Federal stimulus trickles down
Opinions mixed on benefits to small business
Sat. April 25 - 2009
Peter Schnitzler - pschnitzler@ibj.com
IBJ staff
There’s a smorgasbord available for small businesses in the federal stimulus. The trick is figuring out how to get a plate.
Plenty of local experts are serving up access to the buffet. And some entrepreneurs are digging in. But others consider the stimulus warmed-over leftovers.
“For high-tech, high-growth businesses of the 21st century, there’s nothing in the stimulus bill that helps us,” said Bob Compton, a longtime investor in local businesses who now lives in Memphis, Tenn. “For low-growth and failed businesses of the 20th century, that’s where the bulk of the money is going.”
In February, President Obama signed the $787 billion American Recovery and Reinvestment Act into law. Although some of the stimulus package has begun to trickle down, many small-business owners still don’t know what’s available....
...... Click HERE to view the rest of the article.
Thursday, April 30, 2009
Wednesday, April 29, 2009
Don't Buy a Franchise In a Hurry
Don't Buy a Franchise In a Hurry - click on title to view original article online
Submitted by Granville_Bean on Fri, 2009/04/24 - 22:46.
I have been a franchisee for more than a decade. We don't make as much money as a lot of people in the community seem to think, but we do make more than 90% of the households in America. I read all the horror stories on Blue MauMau, and contrast how people are buying bogus franchises with how we got into our system.
People talk about dealing with sales people who want to sign them up for that deposit or franchise fee. People talk about how THEN they might work in a store "for a few days", or go to a training that takes a week or two.
And they think that a week or two will make them into business people???
What is really scary are the poor folks who decide to buy a franchise BECAUSE THEY ARE GETTING LAID OFF. That is a TERRIBLE motivation because the fearful job-losing employee will want income IN A HURRY. Franchising has been around for decades, perhaps a century, and yet the job-loser will feel pressure to find the franchise and buy it in as little as a few weeks. No, no, no. It can take YEARS to find the right business opportunity.
About that salesperson and that fee: For contrast, in the McDonald's system you have to be approved as a Registered Applicant before you will be considered to buy a store, and you don't pay the fee UNTIL you buy a specific store. And to BECOME a Registered Applicant you have to first prove yourself to be operationally qualified.
You might work in the stores for a year, not a week. You go through four levels of courses and you don't just walk in and attend the course. You have to prove yourself operationally qualified and pass an assessment as to your operational knowledge, before even being allowed into the course. You can't just read manuals in your office or at home, you have to prove yourself in the restaurants. And this is BEFORE you are ALLOWED to pay a franchise fee to acquire a restaurant.
Contrary to sentiment from some of Blue MauMau's columnists and commentators, I am NOT a big fan of "due diligence" to the extent that it implies that if you just hire enough consultants, you can indeed walk right into a business that you knew nothing about 2 weeks ago, and the "diligence" will save you and make your success guaranteed.
Nope. People do come into McDonald's from outside but they gain their own knowledge of the industry before they buy a store. They don't throw it over a consultant's transom and ask if it is okay. And let's face it, most McDonald's franchisees came with prior McDonald's experience.
Corporate franchisor employees aspire to become franchisees (and often do). General Managers with decades of experience buy their stores when the prior franchisee retires. Whether or not they buy their parents' stores, second and third generation franchisees DO buy McDonald's stores.
I am VERY skeptical when people who know NOTHING about an industry except what the franchisor told them, or that plus what they looked up on the internet in two days, think they can run a successful business in that industry just because it is a franchise. And I am ESPECIALLY skeptical about folks who were employees all their lives and who, now that they are laid off, think they will magically be transformed into employers overnight, by virtue of a franchise.
Folks, being laid off doesn't qualify an employee to be a business owner. Being dissatisfied with how your employer treated you as an employee doesn't make you qualified to be an employer yourself. People who run successful businesses have often been entrepreneurial all their lives, they didn't become transformed just because they couldn't find a job. (Lots of them quit good jobs because they preferred to be on their own, the opposite of going on their own because they couldn't find a job.)
So: Don't buy a franchise in a hurry. Be darn careful about buying into an industry you didn't know much about UNTIL you became interested in a franchise in that industry. Be careful of franchisors that want your fee NOW, and then they'll find you a location later.
