History of Franchising to Now (Infographic)

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A History of Franchises to Now (Infographic)

The franchising industry is currently in a good state.  Growth in the industry continues to outperform the larger economy and there are 750,000+ franchised businesses in the U.S., cumulatively generating $1 trillion in sales a year.  Franchises are big contributors to economic growth in the country, begging the question, where did franchises come from? 

European Origin

It turns out the roots of franchising lie in several different times and locations, the first being in feudal France and England.  In fact, the word “franchise” comes from the Anglo-French “franchir,” meaning to overcome or breakthrough an obstacle.  In feudal Europe, lords would grant peasants rights to use parts of their land in return for fees.  Common uses for the land would be running a marketplace or operating wells for the larger village.

Later in England, the franchising model arose again to meet struggles in the public house industry (e.g. pubs, bars, taverns).  It was often difficult to start a public house due to the high capital costs required and a lack of access to financing.  These problems eventually started affected brewers’ business in the country as their market for alcohol became unstable due to these persistent distribution issues.  Brewers responded to this market change by offering public house owners financial support in return for an exclusivity agreement over the beverages sold in the establishment.  Thus, publicans could open businesses more easily and brewers had consistent demand for their products.

Franchising Comes to the United States

Isaac Singer is the man credited with inventing the first modern franchise.  Singer was a sewing machine manufacturer with a popular and effective product, but insufficient cash flow to expand his manufacturing efforts.  In order to grow his company, I. M. Singer & Co, Singer began to solicit local merchants and salesman to distribute his product.  By training them to service and repair his sewing machines, as well as encourage them to become regional salesman for the product, Singer engaged in one of the first forms of mass marketing.

Singer’s next innovation was to develop a contract outlining compensation and duties for all parties involved.  The standardized nature of these contracts allowed him to recruit franchisees very quickly and predictably, and acted as one of the first franchise agreements.  By 1860, Singer’s company was the largest manufacturer of sewing machines in the world.  This was remarkable in the post-Civil War Era; especially considering the company was founded in 1951.

The Development of Modern Franchising

Franchising grew rapidly in the 1950s and 1960s as the Greatest Generation recovered from World War II and the Baby Boomers began increasing demand for all sorts of services and products.  Soda manufactures like Coca-Cola and Pepsi had primitive franchise systems in place at the time, distributing their soda syrup to local franchises that would then carbonate, bottle, and sell them to their local communities.  However, it was Ray Kroc, the founder of McDonald’s, who would spark the rapid proliferation of the franchise business model.

Starting off as a milkshake mixer salesman, Kroc discovered that one restaurant he frequented was buying a large number of his high-efficiency mixers.  The owners, called the McDonald brothers, had developed a fast food delivery system providing customers with quick and consistent meals.   Seeing its potential as a larger business model, he quickly became their licensing agent and began to recruit franchisees, eventually purchasing the company in 1961.  McDonald’s went on to open more than 1,000 units in just 10 years.  Following his success, brands such as Kentucky Fried Chicken, Midas Muffler, Holiday Inn, and more refocused their efforts towards franchising.

Franchising Today

Franchising remains on the healthiest industries in the United States, continually showing strong growth and high job creation numbers.  Take a look at the infographic below from the Wall Street Journal to find out more about the current state of franchising in the United States.  There are a lot of perks that come from becoming an entrepreneur and engaging in the franchise business model.  If you would like to explore opportunities in franchising and know more about the possibilities, contact the Entrepreneur Authority today for a no-cost, no-obligation, no-pressure consultation or call 866.246.2884 to speak with one of our FRANtastic consultants.  You can also attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Just click on the link to register!

3 Ways to Capture the Perfect LinkedIn Photo

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Hiring managers typically know within 10 seconds whether your resume will move on to the next round or be thrown in the trash. And while the resume and cover letter are still powerful tools, most recruiters will head straight for your LinkedIn profile to find the one piece of information that makes you truly unique — your profile picture.

