type of business asset.

Essentially, among other things, certain types of businesses now have to register their assets on the PPSR (even though they already ‘own’ them) or face serious, possibly business ending, consequences.

Any business that supplies on credit terms, leaves property at other parties premises, consigns stock, owns IP, or pays other businesses for products are all affected by the new legislation and are at risk if they take no action.

The Act was introduced with a 'transition' period of two years that provided interim protection from the PPSA for some businesses- that protection expires on 30th January 2014……..

Many unaware/unprotected businesses not covered by the interim 'transition' protections have already lost their businesses to the new legislation-suppliers to WOW, Hasties, Super Butcher, Kentor Minerals, QES and so on-losing collectively tens of millions.

Among the issues faced by unprotected businesses from the PPSA are:

• A business now has to register its assets on the ‘Personal Property Securities Register’-or they could become the property of another business.
• Another party can use unregistered assets as security for their own borrowings.
• A business can be subject to a ‘preferential payment’ demand for all monies received from a business you have dealt with over the past six months-with no return of goods.
• From 30th January 2014 all business assets/securities not registered on the PPSR will be not be protected or enforceable-inter-Company loans, intellectual property, leases etc.
• Pre-PPSA Terms of Trade agreements with ‘retention of title’ clauses are now worthless-they need to be redrawn in line with the Act.

Scary isn’t it? What compounds the issue is that probably 95% of Australian businesses potentially affected haven’t yet heard about it or taken steps to protect themselves…….

We have created www.ppsaprotection.com.au as an information portal with some simple video collateral that explains how the legislation affects different types of business. We have also posted them on You Tube under ‘PPSA Protection’.

So, if you own a business or are thinking of purchasing one, then you need to make sure that it is PPSA compliant. Failure to do so could result in the extinction of it.

Feel free to contact us with any questions you might have regarding the PPSA/PPSR-we’re always happy to chat!

Kind regards

Rick

Director

PPSA Protection

Source of this article: http://www.businesses2sell.com.au/blogs/2014/01/the-personal-property-securities-actimplicati.php

Seven Steps of launching your franchise in Australia

Australia is a very large country area wise but has less population and perhaps it is the most franchised nation in the world. Fortunately, it has a very good number of entrepreneurs, businesspersons, Accountants, Consultants and legal professionals. Accordingly, there is a fairly good chance of establishing, promoting and successfully running franchise business. Moreover, it is the First World and recession-free economy. Growth potential is in abundance. Luxury watch brand Rolex has opened its first Standalone Australian Store in Sydney, as the luxury fashion market continues to boom. Separately, the US box retail giant COSTCO is also all set to open its fourth Melbourne store. Subway, Jims and many other equally successful and efficient outlets are already doing well in Australia.

WHAT IS A FRANCHISE BUSINESS?

Franchise business also known as business format franchising is a technique under which Entrepreneurs systemize business document and brand business in such a way that they can sell the rights to establish and run an exact replica of the branded business outlet to another business owner.

SEVEN STEPS OF LAUNCHING FRANCHISE

In order that the Franchise Format Business run successfully, effectively and profitably, it is necessary to follow the following 7 steps -

ACQUIRE COMPLETE KNOWLEDGE

As in any other business activity, both the Franchisor and the Franchisee must acquire complete information and knowledge of the Franchisee business. Under the Australian legislation and as per the Guidelines of the Franchise Council of Australia the Franchisor must provide detailed and complete information to the Franchisee. On his part the Franchisee should also get more and more information about the business from the local population, customers, and employees, banks, Accountant and also the persons in Legal profession. The Franchise has to have adequate business skill, competence and patience. Further books, magazines and Exhibitions can also provide lot of information. Detailed and authentic information can also be had from the FCA Office or their website.

FEASIBILITY

Franchising is not for everybody and also not suited to all business. Therefore, a mock and/or real demonstration before launching is essential. This will help both to know whether the local people and prospective customers will like and make use of the franchise outlet. Successful running of the franchise depends mainly on customer satisfaction and so is profitability. An in-depth feasibility/ assessment is needed to convert the business to the acceptable level of Franchise model.

