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Success Rate of a Franchise – Key Mistakes to Avoid

admin — Sun, 20 Nov 2011 21:54:39 +0000

There are several missteps that can negatively impact the success rate of a franchise and leave any franchise buyer very dissatisfied.

As you go through the franchise search process you will run across people who have made mistakes in starting their franchise.

They will, most often, fall into several predictable categories. As you talk to them, keep the following items in mind:

Make Sure You Have Enough Capital

It is true that before buying a franchise you will receive a detailed disclosure document (FDD) outlining the costs of the business.

In addition to that, you will have numerous discussions with the franchisor that will try very hard to make sure you are financially qualified to own a business.

Plus, you will work through your business plan with a bank in order to secure financing and make sure that you have enough cash flow to succeed.

And yet, every franchise system has franchisees who have failed because they simply did not have enough money.

In the end, it is you who is responsible for managing your franchise and your money. To improve the prospective success rate of your franchise, make sure that you have a budget flexible enough to handle diverse situations, put in place a contingency fund, stick to the manual and watch every expense like a hawk.

Don’t Save Money on Marketing

It is inevitable that every time the economy slows down, the revenue dips or you lose a big customer there will be pressure to cut marketing expenses.

It is certainly easy to do, most of the time. Just don’t buy ads for a few months and you have money in the bank, right?

That is, of course, is a mistake. Unless you got an unbelievable word or mouth or a viral campaign you will feel the long-term negative impact of cutting marketing expenses very quickly.

The good news is that a large number of franchise companies realize that and often require their franchisees to spend a certain amount on marketing every month.

Remember, you have to bring in new customers to grow your business. Customer acquisition costs are almost like cost of goods sold in many businesses.

Stick to the goals you set for yourself before you bought a franchise and look for savings in other areas.
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Talk to Existing Franchisees before Buying a Franchise

This is a big one. The more current or former franchisees you talk to the better. You can get their contact info from the FDD.

Take your time in this process and make sure to talk to 5, 10 or even 15 franchise owners in each system that you validate.

Go to the company annual meeting if the franchisor will allow you. Ask tough questions and concentrate on financial performance data.

If you buy a franchise after talking to only 2-3 people, and the business does not work out, you will have only yourself to blame for not doing enough.

In the end, existing franchisees are the real franchise experts who can give you the best information about the probable success rate of a franchise.

Accurately Estimate Your People Management Skills

Managing people is the biggest challenge for many small businesses. As a potential franchise owner, you have to realistically assess your capabilities in that area.

Sure, the franchise company can train you and provide some day-to-day guidance in relation to managing your workforce.

However, it is up to you to build a dependable, productive and efficient team. If you have no experience in that area and are not looking for that type of a challenge, then try to focus on franchise opportunities that require a minimal amount of employees.

Buy the Right Size Franchise

Make sure to accurately assess your future plans and income goals as a franchise owner. You will have to make sure that the franchise you plan to buy can offer the territory size and growth potential you are looking for.

Sure, you can grow one unit/territory at a time. However, territory availability is rarely guaranteed by the franchisor, and you will never be in a better negotiating position then before signing your franchise agreement.

Size does play a big role in the success rate of a franchise so it is worth it to have your entire future growth plan on the table before you buy.

Follow the Franchise System

Not following the system is probably the worst mistake you can make and is the true culprit behind the majority of struggling franchise locations.

Once you buy that franchise it is perfectly normal to feel confident in your abilities and future prospects.

However, do not assume at that point, that you can do more than the franchisor to make your business successful. Stick to the operations manual, believe in the system.

Do not worry; you will have plenty of opportunities to engage you entrepreneurial spirit, but leave any changes of the business model to the franchisor.

In sum, franchising has a much higher rate of success than independent businesses and offers a number of “safety nets.” However, that does not mean that your success is a given.

Plus, it is important to note that during the process of looking for a franchise it is often more beneficial to talk to people who have struggled in their effort to get a business off the ground.

Their journey can provide a valuable lesson on what contributes to the success rate of a franchise.

The goal, in the end, is to avoid the issues mentioned above. As a result, you will greatly improve the potential success rate of your franchise business.

Franchising Basics

admin — Mon, 14 Nov 2011 04:57:12 +0000

What is a Franchise?