The book of our career is definitely judged by the cover. The best experience and most prestigious education can be quickly ruined by a bad profile picture. So just what makes that picture less than ideal, according to LinkedIn?:

  • An old photo that shows your profile is out of date and neglected
  • Your favorite party picture from college (this isn’t Facebook)
  • A stale headshot with no smile or real personality
  • A group shot with everyone else cropped out (it just looks sloppy)
  • A complicated picture with too much going on in the background (less is more)
  • A profile picture that looks like it belongs on Tinder
  • A picture that included spouse, family or pets (it should be only you)

Now that you know what not to do, how do you achieve that perfect profile picture? Depending on your budget and how much time you want to invest in a pristine snapshot, here are three options that can help your profile shine.

The Smartphone Picture

If you have an iPhone or even the LG G5 with its 8-megapixel, front-facing camera, an incredible camera is already in your pocket. There’s a few ways a smartphone can capture a stunning photo for your LinkedIn profile:

  • The #WorkSelfie is an up-and-coming trend on LinkedIn, but also a subtle art. If you can strike a balance between fun and professional, you’ll have profile picture gold.
  • Have a friend or colleague take a picture at a work event or in the field. A good picture that shows you in the middle of your craft will stand out.
  • Follow the standard rules of good portraits — use natural lighting, the rule of thirds, proper zoom, etc.

A Professional Photographer

You don’t need to be an executive to invest on a professional portrait for your LinkedIn profile. Customer-facing industries will always take an extra look at profile pictures, so if you’re not confident with your smartphone abilities, leaving it to a pro could be the way to go.

There are some drawbacks. A professional headshot won’t capture you in the field or at an event, but it will give you a universal portrait fit for your resume, LinkedIn and other professional resources. One session can cost a few hundred dollars, but it’ll give you photos you can use for years.

Event Pics & Existing Inventory

There could be an amazing, professional picture of you out there right now, for free, and you don’t even know it. If you job involves conventions, charity events or work functions, chances are a photographer was hired to cover the event and a great portrait is just hanging out on their photography website.

Pay attention to your next event and look for a photographer floating though the crowd. A lot of events, especially charity fundraisers, will have “red carpet” photo spots to capture a great picture. These are perfect for showing off a charity you work with, plus you’ll already be dressed up for the occasion.

Top Restaurant Trends in 2016 (Infographic)

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The food industry is in a state of rapid change, with the rise of fast casual dining leading the way.  Fast casual restaurants are the most rapidly expanding sector of the restaurant industry, and chains make up 95% of all establishments according to Technomic .  There are a lot of opportunities for franchisees to jump into a dynamic industry, but it’s important to stay on top of the top restaurant trends in 2016.  Customers are changing they way they eat more frenetically than ever, and businesses will have to work hard to keep up.

Nutrition

2016 may be the tipping point in the fight against American’s unhealthy lifestyles.  The World Economic Forum has previously rated the United States 43rd in the Health and Wellness of its citizens, the worst among all major (and many minor) industrialized nations.  Americans have known for a long time they were promulgating unhealthy eating habits, and the lesson seems to slowly be sinking in.  Researchers at the Harvard T. H. Chan School of Public Health recently created a healthy eating scorecard evaluating the quality of Americans’ diet over the past two decades.  The country’s score has improved 10 points, moving from 39.9 to 48.2 (with 100 being a perfect score).  Restaurants are adapting to this trend: 65% of chefs said nutrition was hot trend in 2016.

Local Sourcing of Ingredients

Along with the health eating trend comes an emphasis on locally sourced ingredients.  Customers are starting to decide where to eat based on where the food came from, and local is king.  44% of chefs say that local sourcing is the food trend that has grown the most this last decade, and even national brands are making this a selling point.  Chipotle’s brand image is built on its “Food with Integrity” commitment, where it sources the majority of their ingredients through their local grower initiative.  Even brands like Subway, Taco Bell, and Noodles and Co. are eschewing artificial flavorings for naturally raised ingredients, while providing healthier options on their menus.

