The American Recovery and Reinvestment Act of 2009 …
… Is the official name of what is known among the general population as Obama’s Stimulus Package, occasionally called “The Stim” by various news talking heads – the ones who are clever, that is.  An Obama Small Business plan does not appear to be in the works, but even critics acknowledge that the Obama Stimulus Plan contains a number of “good news” elements for small business owners, especially in certain sectors.  The entire package totals $787 billion, and this amount is arrived at by combining the value of tax cuts, direct cash infusions, and loan guarantees over and above those that already exist.

Barack Obama’s Stimulus Package – Obama For Small Business
In numerous stump speeches during the 2008 election process, Barack Obama consistently came out in favor of locally owned businesses.  That concern has carried over to his presidency.  Here are some elements of the Obama Stimulus that directly benefit small businesses:

• Larger loan guarantees – The U.S.

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Franchise Contracts For Buying a Franchise
Becoming the owner of a franchise is now more popular than ever.  One reason is due to the state of the economy, where former employees want to strike out on their own.  Another is the wide selection of franchises available for sale – everything from traditional fast-food restaurants and convenience stores to less conventional dog-walking services and mobile computer repair operations. 

Franchise contracts, also known as franchise agreements, are the legal documents you sign as a franchisee.  When buying into a franchise you will have certain rules to follow – a whole bunch of rules, actually – and obligations that must be met.  In return, the parent company agrees to perform a number of tasks on your behalf.  The franchise contract is the most important part of any franchise transaction – well, other than the money you pay to acquire it, of course.  Here are some things you should know before entering into a franchise agreement:

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Franchise Terms
Every industry or field of study has its own buzzwords and unique language.  This is true in medicine, real estate, book publishing, or just about any other venture.  People interested in buying a franchise will find it difficult to make wise business decisions without understanding the franchise terms that are in use – both as part of general conversation as well as what is contained in legal documents.  The following franchise glossary – a listing of franchise terms and franchise definitions – includes a basic explanation of words in common usage.  This list also includes franchise agreements terms.  It should be noted that many of these words or phrases have multiple meanings.  The intention of this franchise glossary is to convey only their meaning as they relate to franchising.

List of Franchise Terms & Franchise Definitions
Agent – A person or business entity that is legally empowered to act on behalf of an individual or company.

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Start a Franchise Business
Many small-business owners reach a point where their company’s success makes them think of expansion.  One possible way to enjoy additional income involves opening a second location, and then adding more as time and cash allows.  But an increasingly popular method involves franchising your business.  The franchising process will allow you to earn significantly more in both fees and royalties than you could ever hope to make by running multiple locations on your own.

The Process of Franchising
Franchising opportunities are available no matter what kind of business you run – whether it involves retail or wholesale locations, a mobile operation, or even a work from home situation.  The question of how to start a franchise rests upon several basic elements, all of which must be present in order to be successful.

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An Internet Business Opportunity Awaits
The most important question a prospective business buyer can ask is, “How much is that business worth?”  There are accepted methods to come up with the proper valuation of a “bricks & mortar” company, but an Internet business valuation rarely fits those parameters.  If you have an Internet business opportunity fall into your lap, or you are actively seeking out an Internet business for sale, how do you know that the asking price is a fair one?  Owning an Internet business can be fraught with difficulties; the last thing you want to do is pay too much.

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Getting the Low-Down on Franchises
For people who want to open a business they can call their own, the option of buying a franchise is clearly one of the best possible routes to take.  Franchises offer instant brand recognition, a proven operating system developed over many years, and plenty of corporate support.  But not everything is flowers and puppy dogs in the franchise world.  There is always the prospect of a franchise failure, and the smart entrepreneur should always look at the down side when contemplating any sort business investment.  The franchise failure rate will vary by industry and even depend upon the brand in question.  Specific details are noted below.