A franchise is a business agreement between a franchisor (company selling the franchise) and a franchisee (independent business owner buying the franchise). In the most common type of franchise agreement (business format franchise) the franchisor grants the franchisee the right to:

Sell a product using the franchisor’s brand (name, trademarks); Use the franchisor’s operating methods (technology, systems and processes); Benefit from the franchisor’s expertise in evaluating the market (market analysis, site selection, business planning); Receive ongoing support and training after start-up (access to substantial body of accumulated knowledge);

The franchisee (independent business owner) agrees to:

Pay a franchise fee to the franchisor; Pay an ongoing royalty fee (% of sales); Operate the business according to the franchisors standards and procedures;

Franchising Industries Some of the largest and most recognized franchises are in the food industry but there are literally thousands of franchises operating in virtually every industry imaginable. Here are just a few of the industries in which franchised business models are available:

o Automotive

o Education

o Computer

o Direct Marketing

o Employment

o Financial Services

o Food

o Hair & Beauty

o Health & Fitness

o Laundry

o Hotel & Lodging

o Maid & Cleaning

o Maintenance

o Management

o Packing & Mailing

o Pet Care

o Print & Copy

o Real Estate

o Home Repair

o Retail Sales

o Senior Care

Advantages of Buying a Franchise

A franchise provides an established brand with the benefits of enhanced customer awareness; Proven products and practices that increase your chances of success; Franchisees receive critical pre-opening guidance including market analysis, site selection, design, training and initial marketing. The franchisor also makes sure the franchisee is well capitalized (enough money to get through the start-up phase); Franchisee benefits from shared programs they could not duplicate on their own including ongoing training, best practices, national and regional advertising, operating procedures and field support, national call centers, bulk purchasing and discount programs;
Disadvantages of Buying a Franchise

Franchisees are required to follow the system and have limited latitude to vary from the approved business model; Fees; You depend on the franchisors ability and willingness to meet its obligations; A poorly performing franchise system can negatively impact your business;
Why Buy a Franchise?

With those advantages and disadvantages in mind, why does someone elect to buy a franchise? At the end of the day, the reason an entrepreneur decides to buy a franchise as opposed to starting a business on their own is because they determine the franchised option reduces risk. Some of the top reasons new businesses fail are:

Lack of planning (no market research, poor site selection, misappropriated resources, no business plan); Under-capitalized (lack of planning or unrealistic assumptions); Insufficient or ineffective systems (sales, marketing, operations, personnel etc.);

In sum, as a franchisee, you are buying the franchisers expertise in starting and operating the kind of business you are contemplating. The knowledge a franchiser offers can advance the franchisee down the learning curve past the point where most non-franchised businesses stumble and fall. Another important point to be made about starting a non-franchised business is that unless you have substantial industry experience in your target industry the business planning process can be something akin to looking into a “black hole”. How do you answer questions about expected costs, anticipate market share and appropriate pricing? Without substantial experience the best you can do is an educated guess and if you guess wrong the consequences could be catastrophic.

With a franchised business you get to try the business on before you buy it. A good approach to research will allow you to get the answers to all of your questions before you buy. You can talk to franchisees who have gone before you and find out how much they earn and what they think of the business. You can spend a day at an operating store and see what it is like. Buying a franchise does not guarantee success but there is no excuse for not being fully informed.

Your decision about whether or not to buy a franchise will hinge on the conclusions you reach as to a particular franchisers ability to enhance your business success. In cases where the entrepreneur has expert knowledge or a new/unique market a franchise may not be the right choice. If you are looking for a proven business model that can bang out profits on a daily basis franchising is often the best choice.

Franchising In The Philippines

admin — Sat, 12 Nov 2011 20:01:36 +0000

Franchising has been in the Philippines for 94 years. With the entry of Singer Sewing Machine in 1910 which introduced product distributorship. Numerous companies embraced this concept as their vehicle for business expansion over the years. From 1910 to 1965, businesses staked their flags in the Philippine economy through PRODUCT DISTRIBUTORSHIP. Some of these multinationals were tire and pharmaceutical companies.

The take off was slow in the early years as the succeeding companies like A&W Restaurant known for its root beer entered in 1965. The first outlet was established on Highway 54 (now popularly and historically known as Epifanio Delo Santos Avenue or EDSA) near the Big Dome-Araneta Coliseum. The concept was a drive-thru where women food attendants garbed in mini-skirts, black stockings and in roller skates would serve customers inside the comfort of their cars. Trays clamped by the side of the door and mugs with cold refreshing root beer partnered with foot long hotdogs were served. Its set-up was exactly the same as found in the US branches during those years. What this company brought was another form of franchising, which is known as Business Format. From then onwards most entrants into the market embraced this concept, in fact, so widely used not only in the Philippines, but all worldwide.

Product Distributorship

This is a form of franchising where owners of products allow other parties to sell or distribute their products or even use their trademark as a dealer. There is minimal or no control of operations. The relationship is centered on the quality of products sold.