A More Adventurous Palate Means More Opportunities

Americans are losing their picky eating habits.  Ethnic flavors and cuisine have seen an explosion in popularity these recent years, with customers dining on chili spices, fermented ingredients, vegetarian spreads, and more.  While this is good for variety, it is sure to put pressure on larger restaurants to constantly innovate and source new ingredients to keep up with changing trends.

Future Trends

An emphasis on the environmental sustainability of a restaurant’s ingredients and operations is expected to be a big issue in coming years.  Already, 41% of chefs say that it is the trend that will grow the most in the next 10 years.  Restaurants will be looking to reduce water use, food waste, and encourage responsible ingredient production.  In addition to an environmental focus, expect global flavors arriving on your dinner plate as African and Middle Eastern staples become mainstream in America.

2016 is a great year for variety in restaurants: both in the food they serve and the way they serve it.  If you’re interested in operating a restaurant, consider becoming a franchisee of a successful brand.  There are a lot of perks that come from becoming an entrepreneur and engaging in the franchising business model.  If you would like to explore opportunities in franchising and know more about the possibilities, contact the Entrepreneur Authority today for a no-cost, no-obligation, no-pressure consultation or call 866.246.2884 to speak with one of our FRANtastic consultants.
You can also attend our free monthly webinar, “Franchise Ownership as a More Stable Career Path.” Just click on the link to register!

 

5 Time Management Hacks for Entrepreneurs

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One of our previous articles highlighted 5 Things That You Need To Be An Entrepreneur. It could have listed dozens if not scores of other useful things entrepreneurs need to have in order to be successful. Today it’s time to tackle one many people would rather not deal with at all: Time management. If you’re cringing right now, it’s probably a sign you need to keep reading. There are only 24 hours in a day, so here are 5 time management hacks to get the most out them:

1. Don’t Shortchange Yourself

Don’t try to squeeze more out of your day by giving up sleep, nutrition, or exercise because you’ll end up doing more harm to your time management than good. Peak performance on a daily basis for the entrepreneur can’t happen if your body isn’t in tip-top shape, which means getting enough sleep, eating a healthy diet, keeping yourself hydrated, and exercising on a regular basis. Shortchanging your health will only serve to cancel out all the other time management hacks on this list. 

2. Know Your Baseline

If your time management skills aren’t what they need to be, it’s worth doing an assessment so you know what you’re dealing with. MindTools has a handy online survey you can use: How Good is Your Time Management? You’ll find out if you just need a few tweaks or a major overhaul.

3. Prioritization Counts

When you’re sitting there looking at the list of things you need to do, how choose where to start? Your project management software can’t do this for you – you have to decide. This can be a major hang-up for many entrepreneurs. There are many ways to do this, which means you might end up trying several methods before you find the one that’s going to work for you. You can try author Stephen Covey’s (7 Habits of Highly Effective People) Time Management Grid, which is actually a modified version of the Eisenhower Matrix. For several more ways to prioritize, check out this article on the process.st blog.

4. Distraction Elimination

To get serious amounts of work done, you have to first establish some “sacred” blocks of time devoted solely to that. Some people make it an entire day while others carve out chunks of time on a daily basis. But it’s only going to work if you eliminate distractions, which means fully “unplugging” from social media, phones, email, and the Internet as a whole. It may also mean finding the right physical place as well – probably not the office.

5. Manage Your Workflow

Once you have the time and space to focus in on plowing through your tasks, you still need to actively manage your working time to get optimal results. One way to do this is optimize short breaks that boost productivity and keep you focused. Try Francesco Cirillo’s Pomodoro Technique, which has you working in 25-minute chunks punctuated with five-minute breaks.

Any entrepreneur can seriously up their game with these five time management hacks. You’ll turbo-boost your own productivity, and your business will reap the benefits.

