Week 5 (question 7)
Does concept of "Good Will" occur in reality? It has been posed to relate this to my entrepreneur class, but I feel thats a stretch. But I will touch on it briefly. To me, there is certainly good will in the business world, and if done correctly, it can be benificial. Think of the Subway, Pepsi, the Five Guys, the Pizza Hut in your neighborhood that donates time, volunteers, and PRODUCTS to a race, charity, or event. It is free publicity and advertizing for them, and the organizers or event gets free goods. But this is a philisophical question, because the term "good will" has a connotation of doing something selfless and generous. And in the example I gave, those companies are doing something nice, but with the ultimate desire to attract clients to their products, and that is selfish.
Speaking of selfish, I am going to give another example of Good Will existing in reality, but it is for my own selfish gain. Harry Potter, Star Wars, Lord of the Rings.... in each of those stories, good always trumps evil. And so I am going to tag those words so hopefully somebody doing a search for key words will hit my Blog :) Ahhh yes!
Friday, April 30, 2010
To Be, or Not To Be (A Start Up Business) That is a question, isn't it?
Week 5 (question 6)
Almost all of us have dreamed of owning our own business. However, It is quite a daunting task to do the research and investments necessary to open a business from scratch. There is always the option of buying an existing business, a 'turn key' operation, but that sometimes comes with risks of its own. So i'd like to present some of the advantages of buying a previously owned business, versus creating a new business from scratch. For simplicity sake, I will first list the advantages of opening a start up business:
- you can create the business exactly how you want it.
-you pick the location, and what it looks like.
-no specific rules to follow, or formulas to keep.
Obviously and contrarily there are disadvantages to starting from scratch when opening a business:
- potentially higher, and non-specific, fluctuating costs. its hard to tell exactly what it will take financially to open the doors to your business.
- all the details of planning, marketing, accounting, etc are all uncertain and the owners responsibility.
So its easy to see what some of the draw backs are for opening a business from scratch, and what some of the advantages are. Just be imaginative and flip those for an exisiting business. But to elaborate, some of the most evident drawbacks to opening an existing business are:
-what if the business has a bad reputation? (thats hard to over come, once a location is tainted).
-its difficult to change the known forumula, without fear of losing clients.
-have to sacrifice creativity in many cases.
Its really up to the individual to know whats better for them. A young woman may be clever to buy an existing hair salon that has a solid customer base, if the current owner is ready to get out of the business due to move, or age, etc. It would be a smart investment. But the guy wanting to quit his job and buy a restaurant that has changed hands a few times over the past 5 or 6 years may want to second guess that decision. Why has it changed owners so much?
Thke away message: there is no "right" answer. Each situation must be weighed on its own merit, in its own context. Life is funny like that.
Almost all of us have dreamed of owning our own business. However, It is quite a daunting task to do the research and investments necessary to open a business from scratch. There is always the option of buying an existing business, a 'turn key' operation, but that sometimes comes with risks of its own. So i'd like to present some of the advantages of buying a previously owned business, versus creating a new business from scratch. For simplicity sake, I will first list the advantages of opening a start up business:
- you can create the business exactly how you want it.
-you pick the location, and what it looks like.
-no specific rules to follow, or formulas to keep.
Obviously and contrarily there are disadvantages to starting from scratch when opening a business:
- potentially higher, and non-specific, fluctuating costs. its hard to tell exactly what it will take financially to open the doors to your business.
- all the details of planning, marketing, accounting, etc are all uncertain and the owners responsibility.
So its easy to see what some of the draw backs are for opening a business from scratch, and what some of the advantages are. Just be imaginative and flip those for an exisiting business. But to elaborate, some of the most evident drawbacks to opening an existing business are:
-what if the business has a bad reputation? (thats hard to over come, once a location is tainted).
-its difficult to change the known forumula, without fear of losing clients.
-have to sacrifice creativity in many cases.
Its really up to the individual to know whats better for them. A young woman may be clever to buy an existing hair salon that has a solid customer base, if the current owner is ready to get out of the business due to move, or age, etc. It would be a smart investment. But the guy wanting to quit his job and buy a restaurant that has changed hands a few times over the past 5 or 6 years may want to second guess that decision. Why has it changed owners so much?