Business Format

A form of franchising used by 90% of companies involved in franchising. This is the reason why franchising is considered the most successful way of expansion worldwide.

In business format, the franchisor, more than his registered trademark and products, has developed a business system that is made available for use to franchisees. Compliance to the business system is the core and essential element of their contractual relationship embodied in a franchise agreement.

The first survey of franchising in the Philippines done in 1995 revealed that there were a total of 50 operating foreign franchisors at that time. The success rate of foreign franchisees is 97%. In 2003, there were 315 foreign franchisors in the country with 87% success rate.

Philippine Based (Home-Grown) Franchises

Earliest recorded homegrown company that used business format franchising was PANCAKE HOUSE. It was franchising since 1978. PANCAKE HOUSE is still active in franchising and has transferred ownership a few years back.

In 1996, there were 94 companies using franchising as their route to expansion and the number has substantially increased to 481 in 2003. The success rate is a good 90%.

Philippine Franchise Scenario

Franchising in the country evolved from the US Franchise System. There are, however, no laws that regulate franchising. Companies and franchise developers use international franchise practices as reference and as a guide to pursuing this type of business. The increasing number of homegrown companies using franchising in their expansion can be attributed to the presence and increasing number of foreign franchisors. They served as motivators and inspiration for the local entrepreneurs.

Franchising for years has been the monopoly of food sector. It was only in mid-1990′s that service and retail entrepreneurs used franchising.

There was an absence of franchise education in the country for decades. Franchise Conference and Seminars started only in the mid-90′s. Franchise Associations were also formed with the vision of professionalizing and standardizing the franchising as well as police their own ranks.

Advantages of Purchasing a Franchise Business

admin — Mon, 31 Oct 2011 12:48:30 +0000

Purchasing a franchise business may be a good option to consider if you want to have your own business, but are not sure how to go about doing it. Purchasing and running a franchise is just like owning your own business, but it provides you with excellent tools, resources, and other advantages that do not come with starting a company from the ground up.

A franchise is basically a license to use an existing company’s name, trademarks, products, services, and other resources in return for agreeing to use that company’s existing business formats and provide a percentage of your franchise’s income and earnings. For the parent company, or franchisor, selling privileges to a corporation provides a way to expand the market share quicker, and less expensively.

The most appealing aspect of purchasing a franchise is usually the fact that most of the pre-opening work is done for you. When you purchase a business format franchise, you gain the privilege of not only being able to sell the parent company’s products or services, but also the right to use their established practices. These procedures may include training programs, marketing strategies, trade secrets, accounting systems, etc.

As opposed to starting your own enterprise from scratch, franchising allows you to take advantage of the parent company’s already established reputation and recognizable assets. The main advantage of this is that you will be able to more easily be able to attract customers from the start, which is one of the biggest obstacles faced when starting a company from the ground up. For example, buying a McDonald’s restaurant will no doubt provide you with a much larger instant customer base than you would have if you were to open an independent hamburger restaurant.

In addition, most of the financial aspects of running a venture will be more clear-cut. The franchisor will be able to provide you with details of both start-up costs and operational costs, taking most of the guess work out of running a corporation.

Besides name and product or service recognition, your franchisor will also be able to provide you with many other benefits, such as industry experience, group purchasing power, training programs, and ongoing support, just to name a few.

As with any business venture, there will be risks in opening a business. However, having a proven and reliable franchise system helps to minimize these risks. Good franchisors will be able to provide you with proven systems that are easily replicated in order to provide consistent results.

Purchasing a franchise business should be thought of as entering into a partnership. As long as you can be a good business partner to you franchisor, your franchisor should do everything possible to ensure that you have a successful, profitable venture. This kind of support is what makes running a franchise business so advantageous to aspiring entrepreneurs.

The Top Accounting Firms In The World

admin — Thu, 27 Oct 2011 03:42:33 +0000

A career in finance is generally accepted as a good profession. Within the financial sector accounting jobs are flourishing right now. Almost everybody would like to launch an accounting career, and mos specifically at one of the big four accounting firms. However, the positions at these firms are extremely competitive and not everyone can get in. The great news is that there are many more prospering and well respected firms to choose from. The following is a list of the top accounting firms in the world, beginning with the Big 4.

1. Deloitte. By far the largest firm in the world and is headquartered in New York, USA. It has offices in over 150 countries. This firm as it is today, was formed by way of a series of mergers and acquisitions with other firms.

2. PricewaterhouseCoopers. This firm has its headquarters in London and was formed by a merger in 1998 between the firms Cost Waterhouse and Coopers & Lybrand. It’s present in over 150 countries worldwide.