Managing Small Business Debt

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Debt is an unavoidable part of starting and running a business, and managing debt effectively has large ramifications for your business’s bottom line.  It’s good to be on a firm financial foundation before you start your own small business, as inevitably your personal and businesses finances will become mixed.  Half of small businesses fail in their first 5 years largely due to insufficient capital, poor credit arrangements, and too much debt .  It behooves you to have minimal debt when you seek financing, as you will have less stress overall and will be able to put more capital in your business.  This is rarely the case however, as 49% of small business owners are in major debt while 75% of startup capital comes from credit cards, bank loans, and lines of credit.  Managing all this debt is difficult, and many entrepreneurs struggle to find an effective way to reduce their debt load.  Let’s explore some strategies and principles to evaluate how you manage your small business debt.

How do we Manage Debt?

Debt is everywhere in the United States.  For example, nearly 70% of Americans own at least one credit card and most have more than 1.   However, most people don’t know how to effectively pay off their loans.  The most effective way to manage debt is to pay off the loans with the highest interest rates first.  Staggeringly, of those surveyed, only 3% of individuals allocated money in a near optimal way.  Most individuals instead focus on repaying their smallest loans first, in an effort to reduce the number of outstanding loans they have.  This is called being “debt account averse,” where instead of reducing your total associated cost of financing you focus on reducing the number of debt obligations you have.  Why is this?  There are three explanations for this behavior:

  1. Prospect Theory: Individuals are much more sensitive to a loss than a gain of an equal amount. The urge to get accounts back in the black as fast as possible is greater than the urge to analyze interest rates and calculate the optimal pay-off plan.
  2. Goal Gradient Theory: Individuals are motivated by a salient goal. For example, when coffee shops hand out free coffees after a certain number of purchases, they are encouraging you to buy more coffee than you normally would by using an artificial goal. People find it easier to pay off small debts first, and get more satisfaction from paying them off quickly.
  3. The final reason is that people often don’t understand how interest rates work or how to organize an optimal pay-off plan. It’s hard to visualize how your debt load changes over time and its effects on your business.

Are you Liable for Your Business Debt?

Personal liability is always a complicated issue when it comes to small business.  If you are currently handling liability issues with outstanding debt, it is always best to consult with an attorney to get advice for your particular situation.  With that said, let’s take a look at typical arrangements you find in small business financing. 

Sole Proprietorships and Partnerships

In this legal structure, you and your business are legally the same, therefore you are personal liable for all your business’s debt.  Your partners are also liable for the business’s debt, and not proportionally—your creditors can take your partner’s personal assets to pay off all the business’s debts.

Corporations and LLCs

You and your business are separate legal entities in this arrangement.  In theory, you have no personal liability for your business’s debts but this is not always the case.  It’s difficult to build a perfect wall between your personal and business finances.  Here are ways you can become personally liable for your business debt: 

  • You’ve signed a personal guarantee for debt. Small corporations and LLCs have trouble finding credit due to the limited liability construction. Banks want assurances that an entity can and will repay their loans so they often ask for a personal guarantee. A personal guarantee essentially has you give up your limited liability so creditors can turn to your personal assets for debt repayment if necessary.
  • Offering property as collateral for debt.  Banks often have small business owners put up their house or other property as collateral for loans, creating real risk that a business failure means losing your house and other important assets.
  • Signing a contract in your own name.  If you are careless and sign a contract in your own name and NOT as the corporation or LLC, you will be held personally liable for the debt.
  • Using personal credit cards or loans to fund the business.
  • Fraud, misrepresentation, or sloppy record keeping.  If you like on loan applications or failed to create a formal legal separation between you and your business, creditors will bring you to court and find you personally liable for all debt.  This can be called “piercing the corporate veil,” where the court establishes you are using your corporation or LLC as a front to reduce liability, when in fact you are personally operating the business.