Thke away message: there is no "right" answer. Each situation must be weighed on its own merit, in its own context. Life is funny like that.
Tuesday, April 27, 2010
Hey Franchise, Are You Talking To Me? (and if so, what do you have to offer?)
Week 4 - Small Business and Entrepreneurship
Question 5
In following up on the previous blog, you may be considering buying a franchise. You may not be. You may just have a thirst for knowledge. You may be asking yourself “What is typically provided by a franchisor to its franchisees? Why would these be valuable to a nascent entrepreneur?” I have answers. Some things a franchisor provides to a franchisee include; employee training, access and lower pricing and consistency on materials needed (remember they corporation loves uniformity and consistency). These tools and services are valuable to an upstart entrepreneur because simply, you never get a second chance for a first impression. Also, the franchise corporation monster has ‘been there, done that’. They have proven methods that work.
Question 5
In following up on the previous blog, you may be considering buying a franchise. You may not be. You may just have a thirst for knowledge. You may be asking yourself “What is typically provided by a franchisor to its franchisees? Why would these be valuable to a nascent entrepreneur?” I have answers. Some things a franchisor provides to a franchisee include; employee training, access and lower pricing and consistency on materials needed (remember they corporation loves uniformity and consistency). These tools and services are valuable to an upstart entrepreneur because simply, you never get a second chance for a first impression. Also, the franchise corporation monster has ‘been there, done that’. They have proven methods that work.
What Came First, the Franchise or the Franchisee?
Week 4 - Small Business and Entrepreneurship
Have you been losing sleep at night because you don’t know the difference between a franchise company owned store, and a store that is owned by a franchisee? Well take 2 minutes to read the following words and you will be sleeping like a baby in no time. A Franchise organization is where strict guidelines and formulas apply to the goods or services the company provides. Think of Subway, or McDonalds, or Starbucks. No matter where you go across the country, when you order a McDouble from McDonalds, it’s going to be the same thing. The signs on almost every Subway restaurant you go to will be in the same locations, and advertise the same sandwich special. A double half caff skinny grande moco moo moo at any Starbucks is going to have same ingredients, be presented in same cups, and usually cost the same. However, Some times you notice that the Starbucks coffee in Aspen, CO is a little more expensive than the Starbucks coffee in Lebanon, TN. The Subway in Mobile, AL may have a special on a 6” cold cut combo that you don’t find in New Haven, CT. You may be dumbfounded at a McDonald’s in Columbus, NC because you have to pay .53 cents for an ice water, and you never have to pay that in Cherokee, NC (true story). There is a simple reason for this variation among these franchise companies. Some are owned by the corporate parent company, and some are owned and operated by individual Franchisees. There are advantages to both being the franchisee, or a manager or a corporate owned company. Managers may find less stress just by following those strict methods and guidelines (and NOT having to pay that large price just for owning a name and formula). Others may want to pay for the franchise, so it gives them more freedom with hours of operation, and to not have to follow quota on advertising budget, etc. A good situation where this pro/con situation may come to play is in a season area. Probably better to own the franchise there so that you could control the hours of operation, for an example. Anyway… a recap, corporate owned franchise = consistent dollar menu. Franchisee owned franchise = .50 cent ice waters. Make sense? Sleep Well …
Have you been losing sleep at night because you don’t know the difference between a franchise company owned store, and a store that is owned by a franchisee? Well take 2 minutes to read the following words and you will be sleeping like a baby in no time. A Franchise organization is where strict guidelines and formulas apply to the goods or services the company provides. Think of Subway, or McDonalds, or Starbucks. No matter where you go across the country, when you order a McDouble from McDonalds, it’s going to be the same thing. The signs on almost every Subway restaurant you go to will be in the same locations, and advertise the same sandwich special. A double half caff skinny grande moco moo moo at any Starbucks is going to have same ingredients, be presented in same cups, and usually cost the same. However, Some times you notice that the Starbucks coffee in Aspen, CO is a little more expensive than the Starbucks coffee in Lebanon, TN. The Subway in Mobile, AL may have a special on a 6” cold cut combo that you don’t find in New Haven, CT. You may be dumbfounded at a McDonald’s in Columbus, NC because you have to pay .53 cents for an ice water, and you never have to pay that in Cherokee, NC (true story). There is a simple reason for this variation among these franchise companies. Some are owned by the corporate parent company, and some are owned and operated by individual Franchisees. There are advantages to both being the franchisee, or a manager or a corporate owned company. Managers may find less stress just by following those strict methods and guidelines (and NOT having to pay that large price just for owning a name and formula). Others may want to pay for the franchise, so it gives them more freedom with hours of operation, and to not have to follow quota on advertising budget, etc. A good situation where this pro/con situation may come to play is in a season area. Probably better to own the franchise there so that you could control the hours of operation, for an example. Anyway… a recap, corporate owned franchise = consistent dollar menu. Franchisee owned franchise = .50 cent ice waters. Make sense? Sleep Well …
Friday, April 23, 2010
What Makes A Good Entrepreneur?
