Small businesses have generated 65 percent of new jobs over the past two decades, and according to a recent study by accounting software firm Intuit, 68 percent of small business owners feel their businesses are operating successfully.
The infographic below details some of the top industries for small business growth and the strategies small business owners are using today to maintain a thriving business:
To learn about entrepreneurship through franchising, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
A new study by Biz2Credit, an online matchmaker for entrepreneurs and lenders, has found that female business owners are 15-20% less likely to land a small business loan than their male counterparts.
Biz2Credit examined 14,000 small business loan applications for the last half of 2012 and found that female-owned businesses typically had 15 percent lower annual revenues than male-owned businesses, and that operating expenses for women-owned businesses were higher by an average of 21 percent.
The study also found that the average credit scores for female-owned businesses were 40 points lower than male-owned companies.
These disparities are likely because more women own retail businesses, which typically have smaller margins and larger operating expenses. This could also account for the lower credit scores, according to Biz2Credit.
One of the main concerns for many potential franchisees is financing, and going through the process of obtaining a business loan can be daunting for many people – another reason that consulting with a franchise consultant can be helpful.
Working with a franchise consultant can help potential franchisees learn about all the funding options available and what you need to obtain financing for your franchise.
To learn more about financing a franchise, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
An update to The Economic Outlook for Franchise Businesses report released yesterday by the International Franchise Association shows that franchise businesses will continue to grow at a faster rate than other businesses in terms of job creation, new business formation, economic output and GDP contribution in 2013.
“The report is good news and shows franchising remains an incredibly strong and resilient business model that generates jobs and economic growth for the American economy,” said IFA President & CEO Steve Caldeira.
The analysis is based on 10 business sectors as follows:
Business Services and Commercial & Residential Services rank as the top two sectors in both franchise employment growth and growth of the number of establishments in 2013.
Real Estate will rank first in output growth and grow slightly faster than the franchise sector averages in establishments and employment.
Quick Service Restaurants – the largest franchise business line – will rank second in the growth of output and will see growth rates of employment and new businesses that are slightly higher than the franchise sector average.
To learn more about franchise opportunities, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
Kiplinger’s recently featured 8 franchises that it says enjoy high franchisee satisfaction, low startup costs and that provide innovative products or services for consumers and businesses:
1. Brightway Insurance
Service: Property insurance
Number of U.S. franchises: 108
5-year growth: 414%
Net worth needed: $150,000
Franchise fee: $60,000
2. ComForCare Senior Services
Service: Nonmedical in-home care
Number of U.S. franchises: 165
5-year growth: 75
Net worth needed: $300,000
Franchise fee: $39,500
Service: Mobile video-game theaters
Number of U.S. franchises: 70
1-year growth: 49% (Company has been franchising for less than five years)
Net worth needed: $150,000
Franchise fee: $19,500
4. Just Between Friends
Service: Children's and maternity consignment sales
Number of U.S. franchises: 127
5-year growth: 123%
Net worth needed: None
Franchise fee: $12,900
5. Mr. Appliance
Service: Appliance repair in your home
Number of U.S. franchises: 148
5-year growth: 8.5 percent
Net worth needed: $100,000 (with exceptions)
Franchise fee: $27,000
6. Sit Means Sit
Service: Dog training
Number of U.S. franchises: 70
1-year growth: 40% (Company has been franchising for less than five years)
Net worth needed: $50,000
Franchise fee: $15,000
7. Sport Clips
Service: Haircuts for men and boys
Number of U.S. franchises: 1,000
5-year growth: 100%
Net worth needed: $300,000
Franchise fee: $49,500 for a three-store license
8. Young Rembrandts
Service: Art classes and workshops
Number of U.S. franchises: 82
5-year growth: 33%
Net worth needed: $100,000
Franchise fee: $31,500
To learn more about finding your right franchise fit, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
Studies show that the vast majority of us would rather work for ourselves than for anyone else. So why doesn’t everybody go out and start their own businesses? It’s usually because of fear.
Larina Kase, author of The Confident Leader, says if you are stuck in limbo and want to get to the point where you can make a decision, you should take these five steps:
Uncover your fears. In order to move forward, you have to understand exactly what it is you fear. One of the best ways to do this is to ask yourself what would happen if the fear came true.
Get perspective. When we imagine our fears being realized, most of us exaggerate the consequences to an unlikely extreme. Try to keep things in perspective and reduce your anxiety by challenging negative thoughts.
Take baby steps. One of the best ways to overcome your fears is to test them. Doing something that makes you anxious gives you confidence to tackle larger fears.
Make a one-hour commitment. Imagine just for one hour that you have already made the decision you are struggling with and see how that makes you feel.
Go with your gut. If you are in analysis paralysis – researching the same information over and over – trying trusting your gut. Your intuition will take into account what you already know and is liable to guide you to the right decision.
To learn more about realizing a dream of business ownership, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
Entrepreneur recently released its list of the 2013 Top 10 New Franchises – those founded less than five years ago – and here are the rankings:
1. Kona Ice – shaved ice carts, kiosks and trailers. Currently has 290 locations; startup costs range from $103,000 to $119,000.
2. Menchie’s – self-serve frozen yogurt including 100 flavors in low carb, gluten-free, nonfat, dairy-free, and no sugar options. Currently has 257 locations; startup costs range from $300,000 to $310,000.
3. Orange Leaf Frozen Yogurt – self-serve frozen yogurt. Currently has 227 locations; startup costs range from $274,000 to $408,000.
4. ShelfGenie – design and installation of residential shelving units. Currently has 134 locations; startup costs range from $70,000 to $125,000.