PREPARATION OF DOCUMENTS

Franchise format business requires a set of documents. All Franchisors have to prepare two sets of documents –

The franchisee documents include:

• The initial design of the franchisee business
• The Operations and Procedures Manual that controls the details of the way the franchisee business is managed
• • The Legal Agreement between the franchisor and franchisee
• The Disclosure Document from the franchisor to the franchisee
• Have a discussion with bank managers.
• Read the franchise trade magazines, newspapers, and websites.
• Attend franchising exhibitions.
• Seek advice and opinions of friends.
• Do some local market survey to gauge demand for the products and services.
• Test the reputation of the franchising companies.

The franchisor documents include:

• The initial design of the franchisor business
• The franchisor business plan
• The franchisor Operations and Procedures Manual
• Marketing plans for selling

All these documents are to be prepared by Experts – Accountants, legal professional Consultants and Solicitors, etc for a fee and this is the business formation expense.

Some of these documents are mandatory under the Australian Competition Consumer Commission and Franchise Code of Conduct Compliance Manual of FCA, while there are some more other documents are simply to clarify the Business practices and also for continued cordial and cooperative relationships between the Franchisor and Franchisees.

MAKE IMPORTANT DECISIONS ABOUT FRANCHISE MODEL

After legal paperwork, you'll need to make many decisions about how you'll operate as a franchisor. Key points include:

• The term of your franchise agreement
• The size territory you will award each franchisee
• What geographic area you are willing to offer franchises within
• The type and length of training program you will offer
• Whether franchisees must buy products or equipment from your company
• The business experience and net worth franchisees need

RECRUIT AND HIRE EMPLOYEES

In order that a Franchise Business is made launch able, the entrepreneur (prospective Franchisor) will need to recruit essential employees for running the business smoothly at both ends. ...

Read full article at: http://www.businesses2sell.com.au/blogs/2014/01/seven-steps-of-launching-your-franchise-in-au.php

Franchise Sales and Recruitment

What is Sale?

When a product or service is transferred to someone for money it is called sale. In the present day business, sale denotes influencing or persuading others to buy. The early origins of the word however remind us that selling in its purest sense should aim to benefit the buyer more than the seller. Selling is truly sustainable - as a profession, a career, a business activity, and the mainstream work of a Franchise - when it focuses primarily on the customer benefiting from the relationship. The seller is an enabler, a messenger, a facilitator - a giver.

FRANCHISE

In this background Franchise sales assume significant importance. In the first instance what is a Franchise? A franchise is when someone pays to set up a branch of an already successful business. It's a form of business where an already set up business organisation which has a successful product or service enters into a continuing contractual relationship with the new entrant into that business under the former's trade name/brand and normally with his guidance in exchange of a retainer or fee. Essentially, and in terms of distribution, the franchisor is a supplier who allows an operator, or a franchisee, to use the supplier's trademark and distribute the supplier's goods. In return, the Franchisee pays the supplier a fee. Thirty three countries, including the United States, and Australia, have laws that explicitly regulate franchising, with the majority of all other countries having laws which have a direct or indirect impact on franchising.

Franchise Selection

A franchisee makes earnings from the sales. The more the sales, obviously greater will be profit. A prospective franchisee needs adequate self confidence and should also have strong entrepreneurial spirit and inquisitive skill. It is important for a franchisee to enjoy his/her business because when he/she takes the required amount of interest, it helps him/her to grow faster and acquires the requisite level of understanding and knowledge and gather more information in the market and keeps himself updated.

What to do before buying a Franchise?

• Do the research.
• Look at the alternatives.
• Talk to the existing franchisees
• Obtain customers views/feedbacks/choices
• Have a discussion with bank managers.
• Read the franchise trade magazines, newspapers, and websites.
• Attend franchising exhibitions.
• Seek advice and opinions of friends.
• Do some local market survey to gauge demand for the products and services.
• Test the reputation of the franchising companies.
• Also test their claims about pricing and any other relevant business claims or information.
• Talk to the existing employees and get to comprehend their willingness, ability and capacity to perform
• Identify the areas of their improvement and take a view whether to take them along or go in for fresh recruitment.
• Do not keep an employee who is not able to deliver.