So many people dream of owning their own business. Some of them take the plunge and start their own business, only to find this dream quickly turning to a nightmare.
According to the latest statistics from the Small Business Administration (SBA), "two-thirds of new employer establishments survive at lease two years, and 44 percent survive at least four years." This is slightly better than the "half of small businesses fail in their first year" statistic that is sometimes thrown around. Nevertheless, a large percentage of small business do fail in their first few years. Rather than focus on why that happens, I want to highlight what characteristics can contribute to the success of a small business. Life experiences, parental influences, career displacement and education are all importnat factors when looking at the success (or failure) of a small business venture. So lets start with the first item, life experiences. Obviously someone who has plenty of experience in the field they hope to open a small business in will benefit help contribute to the success of that business. But thats not always the case. A person who starts out washing dishes in a restaurant, moves up to cook or server, assisitant manager, then manager may feel they know all it takes to own and operate a business. While the skills they have learned on the way may indeed help, they may often find themselves simply working for themself, and not really living the dream like they once imagined. It is the person that is willing to take classes, to read about what it takes to become a good entrepreneur that will succeed. There is so much more than simply owning and operating a business to be successful. One needs to know about marketing, accounting, and innovation to truely allow for growth of their business. So i'd say one personality characteristic to be a success in a small business is the hunger for knowledge for ways to improve and grow the business. One shouldn't be content with the status quo. They may soon find their parking lot empty.
Parental Influences can be effect on a business owner. My parents are both small business owners, as were my father's parents. I have learned a lot about the ins and outs of business, and tried to apply some of that knowledge to my business when I operated that. A few of the most obvious ways a parents support can help a small business owner be a success are: Investment, Advice, Guidance, Support. Monetary investment is a huge way parents can contribute to a potential small business owner's success. Also, would be business owners should listen to their parents advice, and not think that they can do it all themselves. One should not be afraid to follow parental guidance, afterall if the parent had been in business before, they may know some pros/cons of owning a business. And parental support can be very important emotionally. It takes a lot to quit ones job and prepare to go into business for one's self.
What better motivation to start a business than to lose your job? Of course if you are working at an auto garage, and you get laid off because business is down, you might consider the low economy and not open a garage in that neighborhood. But if you are suddenly unemployed because of streamlining or industry relocation, then what better time to consider opening a small business for yourself? Sudden career displacement can be a key factor in inspiring entrepreneurship.
As eluded to earlier, education can contribute to the success of a small business. BUT I want to clarify that. To me, one does not have to have a degree in Small Business to be succesful. It certainly coudln't hurt to have a formal education from a higher institution... but there are numerous small business owners who never went to college. My mother is a prime example of that, and she owns and operates succesful retail store on Amelia Island, Florida. I think that a way education can really improve the odds of being a success in business, is that entrepreneurs should seek ways to educate themselves in ways specific to improve their business. Specific marketing research, demographic research, and surveys just to name a few examples can greatly educate the business owner on how to target a certain market, and to improve their existing business.
