As many first-time business owners find out, there is a high failure rate for independent, non-franchise businesses. Franchising provides a proven system and the support of a much larger organization. If you are first-time business owner the benefits of buying a franchise are even greater. Some of the advantages of buying a franchise over starting an independent company include instant brand awareness and credibility, administrative and/or technical support, franchisor-provided training, quicker return on investment, strong management, and a network of other franchisees and associations dedicated to supporting franchisees.

As a franchisee you typically have support every step of the way from people who are vested in your success, as well as knowledgeable about your particular business. As part of a franchise system you can count on the efforts of your fellow franchisees to compliment your own marketing programs. If a franchise in the next community or town sponsors an event, commercial or other promotion you will undoubtedly reap the benefits of those efforts. If you enjoy your particular franchise the opportunity to open additional outlets are improved over an independent business owner looking to open another store.

As an independent business owner you have to contend with franchise heavyweights that have a lot more resources for advertising and marketing, as well as ready-made brand recognition. Starting out you may have few time and monetary resources for getting your name out. If you are starting a new business you may be putting all of your energy into operations. Who will drive the sales campaign? Who will find, qualify and bring in the customers? While there is more creative autonomy in an independent business your chances are much higher as a franchisee of making it in cut-throat markets like food service, hospitality and retail.

A franchise business is definitely the safer opportunity. This study carried out over 7 years revealed that after seven years, over 90% of new franchises are still in business, as compared to only 20% of individual new start-up businesses. Most people, who do start a business by themselves, end up failing and losing a lot of money. I now that this is a sad fact, but it's true! If you start a business on your own, you have to make all the decisions regarding location, layout of premises and find and vet all suppliers.

With a franchise business, the franchisor will advice you on all the above. In fact, you might even find that you are told where to locate your business, who your suppliers are and have some choice in pre designed layouts.

A franchise business provides you with the consistency and quality throughout the franchisors territory. This leads to higher levels of customer satisfaction. The franchisor provides full training and support in running the business. If a site is required, the franchisor will assist the franchisee in selecting a site that fulfils the demographic requirements of the product.

A business start up has to learn from trials and errors until they hit on a formula that works. They have no training or support in managing their business opportunity. If any thing does go wrong, and in most businesses, it does, then they have no one to turn to for advice. The advantage they have is that there is no one looking over their back, telling them what to do and how to run their business.

The franchisee benefits from national marketing which is spread out amongst all the franchisees, enhancing the economies of scale. New products can tested in certain territories before they are rolled out nationally. A new business will have to trail any new products with their own capital and take the full brunt if the experiment fails!

The relationship between a franchisee and a franchisor is well balanced. Both parties need each other to survive and create a profit. Ongoing support and training is usually available for franchisees who are struggling. Due to the higher success rate, banks are inclined to lend a higher percentage of start up costs in a franchise business then they are to an independent start up. They are also more likely to give extra leeway when more funds are required.

If you have decided to go down the franchising route then it is important that you choose a franchise that is right for you. Don't just go for the opportunity that will make you the most money, instead, choose a business niche that you will enjoy. Decide how much capital you have to invest, and then choose the franchise opportunity that best fits your lifestyle. Decide how many hours you want to work and how many employees you are capable of handling.

Once you have made up your mind to buy a franchise, always have a contingency fund as there are always unexpected costs that arise in the initial years of running a business.

If you decide to go it alone, make sure you speak to other people running the same type of business in other parts of the country and learn from their experience. You will find other businesses in the same field as you more then happy to part with their experience once they realise that you are not going to compete in their territory. Make sure that you take professional advice before deciding to follow the franchising route or starting a business on your own.

Source: The Journal of Franchise.com

Starting a franchise can be a great way to start your own business. It is worth bearing in mind though that as with any type of new venture there are some advantages and disadvantages which you need to be aware of.

Before you commit to starting a franchise make sure that you pick one that is suitable for you and that you would enjoy being part of. Ensure that there is adequate training and support as well as good earning potential. Never opt for a franchise that does not have a good reputation and a stable financial background.

It is also worth remembering that not everyone is suited to starting a franchise so think carefully whether this is the right move for you. The rest of this short article will show you just some of the advantages and disadvantages to this type of business.

Advantages

Perhaps one of the best parts of starting a franchise is that depending on the type you choose you can get set up quite quickly. This means that you can start earning money and getting your business up and running all within around 6 months.

If you choose to start a franchise with a relatively well known company then this can make life a lot simpler for you. Many people will already know what it is you do or sell and will often be drawn to you with minimum advertising required. This generally means that you have a really good chance to make a success of your business.