When someone works in a service or product area that he loves, he/she will enthuse about it, and his/her enthusiasm will be conveyed to his/her customers and everyone he/she meets. If the prospective buyer value the customer above all else, do the existing employees too? If they do not then they may not be fully in tune with Franchise style and business philosophy. Finding a good emotional and philosophical match with chosen franchising company is almost as important as choosing the right sort of business. Given sympathetic and genuinely relevant support one can achieve almost anything - be sure that franchisor will be able to provide it. In other words, the mainstream work of the franchise and its manpower planning and development go hand in hand. One is not effective without the other. Both are complementary to each other. When one really enjoys the franchise, he/she recruits people who too are not only knowledgeable and professionally sound but are also interested in the type of work they are being employed on. So enjoyment and expertise help recruit better people. People like to deal with enthusiastic suppliers - people who love their work and the work becomes a way of life, rather than just a means to earn. In this manner naturally there will be boost in sales. Franchise sales are entirely dependent on the employees, their training and education and their sales acumen. It is the quality of employees and the quantum of interest taken by them that will promote franchise sales and consequently the profits of the Franchisee. In this regard the Franchisor guides and helps the Franchisee and its employees from time to time. Moreover, the franchisee has the benefit of using system's wisdom and the ability of the network with peers who share the same goals. A boost in sales in brand strengthens the franchise business. Value based selling and coupons can help. For this it is necessary to undertake surveys, store walks and obtaining input from employees. In this way the Franchisee can feel the pulse of the market. It is also desirable to develop a win-win scenario between Franchisee and Customers as well as between Franchisor and Franchisee. Efforts should be made to create a fairly high level of trust between the Franchisee and the Franchisor.

Importance of proper Recruitment

Employing the right person for the franchise is the most important part of the venture. An effective recruitment and selection process reduces costs. These processes match up the right person with the right job skills. Interviews and background checks ensure that Franchise employs a candidate who is reliable and carries out the planned objectives for providing quality services and products to Franchise customers. The overall aim of the recruitment and selection process should be to obtain at minimum cost the number and quality of employees required to satisfy the needs of the Franchise. The recruitment and selection process is the time not only to identify a candidate who has the experience and aptitude to do the job that is needed, but also to find someone who shares and endorses Franchise core values. The candidate will need to fit in well within Franchise culture. Selection and recruitment process should provide an employee who adapts and works well with others in the Franchise business. Hence the importance of proper and economical manpower planning, selection, training, placement and supervision. This positive attitude will affect the quality of your products or services, and ultimately, your customers' perceptions of the franchise. ..... Continue reading at: http://www.businesses2sell.com.au/blogs/2013/12/franchise-sales-and-recruitment.php

Statutory Licences Required to Operate Business

Many businesses require statutory licences in order to operate within the law. These licences are effectively legal permits to enable an operator to conduct the business. The reasons for creation of such licences under the particular statute may be to regulate the operations of a particular business either by restricting the types of persons able to conduct that business to those properly qualified, or to restrict the number of persons in a particular area who may conduct such business. Such a licence may be described in a variety of ways.

For example, in Queensland Retail Milk Vendors' Association v Deacon, a licence to operate a milk-run was referred to as a lease. It was not a lease in the true sense but merely a right to operate that run for a limited period in return for payments. The right to a licence is certainly analogous to a property right. However, much might depend upon the nature of the right and how it is created.

Similarly, a licence to operate a business would normally be treated as part and parcel of the property being sold particularly where the question arose as to whether it was part of the conveyance of property of the business which might be dutiable. For example, in Commissioner of Stamp Duties (NSW) v Yeend, the court examined the right to sell refreshments in two reserved enclosures at race meetings at Warwick Farm racecourse. This right was held by the High Court to be no more than a contractual right and not a property right. It was analogous to a personal right to place posters on a wall or to take photographs. The effect of that decision would be to discriminate between the contract which brings into existence a merely personal right, not itself being a right of property, and merely a right personal to that particular licensee. This has been held in respect of a statutory licence where the object of the statute was to licence a particular person to conduct a nominated business and not to create a right of property.

