In the past few articles, we have discussed small business tax issues. This week we are switching it up a bit and will focus on whether your company is ready to become a franchise. It is definitely exciting for you to think about your company becoming a franchise, but you must consider if your company is really ready.
If you have a super concept, it is something to surely consider. For example, it can help minimize start-up costs. But there is also a downside; many new franchises simply don’t make it and are buried in a cemetery of unsuccessful companies of the past.
When you launch your company into a franchise, consider that you are asking others to invest in a company that has no proven track record. There are three types of companies, and I will list them below along with some items to consider.
1. Mature company, new to franchising. Differences between franchisees and employees. How do training programs for new franchisees differ from training programs for employees? What support systems are in place for franchisees? Are you willing to treat franchisees as business owners?
2. Seasoned franchise company that is altering its model to something new. Is there adequate research to support the transition to a new model? Why will the new model work better than the old one? Why did the old model not work? Are you making changes to marketing and operations? If so, what impact do you anticipate it having?
3. A young company wanting to franchise. This is really something to admire. Entrepreneurs have made this country what it is, and it is definitely to be admired and respected. Do the company executives have previous experience with growing franchises? What training and support programs are in place? Does the company have adequate cash flow in reserve for rough periods that may lie ahead?
As you finalize your decision to launch a franchise, be prepared as it will be a challenging task and require much preparation. Next time, we will focus on some new items to consider with social media.
Heather Penney is the regional director for Indiana State University’s Indiana Small Business Development Center.
Business
BUSINESS CENTS: Is your company ready to become a franchise?
- Business
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- RESTAURANT INSPECTIONS: May 21, 2012
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EYE ON THE PIE: Use to be close tie between output, employment
Crusty Crawford joined our lunch table with a pronouncement. “We’ve always assumed a close tie between output and employment,” he said. No one responded.
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Employer opinions sought on students
A joint venture between Ready Indiana and the Indiana Department of Education is seeking employer input that will impact how Hoosier high school students are equipped for the workforce.
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Carlisle prison marks 20th anniversary
2012 marks the 20th year of service for the Wabash Valley Correctional Facility, going on line with its first offenders Dec. 10, 1992.
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SOCIAL SECURITY: Why young workers should care about Social Security
Summer will be here before we know it.
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BUSINESS CENTS: Does your staff understand pricing?
Many companies feel as though their staff will follow instructions and implement price strategies as instructed.
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Valley Child Development Center receives grant
Valley Child Development Center has been awarded a $5,000 grant from the Terre Haute Day Nursery Foundation through the Wabash Valley Community Foundation.
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Exec offers advice on becoming startup entrepreneur
Sam Clemens, chief product officer of Cambridge, Mass., startup company Insight Squared, gave Rose-Hulman Institute of Technology students insight on how to develop a startup business.
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Newsmakers: May 20, 2012
Leland Phipps, family practice physician at Paris Community Hospital/Family Medical Center, has been re-elected to membership with the American Academy of Family Physicians.
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Alumna to serve as VP for Rose-Hulman Ventures
Rose-Hulman Institute of Technology alumna Elizabeth M. Hagerman is returning to her alma mater to serve as vice president for Rose-Hulman Ventures, the institute’s successful innovation space that has spawned careers and entrepreneurial enterprises throughout Indiana.
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Summer Sidewalk Sale set
Marshall Main Street’s Downtown Summer Sidewalk Sale is planned from 8 a.m. to 2 p.m. June 9.
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Oil drops to lowest level in 6 months
The price of oil dropped to a six-month low Tuesday on concern that economic uncertainty in Europe could hurt demand for crude.
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Adidas initiative: ISU students develop business improvement process at facility
As Indiana State University students cruised Interstate 70 on Friday afternoons from Terre Haute to Indianapolis, they were looking forward to reaching their destination.
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BUSINESS BRIEFLY: May 13, 2012
An evening of networking and education for Clark, Crawford and Edgar counties regarding branding, marketing and tourism development opportunities is planned for 6:30 p.m. May 21 at the Heath Museum on the square in downtown Robinson.
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Wendy’s partners with Riley Hospital
For just $2, customers at participating Wendy’s restaurants in the Evansville/Terre Haute area can get free Jr. Frosty desserts through Dec. 31 while supporting Riley Hospital for Children at Indiana University Health.