How to Reduce your Business’s Debt Load

There are a few different approaches to reducing your total debt load.  The first and easiest is to raise and invest personal capital.  Leveraging your personal wealth or reaching out to friends and family can be a useful short-term solution to financing issues.  Another important part of reducing your debt load comes from efficiently cutting costs.  Analyze your balance sheet closely and determine where you can make the necessary cuts to meet your debt obligations.  It’s often useful to contact both your customers and your suppliers in an effort to drum up business by offering deals on your product or service, negotiate cheaper contracts and payments, or try to reduce your accounts receivable turnover.  Additionally, reach out to creditors if you are struggling to meet your debt payments.  They’ll help you refinance your debt or consolidate all loans into one payment. 
If you’ve tried all this but can’t seem to make the math work on your loan repayments, there are some measures of last resort you can turn to.  Let the business fail and file for bankruptcy.  Click here to learn more about bankruptcy options available to small businesses (http://www.nolo.com/legal-encyclopedia/chapter-7-chapter-13-bankruptcy-small-business-owners.html).  You can also sell the business and liquidate all its assets to pay off debts if you’re not too highly leveraged.  Hopefully, if you learn how to manage debt effectively, you will never have to be in this scenario.

Meet Franchising Megastars Face to Face at the Franchise Expo South

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Happy New Year! Is this you year to break out and ‘fire the boss’ and finally be the boss?


It might seem an odd stretch to consider franchise experts a megastar, but in the industry generating billions of dollars each year they exist. Certainly, everyone knows NFL legend and future Hall of Famer Peyton Manning has a love for Papa John’s pizza. Lest you think this is some advertising gig for him you might be surprised to know that Peyton is actually an investor. NBA superstar and Hall of Fame player Shaquille O’Neal decided over 155 Five Guys Burgers restaurants were a safe investment for him. Drew Brees likes Jimmy Johns and Magic Johnson is into Burger King, but what remains constant is that superstars with money see franchising as a safe way to grow wealth and expand their empire. However, when we talk about megastars we are not speaking of those who made their claim to fame on the sports field or silver screen. Rather, we are talking about those who made their claim to fame right here in the franchise industry. Turning a one time investment into a lifetime of income, going from one location to an entire fleet of stores and coaching those looking to do the same are those of which we speak. On January 18th, these franchising megastars will be converging on Dallas, Texas, to open up the world of franchising to all who might come their way. If that’s you then Dallas, Texas on January 18th-20th, 2018 is the place to be. Here’s why…

The Value of a Face to Face Meeting

It’s one thing to Google what some of the leading experts have to say on franchising, but it is of an entirely new level of helpful to hear it in person. One can see the tone of voice, what excites them and most importantly ask a follow up question. The internet can offer you a world of information to research on franchising but nothing will replace human interaction. At the Franchise Expo South, hundreds of the top franchise brands in the nation will be there in person. This is your opportunity meet them face to face and ask the questions, follow up questions and get vital information right from the source. However, it’s more than just the franchises that you will get to meet face to face.

In the franchising industry, there exists more than just the franchise and franchisee. Yes, the Papa John’s CEO made famous from his commercials with franchisee Peyton Manning are not the whole deal. David Omholt is a Certified Franchise Executive and the Senior Franchise Consultant of iFranchise Group’s Dallas, TX office. Throughout his history in the industry, David has found himself both a Licensor and Licensee. Meaning he has been on both sides of the coin which gives him a credible and unique perspective on the industry. Members of the International Franchise Association have gone so far as to say David is one of the top franchise consultants in the country. So when David speaks, the industry takes note and listens.

At the Franchise Expo South in Dallas, TX, David will be presenting on the strategies and tactics to improve franchise sales. Throughout his career he has specialized in franchise development and marketing strategies and is a frequently requested speaking in academia and the entrepreneurial community. Prior to becoming an entrepreneur himself, David consulted from of the most recognizable Global 500 companies to include Best Buy, JC Penney, Kroger, Radio Shack, Walgreens and more. The value in the opportunity to meet and learn from franchise leaders like David cannot be understated. On January 18th, 2018, the Franchise Expo South is exactly where they will be.

Why Franchise to Begin With?

