Do Business Well

Advantages of franchising for franchisees

1. The franchisee will start a tried and tested business concept that has been fully “pilot” tested. Often franchisees do not have the general business management skills or specialised knowledge needed in the proposed business activity. The franchisor owns this knowledge and has the necessary business skills, which he passes on to the franchisee.

2. The franchisor should have developed a long-term strategic business plan including a country development plan, which the franchisee will be exposed to. The franchisor’s strategic vision should provide for the growth and adaptability required for the survival of the brand. A country development plan is the geographic expansion plan that outlines the geographic areas earmarked for expansion, as well as the rate of expansion. The rollout of the franchisee’s store is therefore part of a larger expansion strategy, so the brand that the franchisee has bought into should become more valuable with time. Continue Reading »

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Take great care before investing in a franchise. Under no circumstance should you be rushed into taking up a franchise. This is your life we’retalking about here.

Firstly, you must evaluate your own skills, aptitude and abilities.

Based on the pros and cons of being a franchisee outlined in the previous section, decide whether you will be a good franchisee. Taking up a franchise will impose substantial burdens on both you and your family. You will be required to invest large sums of your time and money (or even borrowed money) in the franchise.

Secondly, establish the areas of business activities that you are interested in. Obtain lists of available franchisees. Continue Reading »

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Funds for Teenagers

As a general rule, growth funds are best for teenagers. They’re riskier than most of the others, but they have the potential to make you more money. An aggressive growth fund could yield 30 to 40% in one year—or lose that much or more. There are plenty of less radical mutual funds that still tend to do much better than your bank account.

Unless you need every dime of your money to spend for college next year, you can probably afford to take moderate risks with your money. No one wants to lose money, but as long as you don’t take stupid risks, you probably won’t lose more money than you can replace quickly with a part-time job. Invest no more than half of your savings in a solid mutual fund. If the fund is risky (potential for big losses), don’t put in more than a fourth of your savings. Continue Reading »

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