3. KPMG. This firm has also grown by means of a series of mergers. KPMG is an acronym for the names of the four partners of the different firms in the merger, Klynveld, Peat, Marwick and Goerdeler. Its global headquarters are inside the Netherlands in Europe.

4. Ernst & Young. Like Deloitte, this firm has its headquarters in London. With offices in over 140 countries worldwide.

5. Grant Thornton international. Headquarters located in The United States and has offices in 110 countries.

6. RSM International. This is another leading firm with presence in over 70 countries. Its UK firm RSM Tenon was the first accounting firm to be publcally listed on the London Stock exchange.

7. BDO International. Headquarters are in Belgium and has member firms in over 100 countries.

8. Baker Tilly International. Made up of 147 firms in over 110 countries worldwide.

9. PKF. This is the short form abbreviation of Pannell Kerr Foster. There are 245 total firms worldwide operating under the PKF brand and are located in more than 125 countries.

10. Praxity. This is an alliance of independent firms worldwide.

11. DFK International. It comprises of independent accounting companies globally.

12. Leading Edge Alliance. This is an international alliance of independent accountancy firms. LEA was named as the second largest association of accountancy firms.

13. Moore Stevens. Is located in just about 90 countries. It’s comprised of over 300 independent accounting firms.

14. Mazars. This was originally a French firm. It now has presence in at least 61 countries.

15. HLB International. It has over 450 offices in over 100 countries.

Cover Letters for Nurses

admin — Sun, 23 Oct 2011 07:55:23 +0000

Why are cover letters so important? They provide the prospective employer with a brief review of your skills and abilities in the form of a letter. Letters are written much differently than resumes and can have a lasting impact on the reader.

The best news is that writing one it isn’t that hard.
An excellent Registered Nurse is always going to be in demand. According to the Bureau of Labor Statistics, “Among all of the health care occupations, registered nurses had the highest level of employment–over 2 million.”

What does that mean? It means there are more nursing positions in the health care industry than doctors, surgeons and technologists.

Nurses, generally speaking, are in a good labor market right now. If you are a nurse, that’s good news. You should not encounter difficulties in obtaining work.

What about that awesome position with the top salary that you have your eye on, though? Do you think the competition for that position will be greater? You bet it will. That means your credentials will have to be presented in the best light possible if you are to get the job offer.

So, how do you write a great cover letter?

The cover letter builds on the resume and leads the employer toward it. Its goal is to get the employer excited about the resume. It is a sales tool, just like the resume is. Sell yourself in a compelling and exciting way. Inject energy and let your best qualities reach the employer through carefully written examples and anecdotes. Don’t just state what you are capable of, show the employer what you have done in the past with vibrant language that attracts and invites the employer to want to know more.

You are a part of a significant sector of the labor market.
You have to be your very best to get the great jobs. What skills and abilities do you have that you can offer the employer – and – how can you do so in a way that makes the employer pick up the phone and call you for an interview?

Be personable, but professional at the same time.

Let your cover letter generate interest in your resume, then let your resume grab the employer’s attention so that you are invited in for a face to face meeting.

A cover letter isn’t likely to persuade an employer to grant you an interview on it’s own, but it is part of the whole package that WILL encourage an employer to want to get to know you better. Make it an exciting and enjoyable read and you will find yourself being offered the next Registered Nurse position you apply for.

Best of luck!

~Carla Vaughan

The Top Ten Accounting Executive Search Firms

admin — Fri, 21 Oct 2011 19:43:19 +0000

If you are on the lookout for accounting executive search firms, then you are at the right place, for we will help you go through the top ten accounting executive search firms. And we shall not give you just a skeletal framework- instead we are going to provide you with details about these accounting executive search firm profiles. So what are you waiting for- browse through what we have to offer:

1. Reaction Search International

This firm helps in the recruitment of top professionals over eighteen countries on behalf of their clients. This organization essentially provides consultancy service, thereby aiding their client to make the right choice in choosing employees in to senior positions.

2. American Association of Finance and Accounting

It is an association or alliance of a number of like-minded search firms who specialize in recruiting able staff personnel for their client companies. They focus on recruiting people into the finance and accounting departments of their client companies. It is a well-known search firm with their offices located over forty five metropolitan cities to ensure the best possible selection.

3. Accountants International

This organization helps in the recruitment of people to the finance and accounting departments of their client company. They either provide temporary solution to the problem or provide permanent solution to the staff deficit on direct hire basis.

4. AE Feldman

It is an executive search firm, dedicated to serving their client companies to the best of their ability by providing them with competent employees.

