Escape from Cubicle Hell

From retirement-averse baby boomers to Gen Y-ers disillusioned with the corporate world, a growing number of people are starting businesses out of their homes in a wide range of industries.

The latest U.S. Census statistics on non-employer firms -- defined to include home-based businesses and those run by one or more individuals -- show that the number of self-employed reached 20.4 million in 2005, an increase of 4.4 percent from the previous year. Additionally, home-based businesses constitute 53 percent of all small businesses in the United States, according to NASE.

Experts are predicting that economic factors will drive the growth of home-based businesses even farther in 2008. "I believe we're heading into a difficult period," says Terri Lonier, author and founder of workingsolo.com. "Traditionally, in these times, more people turn to self-employment because traditional jobs are more difficult to come by."

But Americans are not just leaving the workplace because their fear of the ax has heightened. The standards that have defined the American workplace for years are finally being uprooted. Not only are fewer Americans working out of the office to avoid long commutes, but the structure of the 9-to-5 workday has also largely disappeared. More people are working non-traditional hours in order to spend time with their families, and many are taking advantage of increasingly mobile technology, allowing them to work not just at home, but virtually anywhere.

"Technology is not only there in terms of functionality, but it has dropped in price," Pratt says. "Now, anyone with any kind of entrepreneurial interest can functionally operate a business, and on their own terms."

The ease of connectivity is also allowing people, particularly baby boomers, to enjoy the benefits of their retirement while also having the freedom to run a business. "It used to be [in retirement] you had a full life of work, got your gold watch and traveled," Pratt says. "Now you put your BlackBerry in your pocket and go travel."

One of the trends experts are observing among boomers is that they no longer want a traditional retirement path. Instead, many see their 60s as a time to finally pursue their passions, and as such, they are increasingly joining the ranks of home-based business owners.

According to Pratt, many baby boomers are entering the retirement era with a dark image of corporate America, which is affecting their decision to be self-employed. "The employer was supposed to take care of you in terms of retirement and health," Pratt says. "If employers are not doing that anymore, is there incentive to have someone telling you what to do, or is there incentive to take your knowledge and start a business?"

On the other end of the spectrum, young people -- Generations X and Y -- are also questioning the workforce they are about to enter. "The younger demographic is finding that they don't want to go to work for somebody," says Fairbrother of the NASE. Instead, they are creating opportunities for themselves outside of the traditional workplace.

For a generation that was raised on computers and the Internet, Lonier says the growth of younger home-based entrepreneurs is not all that surprising. "This group grew up in households where being self-employed or having multiple jobs within one career was very common," she says. "They see having their own business and being entrepreneurial as a very natural extension of their personal interests."

From an article on www.Inc.com titled “Escape from Cubicle Hell”

Working with a coach

by Brian Miller - Today’s economy is changing more rapidly than ever before. The pace of change is mind boggling. This means that small to midsize business owners need to remain competitive to survive and even thrive. Business owners often lose sight of their goals which at times is a result of their inability or unwillingness to see beyond their blind spots and take immediate action. Working with a Business Coach can help entrepreneurs and small business owners thrive and leap ahead of their competition even in a downturn economy . Business Coaches help their clients reposition their money to maximize revenue growth while everyone else is shrinking back. Unlike consultants, good Business Coaches bring a plethora of business management skills, rapid impact strategies and a “systemized" approach to their clients. The insight and value a Business Coach brings to the table is measurable in increased profits and return on investment.

Business Coaches brings awareness, education and accountability to their clients. Awareness of what’s working and what’s not, education on the rapid impact strategies that will improve performance and a partner to hold the client accountable to meet the goals established for growth.

The most effective Business Coaches start by building a sense of trust with their clients. Once this trust is established, the client feels comfortable to open up and talk about their challenges of running their business. This level of trust and communications allows the business coach to help the business owner establish a clear direction and strategic objectives for the business.

The strategic objectives might include implementing and/ or improving the sales and revenue generating part of their business to impacting the financial performance and ROI of the company. A solid Business Coach will make sure a system is in place to measure and report key activities in the business so everyone knows how their efforts are either making or breaking the business. Leadership and management are often key areas Business Coaches target as well. In short, the Business Coach helps the owner understand the difference between working ‘on’ the business versus ‘in’ the business.

Dispelling The Myths About Owning a Franchise

Dispelling The Myths About Owning a Franchise
By Terry Powell

So you have a dream of becoming an entrepreneur. You’ve reached that point in life where you want your own business. That’s great; you’re taking a step toward having more control over your future. And you’ve considered franchises as one possibility, but you’re ready to dismiss it. From what you’ve heard, they’re a bad idea that usually can’t or don’t work out.
The problem is, what you’ve heard is largely false. A number of misconceptions about franchising exist, and if you accept them at face value, there’s a good chance you’ll be robbing yourself of an opportunity that can not only be financially successful, but personally satisfying. Before you make up your mind, it helps to know the facts:

Myth 1: I’ll Only Become Successful By Finding The Right Business
Many of us equate “right” with what we’re already good at. But that doesn’t mean you need to limit yourself. Define your transferable skills from the corporate world – delegation, people management, marketing, whatever. If you had them in one type of business, you can easily move them to another.