Here are the top five reasons why franchises fail:

1. Ineffective Parent Company
A successful franchise concept offers products or services the public needs, at prices people are willing to pay, and in a manner that makes them feel good about doing business with that establishment.  Conversely, franchise failures occur because they sell something consumers aren’t clamoring to buy, or else have indifferent feelings about.  If the parent company’s business plan is overly complex, or should the franchisor not provide an adequate level of support, your business will suffer accordingly.

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It’s business awards season again – the time when just about every company out there launches an award. Do you enter them? If you don’t, here’s why you should. 

Firstly, if nothing else, business awards are fantastic for teaching you how to write about your business in a positive way. If you’re planning to ever write tenders, you’ll know how important this skill is. Also, because you only have a small amount of space available to write why you should be considered for the award, you’ll need to be able to write about your business in a very succinct way. And then, once you’ve entered the award, if you are declared a finalist and if you’re lucky enough to win, the PR opportunities can be enormous. I know one of my contacts didn’t have to do any promotion at all, the year she won a massive business award. 

Having said that, small businesses in particular don’t often enter business awards because “we’re too small and we won’t win anyway.” My answer to this is how do you know? If every small business felt like that, we wouldn’t stand a chance out there when compared to the big companies.  So, come on – as long as the business award is free or very low cost to enter, why not?

Here’s some of the business awards out there right now (please note, if you’re holding a business award and your award isn’t on the list, please don’t be offended – it’s simply that I didn’t know about you). 

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“Business Seller Retiring – Priced to Move”
While searching for an existing small business to buy, the novice entrepreneur will come across a few deals that seem almost too good to be true.  There are times when a family situation or a dodgy medical condition may require a quick sale at a below-market price, but these are exceptions that come along rather infrequently.  Uncovering the truth as to why a person has decided to sell his or her business is the first step one should take in the due diligence process – an effort that should be extended to all aspects of the pending transaction.  But it is only the first step, as there are other red flags to be considered as well.

Hiding the Truth Behind the Sale
Business owners who are anxious to move on may tell a buyer just about anything to close the deal.  A savvy buyer would not purchase a used car without examining its repair history and having a trained mechanic check it over.  The same should be true when buying a business, especially since the price tag is significantly higher.  Of course, the fact that the owner plans to retire can be perfectly legitimate.  However, it should be your goal to uncover the reason behind that decision.  Here are a few avenues worth exploring:

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We live in a world that is riddled with crime. You only have to pick up a newspaper or watch the first five seconds of the news to know that. However, as a result, there is a huge demand for all kinds of security and protection, and that demand comes from all walks of life and areas of society. This has given rise to the security and protection business and there are now thousands of companies worldwide that offer such services. As a matter of fact, those businesses are extremely profitable if you know how to run them effectively. Unfortunately, some individuals that set them up have no business experience and this may be why there are many security and protection businesses for sale, and that provides you with excellent investment opportunities!

Security And Protection Business Opportunities
As security and protection businesses for sale can be extremely profitable, the possibility is worth looking into and buying. You do not have to take on a long-term role in the company because it will run itself if you have the right people in place. However, before you buy a security and protection business, you need to assess the opportunities out there. Some companies only provide alarm and equipment services, whereas others offer the whole lot – security guards, bodyguards, alarms, equipment and so on. If you want a very real investment then either invest in the latter, or the former with a view to expansion as soon as possible. The former will be cheaper because it has fewer assets but the latter is less hassle overall.

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Tons of Business Opportunities
After making the decision that you want to buy a business, what’s your next step?  There are literally thousands of small business opportunities out there for the prospective entrepreneur, and choosing the right one is probably the most important business decision you will ever make.  Just look at some of the possibilities: home-based businesses, Internet businesses, franchise businesses, existing small businesses – and that’s only the tip of the iceberg.  Once you have settled on the type of business, you must next choose an industry and then decide whether you wish to sell a product or a service, retail versus wholesale, and so on.  It’s enough to make your head spin.