Whilst a statutory licence could never attract customers, it operates to the holder's advantage by ensuring that by a lack of choice, the number of people issued with these licences will be restricted. Because it does not influence or secure custom in any other way it is probably wrong to refer to such a licence as property although its possession certainly enhances the goodwill of a business.

A franchise right, although contractually conferred, could also operate as a property right depending upon the nature of the franchise. Whilst there is a degree of judicial difference of opinion as to the true nature of these rights, they are plainly analogous to property although technically not goodwill, but are nonetheless valuable rights. There are many cases dealing with the question of whether or not a liquor licence, which is a grant of a statutory monopoly to sell liquor, is part of the goodwill of a business. It has been suggested that goodwill attaches to a statutory monopoly right and that whilst such a right can be dealt with separately from goodwill, it is not usually severable from the goodwill for practical purposes. This is so in the sense that the goodwill attaches to a species of property and the goodwill can only be dealt with attached to that statutory right. However, that is not to say that the separate statutory right itself cannot be the subject of a separate bargain and sale apart from the goodwill.

It is interesting to note that a statutory licence granted by a government agency authorising the operation of a business may give other rights to that licence holder. For example, in Ball v Consolidated Rutile Ltd, commercial fisherman (the plaintiffs) were granted licences under fishing legislation of Queensland which authorised them to take prawns for commercial purposes by the use of nets from licensed fishing vessels in specified waters. The activities could not be conducted without such licences so the plaintiffs' authority to conduct their business derived entirely from legislation.

The defendants conducted sand mining operations on an island adjoining the fishing grounds. As a result of their operations part of a large sand dune slipped into the water taking with it a great deal of root masses and other vegetation which was carried into the fishing grounds. The plaintiffs complained that the damage had caused destruction to their fishing equipment and it was no longer economical to fish in the waters for which they were licensed to fish. The plaintiff fishermen claimed damages against the corporation for public nuisance by failing to take reasonable precautions to prevent slippage and causing economic loss to the plaintiffs who had to cease fishing in the area in which they were licensed.

In the result Ambrose J, who found that the defendants were not liable in public nuisance, did recognise that there may have been a public right conferred by the statutory provision which licensed the fishermen? Again, the licence was not a recognisable species of property but arguably gave certain common law rights to the holders.

Thus, it may be seen, that a holder of a statutory licence may logically form part of a specific class of persons who may be in a position to take action to restrain others from interfering with the rights granted by such statutory licences. In different circumstances from those in which the fishermen had found themselves, such persons may sustain claims for loss, including economic loss, if that loss is suffered through infringement of that statutory right. The right, as was found in the above case, need not be necessarily described as a property right.

Being an entrepreneur with a Franchise

Nowadays more and more people aim at becoming their own bosses; therefore they intend to get into businesses. However even with the best of efforts and best work ethics; they face insurmountable challenges that can actually have a setback on their performance. It might even hinder them from pursuing their dreams further. But still there is hope....With the FRANCHISE options, one gets the freedom to run your business while you have a backup support plans with the help of strong networks and reliable procedures to fall back upon!

In that respect Franchise for sale is always considered to be a great option for young and budding entrepreneurs that do not have much experience to use their potential to the best. Also by operating in the local areas, a company that is franchised is often able to provide for greater services and faster turnaround times. For example a local printing shop can be very useful for any business community and its services, being integral to any business can be assimilated by other business houses as well. However to secure oneself further, going for a franchised store would help you settle better and give you more assured income in a shorter frame of time. Also even if you do not have much experience in the printing sector, getting a franchise in this field can give you a leaping pad to start your business from positions that your profit matrix can get a better hike. Further the Franchise options enable people to completely trust the products and services that they receive. Having a reputable franchise allows foe training enabled knowledge to be acquired and put in to practice effectively and quickly. Also there is a strong networking and great support system, which extends across the globe. This implies that one can assimilate experiences and also share mistakes in a forum that helps you to learn and also mitigate your problems. Thus franchise options make for a stronger business structures than a regular start up businesses and the problems that they face initially. Additionally the finance options also become easier as banks and loaning facilities give better weight age to the existing franchise structures. Therefore the success of a start up business depends to great extent on the fact of it is a franchise or not... Continue reading at: http://www.businesses2sell.com.au/blogs/2013/10/being-an-entrepreneur-with-a-franchise.php

How Social Media is Developing Franchise Industry

Social media is a phrase being tossed around a lot these days, but it can sometimes be difficult to answer the question of what is social media.