5. Bricks 4 Kidz – offers Lego-brick building activities to educators and consumers. Currently has 233 locations; startup costs range from $33,000 to $51,000.
6. Smashburger – quick-serve burger restaurants. Currently has 165 locations; startup costs range from $317,000 to $790,000.
7. GameTruck – mobile video game theaters. Currently has 64 locations; startup costs range from $119,000 to $310,000.
8. Paul Davis Emergency Services – rapid-response restoration and repair of property damaged by fire, water, mold or storms. Currently has 85 locations; start-up costs range from $41,000 to $148,000.
9. Signal 88 Security – patrol, guard and virtual monitoring security services. Currently has 83 locations; startup costs range from $85,000 to $105,000.
10. Mac Tools – sells automotive tools and equipment. Currently has 122 locations; startup costs range from $88,000 to $206,000.
To learn more about the variety of franchise opportunities available, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
People interested in starting a new business – either on their own or by investing in a franchise – often wonder if it’s a good idea to involve their spouse as a partner in the new venture. A recent Washington Post article profiled 10 entrepreneurial couples that had these words of advice for those considering turning a personal partnership into a business one:
Accept that there is no such thing as a work/life balance. Couples who go into business together say that work becomes your life, and you both must be committed to doing what it takes to make the business work.
Divide and conquer. Identify your individual strengths and apportion business responsibilities accordingly. Then don’t tread on each other’s turf.
Talk about it. Have an open dialogue with your spouse every day so you can keep on track to achieving your goals.
Carve out personal time. Create rules for when you will engage in “shop talk” and when you will focus on family.
Be each other’s best advocate. Realize you have chosen to be in this together and are committed to making your venture successful as a couple, not just two individuals.
Hire great people. Take some of the pressure off yourselves by surrounding yourselves with great people who can help you be successful.
Respect your differences. It is inevitable that there will be disagreements on how to reach your goals; learn to respect your different ways of making the journey.
Tip #1: Learn from existing franchisees. Spending time with existing franchisees will allow you to see what works and what doesn’t. Every Franchise Disclosure Document has a list of existing franchisees, which is a great resource for identifying trends for success.
Tip #2: Follow the franchisor’s guidelines. It’s amazing how many people buy a successful franchise concept and then try to operate it as an independent entrepreneur. Don’t discount the formula for success the franchisor has established and proven time and again.
Tip #3: Understand the recipe for success. Not every franchise concept is successful everywhere. Some are more dependent on location or other variables. Do your homework, understand your trade area and the numbers you need to hit to succeed.
Tip #4: Hire great people. You may be a great manager, but it’s the people you put to work in your franchise that will make it go or not.
Tip #5: Understand the business is yours to run. You can buy the most successful franchise in history, but if it is not run efficiently, it will probably fail. When you take ownership of your franchise, take ownership in all aspects. You are responsible for your own success.
To learn more about transitioning from the corporate world to franchise ownership, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
The American pet industry is a $53 Billion business; vet care accounts for 26% of that total, or $14 Billion annually. More than 62% of American households own a pet, and that number continues to rise. Clearly, we are a nation of pet lovers.
However, when it came to caring for elderly pets in declining health, there was never much choice beyond visits to a sterile exam room – visits that most pet owners find uncomfortable and stressful. Veterinarian Dani McVety decided to solve this problem in her practice and started Lap of Love Veterinary Hospice; a vet school colleague joined her a year later and the decision was made to franchise. There are now 44 locations in 15 states.
Lap of Love provides in-home hospice care for pets that usually have only a few months to live. The vet visits the home to assess the pet and set a course of treatment, which may include pain medication and anti-inflammatories to ease pain and enable movement as well as home health aids like slings or floor mats that can help owners assist their pets in moving. When the time comes for euthanasia, it can be done anywhere the owner wants – at home, a favorite spot in the backyard or at the park – and at a time that is convenient for the owner.
Franchisees are typically veterinarians who work part-time at shelters or as relief vets, or those who no longer want to work in a full-time formal practice.
Lap of Love is a great example of an emerging franchise that fills an unmet need in a major, growing market. There are more of these in other industries as well. To find out more, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.
A recentAssociated Press article profiled several over-50 entrepreneurs who launched new businesses through franchise ownership:
Tony Uzzi, 52, of Orange County, Calif., accepted an early retirement package from his old company and then went into business for himself. He started consulting work as an executive coach and then, when he became bored, he purchased a Nurse Next Door franchise.
Lori Ames, 53, of Babylon, NY, launched her own PR business after her son was diagnosed with a brain tumor. She wanted the flexibility to care for her son from home; she has been so successful she now has two full-time staffers.
March Whitworth, 52, of Dallas, lost his job two years ago as an accountant. He opened a Neighborhood Chem-Dry franchise and says he enjoys making his own decisions and growing his own business.
William Ryan, 52, of Boston, opened a dry cleaning franchise business while he was still employed as a salesman for a consumer products company. He said that seeing others in his company laid off after working there for 30 years motivated him to invest in a franchise as a safety net and financial security blanket.
Franchising appeals to many mature entrepreneurs because it offers a way to make money sooner than starting a business from scratch and costs much less than trying to launch a new business and build a new brand. Getting a ready-made business and an established brand name, as well as proven marketing strategies, is especially appealing for older business owners who maybe see themselves with only 10-15 more years to rebuild their nest eggs after the last recession.
To learn more about franchising opportunities, attend our free monthly webinar, Franchise Ownership as a More Stable Career Path. The webinar is free, but you need to pre-register, which you can do online by clicking on the linked seminar title.