Now that we have covered where the megastars of franchising will be and who they are you might still have the question as to why you want to consider franchising to begin with? Let’s start with the basics. Namely, that the roadmap to success has already been laid out for you. It would be misleading to tell you there is not a lot of hard work and grinding it out on the path to success, but make no mistake that path is laid out for you. Franchises are heavily invested in the success of their franchisees as they carry their brand and reputation. As a result, the most successful franchises have a blueprint to offer as to what it will take to succeed. So if you think you have the drive and wit to pull off a franchise, but worry you don’t have enough experience then never fear. Come to the Expo and hear first hand how these giants of the industry went from zero to hero.

The next reason to consider franchising is that someone else is going to do it if you don’t. Have you ever driven by a location close to your home and thought, “this would be a great place for a Chik-fil-a or Dunkin Donuts?” Well, don’t be shocked if in short order you see that very franchise in place. The only difference is that someone else is cashing in on the big idea. The franchise industry is exploding right now because we have more data than ever before. We can pinpoint the market potential of your area, tell you when you ought to expect a full ROI and even let you know if this is not such a good idea right now. Remember, when a franchisee fails its the brand of the overall Franchise that takes a hit. So come meet these brands at the Expo face to face and you’ll quickly find out just how invested they are in your success.

Fortune favors the bold and with the expert minds you will get to pick at the Expo you don’t have to worry about guessing away your future. Leaders like David Omholt will be there to answer your questions, teach you from a lifetime of experience and undoubtedly leave you excited for your potential future in the franchise industry. You know where and when the expert will this January, the only question is if you will be there with them. The franchise market is as hot as it’s ever been so now is the time to act. For more information about the Franchise Expo South you can click the link and in just a few weeks we hope to see you there on your path to unprecedented success.


How to Build a Strong Network (Infographic)

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Networking is an integral part of any business endeavor.  Building a strong network means making connections with a group of people that can provide you with advice, opportunities, social capital, and most importantly, business for both you and your contact.  Unfortunately, many people don’t network effectively or have reservations approaching peers; in fact, a ComRes poll has shown that 62% of British adults have never attended a networking event, and 51% of those that have report feeling uncomfortable while networking.

Although understandable, there’s no reason why you should be nervous or tense at a networking event.  Remember, networking should ideally be a mutually beneficial activity, a “you scratch my back I’ll scratch yours” relationship.  With that said, let’s take a look at some principles to keep in mind while networking.

Have a goal in mind

Ask yourself why you’re reaching out and trying to create new business contacts.  Perhaps you’re trying to build a new client base, or exploring an industry you aren’t familiar with.  You could be new to an area and seeking employment or partnership opportunities.  It might be as simple as looking for advice from experienced peers for your business endeavor.  The key is to enter into a networking event with a clear goal of what you want.  That way, you don’t find yourself lacking purpose and therefore drive to connect with others.

Build a Target List of Contacts

It isn’t feasible to network with everyone in your industry, so you have to be discriminating in which relationships you invest time.  Using your goal as a guide, create a list of people you feel it would be valuable to reach out to.  A valuable contact is someone who is interested in helping others solve a problem, and who you can provide help as well.  Remember, the goal is not to have the largest stack of business cards possible at the end of the night.  It is much more important to have a number of smart, helpful people who you can engage in a mutually beneficial partnership with.

Build Candid, Reciprocal Relationships

Networking is supposed to build give and take relationships so both sides feel like they are gaining from the encounter.  This requires that you be a good listener, and a good sharer.  First of all, ask your contact about the basics to get the conversation started: What does your company do? What is your customer base?  What sets you apart from the competition?  Don’t hesitate to discuss aspects of and issues with your business as your candor is generally rewarded.  Try not to keep it all business and connect with the other person in a more personal way: discuss your kids, hobbies, or your terrible jump shot.  This makes you memorable and more than just a number in a contact book.