Myth 2: I Can only Be Successful Doing Something I Love
Believe it or not, businesses based on an owner’s background have the highest failure rate. Your franchise business is a vehicle to the lifestyle you’re seeking. If you limit your choices to what you’re familiar with or good at, you’re placing yourself at a major disadvantage, because you’re ignoring a huge number of possibilities that are outside your realm of past business experience.

Myth 3: I’ll Instantly Know The Right Opportunity When I See It
Many people want to fall in love with their business at first sight. That’s an emotional decision, not a career choice. You have to take the time to learn about the details and nuances of the opportunity to understand its potential. You simply can’t do that when you make a determination based on just what you feel today.

Myth 4: I Can’t Be In A Business I Know Nothing About
Of course you can. It’s instinctively natural to want to remain in our comfort zone and stick to areas we have experience in. But as a franchise owner, your business is running and growing your business, no matter what it is. Remember, you have transferable skills. That’s your strength. You can hire people who know the details. Your road to success is buying into and learning the system, which is already a positive working model, then using your talents to make it grow.

Myth 5: There’s No Freedom In A Franchise. Corporate Dictates Everything.
This is one of the most pervasive beliefs. In fact, there’s tons of room for individuality. The franchisor “dictates” only one thing: the basic system; the framework, if you will, that’s already proved successful. Beyond that, you’re in charge. You’re managing your business. You decide whom to hire and fire, how to market your location and how to promote it regionally. Keep in mind that the franchisor wants you to succeed, because if you don’t, it doesn’t. It’s not a complex relationship, but one of the clearest examples of those win-win situations you’re always hearing about.

Myth 6: Franchises Stifle Creativity
Again, this is patently untrue. The only limitations you have are, once again, those that have already been proven to generate income. This might include signage, uniforms, formulas, protocol, and so on – the basics that allow you to represent the brand and your own location as professionally as possible. But it’s completely up to your imagination to think up new ideas and make suggestions to corporate. In fact, most franchise parent companies encourage suggestions, because it’s where they many of get their best ideas. McDonald’s corporate, for example, didn’t come up with the inspiration to start selling breakfast. The concept of the Egg McMuffin was developed by a franchisee.

Myth 7: I Can’t Afford A Franchise
Sure you can, if you look at it for what it is: an investment in your future. Most franchises can be established for well under $100,000, and some can be set in motion for as little as $12,000. Your only expenses to the parent firm are a one-time franchise fee and weekly or monthly royalties, which are usually determined on a case-by-case basis. Beyond that, your out-of-pocket expenses are the same as they’d be for any business – salaries, local advertising, etc. The difference is you have the support and training of the franchisor network, which will also help you ramp up to full speed far more quickly that you could on your own.

Myth 8: I’ll Have to Quit My Job to Become A Franchisee
Many franchise concepts are specifically designed for people who are working other jobs. In fact, approximately 70% of all franchise owners are passive rather than full-time investors.
Can franchises still fail? Sure they can. But the vast majority of the time, over 95%, this is due to the owner deciding to deviate from the system and attempting to cut corners by using inferior materials or altering formulas. The key to making it as a franchise is consistency. If you don’t adhere to the groundwork, which, once again, is in place because it works, your chances of success will drop dramatically. You want to leave the habits from the corporate world where they are, and bring along your marketable and transferable abilities.
All told, there are over 760,000 franchised business in the country, which account for over 18 million jobs nationwide, or one out of every seven in the private sector. They produce $1.53 trillion (yes, trillion with a “t”) in total economic output and represent $506.6 billion in private-sector salaries. Those are figures it’s tough to argue with. Perhaps it’s time to stake your claim.

Education Is Everything
Once you select a franchise investment opportunity for yourself, your education is provided. But what about the decision itself? Even though there are thousands of franchisors to choose from, they can all be rendered down to about 70 different industries.
Not a huge number, but it can still be a bit daunting. How do you research them, and more importantly, how do you choose one?
First, get some basic information from organizations like the International Franchise Association. It will also put you in touch with professionals who can offer support, answer questions and provide leads.
Next, consider using a franchise coach from an organization called The Entrepreneurs’ Source. With a 23-year history in franchise placement, they’re specially trained to take you through a discovery process to help you define your lifestyle, goals and dreams. When you’ve identified what you want your lifestyle to look like, it will be easier to pick the right business concept to support that lifestyle.
Once you’ve narrowed down your choices, take the time to contact current and former franchisees to pick their brains. Most are happy to help. You’ll quickly pick up tips about what to do and, more importantly, what not to do.
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For more information on franchising, call Jeff Gordon 1 866-661-9791 Toll free.

