Episode 33 Franchising in America The single most successful marketing concept ever!

Our quote today was from the late Tony Hsieh whose book Delivering Happiness I highly recommend.

The simple definition of a franchise is the right, or license granted by a company (franchisor) to an individual (franchisee) to market or sell products and services, in a specified manor, in a specific area or territory, often using the company’s logos, trademarks, and brand names. The history of the franchise. The word “franchise” is derived from the Anglo-French word meaning “liberty” or “signifying free”. The English term “enfranchise” is defined as empowering those who have no rights. The term “Royal Tithes” is the predecessor of royalties and originated as the practice of certain English men (referred to as “freemen”) receiving a percentage of the land fees paid by serfs to nobility. The explosion of franchising in the US. By 1960, more than 900 companies had franchise operations involving an estimated 200,000 franchised outlets. Between 1964 and 1969, fueled by an expanding economy, an estimated 100,000 new franchise businesses sprang up.

Everyone knows about McDonalds, but KFC is my favorite story. . In the Great Depression of the 1930’s, Harland Sanders operated a gas station in Corbin, Kentucky, feeding weary travelers a unique fried chicken that earned Sanders accolades from the governor of Kentucky. By 1960, there were 200 KFC franchised outlets, by 1963, 600 outlets, and by the end of the decade, approximately 1,000.

Today’s franchises are highly regulated you must be very careful when signing a franchise agreement. Experts say that a majority of all startups (75% to 85%) are bootstrapped. Tags: Becoming a franchise, Franchises, Franchise Start-up, Business Brokers, Buying a franchise, Transworld Business Advisors

Episode 32 What are the keys to Bootstrapping a Successful Business? Every “how to start a business book” will tell you it’s about managing money…it’s certainly part of it, but not all. Most Small Businesses Fail Within Five Years In my experience, the difference between those who make it and those that don’t are three things. Find a Mentor Don’t assume you know it all because chances are you don’t. Find a mentor, join a group, get advice from people who have the skills and knowledge you need.

Imagine You are the Customer and Create Your Perfect Experience When you do this, the economic benefits to your business will be enormous and your chances of survival will be greatly enhanced.

Maintain Your Records Paperwork and Taxes is a pain for most entrepreneurs and to Bootstrappers particularly. But don’t let it get out of control. Keep your business and personal expenses separate.

Always Ask Your Customers for Testimonials, Referrals, and Guidance You will be surprised how powerful this is for a small business. Be Honest, Understanding, and Helpful The customer is not always right, but a poor experience with one, can cost you an initial experience with many.

Tags: Building a Business, Bootstrapping, Business Start-up, Choosing a Business, Business Brokers, Buying a Business, Transworld Business Advisors

Short Bio: Bill Kelly is a Senior Business Broker and Franchise Consultant for Transworld Business Advisors of Richmond, VA. He is also a Licensed Virginia Commercial Real Estate Agent. Bill has been a lifelong Entrepreneur and has personally started or purchased and then sold eleven businesses. He lives in Richmond, Virginia, with his wife Rebecca, and has two daughters, and one granddaughter. Contact links: bkelly@tworld.com

Episode 31 What Kind of Business Can I Start with Very Little Money? The world is changing but service businesses are still king.

Most Businesses are Started by A Technician Having an Entrepreneurial Seizure This famous line was written by Michael Gerber in the “E-Myth Revisited” in 2004. His theory is that most small businesses fail because they are started by Technicians, who know nothing about running a business. Starting an On-line Business Today, technology has changed the way Bootstrappers approach a business startup. However, on-line marketing requires a steep learning curve for most and finding products and services to sell can be difficult.

Service Business are the Most Common to Bootstrap Service businesses such as, painting, lawn maintenance, cleaning, handy-man, teaching, auto repair/detailing, carpentry, computer repair, and healthcare are by far the best businesses to start with little or no money.

Ready, Aim, Fire or Ready, Fire, Aim Making a plan and following the plan is the preferred way to start, but it may not allow for intuition and chance. Don’t let the paralysis of analysis deter you.

Tags: The E-Myth, Bootstrapping, Business Start-up, Choosing a Business, Business Brokers, Buying a Business, Transworld Business Advisors