It takes courage to go out on a limb and start a small business. And there are several personality characteristics that help contribute to that business's succes. One should definitely examine themself, their strengths, and weaknesses prior to opening a business. And never fall to contentment. Contentment the potential ruin for small business. Not saying that you have to change the core aspect of the business, but the competion will be gunning for you, so know yourself, know your business, and stay on top.
According to the latest statistics from the Small Business Administration (SBA), "two-thirds of new employer establishments survive at lease two years, and 44 percent survive at least four years." This is slightly better than the "half of small businesses fail in their first year" statistic that is sometimes thrown around. Nevertheless, a large percentage of small business do fail in their first few years. Rather than focus on why that happens, I want to highlight what characteristics can contribute to the success of a small business. Life experiences, parental influences, career displacement and education are all importnat factors when looking at the success (or failure) of a small business venture. So lets start with the first item, life experiences. Obviously someone who has plenty of experience in the field they hope to open a small business in will benefit help contribute to the success of that business. But thats not always the case. A person who starts out washing dishes in a restaurant, moves up to cook or server, assisitant manager, then manager may feel they know all it takes to own and operate a business. While the skills they have learned on the way may indeed help, they may often find themselves simply working for themself, and not really living the dream like they once imagined. It is the person that is willing to take classes, to read about what it takes to become a good entrepreneur that will succeed. There is so much more than simply owning and operating a business to be successful. One needs to know about marketing, accounting, and innovation to truely allow for growth of their business. So i'd say one personality characteristic to be a success in a small business is the hunger for knowledge for ways to improve and grow the business. One shouldn't be content with the status quo. They may soon find their parking lot empty.
Parental Influences can be effect on a business owner. My parents are both small business owners, as were my father's parents. I have learned a lot about the ins and outs of business, and tried to apply some of that knowledge to my business when I operated that. A few of the most obvious ways a parents support can help a small business owner be a success are: Investment, Advice, Guidance, Support. Monetary investment is a huge way parents can contribute to a potential small business owner's success. Also, would be business owners should listen to their parents advice, and not think that they can do it all themselves. One should not be afraid to follow parental guidance, afterall if the parent had been in business before, they may know some pros/cons of owning a business. And parental support can be very important emotionally. It takes a lot to quit ones job and prepare to go into business for one's self.
What better motivation to start a business than to lose your job? Of course if you are working at an auto garage, and you get laid off because business is down, you might consider the low economy and not open a garage in that neighborhood. But if you are suddenly unemployed because of streamlining or industry relocation, then what better time to consider opening a small business for yourself? Sudden career displacement can be a key factor in inspiring entrepreneurship.
As eluded to earlier, education can contribute to the success of a small business. BUT I want to clarify that. To me, one does not have to have a degree in Small Business to be succesful. It certainly coudln't hurt to have a formal education from a higher institution... but there are numerous small business owners who never went to college. My mother is a prime example of that, and she owns and operates succesful retail store on Amelia Island, Florida. I think that a way education can really improve the odds of being a success in business, is that entrepreneurs should seek ways to educate themselves in ways specific to improve their business. Specific marketing research, demographic research, and surveys just to name a few examples can greatly educate the business owner on how to target a certain market, and to improve their existing business.
It takes courage to go out on a limb and start a small business. And there are several personality characteristics that help contribute to that business's succes. One should definitely examine themself, their strengths, and weaknesses prior to opening a business. And never fall to contentment. Contentment the potential ruin for small business. Not saying that you have to change the core aspect of the business, but the competion will be gunning for you, so know yourself, know your business, and stay on top.
Let's get the Blog rolling...
Ok, all the hype of a blog, ive heard the name so often, read plenty of them, and now here I am, creating a blog account, and writing my first blog. What to write about? well perhaps I should write about the tardiness of this submission, as it was an assignment for my Master's of Entrepreneurship degree/course at Western Carolina University that was due several weeks ago. Before I delve into the acutal assignment though, I want to submit and publish this, just to get a feel for what its like to blog. I have to say, its mundanely exciting. I suppose Facebook is in a way blogging... and I have done that for a few years. Writing status updates, are not unlike blogging, only a lessor version. So I hope to actually submit something a bit more cerebral here rather than what I am about to eat for lunch. Thanks for reading!
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