Turn it Up in the Down Turn

Bad economy? Forget about it. Why now is a great time to buy a franchise. By Carol Tice I Entrepreneur Magazine - December 2008

URL: http://www.entrepreneur.com/magazine/entrepreneur/2008/december/1 98682.html
There are 277 homes in the Clermont, Florida, neighborhood where Ronald 0liver lives, and he estimates that 80 of them are in foreclosure. But that gloomy news didn2t stop 0liver from quitting his job as a supervisor at Universal Studios and becoming the co-owner of a Maaco paint and auto-body repair franchise in Kissimmee.
Since opening in July, 0liver and his partner, former Universal co-worker Kenny Lagreca, 39, have focused on aggressively marketing the business. 0liver, for instance, has handed out 1,700 business cards around town to local businesses. That legwork paid off not only in an exclusive contract to serve a local car dealership, but also in a steady stream of individual customers. In the shop2s first 30 days, 0liver says they gave more than 600 estimates and worked on more than 100 cars, eventually making about $168,000 in the first two months.
0liver says being part of Maaco gave the pair many advantages over starting an independent repair shop, from professional site-selection advice to a bankable brand name that helped get their $500,000 SBA loan approved. "We put our shop on a plot Maaco helped us find, put our sign out, and we haven2t stopped since," says 0liver, 35. "We2re starting out at a bad time, but it2s working out really well."
When times get tough, franchising can offer many advantages over going into business on your own. "Buying a franchise makes more sense in this economy than either buying an existing stand-alone business or opening your own business," points out Michael Katz, president and CE0 of The Franchisee Consulting Group. "You2re getting a proven system and being taught how to do it correctly. You2ve got a leg up on any mom-and-pop competition."
Franchises also have a proven track record of powering through previous economic downturns. International Franchise Association figures for 2001 to 2005 show that despite the downturn that came after 9/11, the franchise sector2s economic output had average annual growth of 9.7 percent, about three times greater than the economy as a whole.
0pening in a downturn, however, requires careful research and planning, says IFA Educational Foundation president John Reynolds. With franchise sector growth possibly ramping up slower in the next year than it would have a year or two ago, missteps can be fatal. So proceed with caution. Now2s not the time to fall in love with a concept and, starry-eyed, take the plunge. "The finances have to work," says Reynolds, "no matter how much you love the business."
Good News, Bad News
The current economic decline has a couple of unique aspects compared with previous downturns. The good news? In many markets, commercial and retail real estate is cheaper and more available than it has been in a long time, notes Michael Seid, a franchise consultant and the co-author of Franchising for Dummies.
Many chains are scaling back or closing, from Bennigan2s restaurants to Starbucks. That means landlords have empty spaces and are motivated to fill them. "I2m seeing something we haven2t seen in years: landlords coming to the table with build-out allowances," says Seid. "Previously, if you2d mention it, they2d start laughing."
The bad news? Finding funds for your purchase may be tougher now than at any time since the savings-and-loan scandal of the 80s, Seid says, especially if you don2t have good credit. The banking-sector subprime mortgage meltdown that began in the fall of 2007 means many banks have less money to lend and are skittish about making riskier loans. Many prospective franchisees are looking to alternative financing to get around this hurdle (see "Financing Gets Creative" on page 99), and Seid says lower-cost franchises are gaining popularity this year.
As entrepreneurs contemplate buying franchises, they should take care not to overextend themselves financially, says Reynolds. It2s hard to predict how long it will take for a new franchise to turn a profit, especially now. To make sure you won2t run out of cash, Reynolds recommends running your projects by a financial advisor. "If you put every dime into a startup and it takes you a while to get the business going, that2s a huge risk," he says. "You should reserve a portion of that as working capital for the first year or two."
That philosophy helped Boston-based Edible Arrangements franchisee Chris Dellamarggio, 38, tough out the last downturn in 2002. The former market-research executive was the fruit-bouquet company2s first franchisee and opened just months
before 9/11. Dellamarggio took out a manageable loan against his condo to finance the purchase and kept his expenses low. He paid his two employees hourly and sent them home the minute work finished each day. He also kept up his marketing: During slow times, he sent free bouquets to businesses to keep word-of-mouth going. As the economy turned up again, he expanded and now has four locations doing about $2 million in combined annual sales. "I knew I had to muck through it," he says, "and if I kept getting the product in front of people, I would get there."
Time to Investigate
No one should ever buy a franchise without careful research. In a downturn, though, this step is especially important. You need to find out if your franchisor has the resources to help its franchisees through this difficult time. Rey-nolds recommends asking about services franchisees can tap, such as co-op purchasing, that will drive down operating costs and increase survival odds. Does the franchisor offer affordable software programs, mentoring or business coaching? "Ask them, What are you doing to help improve my bottom line? " says Reynolds.