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A Brief Explanation of Franchising
The concept of franchising goes back more than a hundred years—some argue that the idea came about in the Middle Ages, or even earlier—but what exactly is a franchise?  I’m glad you asked!  At its most basic, a franchise is the right for someone (the franchisee) to sell a product or service whose rights of ownership belong to another (the franchisor).  Let’s say I start a home carpet cleaning service.  I write a business plan, create a marketing campaign, invent a catchy name—how about “Steamo-Cleano”—and start doing business in my town.  After a year or two, Steamo-Cleano is making me a nice living, and I decide the concept is successful enough to be duplicated elsewhere.  You’re looking to go into business for yourself and come across information on my company.  After considerable investigation, you decide to open a Steamo-Cleano operation in your town.  Congratulations—you are now a franchisee.  Simple, isn’t it?

Why Buy a Franchise?
As the owner of a franchise, you will enjoy many benefits.  Here are some of the primary elements to consider:

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Buying a Franchise Business
For anyone looking to own their own business, one of the best ways to do that involves buying a franchise.  There are many reasons to explore the world of franchise businesses, including a reduced risk factor (franchises have a higher success rate than starting a business from scratch), mass buying power (hundreds or thousands of franchisees across the country buy the same inventory and supplies), and a proven operating system that has stood the test of time.  When buying a franchise business, there are a number of factors to consider.  See below for an explanation of some of the more important ones on this list.

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Over the years, I’ve heard a million horror stories from business owners about their experiences with some of the “fly by night” business brokers out there.  It’s always the same names and it always makes me wonder, “How did you get hooked up with these people?  Why did you hire them?”  I mean, I’ve seen some of their work and it’s TERRIBLE!

So, of course I feel bad for the business owner and I begin to question my ability to market my business brokerage services.  If only I had been there first.  If only these folks knew to call me or one of the other good credible brokers out there rather than the yahoo they ended up using.  Yes, you heard me right; there are a lot of good credible business brokers out there.  The problem is, there are a lot of bad, unqualified brokers out there as well.  I’m in the business so it’s easy for me to tell the difference.  But how can you, as the business owner, tell the difference?

Well, that’s a tough question to answer but I’ve been giving it some from thought and I’ve decided that the most important factors that separate the good business brokers from the bad are:

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“ He MySpaced me.” – Mary – He’s Just Not That Into You (2009)
 
Not long ago we read that back in the late 1800s when electricity was first demonstrated people fell to their knees in amazement.   The individuals who demonstrated it probably felt omnipotent. No one questioned or challenged them.   Today you’ve got to do something really spectacular to get more than a few lines in someone’s blog.   Technology permeates everything today.   It is an integral part of almost every movie.  Even girlie girl movies (we go to keep peace in the household)!  Tech toys have become integral parts of our homes/offices.  They’re indispensible. Our kids feel lost if they don’t have them … all. 
 
Staying Connected
You know:

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The Basic Business For Sale Agreement
Whether you are buying a business or selling one, a certain number of legal papers are a necessary part of that transaction.  One of the most important is the Business For Sale contract.  While the exact form of this document may vary from state to state (or from country to country) depending upon various laws that govern the sale of a business, every Business For Sale agreement will have common provisions regardless of the jurisdiction in which it is filed.  Much of the language may be considered “boilerplate,” which is a block of text that can be reused from one contract to the next.  The purpose of a Business For Sale contract is to explain, in great detail, exactly what is being sold to the buyer, at what price, and under what terms.

Standard Contract Provisions
The Business For Sale agreement will begin with something called “recitals,” which include the names of the two parties involved in the transaction and explain the purpose of the document.  It will go on to list a definition of terms, so that there is no misunderstanding by either side as to the meaning of such words as “stock,” “transfer date,” “warranties,” and so on.  There may also be sections that address the following elements:

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Financing Your Dream Business
Prospective business buyers are always looking for innovative ways to come up with the money to start a company or acquire an existing one.  If you want to buy a business, your choices may be limited based upon what you own, what you owe, how good your credit rating is, and what sort of incentives the seller may be willing to offer.  The smart business buyer will look carefully at every opportunity, selecting the one that offers the most “bang for the buck.”  In some cases, the best option to finance your business purchase is right under your feet—if you’re standing in your living room, that is.  The home equity loan is definitely worth exploring.