5. Allen Associates

This Cincinnati, Ohio based company does not compromise with its excellent standards ever. It keeps on providing skilled employees for absorption into their client company’s finance and accounting department. They specialize in providing applicants to senior executive posts.

6. Alpina Search

This UK based organization does its very best by engaging in a world-wide search and selecting competent personnel across the globe for being recruited into top executive posts of their client company’s finance and accounting department. They strive to maintain the quality of their services for they understand that they are providing people for recruitment to very important posts.

7. Andcor companies, Inc.

This well reputed Minnesota based organization specializes in providing consultancy services as well as executive search services to their client company.

8. Beech Hill Group

Located just north of Atlanta in Newnan Georgia, this firm has been providing executive search services since the past twenty years.

9. Career Advocates International

Based in Houston, Texas, this firm provides quality employees to its client companies. It has been credited with making the best selection for staffing up the Banking and Accounts departments of its client company, thanks to their motto of international searches.

10. Dalton Group LLC

This is a firm that has as its clients companies across various industries. This organization specializes in doing executive search for these companies.

Post this information, executive accounting jobs shall be easy to secure for you will be in full knowledge about the best firms in the town! So go grab your accounting executive jobs right away!

Why Are USA Based, Small Cap Companies So Adverse to Expanding Sales Outside the Country Borders?

admin — Tue, 18 Oct 2011 20:28:57 +0000

I was questioned about international expansion recently. It’s a topic I think about frequently. Exactly why are small cap American companies slow to expand? The answer was provided to me in the early 90′s by John Clement, a very influential British leader who had taken a small company called Unigate plc and transformed it into a multi-billion dollar global organization. “US businesses have never needed to expand because the US market was generally the largest in the world. US firms need to stop being so insular, or foreign companies will overtake them.” Now the discussion seems prophetic, and in retrospect I was fortunate to be in a position to be tutored by one who thought “globally” long before it was the buzz word of the new millennium.

In the early 90′s the term “Global Market” did not apply to the majority of US small cap organizations. These businesses were churning profits and increasing sales in the domestic market, while ignoring the international market. If they sold materials internationally it was only to prospective customers begging to buy their products. There was no thought put to market conditions, support, or follow up.

Business in the US market was growing each year, profits were soaring and executives leading these companies had no worries. It seemed to most that this would last forever! That same economic success of the 90′s and up to 2008 was noticed, however, by many organizations outside of the US, and these companies did what any prudent business would do; expand their international business into the U.S. market. This thinking was not new to these organizations whereas their own national economies could not support the growth and sales objectives of firms looking to grow profits each year. They were already doing business outside their borders to survive.

During this period a strong US economy strengthened the outside organizations that gained entry into US business arena profiting from the sales opportunities and unknowingly preparing them for the economic shift that was soon to take place. The United States no longer offers maximum growth opportunities. Instead this opportunity has shifted to the emerging markets of China, Africa, India, Middle East and Latin America. These foreign companies who learned to act globally earlier are now well versed in the ability to enter these emerging markets by simply using the business model developed from their entry into the U.S.A.

Unfortunately many U.S. organizations are now run by executives who grew up in the “insular” U.S. business culture. They either approach the international market as they would the U.S. market, or through business ignorance feel that growing internationally is not required thinking that growth in the U.S. market will return quickly. Evidence says that neither of these strategies will work. The international market can no longer be ignored by U.S. firms who want to survive, and lessons need to be learned quickly to conduct business abroad. Here are a few simple rules to follow:

1) Business in emerging markets are still very relationship oriented. People in the emerging markets value relationships. Many of them have purchased US products without any support or follow up in the past. These people also want assurances that the supplier will be there for the long term and they want to trust companies they are doing business with.

2) Take time to learn the culture and habits. Going into a meeting and pounding on the table to make your point or demanding an order may work in the U.S., but would be considered an insult in most countries. Business relationships are culturally driven in many emerging countries. It is not uncommon to be invited to a potential client’s home to have dinner and meet his family. Spend the time in business development getting to know the area you are entering. A great analogy of this misunderstanding is when Tide Laundry detergent was introduced into China and did not sell. It was later determined that many Chinese hand wash their cloths. Tide’s packaging had to be changed to accommodate their needs. Once they changed the packaging Tide Laundry detergent became one of the largest sellers in China. Due diligence done to understand culture and habits will pay off in sustainable future sales.

3) Know U.S., International and local laws. What may be legal in the country you are doing business in, may not be legal in International or U.S. regulations. For Instance in many countries it is legal for a foreign official to be an owner in a company that sells to their sovereign government. This however is a violation of the International and U.S. Anti corruption Acts (FCPA). FCPA is easy to adhere to if you know the regulations but equally as easy to violate if your firm does not understand. These rules are simple to follow if you know and understand them and do not complicate it with teams of lawyers.

