Episode 33 Franchising in America The single most successful marketing concept ever!

Our quote today was from the late Tony Hsieh whose book Delivering Happiness I highly recommend.

The simple definition of a franchise is the right, or license granted by a company (franchisor) to an individual (franchisee) to market or sell products and services, in a specified manor, in a specific area or territory, often using the company’s logos, trademarks, and brand names. The history of the franchise. The word “franchise” is derived from the Anglo-French word meaning “liberty” or “signifying free”. The English term “enfranchise” is defined as empowering those who have no rights. The term “Royal Tithes” is the predecessor of royalties and originated as the practice of certain English men (referred to as “freemen”) receiving a percentage of the land fees paid by serfs to nobility. The explosion of franchising in the US. By 1960, more than 900 companies had franchise operations involving an estimated 200,000 franchised outlets. Between 1964 and 1969, fueled by an expanding economy, an estimated 100,000 new franchise businesses sprang up.

Everyone knows about McDonalds, but KFC is my favorite story. . In the Great Depression of the 1930’s, Harland Sanders operated a gas station in Corbin, Kentucky, feeding weary travelers a unique fried chicken that earned Sanders accolades from the governor of Kentucky. By 1960, there were 200 KFC franchised outlets, by 1963, 600 outlets, and by the end of the decade, approximately 1,000.

Today’s franchises are highly regulated you must be very careful when signing a franchise agreement. Experts say that a majority of all startups (75% to 85%) are bootstrapped. Tags: Becoming a franchise, Franchises, Franchise Start-up, Business Brokers, Buying a franchise, Transworld Business Advisors

Episode 32 What are the keys to Bootstrapping a Successful Business? Every “how to start a business book” will tell you it’s about managing money…it’s certainly part of it, but not all. Most Small Businesses Fail Within Five Years In my experience, the difference between those who make it and those that don’t are three things. Find a Mentor Don’t assume you know it all because chances are you don’t. Find a mentor, join a group, get advice from people who have the skills and knowledge you need.

Imagine You are the Customer and Create Your Perfect Experience When you do this, the economic benefits to your business will be enormous and your chances of survival will be greatly enhanced.

Maintain Your Records Paperwork and Taxes is a pain for most entrepreneurs and to Bootstrappers particularly. But don’t let it get out of control. Keep your business and personal expenses separate.

Always Ask Your Customers for Testimonials, Referrals, and Guidance You will be surprised how powerful this is for a small business. Be Honest, Understanding, and Helpful The customer is not always right, but a poor experience with one, can cost you an initial experience with many.

Tags: Building a Business, Bootstrapping, Business Start-up, Choosing a Business, Business Brokers, Buying a Business, Transworld Business Advisors

Short Bio: Bill Kelly is a Senior Business Broker and Franchise Consultant for Transworld Business Advisors of Richmond, VA. He is also a Licensed Virginia Commercial Real Estate Agent. Bill has been a lifelong Entrepreneur and has personally started or purchased and then sold eleven businesses. He lives in Richmond, Virginia, with his wife Rebecca, and has two daughters, and one granddaughter. Contact links: bkelly@tworld.com

Episode 31 What Kind of Business Can I Start with Very Little Money? The world is changing but service businesses are still king.

Most Businesses are Started by A Technician Having an Entrepreneurial Seizure This famous line was written by Michael Gerber in the “E-Myth Revisited” in 2004. His theory is that most small businesses fail because they are started by Technicians, who know nothing about running a business. Starting an On-line Business Today, technology has changed the way Bootstrappers approach a business startup. However, on-line marketing requires a steep learning curve for most and finding products and services to sell can be difficult.

Service Business are the Most Common to Bootstrap Service businesses such as, painting, lawn maintenance, cleaning, handy-man, teaching, auto repair/detailing, carpentry, computer repair, and healthcare are by far the best businesses to start with little or no money.

Ready, Aim, Fire or Ready, Fire, Aim Making a plan and following the plan is the preferred way to start, but it may not allow for intuition and chance. Don’t let the paralysis of analysis deter you.

Tags: The E-Myth, Bootstrapping, Business Start-up, Choosing a Business, Business Brokers, Buying a Business, Transworld Business Advisors

EPISODE 30 How Can I Start a Business with Very Little Money? Choosing the right business for you may be key to your success.

Every Business Needs Money to Operate Finding start-up capital is hard but not impossible. Cash flow from initial sales and personal savings are the most common sources. But there are also Angel Investors all around you.

Keep Your Job Many people entrepreneurs keep their current job and work their business as a side hustle until they can go full time.

Use the Cash Flow of your Business This simple method of raising capital can work well if you have a flexible job or if you choose a job that can accommodate your work hours.

Live Like Know Others So You Can Live Like No Others This saying made famous by many “Debt Free Living” coaches, can apply easily to the bootstrappers early years.

Before you Borrow Money, Try a 30-Day Blitz. I love the 30-day blitz’s. Anyone can do almost anything for 30-days, so make a sales plan that’s hard and stick to it!

When You Do Borrow, Make it Official and Short. The quickest way to lose family or friends is to barrow money from them and not pay it back. Always give them a written IOU with a payment plan, even if it small, make a payment every month.