What is Home Equity?
According to a fairly reliable online resource, home equity is “the market value of a homeowner’s unencumbered interest in the … property.”  In layman’s terms, it is the current value of your home minus what you owe on it.  For example, if your house is worth $450,000 and your mortgage balance is $200,000, then your home equity is $250,000 (or 55.6 percent).  Banks or similar lending institutions, such as credit unions, typically provide home equity loans.

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What is a Business Plan?
Business plans are essentially resumes for companies.  They provide a description of what your business involves, how it hopes to operate, what level its earnings are expected to reach, and how soon those milestones will be met.  Anyone who wants to start a business must write a business plan, primarily because no financial institution will loan you money without first seeing your blueprint for success.  There are countless business plan templates available online or at your local bookstore, and sample business plans are usually sufficient to provide all the necessary information for more than 90 percent of prospective business owners.  Here is a business plan example to get you started.

Sample Business Plan
The term “template” can mean a standardized document that contains a basic layout in which details are added to customize it for a specific use.  A template business plan is an outline where you add information about your company to create a unique presentation.  Every business plan should contain the following sub-headings:

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Michael Jackson – Icon
Beginning with his recent death at age 50, there has been enough Michael Jackson news out there to satisfy even the hardest core fan.  Without question he enjoyed an iconic presence in the world of popular music, stretching back to at least the 1980s.  More than one music expert has declared him to be Michael Jackson, King of Pop.  The album, “Thriller,” has sold more copies than nearly any other recording, and there can be no argument that the concept of the music video – ushering in what became MTV culture – was the perfect medium to show off all of Jackson’s talents.  But few people realize that he was as much an entrepreneur as he was an entertainer.

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Life Partner and Business Partner?
Enjoying a solid, stable marriage can provide a terrific foundation for your financial future – owning a business together.  Many married couples are also co-owners of companies, and one of the easiest ways this is accomplished is through the purchase of a franchise.  You two have already figured out how to operate a household successfully, so why not take the next logical step and run a business?  As in any relationship, there are pitfalls to avoid and caution lights to note.  The concept is not for everyone.  But if you have an urge to buy a franchise, your greatest fan – your spouse – can also be your ideal business partner.  Here are some things to consider, if you are thinking about buying a franchise along with your husband or wife.

Tip One – Examine Your Skills
Each of us has abilities in certain areas.  You may be good at math, while your spouse has trouble balancing the checkbook.  He or she may enjoy talking to people all day long, and you cringe whenever the doorbell rings at home.  Make a list of all the responsibilities you will have as franchise owners – marketing, managing others, restocking inventory, and so on – and review them with your spouse based upon your respective skills and the things you each enjoy doing.  If the two of you share a number of skills and interests while others fall through the cracks, you may want to look for an employee or another partner who will fill in those gaps.

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Look Before You Leap
Once you have decided to go into business for yourself, one option is to buy a franchise rather than start a company from scratch or purchase an ongoing operation from its current owner.  There are many benefits to buying a franchise, among them high brand recognition, a strong corporation backing you up, and the fact that financing is generally more easily obtained from traditional funding sources, such as commercial banks.  But a franchise is not for everyone, and there are plenty of pitfalls to avoid before sinking your life’s savings into an opportunity that may or may not do well by you.  Although there are probably dozens – if not hundreds – of things that could go wrong, here are ten top mistakes worth considering, and then avoiding at all cost.

1. Lack of suitability
Not everyone is cut out to be a franchise owner.  You automatically become part of a larger organization, which certainly has tremendous benefits attached to it.  But you will also be required to follow certain guidelines – sometimes rather strict ones – and this does not always sit well with people who are somewhat free-spirited or have trouble with authority figures.  Make sure you read the franchise agreement with care, as it should describe in great detail exactly what rules you must follow as a franchisee.

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