Starting a franchise can also mean that the company will usually cover the costs of advertising and promotions. You should also find getting a supplier is simpler too as the reputation of the franchise is enough to be able to secure a good deal.

Disadvantages

Perhaps one of the main disadvantages to starting a franchise is that you have to follow the rules set out to you by the company. You will also need to clear any changes you wish to make or big decisions with them first which means overall you get little say in how the company is run.

Another disadvantage is that you will have to give the company a percentage of your total sales regardless of whether you have had a good or bad month. This means that some months you could be left struggling so you need to be aware of this.

For those that realise that starting a franchise is not for them you can often find yourselves stuck for sometime as you will normally need to sign a set term contract. If you have any doubts then it is best to leave starting a franchise until you are more prepared.

Starting a franchise isn't always as straight forward as it might initially seem. Why not Consider starting an online business?

Source: EzineArticles.com
Author: Charlie Scott
 

The green movement has brought about many changes in the way people live, conduct business and understand the world. A growing demographic is taking measures to evaluate their lifestyles and their impact on the planet, from the products they buy to the food they eat to the cars they drive. What was once considered a trend, is now commanding serious attention across many business sectors, political parties, and continents worldwide. No matter where you stand on the issue, many organizations and individuals are discovering that it pays to be green. Eliminating the wasteful practices has revealed substantial savings by reducing energy costs. Through energy management and conservation, businesses around the world are increasing their profits by minimizing their overhead.
 
Energy conservation and management can be addressed in two direct categories that can have an impact on your bottom line: energy efficiency and water conservation. These areas provide substantial opportunity for business owners of all types and sizes to curb carbon emissions while reducing the expense of wasteful energy practices and dated technology. 
 
Energy Efficiency
Most businesses are heavily reliant upon energy to carry out the basic necessities of their existence. Fortunately, there are many “eco-friendly” solutions that are readily available to anyone looking to “green” their business. From lighting to appliances to everyday procedures, there are a number of areas to consider that can save business owners money while cutting energy consumption. 
 
Lighting: Lighting is an obvious energy consumer that almost every business can relate to. In the last decade, lighting products have seen substantial advancements in energy efficiency, revealing several alternatives to traditional incandescent and fluorescent bulbs.
 
Compact fluorescent lights or CFLs emerged in the past five years as an efficient solution for cutting energy costs. Being four times more efficient and lasting up to 10 times longer than incandescent light bulbs, CFLs provide an immediate means for everyone to reduce their electricity consumption. However, they’ve come to be criticized for containing mercury, which, if not properly disposed of, can be very toxic and counterproductive to its environmental benefits. The Environmental Protection Agency recommends utilizing available local recycling options for disposing of CFLs.
 
LED lighting is emerging as the leading lighting solution for a number of reasons that make the CFL obsolete. The lights contain no mercury, eliminating any toxicity associated with disposing of them, are more efficient than CFLs, using less electricity to generate light, have up to six times the lifespan of CFLs, and produce almost no heat. One downside to LEDs right now is their cost, which is more expensive than their predecessors. However, the long-term ROI of LEDs outlasts that of CFLs. 
 
Appliances: Businesses use electrical equipment to maintain productivity in the workplace. From computers to appliances to peripherals, organizations have substantial energy needs for a variety tools. Fortunately, the U.S. government’s Energy Star program establishes a standard for energy efficiency that’s been adopted globally. Devices with the Energy Star logo generally use 20 percent to 30 percent less energy than required by federal standards.
 
The program enables consumers and business owners alike to make more environmental sound purchasing decisions, no matter what industry your business specializes in. From restaurants to accounting firms to retailers, virtually every industry category can reduce its electricity consumption through opting for Energy Star-certified products.
 
Procedures: In the pursuit to cut costs, many businesses don’t think to assess their internal procedures and how they can affect energy costs. Perhaps it’s due to the misconception that appliances and electric devices don’t consume energy when they’re not in use or sitting stationary. To the contrary, any appliances plugged into the wall, whether they’re on or off, draw electricity that contributes to energy expenses.
 
These devices have been coined “vampire appliances” for their ability to suck electricity when you least expect it, while you think they’re off. According to a 2002 Cornell University study, vampire appliances cost consumers an estimated $3 billion a year or about $200 per household. How do you overcome these? Simply unplug your devices when they’re not in use. Or invest in an energy-saving power strip that automatically cuts power to devices that are no longer in use. 
 