Each franchisor discloses details about its business in a Franchise Disclosure Document, or FDD, which you should study and use as a starting point for your investigation. From there, research franchise managers backgrounds and talk with as many franchisees as you can.
Many franchisors won t disclose their earnings or will only offer partial information on franchisee results. So talk with franchisees and ask franchisors direct questions about how the business is faring this year. "They can tell you trends in same-store sales without giving numbers," says Seid. "Are they going up? That s a straight-out fact a franchisor can give you."
New PuroClean franchisee Brian Medaglia, 39, opened his Arlington, Virginia, franchise in July after interviewing franchisees and grilling executives about their ability to manage the chain s growth. He learned the CE0 had previous experience running large franchise systems and that a key vice president had spent his entire career in the home-restoration business. "I asked franchisees, Are you profitable? Is the system working for you? and 99.9 percent said yes," says Medaglia. "I could tell the 0.1 percent treading water weren t following the system."
While you re talking with franchisees and the franchisor, get a feel for the corporate culture and think about whether it s a fit for you, advises Lori Kiser-Block, president of franchise consulting firm FranChoice. "A tried-and-true franchisor probably isn t looking for a cowboy entrepreneur," she says. "But new and emerging franchisors are looking for risk-takers, and that ground-floor opportunity with the right franchise can be extremely rewarding."
Also find out the franchisor s expansion plans, says franchise attorney Terrence Dunn. Are they too aggressive? "0ften they start encroaching on their own people and cannibalizing their territories," he says. "Even with a good concept, that can leave you struggling."
Another way to research a franchise is to check the price of any units for sale. If the price is lower than the franchise s startup cost, and the franchisee has been working the business for years, something s wrong, Seid notes.
While you re looking over sale prices, consider an existing franchise. During a slowdown, an existing business gives you a leg up: It already has a customer base and some name awareness in its market. "Plus, you can see if customers are happy and business is trending well," says Seid. "You also know what your staff looks like."
Picking the Right Concept
There s no question that generally some types of businesses fare better in a recession than others. Expensive restaurants tend to suffer, but people continue to need haircuts. Still-hot niches our experts identified include products and services tailored to Latinos, as well as child-care, elder-care and home-repair franchises.
Does that mean you should shop for a countercyclical concept? It depends in part on your own interests, income needs and long-term plan for the business. Medaglia, a former airline pilot, specifically looked for something that would be recession-proof and profitable right away. Because PuroClean focuses on helping homeowners with water damage and other house damage usually paid for by insurance, it s rarely affected by the downturn, he says. Medaglia was in the black within 90 days of opening, and he projects sales well into the six figures this year.
0thers have done well with concepts that at first blush might not seem obvious choices in 2008. The success found by Scott Pekovich, a Salad Creations franchisee in Billings, Montana, points to a key fact about the current downturn: It doesn t affect every market in the same way.
Billings economy has stayed fairly strong, notes Pekovich, 38. The PGA golf pro sensed an open niche for a healthy quick-serve restaurant, and despite the generally gloomy outlook in the restaurant sector this year, he opened his Salad Creations eatery in May. Since then, the restaurant has ranked in the top two in gross revenues in the roughly 50-unit chain nearly every week. Pekovich, who projects 2008 sales of $700,00, eventually plans to open about 35 Salad Creations throughout Montana, Idaho, the Dakotas and Spokane, Washington. "We felt the demand was there," Pekovich says. "It s unique and healthy, offering lots of choices."
Bad times can also provide opportunities to take advantage of others lack of conviction or business savvy. That was Bob White s strategy during the 2002 downturn. White, 46, opened his first The Maids Home Services franchise just a few months before 9/11.
Shortly after the economy tanked, White got a call from another Maids franchisee in his Dallas-Fort Worth market who was looking to sell. In short order, White bought out four local Maids franchisees. Each let him pay for the franchise in installments, keeping his investment costs low.
Suddenly, White had a dominant presence in the market and began advertising aggressively. Moving operations into one office created efficiencies that made the expanded territory instantly profitable. Last year, his franchise brought in $2.3 million. "There was quite a bit of uncertainty back then," White says. "But I was confident in what I was doing. And I still believe there2s huge upside potential in my market."
Seattle writer Carol Tice reports on business, finance and social issues for Seattle Magazine, Washington CEO and other leading publications.
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