Maintain Your Relationships

The most important part of networking is to maintain those relationships you’ve spent so much time developing.  After connecting with someone, send them a thank-you note, set up a meeting, forward them interesting information, or bring them new business.  If you have high-quality contacts they will respond in kind, and this back and forth forms the fundament of a strong, profitable relationship.  This is the part of networking most people don’t pay attention to.  For the same reason you have to regularly tend to your garden, you must tend to your business contacts to keep them healthy.  Don’t spam them though!  Be useful, not unhelpful.  It’s important to not burn any bridges, as you never know when somebody will be able to help you, or you to help them.  Remember the golden rule, “do unto others as you would have them do unto you.”

3 Businesses With Low Overhead for the Broke Entrepreneur

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Not every business needs millions of dollars of capital investment to get started. For most, you need enough money to cover your personal debts and a bit for advertising. Obviously, some business ideas are less overhead friendly than others. Finding the right company idea to match your expertise and cash flow will place you on solid footing for success. Here are a few to consider.

Consulting

There is a large sector of businesses that require nothing more than your brain, skill and expertise. There are a dozen different names that fall under this giant category, including consultant, contractor or simply entrepreneur. According to the Bureau of Labor Statistics, a business consultant makes an average of $75,000 annually and a health consultant makes around $61,000. Depending on the field you want to work in, you may need to take a test and get a license. For instance, a psychologist, real estate salesperson and certified public accountant each require a state license to practice. After obtaining the license, the overhead is minimal. Office space and telephones are an expense that can be as large or as small you want. To better meet the needs of your clients and customers, consider investing in a cloud-based contact center so that you are always in communication with them. Make sure that all of your overhead costs are flexible so that you are not locked into a plan that you cannot afford.

Crafty Work

Making things and selling them falls under the umbrella of manufacturing. As an entrepreneurial business, manufacturing has some mixed blessings. Raw materials, equipment and storage are natural costs of any manufacturing business, whether you are making cookies or hair clips. On the upside, manufacturing costs are variable, changing with the amount that you make. Because of this, only the initial amount of raw material is required for start-up. After that, you purchase depending on the production need. As an example, if you make and sell cookies, the flour and chocolate chips are a cost only if you are going to make and sell the cookies. The sale of this batch funds the purchase of the next group of materials with the remainder being profit. When you launch this business, be sure to keep an eye on the fixed costs, the ones that need to be paid whether or not you make a sale, versus the variable costs.

Paid-For Caring

Home healthcare and childcare is one of the fastest growing entrepreneurial businesses to establish. You are not just getting a job as a caregiver, you are starting a company that supplies care for the elderly or very young. Eldercare is a huge market in the United States with nearly 16 percent of people providing unpaid care for parents and others in the home. Childcare has even better numbers. Whether on a consistent basis or simply to offer parents a night out, being there for them is both lucrative and good for the soul. This business has very low overhead, generally being set up as a network of qualified individuals. For your younger clients, you can also add a tutoring service to the mix. There are online tutoring systems like Study.com or Tutor.com that will help you supplement your income as you begin your business.

5 Things That You Need To Be An Entrepreneur

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According to Inc.com, the United States has 27 million entrepreneurs. Some of these will succeed while a majority will fail. The actual number of small businesses that do not thrive is a matter of debate since most transition into a new form. Though there is no formula for entrepreneurial success, there are some things that can stack the decks in your favor.

Money

The number one reason that a new small business fails is because it is undercapitalized. Generally, entrepreneurial companies have very little staff, being solely staffed by the owner. Some may be able to maintain a worker or two. Paying yourself and an employee is a huge overhead and you will need enough money to keep this going, plus have three months of operational expenses saved in the bank. Some people are able to do this by keeping a day job and working their business at night. Others have an angel investor or take a loan against existing equity. No matter how you do it, you need to factor these expenses, labor hours and repayments into your budget and financial plans.

A Network

Your business cannot flourish if you keep it in a small bubble. You need people that love and support you. These individuals will become your inner marketing circle, creating the basis for most of your marketing. Social media has made it easier for a small business to gain a foothold on a small budget. You will want to use it to disseminate information, make your business a thought leader and educational resource, and recruit minds to your cause. If you have an extensive personal network then much of this can be accomplished without your business spending a cent. Use your friends and family to expand your social network.