4) Get to know import and customs requirements for the countries you are selling to. These requirements vary from country to country, and need to be taken into consideration prior to entering a new country market. There are a few countries easily identified that are “closed” markets such as Brazil, South Africa or Egypt. These countries have set the import duties so high on certain products that it is difficult to compete price effectively in these countries. Unless your strategy is to locally produce you may not be successful in these type markets from a price standpoint.

5) Utilize the in-country U.S. Embassy. The U.S. Embassies in foreign countries offer an excellent source of access and assistance to decision makers, customs, and regulations. As one U.S. Ambassador to an oil producing nation stated to me, “The U.S. spends millions of dollars every day buying oil, and it is my job to get some of those dollars back”. In most emerging countries many of the Ambassadors are senior Foreign Service personnel not political appointees. This makes them accessible, business savvy, and eager to promote U.S. interests.

As one who has spent years developing International markets for many type of industries, I feel it is an exciting time for U.S. companies. We no longer have to rely on the market conditions of the U.S. economy to grow our businesses, and there is an amazing amount of opportunity in many of the International markets who have hardly been touched by the global crisis. Worldwide, U.S. produced goods are perceived as high quality and many of these new markets are clamoring for access to goods produced in the United States.

The entry into the Global market requires a cultural change by many U.S. small cap firms and their executives. The global market is not just for the Procter & Gambles and Caterpillars of the world. The companies who take steps to build their global footprint will be well positioned for the eventual return of the U.S. economy.

Accounts Receivable Job Description

admin — Tue, 11 Oct 2011 04:49:14 +0000

In business it’s vital to maintain a cordial relationship with the customer in order to grow and get ahead of the competition. While it takes a lot of care on the part of production division to create cutting edge products or services, it’s up to the marketing division to create the market for those products or services. Finally, it is extremely important for proper follow-through to take place – even if that means chasing down people who owe the company money.

A mishap or misunderstanding in attempting to collect receivables can adversely affect a company’s reputation. That said the accounts receivable team perform a valuable function make significant contributions to the company’s survival and growth.

It does pay to understand and follow certain guidelines. Job responsibilities include keeping an up-to-date billing system since inaccuracies result in collection errors. Keeping a check on monthly receivables activity while making sure that that billing, collection, and reporting activities are carried out per specified dates. Looking into and researching customer account details, which include non-payments, delayed payments, and other irregularities. Creating an appropriate communication system that reminds the customer about payment without offending them. Last and most importantly, creating a recovery system while sourcing its strengths internally or identifying an external source for faster recovery at minimal expenses.

The communication can make use of telephone calls, post mail, email, and so on. The language should never sound bullying, but it should sound firm, and it should state all the facts. The person who owe money may even appreciate the service of being informed exactly how much they owe and for what. This helps them in their own personal accounting.

How and Where to Advertise

admin — Sun, 09 Oct 2011 08:49:53 +0000

More than anything else, the key to success in business depends on how and where to advertise. You must advertise or forever remain unknown. If you have “the better mousetrap,” you have to let people know about it, or your ideas and efforts will come to nothing. Everybody seemingly has an idea for a product, a service or a “how to” manual of some kind. Many people spend half of their lives perfecting a product, learning how to perform a special service, or writing a book – only to end up penniless and heartbroken because “no one beats a path to their door” to buy whatever it is they are trying to sell.

In most cases, it’s a matter of whether you want to “go down in history” as just another inventor, hard-worker, author or want to “sell a product and enjoy the rewards.”

Always do some basic common sense product analysis and market research before you begin building, learning or putting together something you want people to buy. The same kind of “research’ will save your time, frustration, and money, if you apply the same principles to every “selling opportunity” that arouses your interest.

Make a check list of questions that must be answered before you embark upon any project or get too deeply involved in any selling situation. Such a checklist should answer the following questions:

1) who will I sell it to?
2) Do these people really want, and need it?
3) How large is the market?
4) How will I reach these people and get them to buy?
5) Is anyone else selling a similar product, service or book?
6) What makes my product and strategies different?
7) Can I supply the product at a price the customer will pay, and still make a profit for myself?
How much time, effort and money will I have to invest in order to reach my profit goals?
9) Do I have the resources, and the stamina to carry this idea through to success?