Franchising can be lucrative because owning a business can be lucrative. Buying a franchise is buying a business. Just because a business is a franchise doesn't guarantee success. Oh yeah, and "concept" isn't worth squat. It's all in the EXECUTION!
Good luck.
Submitted by Granville_Bean on Fri, 2009/04/24 - 22:46.
I have been a franchisee for more than a decade. We don't make as much money as a lot of people in the community seem to think, but we do make more than 90% of the households in America. I read all the horror stories on Blue MauMau, and contrast how people are buying bogus franchises with how we got into our system.
People talk about dealing with sales people who want to sign them up for that deposit or franchise fee. People talk about how THEN they might work in a store "for a few days", or go to a training that takes a week or two.
And they think that a week or two will make them into business people???
What is really scary are the poor folks who decide to buy a franchise BECAUSE THEY ARE GETTING LAID OFF. That is a TERRIBLE motivation because the fearful job-losing employee will want income IN A HURRY. Franchising has been around for decades, perhaps a century, and yet the job-loser will feel pressure to find the franchise and buy it in as little as a few weeks. No, no, no. It can take YEARS to find the right business opportunity.
About that salesperson and that fee: For contrast, in the McDonald's system you have to be approved as a Registered Applicant before you will be considered to buy a store, and you don't pay the fee UNTIL you buy a specific store. And to BECOME a Registered Applicant you have to first prove yourself to be operationally qualified.
You might work in the stores for a year, not a week. You go through four levels of courses and you don't just walk in and attend the course. You have to prove yourself operationally qualified and pass an assessment as to your operational knowledge, before even being allowed into the course. You can't just read manuals in your office or at home, you have to prove yourself in the restaurants. And this is BEFORE you are ALLOWED to pay a franchise fee to acquire a restaurant.
Contrary to sentiment from some of Blue MauMau's columnists and commentators, I am NOT a big fan of "due diligence" to the extent that it implies that if you just hire enough consultants, you can indeed walk right into a business that you knew nothing about 2 weeks ago, and the "diligence" will save you and make your success guaranteed.
Nope. People do come into McDonald's from outside but they gain their own knowledge of the industry before they buy a store. They don't throw it over a consultant's transom and ask if it is okay. And let's face it, most McDonald's franchisees came with prior McDonald's experience.
Corporate franchisor employees aspire to become franchisees (and often do). General Managers with decades of experience buy their stores when the prior franchisee retires. Whether or not they buy their parents' stores, second and third generation franchisees DO buy McDonald's stores.
I am VERY skeptical when people who know NOTHING about an industry except what the franchisor told them, or that plus what they looked up on the internet in two days, think they can run a successful business in that industry just because it is a franchise. And I am ESPECIALLY skeptical about folks who were employees all their lives and who, now that they are laid off, think they will magically be transformed into employers overnight, by virtue of a franchise.
Folks, being laid off doesn't qualify an employee to be a business owner. Being dissatisfied with how your employer treated you as an employee doesn't make you qualified to be an employer yourself. People who run successful businesses have often been entrepreneurial all their lives, they didn't become transformed just because they couldn't find a job. (Lots of them quit good jobs because they preferred to be on their own, the opposite of going on their own because they couldn't find a job.)
So: Don't buy a franchise in a hurry. Be darn careful about buying into an industry you didn't know much about UNTIL you became interested in a franchise in that industry. Be careful of franchisors that want your fee NOW, and then they'll find you a location later.
Franchising can be lucrative because owning a business can be lucrative. Buying a franchise is buying a business. Just because a business is a franchise doesn't guarantee success. Oh yeah, and "concept" isn't worth squat. It's all in the EXECUTION!
Good luck.
Monday, April 27, 2009
Sherpa's Observation
Recently I sat down with some friends who own a very successful restaurant in the downtown area and inevitably the question was raised as to how they were doing in this downturn of the economy. After some more conversation I realized that they were doing fine because they had never taken their eye off the ball or moved away from their original vision--good food, good service, good value!!!!! I looked around the place and it was clean, well organized, freshly painted--in short it projected a great image. A place where one wanted to have dinner or lunch--a sharp contrast from other places I have been in recently which were openly projecting an image of failure and decay, deferred maintenance issues, cut backs in staff/service, smaller portions, cleanliness issues. If business is slipping--return to the basics!!!!!!
