When I refer to the names McDonalds or Dominos to you what thoughts pass through your mind? Do you think of a popular Scottish family name and a popular game played with little black wooden blocks? I would suggest that for lots of people the first idea in their head was in reality two well-known fast food eating places. This really is the power of branding.

Branding is significant in support of the simple reason that a possible buyer may already have a preconception on the subject of what to anticipate from the business. This may of course perform both ways:-

Benefit of brand recognition in a franchise business

Combined with a franchise system, a strong branding can potentially convince a buyer to your favour when selecting between a brand popular franchise opportunity or an unbranded option. This only works as long as a good message is looked after across the franchise network regarding the brand reptutation to ensure that potential shoppers have a very favourable outlook of the business regarding expected value of services or products supplied. Generally, customers ought to feel secure to make use of any franchised store in the familiarity that their expectations will be fulfilled about that brands quality and service, regardless of whether they have never up to that time been to that shop. The brands status provides them confidence.

Disadvantages of brand name recognition in franchise opportunity business

Its worth considering that if a single store delivers inadequate service then this could damage the entire network in the customers mind. In these days of social networks and open on-line discussion, inferior service can increase like wildfire. A generally publicised Youtube video focussing on a particular air carriers weak handling of a travelling singers guitar shows the power of this open communication plus the affect it might have over a brand name. While the film was probably enormously comical for the eight million odd people that viewed it, the stocks in the air carrier bombed 10% once this film was let loose costing this company $180 million and incalculably more in lost buyer loyalty. Just one case in point of how an isolated event might turn out to be really costly to an entire network.

Therefore what does this mean to me?

When thinking about franchise business opportunities, investigating the businesses brand status is something you'd do nicely to consider. What do customers think about the brand? What is being said on the internet in debate forums and social networks? Even though it is evidently advisable to look at a balanced view (as frustration can often be expressed a lot more loudly than satisfaction), these issues can make a difference when choosing where to place your hard-earned investment. Its worth remembering though that no one expects perfection, although they do count on wrongs to be righted quickly and effectively.

Sensibly measured, the branding a franchise business is often of significant advantage, provides belief and attracts customers. Only be certain you are properly educated of what is being believed in regards to the brand reptutation and how the franchise operator handles adverse media.

Source: EzineArticles.com
Author: Nick Strong

With more than 5,000 franchise opportunities available worldwide, ranging from McDonald's to day spas to dog grooming, finding the right one for you can seem overwhelming. But the process may be more accessible than you think.

First, consider your personal goals. "You not only have to understand the simple things like what kind of investment you're willing to make," says Lori Kiser-Block, vice-president for consultant services at FranChoice, a franchise consulting service based in Eden Prairie, Minn., "but what kind of risks you are willing to take, how hard you want to work, how many hours you want to work, and what kind of environment you want to work in."

For example, a Two Men and a Truck professional mover franchise requires an average of 30 to 50 hours a week, while an AlphaGraphics printing franchise is more likely to take up over 60 hours a week.

HELP AT HAND.  Next take a critical look at your professional strengths. Kiser-Block advises that prospective franchisees evaluate their skills in management, sales, and customer service. Once you have a clear picture of what you want in a business and what aspects of it you can manage on your own, it's time to begin narrowing your search down and conducting investigations into several potential franchises.

While a familiar brand may be an alluring starting point in your search, you should also investigate newcomers and industry successes and trends. The International Franchise Association, a Washington, D.C.-based membership organization, and the San Diego-based American Association of Franchisees & Dealers, a national nonprofit trade group, will both provide franchise directories, annual business reviews, and guides to help you get started for free, or with payment of affordable annual dues.

The Franchise Business Review is an independent market research company that surveys the overall satisfaction of franchisees across a variety of franchises and makes reports available at no cost.

SEEKING OBJECTIVITY.  Franchise consulting services, such as FranNet and FranChoice, are another free resource available to entrepreneurs. Working on a commission-based model similar to that of a real estate broker, these companies match prospective franchisees with an affiliated corporate head of a franchise, known as a franchisor.

If you decide to get the help of a franchise consultant, you should know what you're getting into. Since the franchisors pay consultants a variable rate for each match they help facilitate, their objectivity may be open to question. "[Franchise consultants] are profiting from the sale of a franchise, so they're going to recommend the franchise that's going to get them the most profit," says Eric Stites, CEO of Franchise Business Review.

Still, don't discount consultants completely. They can give you needed outside perspective. "Generally what [prospective franchisees] are looking for is a lifestyle," says Steve Rosen, president and CEO of FranNet. "They have a dream, but they have no idea how to get to the dream. So in a sense, what we're trying to do is find something that they enjoy doing, where they have the skill set and the finances to do it…."

DETECTIVE WORK.  Once you have narrowed down your selection of franchises, start speaking with franchisors. The franchisor will explain the general ins and outs of running the business, and give you a Uniform Franchise Offering Circular (UFOC), the essential legal document in any franchise negotiation. Along with franchisee fees and obligations, history of past franchisees' litigation and bankruptcy filings, territorial, trademark, and other restrictions, the UFOC contains a list of contacts for their franchisees.

