SizeUp Gives Small Businesses Free Intelligence Resources |  |
- SizeUp Gives Small Businesses Free Intelligence Resources
- Business Survival Tips From Charles Darwin
- Where Do Franchisors Make Their Money?
- Harness The Power Of Imperfection
- Entrepreneurs Give Up Equity for Shark Tank
| SizeUp Gives Small Businesses Free Intelligence Resources Posted: 20 Sep 2012 01:00 PM PDT SizeUp, a tool created to help small businesses learn and grow, is now available free of charge through the Small Business Administration. The widget shows businesses how they stack up against the competition in their area, and is available both on the SBA's website, and the SizeUp website.
The tool can help businesses create a strategic plan for growth through by analyzing competition, seeing how their business currently stacks up in the market, and finding the right advertising markets to reach their target market. Upon visiting the site, business owners can enter their type of business (e.g. beauty salons) and metropolitan area. You can then view the top three businesses listed in that category, along with how their own business competes in terms of revenue, years in business, and employee salary. You can also view zip codes with the highest combined business revenue in the selected industry, so that they can better choose which markets will be the best advertising match. Many larger businesses have the resources and ability to do this kind of research in-house or by way of a market research firm. For small businesses with fewer resources, this type of service is not always within reach. SizeUp, which launched in 2011, was created with the intention to level the playing field for small and medium sized businesses that are at competitive disadvantage because of the lack of free and affordable tools available. The site operates with the hope that the knowledge provided to small businesses can help them choose the best location, find the right customers and vendors, save money, find opportunities, prevent failure, and outperform the competition. SizeUp donated the license to the SBA so that the widget could be used on the site free of charge. However the SBA has no control over the information provided by SizeUp. The post SizeUp Gives Small Businesses Free Intelligence Resources appeared first on Small Business Trends. |
| Business Survival Tips From Charles Darwin Posted: 20 Sep 2012 11:00 AM PDT When Charles Darwin's “On the Origin of Species” was first published in 1889, it stirred up a not inconsiderable amount of furore and controversy. However, as divisive a treatise as it undoubtedly was, “On the Origin of Species” was a masterpiece of skilled observation, elegant reasoning and sound logic. Darwin's findings changed the world of biology and naturalism forever, and his arguments had a resonance that was felt around the world.
Darwin's discoveries and conclusions are as succinct and flawless today as they were at the end of the 19th century, and we can learn from them in ways you may not have expected: Fight Perhaps the most shocking element of Darwin's treatise was that, contrary to the teachings of orthodox religion, the natural world was not a harmonious world of order and beauty, but a chaotic one in which every individual plant and animal were locked in a constant fight to survive and propagate. To a certain extent, the same will be true of your business. Don't expect any pity or mercy from your competitors. It's a dog-eat-dog world and you will have to assert yourself if you're going to come out on top. Just like in the natural world, you should use all the weapons at your disposal in order to survive. Specialize Some of the most remarkable findings of Darwin's studies were to throw up concerned, the little finches of the isolated Galapagos Islands. Darwin noticed that these birds, originating from the same genus, had developed beaks that differed greatly from animal to animal as food sources on individual islands dictated. These specialized tools allowed the finches to exploit natural resources that would otherwise have been cut off to them. You should learn from them by exploiting gaps in the market that others have left unexplored. If you become unique and different, you will have less competition for customers and clients, thus helping your business to become successful. If your strengths lie in your work, don't waste time by trying to chase customers for payment. Instead, build symbiotic and mutually beneficial relationships. Adapt “On the Origin of Species” suggested that the species that were best suited for long-term survival and widespread propagation were those more likely than others to adapt. Animals whose behaviour and physiognomy were quick to adapt to changes in the environment, in food sources and in their predators were those with the characteristics necessary to go the distance. The same is true of your business. If your products, services and business practices are too rigid and prescribed, you're likely to go the way of the dodo. Instead, you need to be capable of reacting to changing trends in the market, to behavioural patterns in your audience and to shifts in the global economy. Like the world's most successful creatures, successful businesses must be highly adaptable. You can learn a lot from the natural world, and Darwin's observations are as good a place as any to start. Galapagos Cactus Finch Photo via Shutterstock The post Business Survival Tips From Charles Darwin appeared first on Small Business Trends. |
| Where Do Franchisors Make Their Money? Posted: 20 Sep 2012 08:00 AM PDT I have a challenge for you, if you're up to it. Are you ready? I want you to ignore every pre-conceived notion you have about franchising for a few minutes. Pretend that it's your first time learning about the franchise model. Be at one with the newness of it. Deal?