Social media refers to interaction among people in which they create, share, and/or exchange information and ideas in virtual communities and networks and the social media marketing or Franchise refers to the process of gaining traffic or attention through social media sites. Social media marketing programs usually is the process of marketing through social media sites like Twitter, Facebook and YouTube.

Franchising is the practice of using another firm's successful business mode.  In other words, it is the development of a distribution channel through the replication of a proven operational system. Today franchising is the prior direction in the development of the chain of World Class. Particular demands to these services are formed in light of the rate of economic and social development.

The franchisor’s success ultimately is directly influenced by the success of the franchisee’s business.  The franchisee has a greater incentive than a direct employee because he or she has a direct stake in the business and therefore will most likely run the business with greater profitability and success. 
However, it must be noted that, except in the US, Canada and now in China  where there are explicit Federal and State/Province laws covering franchise expansion, most of the world recognizes the business of offering a ‘franchise’ but rarely makes legal provisions for it.
Where there is no specific law, a franchise model is considered a distribution system, in which case, each country would have a set of rules and regulations that cover marketing processes and guidelines for how a franchise distribution system should be established.

“The biggest problem with the term “social media” is that it isn’t media in the traditional sense. Twitter, Facebook, LinkedIn, and all the others I don’t have the word count to mention aren’t media; they are platforms for interaction and networking. All the traditional media — print, broadcast, search, and so on — provide platforms for delivery of ads near and around relevant content. Social media are platforms for interaction and relationships, not content and ads.”(Brian)

Social media marketing is the process of marketing through social media sites like Twitter, Facebook and YouTube.

What is social media, and is social media actually media in the traditional sense of the word?  This is the question Jeffrey and Brian Eisenberg take on and try to decisively answer at their marketing firm's company blog.

“Social media platforms are quickly becoming an important part of franchise companies’ marketing strategies, especially in a time of lower marketing budgets,” says Alisa Harrison, vice president, communications and marketing at the International Franchise Association (IFA)

Moreover, consumers are beginning to expect companies to have a social media presence. “Ninety-three percent of Americans expect companies to have a social media presence and are using [social media] to participate in conversations, engage with brands, and find job opportunities,” says Gini Dietrich, CEO of Arment Dietrich, a communications firm specializing in franchise and business services.

Franchise companies are delivering on that expectation. Church's Chicken tempted fans to join its Twitter feed by giving away $1 to every person who signed up during a 30-day period. Pizza Hut went on a hunt for a “twintern” -- an intern who could use the Twitter lingo to keep fans up-to-date on Pizza Hut happenings. And Papa John’s launched its first Facebook-exclusive promotion in March.

            (http://www.allbusiness.com/food-beverage/restaurants-food-service-restaurants-     fast/12357153-1.html)

Stay informed by staying active is the catchword of the day.

Sara Wilson of   AllBusiness.com .also    quotes Harrison as saying  that
“Social media is not an exact science, so to engage, you need to jump in,”. “It is such an evolving medium that it is hard to know all the answers before launching. Franchisors need to accept the idea that this is a ‘learn as you go’ frontier of communications and marketing, much like the Internet was not too long ago.”

The same  is  true  of  the use  of Twitter  in the 2013 Elections  of  5 Indian States’  Learned  and  enlightened  politicians  have  benefited  greatly  by  use  of  TWITTER  in  campaign.

Social networking offers many benefits. It is now easier than ever to keep in contact with old friends and colleagues. The professional networking site LinkedIn even allows users to request introductions to business people who are known to their contacts. The potential of this enhanced connectivity is huge; whereas once you would be left sifting through business cards after a networking event, trying to remember details about each person, you can now easily look up a connection’s credentials and business interests on their social media profile. ... Read more this article at: http://www.businesses2sell.com.au/blogs/2013/12/how-social-media-is-developing-franchise-indu.php

This article is written by Mr. Sp Sethi works as a Copywriting and On-line Marketing Manager at businesses2sell