Once you’ve answered these questions–completed this bit of basic product analysis and market research–then you can start planning exactly how you intend to sell it, and map out your advertising strategy from there. You’ll find success in selling effort, much easier, and much more profitable, if you honestly and objectively answer these “check list” questions before you begin.
It’s absolutely imperative that you analyze the product, and profile your prospective customer–the sale ability of your product, and the demand for such a product by the people you want to buy. One other thing, don’t ever overlook or “poo pah” your real and/or imagined competition.

When people neglect to analyze the product, and answer the basic research questions, they’re almost certainly doomed to failure. These are precisely the reasons for failure amongst people who attempt to start a mail order business. We literally get tons of mail order offers for products that are losers; and even offers from people trying to sell us our own material and/or related items which we can buy at wholesale prices.

When Sears & Roebuck send out a new catalog or sales circular, do you “really” think they send one to Montgomery Ward? Another thing, this “we’re all friends and in the same business, so you buy from me and I’ll buy from you” philosophy may keep you busy and you mailbox full, but it’ll never results in profits on your P&L sheet. Advertise in the media that reaches your buyers, and send your direct mail materials to people likely to but–not sellers. Remember, your first task is to determine who your most likely customers are, and then design your advertising campaign to reach those specific people. Generally, you wouldn’t try to sell pantyhose with an ad in a care magazine, or socket wrenches with an ad in a magazine for bride-to-be.

In other words, design your advertisements to appeal to “your kind of customer,”–send $5 for our report on HOW TO WRITE ORDER PULLING ADS–and then, place these advertisements in the publications these people buy and read. If you’re selling gift items, crafts and other merchandise, advertise in those kinds of publications–general merchandise catalogs catering to that kind of buyer. If you want to recruit sales people, dealers and distributors, place your ads in publications reaching people looking for these kinds of opportunities.

I don’t recommend that you begin, or attempt to launch your business via direct mail, but when the time comes for you to expand into direct mail, be discriminate–select mailing lists for your type of customer. Do-it yourselfers for shop tools, cosmetics buyers for jewelry and self adornment merchandise, how-to-book buyers for your crafts, hobbies and self-improvement books, opportunity seekers for business start-up manuals, and proven advertisers for your publications.

So, when you read in a business success article that you should place your ad in publications carrying similar ads–the advice given is “place your ads in publications reaching your kind of buyer.” Just because it’s a publication reaching mail order people and you’re selling imported gift items by mail, doesn’t mean your ad will pull from exposure in that publication. Always add one more answer: Does it reach a large number of the type of buyers I’m selling to?

Definitely, this is where many mail order entrepreneurs go wrong, and very definitely, this is the fallacy of advertising in the M/O ad sheets. Analyzing the type of people a publication reaches; and the loyalty as well as true interest of a publication’s readers; and then determining whether or no they’ll respond to your ad, is easy if you will just ask yourself a few common sense questions.

Mail Order Ad Sheet: These reach beginning and small mail order dealers…Their appeal is largely egotistical to see the advertiser’s name/ad in print–read by other mail order dealers to see who is advertising, what’s be advertised, and for the accumulation or compiling mail lists. Very little if any response for the recipients who are looking, not for things to buy, but for shortcuts to more profits.

Mail Order Tab Sheets:

These reach basically the same audience as the M/O Ad Sheets…Generally more appealing because of the “instructional” articles and greater space devoted to mentioning who’s doing what/names in print & free publicity. Rate these according to the “information” being passed along in articles. Usually, these publications pull a greater response than the ad sheets, but still, they’re largest audience is one made up of sellers.

Mail Order Dealer Catalogs:

These reach the mail order dealers, plus a very large segment of specific buyers–generally related to the overall kind of merchandise offered within the catalog. Unless there are “business building” articles, the recipients generally toss them aside after a quick glance…These are very good showcases for your dealer/distributor ads, and if it’s an “established” merchandise catalog of the kind of product you’re selling, these catalogs can be very good advertising outlets for you…

Extra Income Magazines, such as Money Making Magic, Venture and Entrepreneur:

These publications individually reach a very loyal basic subscriber list, most of the people wanting or hoping to get started with, or already involved in a spare time extra income project, and tremendously large number of “first time” readers with each issue. Look for, and rate them according to the balance of actual “business building” articles they carry, in relationship to their advertising–and overall, according to the quality of the publication as well as the audience each trying to reach–do the articles really help you, or are they “publicity write-ups” for the advertisers… You’ll find that these magazines are retained, and referred to by the recipients for years…In almost every case, you can expect a good response from your ads placed in one of these magazines–provided you’ve got a good ad and it’s geared to the readers of that particular magazine.