However, simply turning off equipment can go a long way, as well; especially with computers. The 2009 PC Energy Report, produced by 1E, an energy-management software company, showed that organizations pay approximately $2.8 billion a year to power unused computers and machines. This equates to about 20 million tons of carbon dioxide released into the environment annually from standby computers, alone.
 
Consider implementing procedural controls into the opening and closing duties of your business that will mandate your staff to power down and unplug all unused equipment. Eliminating the wasted electricity associated with vampire appliances and standby equipment can provide substantial savings over the course of the year. 
 
Water Conservation
Water is a resource that presents many opportunities for energy and cost savings, without interference to your operations. Common places, such as bathrooms, water heaters, and kitchens, among others,   present starting points to assess your water usage and waste. 
 
Low-flow faucet aerators: Water contributes to electricity expenses while, at the same time, it is a valuable resource in itself. So savings can be two-fold when addressing water consumption. The less water a business uses, the less it pays for and the less it costs to heat.
 
Many recent technologies have emerged enabling organizations to manage their water consumption. Perhaps the most cost effective solution is low-flow faucet aerators. Inexpensive and simple to install, low-flow faucet aerators can reduce your water consumption by more than 50 percent, while cutting energy costs from heating water by as much as 50 percent.
 
Standard faucet aerators provide for 2.5 to five gallons of water-per-minute. Low-flow faucet aerators reduce this flow to 0.5 to one gallon of water-per-minute. Low-flow faucet aerators are available for as little as $2 per faucet, providing an almost immediate return on investment.  
 
Waterless Urinals: Bathrooms are an obvious source for water waste as with each flush, gallons of clean, fresh water go right down the drain. Depending on the amount of traffic a bathroom sees, toilets and urinals can use anywhere from 30,000 to 100,000 gallons of water annually, leaving ample room for conservation.
 
One solution to this dilemma is waterless urinals. As the name suggests, waterless urinals don’t use any water at all, enabling businesses to eliminate water waste from flushing, all together. Additionally, waterless urinals are odorless and touch-free, providing a substantial improvement to bathroom sanitation. The average waterless urinal installation saves approximately 150 gallons of water each day, providing a substantial ROI for energy and water savings.
 
Low-flow dual flush toilets save water in much the same way. Since toilets are a necessity, low-flow dual flush toilets save water and money by reducing the amount of water used per flush, from 3.5 gallons to 1.5 gallons. Dual flush technology is based on the simple logic that some times, two flushes are necessary, and thus, two flushes are recommended during these times. However, even two flushes on these efficient toilets use less water than a single flush on a traditional toilet.   

LEED
The water conservation and energy savings tactics outlined above provide a foundation for re-evaluating your business’ environmental stance while reducing costs for these utilities. However, if you desire to take your environmental stewardship a step further, the U.S. Green Building Council has outlined the parameters for making your entire business green, from its operation to its overall environment.
 
Leadership in Energy and Environmental Design, established by the USGBC, is a third-party certification program and the nationally accepted benchmark for the design, construction and operation of high performance green buildings. It provides business owners with a checklist of items to pursue in their effort to make their businesses and its respective buildings more environmentally-friendly and energy efficient.
 
Based in Fort Lauderdale, Fla., Pizza Fusion is one franchisor that’s pioneered this approach to green business. Pizza Fusion builds all its restaurants to the standards outlined by the LEED program.  
 
“Anyone looking to green their business should consider LEED or, at least, the techniques the USGBC requires for LEED certification,” said Vaughan Lazar, president and co-founder of Pizza Fusion. “Even if you don’t pursue actual LEED certification, the USGBC has created a recipe for greening virtually any business. Understanding its philosophy and approach will save significant time and energy as you work to make your business more eco-friendly.”
 
Pizza Fusion’s restaurants reduce water waste by 40 percent and electricity consumption by 20 percent annually. “On a store-to-store comparison, we save about $3,000 annually by building our restaurants to LEED specifications,” Vaughan said.
 
From energy conservation to water management to LEED certification, there are varying degrees of environmental commitment for businesses to consider. So whether looking to save money or save the planet, energy-efficient practices provide several advantages for business owners looking to go green.
 
Identifying a business’s goals provides a good starting point for exploring the many approaches to establishing ecofriendly   operations. With the wide range of environmentally conscious resources available today, there are many ways to reduce a business’s dependence on energy. Start with the obvious, address each solution one at a time, and enjoy the financial rewards of green business practices.

Eric Haley is vice president of communications for Pizza Fusion. He can be reached at 954-449-7244 or  e.haley@pizzafusion.com

Source: International Franchise Association