Business Information for Entrepreneurs by an Entrepreneur

When is the right time, opportunity, or conditions to franchise your small business? Franchising is a great way to share your simplified business processes with other potential entrepreneurs, as well as earn great money in the process. However, franchising is not a simple process, and there are many considerations you should make before you set up your business as a franchise.

Here are three important rules you should know about franchising your business:

1. Choose a Strong Business That Fits a Proven Franchising Model

Franchising is not new. Franchising models and paradigms have existed for decades. The trick to succeeding as a franchisor is to choose a business that is in a proven franchised industry.

For instance, internet businesses are relatively new to the business world. Although internet business have proven to be successful and are expected to continue growing, they have yet to prove themselves as good franchising opportunities. Why buy someone else’s internet business structure when you can simply create your own from proven models?

Good franchising industries that provide good opportunities to franchisors and new entrepreneurs are the following types of business:

• Fast food
• Restaurants
• Specialty food
• Specialty retail products
• Health and fitness products
• Lodging
• Auto products
• Cleaning and maintenance products

2. Make Your Business Easily Clone-able

If your business is in the right industry, it could be a good franchise candidate. If you want to successfully franchise your business, it must have a model that is easily re-produced by franchise buyers.

Your franchise business must have a manual that others can understand and be able to follow explicitly. For instance, if you are selling cupcake franchises, your franchisees must be able to make the exact same cupcake from your recipes.

3. Good Communication with Franchisees

Remember, it is YOUR business name and business model that is on the line. Make sure that those who buy your franchise are operating by the book. Keep in good contact by sending regular correspondence. Maybe even drop in for “spot checks.” Operating by your business name is a license and a privilege. Be sure that those who use your business model are doing it right.

Don’t let the recession dampen your company’s holiday spirits. Show your employees your appreciation for them by throwing them a festive holiday party – even on a budget!

Although many companies are paring down their ordinarily over-the-top parties in favor of simpler ones, it is still possible to throw a great party that will be enjoyed and remembered by your employees for years to come. It is important to remember that most employees will appreciate the gesture more than the affair. Paring down the expenses will often go unnoticed, but your kind deeds will not!

• Instead of hosting your event at a restaurant, consider catering a lunch at the office. An office is often a more informal get-together, as it allows employees to interact in a more comfortable atmosphere. In fact, many employees will enjoy an informal luncheon or dinner much more than a stuffy restaurant.

• If a catered affair isn’t in the budget, consider a potluck dinner. Potluck dinners are making a comeback as more and more people find themselves in tight financial situations. Many employees will relish in bringing in and sharing their favorite dish, and there is sure to be plenty of delicious entrees to go around!

• Consider hosting a party at your house. It will give you a chance to mingle with your employees on a more personal, unassuming level. It will also show your employees your commitment to them and your gratitude for their service.

• Instead of a professional band or DJ at your company party, consider using an iPod and dancing to your favorite tunes. Ahead of time, you can ask your employees for a list of their favorite songs to make the event personalized for everyone.

• To save on restaurant or catering costs, consider having your holiday party on a weeknight or during the day instead of the evening. Often times, catering halls and restaurants will offer reduced prices if you have your function during an off-peak time and day.

• Shorten the duration of your holiday party, and you’ll find that your bar tab will be considerably less.

• Make it a family affair and keep the menu simple and the kids entertained with fun music and games. A simplified menu of cold cuts and chicken fingers will save your budget, and your employees and their families will be grateful for hosting a family-friendly affair!

Do you think your employees are desperately seeking healthcare benefits from your small business? It’s completely natural for a business owner to assume that employees are interested in benefits. Whether it’s a retirement savings plan, incentive program, or health insurance, these are perks that people definitely want.

However, it’s unclear as to which benefits employees desire the most. An employer may automatically assume that healthcare benefits are at the top of employees’ wish lists. A recent survey revealed otherwise.

Is Healthcare a Concern for Your Employees?

George S. May International, a management consulting firm, recently conducted a survey of 1,046 small business owners. The study asked if the business owners had ever questioned employees directly about healthcare coverage. The survey revealed that 55% of small business owners had never even asked if their employees wanted healthcare benefits. The same survey indicated that chief complaints from employees of small businesses included salary size, pay equity within the organization, and poor benefits programs. Healthcare coverage was not specifically addressed by the majority of respondents.

What does it all mean? Employers need to start taking a different approach to addressing the needs of employees. Based on the survey, employees are indicating an interest in taking ownership over their own money and investing it as they see fit. For example, if an employee was given the choice between an increase in salary or health insurance, odds are that they would opt for the salary increase. This money could be invested in a retirement fund, placed in a high yield savings account, or used to participate in a healthcare savings plan.

Save Money by Asking Your Employees about Their Benefits

Modern employees want flexibility and input when it comes to the dollars they earn. Small business owners can actually save money in the long run by taking employee needs into account and responding accordingly. Healthcare coverage is extremely costly for small business owners, and it might be possible to save big in the long run by beefing up on salaries rather than investing in an expensive group policy.

The U.S. Census Bureau identifies 47 million Americans as uninsured. However, it is interesting to note that many employees, 43% of those 46 million, are categorized as “voluntarily uninsured.” This means that they have access to healthcare coverage from employers; however, they opt not to take it. This is evidence that employees want to exercise control and stewardship over their money. In summary, it is important to take the needs of employees into account when developing benefits programs. They are the backbone of your small business, and keeping them satisfied will provide magnificent long-term results for your organization.