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Marshall Chamber to stage annual golf outing
The Marshall (Ill.) Chamber of Commerce invites golfers to its annual golf outing scheduled for June 8 at the Marshall Golf Course.
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ON THE MOVE: May 13, 2012
McKenze Rogers has joined Williams Randall as an account supervisor.
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Seminar teaches seniors to fight fraud
The Federal Trade Commission estimates that 25 million Americans are victims of consumer fraud each year.
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EYE ON THE PIE: Economic tools for consumers, workers, business owners, officials
My friend is a carpenter. He has two heavy boxes of tools and several other containers with stuff.
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SOCIAL SECURITY: Potential Medicare savings for mom
Given the current economic climate, buying a nice gift for Mother’s Day may be more difficult than in years past.
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‘Best Places to Work’ honored at banquet
Companies raising the bar with their workplace practices were recognized on May 3 at the Indiana Roof Ballroom by the Indiana Chamber of Commerce.
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NEWSMAKERS: May 13, 2012
Susi Willis, CPA and partner in Larsson Woodyard & Henson, LLP, was recently presented with the Distinguished Service Award by the Indiana CPA Society at its annual CPA Celebration at the Indiana Roof Ballroom in Indianapolis.
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Indiana Rail Road wins Family-Friendly Award
The Indiana Rail Road Co. has won the Terre Haute Chamber of Commerce’s “Family-Friendly Business Award” for 2012 based on the company’s highly successful employee wellness program.
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Government cuts summer gasoline price forecast
The government says gasoline will be cheaper this summer than previously expected thanks to a drop in the price of oil.
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Mall operator becomes biggest real estate company
The nation’s largest shopping mall operator is now also the country’s largest real estate company.
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Dealership to celebrate first year
The 500 Automotive Group in Clinton will celebrate its first year in business with an big birthday bash at the dealership on Friday and Saturday.
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EYE ON THE PIE: Compensation levels did not cause the recession
America is still fascinated with “The Price is Right.”
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Old National begins year with strong first quarter
Old National Bancorp reported 1st quarter net income of $21.7 million, or $0.23 per share.
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Enroll in disaster preparedness class
The University of Illinois Extension is offering a disaster preparedness course on May 23 for Clark, Crawford and Edgar county businesses called Ready Business.
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Newsmakers: May 6, 2012
• Dr. Haytham Mansour
• Terre Haute Regional Hospital
- More Business Headlines
NJ Man Charged With Murder in Death of Patz
Astronauts Enter World's 1st Private Supply Ship
Support, Fun for Kids of Fallen Soldiers at Camp
Dragon Arrives at Space Station in Historic 1st
Passenger Restrained on Flight to Miami Arrested
50 Years Later, Underground Fire Still Burning
Fugitive Penguin Caught, Returned to Aquarium
Raw Video: Unruly Passenger Restrained in Miami
Today in History
Police: Gunman Has Hostages in Realty Office
Light Show Transforms Sydney Opera House
Raw Video: Robber Uses Drive-thru Window
Shell Readies Arctic Drill Ship
Raw Video: Activists Allege Massacre in Syria
Raw Video: Dragon Arrives at Space Station
Calif.'s Coronado Named Nation's Best Beach
Beer Here!: An Historic Exhibit
FAMU Bandmates: Victim Volunteered to Be Hazed
Texan Ranchers Remain Wary of Drought
Sudden Storm Topples Wisconsin Trees
Wild weather for Memorial Day weekend
Inspiration for the class of 2012
Colorado College Student Shot While Trespassing
Will Smith & Josh Brolin on "Men in Black 3"
80-Year-Old Skydiver's Nightmare Jump
JWoww Sizzles in a Black Bikini
Sliders on the Grill
Cruise ship crunch
Backstage With Beyonce
Ultimate Creamy Potato Salad
Pope's Personal Butler Under Arrest
Jenny McCarthy's New Man
Tyler's Classic Coleslaw
Britney Spears Under X Factor Fire
Flesh-Eating Bacteria Victim Hits Milestone
Hurricanes and Heat Waves Across America
Kristen Stewart Is Red Hot
Shark Attacks Australian Fishing Boat
Bradley out for playoffs
Kayaker Survives Trip Over Washington Waterfall