Meridian Valuation Services
Click here: Meridian Valuation Services
Looking for a business valuation, equipment appraisal or equipment brokerage? Check out Meridian Valuation Services. I have known and worked with Ed for many years and can highly endorse his professionalism, hard work and honesty.
Looking for a business valuation, equipment appraisal or equipment brokerage? Check out Meridian Valuation Services. I have known and worked with Ed for many years and can highly endorse his professionalism, hard work and honesty.
Thursday, April 23, 2009
Sunbelt IBR In the News...
Fearful business buyers
April 22, 2009
Posted by Norm
You might think people would be hankering to buy businesses, what with the frail economy tripping trap doors beneath more and more jobs.
Not so, says the managing partner of the state’s largest business brokerage.
Ed Mysogland says the Web site for Sunbelt Indiana Business Resource is getting more hits. But the actual number of serious inquiries is at similar levels to the same period last year and even the year before, when the economy was still roaring.
Why? Mysogland is left to speculate. But his informed opinion is that fear of risk is still a formidable barrier to entry. Younger people shouldering responsibility for children and carrying mortgages and student loans are particularly skeptical about taking on additional risk.
“Most people will think twice about small-business ownership,” he says. “Getting a paycheck every week doesn’t sound so bad.”
It’s not as if good deals aren’t available. Businesses are selling for less largely because their revenues and profits are down. Restaurants are still going for 25 percent to 50 percent of revenue, but the total sale prices have slipped because most restaurants are generating less revenue.
What about you? Are you considering buying a business or starting one? What do you think about conditions?
To view the original article online click HERE
April 22, 2009
Posted by Norm
You might think people would be hankering to buy businesses, what with the frail economy tripping trap doors beneath more and more jobs.
Not so, says the managing partner of the state’s largest business brokerage.
Ed Mysogland says the Web site for Sunbelt Indiana Business Resource is getting more hits. But the actual number of serious inquiries is at similar levels to the same period last year and even the year before, when the economy was still roaring.
Why? Mysogland is left to speculate. But his informed opinion is that fear of risk is still a formidable barrier to entry. Younger people shouldering responsibility for children and carrying mortgages and student loans are particularly skeptical about taking on additional risk.
“Most people will think twice about small-business ownership,” he says. “Getting a paycheck every week doesn’t sound so bad.”
It’s not as if good deals aren’t available. Businesses are selling for less largely because their revenues and profits are down. Restaurants are still going for 25 percent to 50 percent of revenue, but the total sale prices have slipped because most restaurants are generating less revenue.
What about you? Are you considering buying a business or starting one? What do you think about conditions?
To view the original article online click HERE
Larry's "HomeRun" Spotlight!
Hit a HOME RUN with one of Larry's Businesses for Sale!
Larry Battershell
Sunbelt Indiana Business Resource
Phone: 317-908-9550
Fax: 317-573-2111
Email: http://us.mc582.mail.yahoo.com/mc/compose?to=inbizsales@aol.com
Visit my blog: http://www.businesssherpa.blogspot.com/
Larry Battershell
Sunbelt Indiana Business Resource
Phone: 317-908-9550
Fax: 317-573-2111
Email: http://us.mc582.mail.yahoo.com/mc/compose?to=inbizsales@aol.com
Visit my blog: http://www.businesssherpa.blogspot.com/
Businesses for Sale
NEW - Liquor Store: Gross revenue $940k/yr. 217 Liquor license. 3500 sq. ft. store. Marion County. Asking $500k plus inventory.
LOOK! New Palestine Pub/Restaurant: Gross revenue $800k/yr. 3-way. Nice kitchen. RE available for lease or purchase. Possible contract!
NEW - Niche Advertising Business: Established 10 years. Homebased business. Asking $50k. H-N819
Downtown Cafe w/ RE: Seats 50 with kitchen. Beer & wine. Freestanding building w/ patio. 1800 sq. ft. Great location on busy street. Real gen with lots of possibilities! C-N797
Family Style Restaurant: Small town w/ RE. 5700 sq. ft. building w/ rental units included. 2008 Gross Revenue $800k. C-N679
Auto Collision Repair: Established 39 years. $2.1 million gross sales. H-N751
Swimming Pool Products: Gross Revenue $1.4million. Owner's cash flow $196,000.