A Practice Run

In any business, there is an amount of on-the-job training. Unfortunately, if you are the owner and sole employee, this training is hard won, costing you money and sales when you make mistakes. To take some of the pressure off, create a safe business to use as practice. An established direct sales organization like Amway can let you get your feet wet. If you lose a sale or two from lack of experience then there will be no dramatic hit to your business but you will gain very valuable skill. Bring these new skills into your own business and use them to create your empire.

A Business Plan

You may never look at it again but the process of business planning will make it so that you are not walking in the dark. The parts of a business plan include the mission and vision, the day-to-day operations, and your financial projections. Also, most investors and lenders will require a business plan before they give you any money. Take a look at the Small Business Administration for resources on developing a business plan.

The Right Attitude

Entrepreneurs are a unique breed. They are risk takers. It is one of the reasons that it is so hard to spiral in on failure statistics. Following Edison’s idea that there is no such thing as failure, only a thousand ways not to make a lightbulb, the entrepreneur never quits. Their daring attitude makes them change the way they do business, transforming one idea into another. Do a self-assessment and make sure that you have the right attitude to be an entrepreneur.

5 Steps for Keeping Your Company’s Cloud Secure

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Having your business on the cloud makes having strong security a top priority. Concerns about security are one of the big drivers behind the rise of hybrid clouds, as IT managers seek to navigate a happy medium between the cost savings represented by the cloud and the potential risk it brings. Moving to the cloud does introduce some new security concerns, but like any calculated business risk, these can be managed with a sound plan. Here are five steps you can take to help you keep your company’s cloud secure.

Get Professional Assistance

One of the most important steps you can take to secure your company’s cloud is getting help from a security expert. Securing every aspect of your cloud can be a complex process and is best done with input from experienced professionals. Whether its for help with threat intelligence analysis, securing public clouds or overall operational security, seeking assistance from a cloud security specialist will help you save time and avoid hassles.

Don’t Store Unneeded Data

If you don’t need data, don’t store it, says the PCI Security Standards Council. Many businesses collect information they don’t really need to maintain in their records, such as employee Social Security Card numbers and customer credit card information. By not collecting and storing unneeded information in the first place, you automatically eliminate a major security vulnerability. Avoid storing cardholder data and card verification codes, don’t print out data that doesn’t need to be printed and don’t leave servers with sensitive information physically unprotected or in the presence of unauthorized personnel. Use payment-enabled software or a third-party online payment processor to eliminate the need to collect credit card information.

Use Encryption and Strong Passwords

Strong passwords with long character strings and a mixture of small and capital letters, numbers and symbols should be a basic security step for securing all areas of a network, including easily overlooked vulnerabilities such as router connections.

Likewise, encrypting stored and transmitted data should be a standard practice. Make sure you secure your data at all points along your network, from the time your customers transmit it over your network all the way through exchanges with other communication channels such as email. Depending on how you collect and use data, you might choose from a variety of encryption options, including data-at-rest encryption, TLS/SSL encryption or an iterative cryptographic hash. Be sure your encryption is properly configured. Use good key management tools and procedures to optimize your encryption handling.

Keep Your Security Up to Date

Outdated operating systems and software apps leave your system more vulnerable to security holes hackers can exploit. Keep your security up to date by using the latest versions of operating systems and apps and a good antivirus program. Make sure all parts of your network as well as all devices connected to your network are secure. A single compromised device can introduce a virus into your entire system. If your employees use BYOD devices, make sure they follow your company security policy.

Schedule Automated Cloud Backups

One of the most crippling consequences of a security breach can be the loss of invaluable company and customer data. Mitigate this risk by scheduling automated cloud backups using an enterprise-grade cloud backup service. You can further harden your backup procedures by supplementing your cloud backup with physical backup procedures such as using discs, tapes or external drives. A best practice is to make three backup copies using two different media with one copy stored in a separate physical location in the event of an on-site disaster.