Tags: Finding Capital, Bootstrapping, Business Start Up, Business Advise, Starting a Business, Transworld Business Advisors

Episode 29 Small Business in America The most successful economic system in the history of the world.

Capitalism. There is no question that capitalism has been the most successful economic system the world has ever seen. It has helped lift billions of people out of poverty, and it has helped enhance the wealth, health, and education of people around the world. Capitalism enables competition, innovation, and choice. Small Business. Small business constitutes a major force in the U.S. economy. There are more than twenty-seven million small businesses in this country, and they generate about 43% of our gross domestic product. Small businesses create over 66% new jobs each year. Reasons for Starting a Business of Your Own. Changing your economic circumstances is number one. Charting your own destiny, owning your time, following your passion, and being unemployed or unemployable are among the top reasons given.

Greatest Benefit of Owning a Small Business. The ability to grow financially and take advantage of tax benefits afforded to small business owners. As a small business begins to grow, you can also incorporate. This provides owner's with protection of their personal assets from legal entanglements brought on by their business.

Bootstrapping refers to the process of starting a company with little or no money. But also includes companies with some capital gained from personal savings, funds borrowed or invested from family or friends, as well as income from initial sales. The name suggests, entrepreneurs must “pull themselves up by their bootstraps'' by using their own labor and capital to launch. Experts say that a majority of all startups (75% to 85%) are bootstrapped.

Tags: Bootstrapping, Business startup, Business Brokers, Small Business, Consulting, Transworld Business Advisors

Episode 28 Review of Services offered by Transworld Business Advisors Serving the needs of Entrepreneurs, Business Sellers, and Buyers for over 40-years.

Business Sales We have over 600 professional business brokers who are fully trained and have the best resources in the industry.

Buying a Business Finding the right opportunity for your first business or purchasing for the growth of your existing business can be difficult. We have thousands of businesses for sale nationally and internationally.

Mergers and Acquisitions When your business is looking to expand through acquisition of investment we can help. Acquisitions over $20,000,000 are handled by out M&A professionals in our corporate office.

Franchise Purchase Consulting Transworld’s local office has several experts on franchise evaluation and purchasing. As previous and current franchise owners we can guide you through the process of finding and evaluating the right franchise for you.

Franchise Development Transworld has the resources and experience to assist you in evaluating if your business is ready to franchise. We can guide you through the documentation and filing process to becoming a franchisor, then assist you in marketing your opportunity to potential franchisees all over the world. .

Tags: Selling your Business, franchising your Business, Buying a Business, Buying a Franchise, Business Brokers, Transworld Business Advisors

Short Bio: Bill Kelly is a Senior Business Broker and Franchise Consultant for Transworld Business Advisors of Richmond, VA. He is also a Licensed Virginia Commercial Real Estate Agent. Bill has been a lifelong Entrepreneur and has personally started or purchased and then sold eleven businesses. He lives in Richmond, Virginia, with his wife Rebecca, and has two daughters, and one granddaughter. Contact links: bkelly@tworld.com

Social Media: Facebook: https://www.facebook.com/BillKelly1955 LinkedIn: https://www.linkedin.com/in/billkellyprofile/ Website: https://www.tworld.com/agent/billkelly/

Episode 27 Review of Business Sale Documentation Requirements Ninety percent of the documents required for lenders and closing are supplied by the Seller.

Past Three to Four Years of Business Financials This will include profit and loss statements, income statements, end of year balance sheets. Past Two to Three Years of Monthly Bank Statements All lenders will require this from the Seller to ensure the income and expenses of the business are accurate, and the business can pay the loan and still produce an income for the Buyer plus a profit

Copy of Lease The Buyer, his attorney, and possibly the lender will want to inspect the existing lease and new lease if its being changed.

Three to Four Years of Business Tax Returns All Buyers and lenders will want to examine the business tax returns.

Business Contracts A copy of all business contracts with vendors, suppliers, advertisers, partners, customers, and lenders that will convey with the business.

Licenses, Permits, Certifications and Memberships The Buyer, closing attorney and lender will want to inspect any of these items that are necessary to continue operation of the business.

Tags: Closing on Your Business, Business Closing, Selling a Business, Business Brokers, Buying a Business, Business Documentation, Transworld Business Advisors ​

EPISODE 26 Review of the Transworld Business Sales Process Each step of the process leads to a successful transaction

Pre-Marketing Collecting Information, Packaging Business Offering, Sharing the Opportunity with Strategic and Pre-Qualified Buyers

Marketing the Business Listing on web sites, direct mail, and conducting telemarketing.

Due Diligence/Lending Preparation Preparing business documents for inspection. Recommending Professionals

Facilitate Offers Processing inquiries obtaining NDAs Qualifying Buyers Reviewing Buyer Profiles

Facilitate Due Diligence Coordinate information flow between Buyer and Seller

Landlord/Financing Approvals Manage flow of information for lease and lender approvals.

Closing Documents Sharing documents and assisting closing attorney to facilitate closing.

Post-Closing Transition Facilitate planning meeting between Seller and Buyer to plan for transition activities.

Tags: Closing on your business, Business closing, Selling a Business, Business Brokers, Buying a Business, Business sales process, Transworld Business Advisors