"A franchisor is required to give the name, address, and phone number of the franchisees that are open and operating, and of all franchisees whose franchises have terminated or transferred in the last 12 months," says Robin Day Glenn, principal attorney for the Rancho Santa Margarita, Calif.-based Franchise Law Team, a firm that primarily represents franchisors. "A prudent prospective franchisee should phone as many of those as their phone bill can bear, and if possible they should go see these people in person."

When you contact current franchisees, ask the questions which the franchisor frequently can't answer: How long does it take to bring the franchise to profitability? Has the franchisor fulfilled all the terms of his promised support? Would you buy into the same franchise again?

GET A LAWYER.  In addition, consider the overall fit. "Whether you're talking to the franchisor or the franchisee, you want to make sure the culture and personality of that organization match yours," says FranChoice's Kiser-Block. You will be interacting with these people about crucial decisions on a frequent basis, particularly as you first start out, so make sure that they are committed to the same general business principles as you.

When the right franchise is in sight, experts strongly advise that you work with a lawyer who specializes in franchising. Attorney Day Glenn, who normally represents franchisors, says that this step is frequently overlooked when prospective franchisees are trying to rush into a new business.

"I would guess that at least 90% of the people who buy franchises don't hire attorneys," she says. "And even when they do, very often they have already made up their mind that they want to enter into the franchise agreement and don't pay attention to what the attorney tells them. The most important reason a prospective franchisee should consult an attorney is to decide whether or not to enter into the franchise at all."

Author: Douglas MacMillan
Source: Bloomberg Businessweek

My opinion is that one does not have to be a "born entrepreneur" to succeed, but it certainly helps. Innate tendencies seem to make certain people more likely to take risks, more able to identify and act on promising business opportunities, and more open to new experiences. We've all known extroverted people who revel in marketing and selling, activities that successful business owners must master. Individuals who do not share these traits can certainly develop them, but they will have to work harder than those for whom such traits come naturally.

My opinion aside, however, your "chicken and egg" question has recently been tackled scientifically in studies of twins (both identical, who share 100 percent of their genes, and fraternal, who share about 50 percent of their genes). Scott Shane, my fellow columnist and the A. Malachi Mixon III Professor of Entrepreneurial Studies at Case Western Reserve University, participated with several colleagues in the research. In academic articles and his book, Born Entrepreneurs, Born Leaders, (Oxford University Press, 2010), Shane says that the tendency toward entrepreneurship is about 48 percent "heritable," meaning influenced by genetic factors.

Does this mean that people born without a family history or natural tendency toward entrepreneurship should shelve their dreams and stay in their cubicles? Absolutely not.

Pursuing a Passion
"From what I have seen in my nearly 20 years' experience with the Entrepreneurs' Organization, anyone anywhere has the opportunity to build a business as long as they have a passion, an attitude of never giving up, and valuable mentors that can complement their skill sets," says Dean Lindal, the organization's vice-president.

Longtime entrepreneurial consultant John J. Rooney, managing director of Capital Partners IBG in Manhattan Beach, Calif., agrees: "In my experience working with hundreds of entrepreneurs and teaching on the faculty at the University of Southern California's entrepreneur program, it is clear that much of entrepreneurship can be successfully learned. However, it is also clear that people who take positive action and are focused and committed and continue on despite some negative feedback or setbacks have skill sets and personality traits that can be inborn or learned."

Moreover, the very traits that lead naturally to entrepreneurship can have negative flip sides. "The fact is, most entrepreneurs fail at what they try to do. They fail because they rely too heavily on their innate skills and not enough on learned skills," says John Delmatoff, an executive coach based in Murrieta, Calif.

He often coaches entrepreneurs who chase every good idea they run across. "They focus their often limited resources on too many ideas simultaneously, none of which gets adequate attention, and the idea fails," Delmatoff says. "Or the entrepreneur gets bored early in the idea development stage and starts looking for another idea to develop."

Other Factors
Other factors may be just as important as entrepreneurial traits, Rooney says. He says a survey from a business training program he worked in at the University of Southern California shows that 87 percent of successful entrepreneurs start companies in niches where they already have business experience. People who get formal training are much more likely to succeed than those who fly by the seat of their pants. "I've seen students do very well even if they don't have the flamboyant personality that we expect from entrepreneurs. They can learn how to sell even if they are uncomfortable with it or have cultural challenges," he says.

Optimism and persistence, perhaps the two most essential entrepreneurial traits, can be intentionally practiced, says David Weiman, a management psychologist in suburban Philadelphia and a psychology professor at Strayer University. He recommends Learned Optimism by Martin Seligman, which provides step-by-step tips for improving one's ability to overcome obstacles and succeed in tough times, and Daniel Goleman's book Emotional Intelligence. The latter book, Weiman says, "seems to suggest that emotional competencies—such as self-awareness or the ability to build bonds, for example—can be learned by anyone who wants to improve in those areas."

Author: Karen E. Klein
Source: Bloomberg Businessweek