Castleton Sports Bar: Nice! Motivated seller.
Steakhouse: Seats 200. 3-way liquor license. Gross Revenue $1.9million. Owner's cash flow $322,000. C-1598
Retail Custom Lighting Store: N-Side Indy.
NEW - UPS Store: Hamilton County. Gross 2008 $235k. Owner's cash flow $41k. Asking $84k. H-N823
Franchise Pizza/Pub: Long established. Health forces sale! Suburban North.
Downtown Deli: High traffic location. Health forces sale. Gross Revenue $243k. Breakfast & lunch only. Mon-Fri. C-N658
Japanese/Sushi Restaurant: Indianapolis
Driving School: Asking $50k. Price reduced. H-N670
NEW - Franchise Deli: Carmel. Motivated!
High Volume Sports Bar: Suburban Eastside. Kitchen. Dance floor. Pool tables.
Upscale Sushi Restaurant: Gross Revenue $570k/yr. Owner CF $100k/yr. Priced to sell!
Neighborhood Bar w/ Real Estate: Established 40 years. Downtown Indy. 3-way 210 license.
Rural Southern Indiana Bar/Restaurant: Small town. 3-way. RE Included!
Restaurant/Bar: Family owned over 16 years. 3-way. Kitchen. RE available.
Downtown Bar/Restaurant: Gross Revenue $900k/yr. RE available. Great reputation.
LOOK! New Palestine Pub/Restaurant: Gross revenue $800k/yr. 3-way. Nice kitchen. RE available for lease or purchase. Possible contract!
NEW - Niche Advertising Business: Established 10 years. Homebased business. Asking $50k. H-N819
Downtown Cafe w/ RE: Seats 50 with kitchen. Beer & wine. Freestanding building w/ patio. 1800 sq. ft. Great location on busy street. Real gen with lots of possibilities! C-N797
Family Style Restaurant: Small town w/ RE. 5700 sq. ft. building w/ rental units included. 2008 Gross Revenue $800k. C-N679
Auto Collision Repair: Established 39 years. $2.1 million gross sales. H-N751
Swimming Pool Products: Gross Revenue $1.4million. Owner's cash flow $196,000.
Castleton Sports Bar: Nice! Motivated seller.
Steakhouse: Seats 200. 3-way liquor license. Gross Revenue $1.9million. Owner's cash flow $322,000. C-1598
Retail Custom Lighting Store: N-Side Indy.
NEW - UPS Store: Hamilton County. Gross 2008 $235k. Owner's cash flow $41k. Asking $84k. H-N823
Franchise Pizza/Pub: Long established. Health forces sale! Suburban North.
Downtown Deli: High traffic location. Health forces sale. Gross Revenue $243k. Breakfast & lunch only. Mon-Fri. C-N658
Japanese/Sushi Restaurant: Indianapolis
Driving School: Asking $50k. Price reduced. H-N670
NEW - Franchise Deli: Carmel. Motivated!
High Volume Sports Bar: Suburban Eastside. Kitchen. Dance floor. Pool tables.
Upscale Sushi Restaurant: Gross Revenue $570k/yr. Owner CF $100k/yr. Priced to sell!
Neighborhood Bar w/ Real Estate: Established 40 years. Downtown Indy. 3-way 210 license.
Rural Southern Indiana Bar/Restaurant: Small town. 3-way. RE Included!
Restaurant/Bar: Family owned over 16 years. 3-way. Kitchen. RE available.
Downtown Bar/Restaurant: Gross Revenue $900k/yr. RE available. Great reputation.
NEW - High Volume Sports Bar: Hamilton County. $2.4 million gross sales. One of the area's nicest establishments.
NEW - Pizza/Bar/Restaurant: Southeast Indy. RE & house included in sale.
Self Storage Facility: 136 units. 3 acres. Indianapolis.
Winery: Gross Revenue $1.9 million. Nice!!
NEW - Pizza/Bar/Restaurant: Southeast Indy. RE & house included in sale.
Self Storage Facility: 136 units. 3 acres. Indianapolis.
Winery: Gross Revenue $1.9 million. Nice!!
Tuesday, April 21, 2009
Subscribe to:
Posts (Atom)
Son Isaac on Camel in Tangiers