Let's say that you're the owner of a dog-training business. Your business has been growing steadily since you started it, 4 years ago. You've hired more people every year, and you're thinking of expanding, especially since an ideal commercial space recently opened up in an industrial park two suburbs over. In your mind, now's the time to do this, as small business loan rates are at historic lows. You're Just Warming Up What you'd really like to do is turn your dog-training business into a franchise business. That way, you can continue expanding your business by using other people's money. (OPM) On the surface, it certainly sounds like a great plan. You'd invest the money needed to franchise your business, and once you started to sell franchises, you'd be able to recoup your money. This money would come from at least two places; franchise fees and ongoing royalties. Developing A Franchise If you're going to set-up your business as a franchise, your first moves need to be right. My late father taught me something very valuable about franchise development, and it has to do with money. He said that the biggest mistake people make who want to franchise their businesses is doing it on the cheap. A perfect example of this is someone that only uses an attorney when developing their franchise concept. There is so much more to franchise development than the legal requirements needed to franchise. But for some reason, most of the people I talk to are laser-focused on legalities. Legal fees to setup a franchise run about $15,000 or so, and someone could get away with spending under $20,000 to get a franchise up and running. But, it won't be a very successful one. That's because there are so many more things involved in franchise development. Things such as:
The bottom line: if you're planning on turning your business into a franchise, you really need to work with a franchise development firm that can help you do everything from A-Z. Otherwise, you'll be lucky to sell 1-2 franchises, if any at all. A word of warning: make sure that you thoroughly vet any franchise development company that you're thinking of hiring. Ask for lots of references. You may find that some of them are a little too eager to turn your independent business into a franchise business. The Other Reason That You Want To Franchise Your Business The picture that you have in your mind of what it would be like to be the CEO of a 250-unit franchise chain is a pretty compelling one. Your visual may even include a 5,000 square foot beachfront home in Maui. Because as you see it, 250 franchise units paying you monthly royalties of approximately $2000 each = $500,000, which translates into $6 million a year in royalties alone. And, don't forget the upfront franchisee fees that you'll receive every time you sell a new franchise. Of course, there are a lot of ongoing expenses that you'll have to cover as a franchisor, but you'd still do very well. Every prospective franchisor that I've ever talked to wants to sell 100-200 franchises, so they can make a lot of money. The simple math that I just showed you proves that it is possible to do. What a great business model; you come up with a concept, invest some money up-front to develop it into a franchise, use OPM to grow it, and then have the people that invested in it pay you royalties every month for the opportunity to use your business system. So, as a franchisor, you're making money from the franchisees. No You're Not According to Lonnie Helgerson, a franchise development executive who just wrote a book called, "Five Pennies, Ten Rules to Successfully Build a Franchise Mega-Brand And Maximize System Profits," franchisors profits don't come from the franchisees. From Helgerson's book:
At the beginning of this post, I asked you to pretend that you were just starting to learn about the franchise business model. I also encouraged you to give up any pre-conceived notions that you had about franchising. Can you see why? Lonnie is 100% correct. If, (as a franchisor) you're not offering a great product or service that will enable your franchisees to ring their registers…a lot, you won't be successful. And, your franchisees won't be either. So, before you even think about turning your business into a franchise, make sure that what you're offering is outstanding. Or, your business could end up going to the dogs. Question Photo via Shutterstock The post Where Do Franchisors Make Their Money? appeared first on Small Business Trends. |
| Harness The Power Of Imperfection Posted: 20 Sep 2012 05:00 AM PDT The other day I read an email from Sally Hogshead of Fascinate, Inc. regarding the link between flaws and influence. According to her, it is your flaws that set you apart. This got me thinking about all of the people I know who worry about their imperfections. Could that worry be wasted time? Well, I submit that spending time concerned over your flaws is time lost. Let's face it, we are all flawed. No one is perfect. We all make mistakes, fail to get things done, and let things slip. I believe it is all a part of life, especially in this fast paced world we are living in.
