What is typically provided by a franchisor to its franchisees? Why would these typically be valuable to a nascent entrepreneur? Why is the failure rate lower for franchisees than it is for independent businesses?

Franchisors provide franchisees with the opportunity to make a profit off of their business concept. Typically, a franchisor provides the franchisee with its logo, business model and guidelines, access to branding material like uniforms, recipes, slogans, marketing and promotional items. Franchisors usually also offer advice, trainings, and support for the franchisees throughout their specified contractual period.

Sometimes franchisors are able to provide their franchisees with the business location and employees; however, if this is the case, franchisees must be careful to take into consideration the condition of the facility and the attitudes and behaviors of the employees.

Most entrepreneurs starting from scratch have to work hard to secure an affordable location for their business, as well as employees, and marketing for their product or service. On top of that, they are not sure whether their product or service will be successful in a competitive market. Entrepreneurs of this sort are usually taking a very big risk when they decide to go into business. Not to mention all of the money that they have to invest as start up capital on a venture that they have no proof will succeed.

All of these reasons, are why franchising can seem a worthwhile opportunity to a person looking into entrepreneurship. The fact that the business that they are investing is has been proven to be useful, necessary, and/or successful in the market can give a new entrepreneur confidence that he/she will be successful. Franchisors know that they are decreasing their level of risk as compared to an entrepreneur starting from scratch, simply because they have a franchisor to guide and help them on the road of their proven model of success.

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If there were a market for it, would you consider entering an international market for a product/service which you offered in your own enterprise? Why or why not?

I am considering entering the international market with my business services because there is a market for it. The film industry is booming in various countries throughout the world.  Movies and media can be distributed all of the world. Furthermore, they can make an impact on individuals differently in other areas of the world outside of the U.S. Hollywood is the number one film industry in the world, but there is also Bollywood, and Nollywood. Bollywood is the second largest film production industry and its from India. Nollywood is the third largest film production industry in the world, and its from Nigeria. I want to reach out to Nollywood, and possibly even Bollywood to make a connection. Maybe one day I can make movies that will be popular in their movie industry, and maybe movies from their industry will become more popular in America’s Hollywood. Even though America’s Hollywood films are well known and accepted around the world, I believe that we have yet to make that happen in America with other movie industries from across the world. This would be true globalism in the movie industry. I hope that I can have a part in not only making a profit from movies that are Hollywood inspired, but also Nollywood or Bollywood inspired.

What are the pros and cons of doing business entirely online without a physical storefront or presence? Consider this question from selling a tangible product.

Because of the ease of access with internet shopping, many companies are now completely online utilizing a virtual store front instead of a physical storefront. Of course for business owners who have to take into account the cost of renting or purchasing property, upkeep, and maintenance, employee help for customer service, and leaving the house to go to work everyday, online business may seem to be very appealing. But what about for the customer who is not yet comfortable with internet shopping…Let’s look at a few of the pros and cons of online virtual store fronts.

Pros:

  1. Customers don’t have to travel and spend gas money to get to your business.
  2. They don’t have to worry about waiting in long lines to make purchases.
  3. Running a business online can cost less because you don’t have a physical store location that you have to make payments on. An owner of an online business may only have to pay for storage space for their products.

Cons:

  1. Customer’s may not feel that personal touch online. I think that online service based companies try their best to take advantage of their resources in order to provide a sense of personal touch to their customers. For example, intuit website builders try to call customers who sign up for their trials or services within the first 48 hours. Not only do they call to make sure you have ease of start up with their services, they also email you immediately to welcome you to their business.
  2. It is harder to  assess the needs of customers and make recommendations for other products to them because you are not physically there with them to listen to what they are looking for and why.
  3. Another con is that you cannot accept cash from customers. Customers who are weary of putting that credit card information online to make a purchase, or prefer to spend cash may be lost due to the store being completely online.
Entrepreneurs should take into account all of the above points before deciding whether the store will be completely online, or whether the store will offer some online shopping, or none at all.  Honestly, depending on the type of business and products sold, I would say that having a physical and virtual storefront is more than likely the best option for the consumer and the seller.

What is the difference between a franchisee and a company owned store within a franchise chain? Why might one prefer to be a franchisee or the manager of a company owned store?

The biggest difference between a franchisee and a company owned store within a franchise chain is ownership of the company. In a franchisee the person who invested in the franchisee is the owner of the particular store that he invested in. However, the person who runs a company owned store in a franchise chain is not the owner of that store, but instead an employee of the company that runs the franchise chains.
When it comes to deciding which role is better to have in the debate of becoming a franchisee or a company owned store manager, there are several factors to take into consideration.
One factor is ownership, responsibility and liability-Franchisee investors are solely responsible for success or failure of the company once they sign up and pay to be a franchisee. The franchisee puts up the money for the business, and the franchisee is the one who suffers if the business does not succeed. In essence, a franchisee is an entrepreneur who is using someone else’s proven business concept, tactics, and brands in an effort to generate a profit for themselves. However, they do have somewhat more freedom in the way that they decide to manage the company than does a company owned store manager.
A company owned store manager is someone who the main company put in charge of running another location of the exact same store. The store is owned by that company instead of the manager, and thus the manager does not have as much freedom to run the store the way he wishes. He has to run the store the way the company requires using their policies and procedures. responsible for the success or failure of the business. A company owned store manager does not have to invest money in the store in order to make a profit, he is paid by the company. He is not an entrepreneur, he is still an employee working for the company. If the store fails, the manager will not be held financially liable, the company will.
Some more pros to being a franchisee is that the franchisee is his own boss and has freedom to run and lead the company as he sees fit. A franchisee has a personal investment in the business and is more likely to want to work hard to see is grow because the success of the business is a direct reflection of the his personal success. A franchisee is an entrepreneur with a plan that is proven to work, so its not as big of a risk as it would be trying to start your own business idea that one is not sure will do well in the market. A franchisee is given everything he needs to be successful with the proven business model once he pays his start up cost.
Some more pros to being a company owned store manager is that he doesn’t have to pay start up costs to run the store. He will not be personally liable if the store does not succeed. He is not taking any major risk, and he has a boss and rules to lead and direct throughout his daily business ordeals.
Whether one decides to become a franchisee or a company owned store manager is up to the individual. Anyone considering whether or not to become a franchisee should carefully weigh the pros and cons against their own personal and professional goals in life in order to make the best decision.
Sources:
“7 Eleven Continues to Convert Most Company-Owned Stores into Franchise Operations Convenience Retailer Offers Business Opportunity in Tough Economy.” PR Newswire (2008): Westlaw Campus Research. Web. 27 Apr. 2011.