Remember: The bottom line is knowing your type of buyer–presenting your product or opportunity in a style that appeals especially to that type of buyer–and then placing your ad in the publication reaching your kind of a buyer. Cooking magazines for recipes; mechanical opportunity in the mechanics magazines; self-improvement books and merchandise in general merchandise catalogs; and income opportunities in business-building, self-help magazines such as Money Making Magic!

Besides matching the profile of your customer with the demographics of the publication, it’s also important that you match your selling prices within the average price range of everything else offered in that publication. Running an ad to sell a book at $65 In a publication featuring $20 books, probably won’t pull for you. By the same toke, any ads attempting to promote “re-production type” reports in a magazine selling $50 books, probably won’t bring very many responses for you either.

To achieve success–know your product, profile your prospective buyer, design advertising that appeals to the self interest of that specific kind of buyer; and place your ads in publications reaching those kinds of buyers. If you’re trying to sell by direct mail, send your offers to prospective buyers–not sellers of the same type of materials you’re attempting to sell.

Very few people recognize a legitimate opportunity, even when you hit then over the head with it–even so, unless you’ve got something REALLY NEW, and a deal that really is THE OPPORTUNITY OF A LIFETIME, save your money and don’t try to push your program onto other mail order dealers who may already be selling it. Assuming that you “know” your typical customer, and the best media to reach this kind of customer, the next step is putting your ad together. It’s said millions of times before, but it’s important that you UNDERSTAND, and REMEMBER: Your ad MUST appeal to the self-interest of your prospect. It must somehow be different, and better, than all the others, particularly if your product is being advertised in the same publication by other mail order dealers.

Nothing beats originality. Write your ads from a different angle. Lead off with the answer to every customer’s most important question: What will I get if I send in my money?

Use words to paint pictures of success, wealth and happiness. Eliminate the customer’s fears of being taken or ripped off. Picture yourself in your prospective customer’s shoes, and give him real reasons to send his money to you. And finally, make it easy for him to order–call toll free; use your bank card; order now and we’ll bill you later; self-addressed envelope.

Don’t be too determined to sell your primary product from your ad. Chances are, if it’s as good as you say it is, and you really want to make big profits, you should use a sales letter 4-or more pages in length. Consider a “leader” item, and run an ad such as this: FREE RAGS TO RICHES MAIL ORDER OPPORTUNITY guide! Send your name, address, zip code & two first class stamps.
Then in response to all takers of this Free Offer, include the complete sales letter, brochure, order form, and self-addressed return reply envelope with the booklet you send out. Using this 2 step method, some people have attained 60 and 70 percent sales for their primary product.

Another angle? FREE BOOK! Mail Order Millions from a Shoestring Beginning! Send your name, address, and zip code, along with $1 for shipping and handling. In response, you send out the book and a sales letter inviting the recipient to avail himself of your mail order business consulting services.

Again, the rules are:

Determine who you want for a customer. Get his undivided attention, and then sell your product or service. Simple, easy, and it works every time. All it takes is a little bit of common sense on your part!

A small, inexpensive classified ad offering a “most wanted” leader item, followed up with a dynamic sales letter…and your success is virtually guaranteed! As a means to an end, particularly if you want to enlist people to sell your product for you- Start an ad sheet–run exchange with every ad sheet publisher in the country–there are literally thousands of them. (Send $1 for our listing of mail order publications…) But, instead of running ads to promote your ad sheet, run your “leader item” offer and follow up with your sales letter on your primary product. From this, you’ll get fantastic FREE exposure; inquires from people you can actually sell to; and the virtual “no-cost” establishment of a nationwide sales force to promote your business. Do chain letters really work? In no way, form or fashion! But, this method of running your “leader item” ad as an exchanged ad, will work–and besides, it’s legal! The end result will be what the chain letter promoters are promising you–People all over the country promoting and selling your business for you.

You can’t do it all by yourself. You must multiply yourself–get other people to help you, and present your product offer to as many potential customers as possible. And so long as you’re working from a limited budget, there’s no way on this green earth you can afford the kind of advertising costs necessary for overnight success! Send $5 for our report, HOW TO BUILD A NATIONWIDE DEALER AND/OR DISTRIBUTOR NETWORK.

Finally, comes the moment of truth. Do you have what it takes–the ability to go on studying, learning, and adapting–the dedication and the stamina to last through to the kind of success you want?

It’s important that you do your homework–product analysis and market research–the rest is merely common sense. You’ve got it, now use it! For sure, it won’t be easy work ahead, and lots of comprehension required–but you CAN do it, and the end result will be well worth the investment. After all, what have you got to lose but a try at total success?
From here on out, the ball is in your court and investment of some kind of action on your part is required…