There are so many influences vying for our attention that the plate spinning can easily get out of control. Do you know why those plate spinners were on the Ed Sullivan show? Because it was a unique talent. If everyone could spin a lot of plates, there'd be no act. If we could, for a moment, cut ourselves some slack we could focus not only on how to better manage our worlds but how we could harness our flaws to our advantage. How can we use our imperfection to our advantage? 1. Own Your Uniqueness We all need a differentiator. It's a competitive world and there are many businesses doing what we do. So, why would someone buy from us? Take a look at your unique being and then ask yourself that question. What is it about you that is of value? 2. Market Your Value Once you've embraced the power of your flaws, craft a marketing message that highlights them. Remember, you want to point out your differentiator. What better differentiator than your uniqueness? 3. Forgive Your Imperfections When it comes to the things that aren't getting done, you know where you fall down. Acknowledge what doesn't get done or what gets lost and cut yourself some slack. Set up a system to prevent the loss. It's like using a safety net. You look realistically at your business and then put steps in place to change the landscape. Beating yourself up isn't going to get you anywhere, and can actually get in the way. Dr. Phil says:
In the same vein you cannot embrace what you don't acknowledge. So, own your flaws, embrace and harness your flaws, and forgive yourself. Flaws can actually benefit your business when you use them to your advantage. Plate Spinning Photo via Shutterstock The post Harness The Power Of Imperfection appeared first on Small Business Trends. |
| Entrepreneurs Give Up Equity for Shark Tank Posted: 20 Sep 2012 02:30 AM PDT Entrepreneurs give up 5% of their companies to appear on the ABC reality show Shark Tank. Some might wonder whether such a sacrifice is worth the opportunity to pitch your idea to “rock stars” like Mark Cuban, owner of the Dallas Mavericks, and a panel of other wealthy investors. “There is a myth in our culture that being successful in business involves raising money from well known individuals. That’s partially why Shark Tank has taken off. But its not always the case,” says Ami Kassar, founder of MultiFunding, a Philadelphia-area firm dedicated to helping small businesses find money. In a recent post for The New York Times entrepreneur blog, Kassar talks to some small business owners who had turned down their chance to do the show because they considered opportunity cost too high. In this post, Kassar also looks at other options out there for gaining the funding a small business needs. Investment OpportunitiesSwimming with the sharks. Sean Tice and Kristy Hadeka had a tough choice to make. This pair of entrepreneurs runs a business that makes cheese boards out of slate. But when they received an invitation to pitch their company to a group of super star investors on national TV, they found there was a price attached. You’re the Boss Practicing your pitch. If you do decide to pitch your idea to deep-pocketed investors, there are some things to realize first. Even when they don’t have their own national television show, these people are busy. Even grabbing their attention with your presentation will require plenty of work and research. Corporation Centre.ca Adding up the numbers. Before you do any pitching to investors, however, you have to know how much money you really need. Don’t ask for too much, since you will be required to explain exactly why you want it. Conversely, avoid understating the amount of money you’re going to need. You will lose credibility if you can’t operate your business with the funds requested. Startup Professionals Musings Other FundingChecking other options. Sometimes venture capital firms and other deep-pocket investors are not a good fit for your small business idea. Get creative with your financing options and tap some sources less talked about but just as available. Using these funding options ensures you won’t be giving up equity in your company. Lonely Brand Blog Banking for small business. It turns out that one of the best places to go for small businesses in need of capital is a familiar source indeed. A recent survey found small banks increased their lending in August, while big banks offered fewer loans over the same period. Alternative lenders also increased the amount of money offered to businesses last month making them another viable option for small businesses. Small Business Trends Starting with NothingBootstrapping for beginners. Still another option for business startups could be to begin with no money, or at least no outside funding at all. In this podcast, bootstrapping expert and entrepreneur Bijoy Goswami talks about another option for starting a new business. Small Business Elevator Suggesting bootstrapping principles. Here are some suggestions for an entrepreneur who’s decided to take the bootstrapping approach. Tom Ewer calls these suggestions “principles”, however bootstrappers may use a variety of approaches. It’s important to find a solution that works for you, but Ewer’s post is a great place to start. MyWifeQuitHerJob.com The post Entrepreneurs Give Up Equity for Shark Tank appeared first on Small Business Trends. |
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