Personality Considerations Part II.

Part II of Personality Considerations is about me identifying the most important elements of personal considerations for starting a business and explaining why I feel this way.

I think that integrity is the most important element to take into consideration when starting a business. I believe this for several reasons. The first reason, is that people who have integrity and live by that on a daily basis are already considered leaders in my opinion. I want to be a leader with integrity.

Another reason I believe integrity is on of the most important elements is because when people know that you will do right by them and others, they are more willing to trust you and help. This comes in handy when you need investors, lenders, angel donations, or volunteers.

Integrity is also important when it comes to getting business. When customers know that they are dealing with a person of integrity, they know that they are getting a product or service of quality. They trust in you and your abilities and expertise when it comes to purchasing a product or service. Why would a customer ever buy from someone that they know is not a person of integrity?  Furthermore, they trust in what you say, and no that you will fulfill your promise and keep your word. That’s what customers need, especially when they are putting their hard earned money into purchasing your product or service.

People want to know that they are buying something worthwhile, and as a person of integrity, and a leader aspiring to be successful, you should want to sell something that you know is worthwhile.Having integrity is good for business, in more ways than one. Integrity may just be the key to starting a business out in the right direction.

Personal Considerations Pt. I: Characteristics Impacting Success in Small Business

Personal Considerations Pt. I.

The question at hand is how might the following characteristics impact success in small business: Life experiences, parental influence, career displacement, and education?

All of these factors on an individual can have a positive or negative impact on their business venture. Life experiences, including career displacement, can be the reasons why a person chooses to go into small business. For example, people who have worked in a job for years, and suddenly get fired or laid for reasons in which they don’t agree with, may decide that its time for them to try something completely different like entrepreneurship.

Parental influences can have a major impact on how a person feels about him or herself. How a people feel about themselves has a direct impact on whether they will even consider going into business. People who do not believe in themselves or their ideas are less likely to try to go into business for themselves. Entrepreneurship is not for the faint of hear, one reason is simply because most entrepreneurs are sure to fail or face rejection several times throughout the course of their venture. For a person who constantly seeks the approval from not only parents, but from other people in general may not be as successful in business if their parent, or the people that they look up to do not believe in their entrepreneurial vision and dreams.

Whether or not one is successful in their entrepreneurial endeavors has a lot to do with that person’s personality and characteristics as several research studies suggest. Characteristics are developed throughout childhood and on into adulthood. Character is important for entrepreneurs who have to deal with customers directly because customers must have trust in the company or individual from which they are buying. Characteristics like honesty, loyalty, and integrity are valuable to entrepreneurs who are starting off and looking to build and maintain a strong base of clientele.

Some people say being smart is not as important for an entrepreneur as having drive. However one must keep in consideration that there are different types of entrepreneurs. To one entrepreneur, he or she may not feel comfortable taking risks unless they are educated and considered an expert in the field in which they desire to take the risk.

Then, there are other entrepreneurs that do not get hung up on the fact that they are not an expert in the field. Expertise is a minor boundary for them, to be easily overcome by hiring experts once the venture is successful. What matters most to them is that they are able to recognize a strong business idea and because they like to create businesses they are willing to take a risk to bring the idea to fruition and to market. These types of entrepreneurs are experts in starting small business ventures that can be successful. Entrepreneurs like this have the ability to be successful with or without a formal education.

All in all, factors such as life experiences, parental influences, career displacement, and education all play a major role in whether an entrepreneur will be successful in his or her business. It is through these very things that entrepreneurs are shaped, and the idea of being an entrepreneur is embraced. Most importantly, it is the lessons learned, and the decisions that are made based off of these characteristics that the budding entrepreneur encounters that make the impact on the person’s overall success.

Links of interest:

“What’s Your Type” By: Bill Wagner (Article & Personality Test)

http://www.entrepreneur.com/article/84134-3

“Characteristics of an Entrepreneur” By: Cathy Presland (Video on Youtube)

http://www.youtube.com/watch?v=JBw4hmx6_uQ

Filmpreneur Blog…Well, Come & Explore…

Welcome to Filmpreneur Blog, I will be posting at least two articles soon. The first post will be about passion, personality, and achievement as it relates to the successful entrepreneur. The next, article will focus on franchises.