Posted by tigertom on Nov 3, 2009 in
business Starting a franchise is similar to trying to ride a bicycle with assistance. Starting an independent business is like doing the same except without assistance. Buying into a franchise is an easier means to becoming an entrepreneur without suffering from the majority of risks other entrepreneurs experience.
Seek assistance from business bureaus to find out more about the franchisor. In the USA, the Better Business Bureau, in The U.K. you can check with the Office of Fair Trading. They can inform you if your franchise is a scam or hoax and if any complaints have been filed against that seller. Carry out a background credit check on the corporate officers of the company.
Statistics: Have you been informed of the success rates of existing franchise buyers, and will the franchise seller provide you with their names and areas ? Will you be given hard data on forecasted, actual or average profits, sales or earnings ? If the franchisor is less than forthcoming about this, it’s a red flag.
Diverse Benefits. Different franchisors provide different benefits to their people. Discover these benefits and discounts, as any of these outfits ought to be eager to discuss them with their potential franchise purchasers.
A concession is basically an agreement between the franchisor and the franchise purchaser that permits the franchisee to use the rights of the trade marks and logos of the franchise seller in running the enterprise. The franchise purchaser is also permitted to sell the products of the franchise seller by keeping to a legal agreement that protects the interests of both. There is usually an initial concession fee, and ongoing royalty payments.
Advertising costs have to be taken into account when purchasing a franchise. You have to pay advertising expenses for national advertising and to draw in new concession owners, not just for advertising your own venture.
Competition. The threat of competition to a company is all too real. The competition can knock your venture out of the running before it even begins. A franchise business in an area with tough competition has the capacity to succeed more easily due to the name-recognition factor. Individuals will readily identify with a popular venture even if there are other alternatives.
Cost. Cost is a critical factor not only in founding a company but in almost all else in life. When it comes to the expense of buying a franchise enterprise it may appear a little bit too expensive compared to setting up your own business from nothing but you have to take into account not only the short-term costs but the long-term ones as well. If you think you can foot the bill and you can benefit more from the opportunities a franchise venture has to offer then it is advisable to go the way of buying one, otherwise you kick off your own company from scratch.
Ask other entrepreneurs about the pros and cons of joining a certain franchise before putting in time and money. Even ‘though you will have help and support and a plan if you commit to a franchise, there will still be hard work. Research about each franchise as they will present different pros and cons and assess each one and find a franchise that gives you a good package and has an operating system in situ and make sure they’ll train and guide you.
Backup and Training. All enterprises require some type of support and a franchise venture is much more likely to gain the necessary support from a franchisor. A company starting from nothing could have to depend on support that is paid for and which could not in reality be relevant to the particular situation at hand.
Competition. The threat of competition to an enterprise is all too real. The competition can knock your business out of contention before it even begins. A franchise company in an area with tough competition has the potential to succeed better due to the name-recognition factor. People will readily identify with a popular business even if there are other alternatives.
When you purchase a franchise, remember that the franchise vendor usually controls the operation of the business to ensure uniformity in all the outlets. With these controls, you could find it hard to restrict your exercising your own judgment and ideas.
Once you buy a franchise, you market services or goods that are already reputable and are offered training and support that helps you succeed in your enterprise. However, not all concessions can be a guaranteed success. Purchasing a franchise allows you to operate a company and on paying a franchise fee of a few grand, you keep to a format decided by the franchisor and not your own.
Look for discounts that many franchisors have acquired and look for additional benefits. Starting a franchise has the benefit of not starting from nothing because five percent of regular enterprises succeed in the first five years while 75 percent of franchises succeed in their first five years.
Posted by tigertom on Mar 16, 2009 in
business Here are beginner tips on looking for good quality merchant account services:
- - Examine Fees Charged. There are many different services out there and as a result there are diverse fees assessed to transactions. If you utilize credit-card processing services you will be charged: A monthly fee, a discount rate which is essentially a percentage of the price of the product sold and a transaction fee. There are also other fees applied by some providers so you should watch out for that.
- - Telltale Signs You Need One. A company that has high revenue and takes in large sums of cash each month, as well as companies with special ecommerce needs and those that are high risk. Fully assess your venture as well as potential services to make sure you find the right fit. It is important to base your decision on all the data rather than just the fees.
- - If you believe you have found the perfect merchant a/c service because the discount rate is very low, the application processing is free, and approval is guaranteed then you’re likely making a mistake. You sign up for one of these low-discount, overnight-approval account providers. Then, several weeks after your company information has been reviewed you receive your real discount rates, transaction fees, and other fees associated with your account which are nowhere near the ‘economical’ or ‘free’ plan you thought applied for.
- - Receiving payments online is not as simple as you might think and when a client purchases something online there are three steps the cash goes through before it actually gets to your bank a/c. These include a payment gateway, Internet merchant account, and your site.
- - Payment Gateway. This is basically Internet code that communicates the payment information made on your internet site to the Internet merchant provider. In this process you’ll be able to accept all the credit or debit card data the provider needs in order to process the payment including full name and address, credit-card number, type of card, expiration date, phone number and any other required info. Once all of this info is collected the card may then be billed. After the payment gateway has accepted the payment info details they are transferred to the credit-card processing account provider which is simply a financial institution that allows you to process credit-card payments. The payment gateway provides the bank with the info and then the credit-card can be billed.
- - Don’t expect to toddle down to your local bank and receive cc processing a/c services because they most likely are not available. There are many online credit card credit-card processing account services that do offer this service however and will probably be your best bet.
merchant account services | merchant account providers
- - The billing process will be completed on and integrated with your internet site where the client will finish the order processing and then be able to sign out or print confirmation numbers that the order was placed successfully. While there seems to be a lot involved in processing a simple online order it actually occurs rapidly and most clients never know their data is traveling to so many places.
- - Rates: You are likely interested in the average fees charged by these companies. Since there are so many different online credit-card credit-card processing a/c providers on the Internet to choose from there are also a multitude of payment structures. In general, however, rates include: Application fee due up front, Discount rate, Termination fee, Monthly fee, Transaction rate and a variety of Miscellaneous fees.
- - Things to avoid, if you can: a) Expensive credit-card processing softwares rental or hire-purchase. b) Monthly fees. c) High discounts (the % of your sales they keep). d) Fat fees up front (anything over $500 is a joke). e) Salesmen calling you up with a scripted pitch. f) Getting lumbered with renting their shopping cart software as well. Also if they want a down-payment, and the size of their application fee. And the usual monthly minimums, discounts etc.
- - Internet merchant accounts: If you have a merchant a/c you can take credit card from anyone in any country, but if you are taking them over the phone or the internet you must be authorised for ‘card not present’ transactions. If you’re taking credit-card details over the internet, specify that you want an _internet_ credit card processing a/c. This is important. ‘Card not present’ transactions attract more fraud; if you do them with an ordinary cc processing a/c you risk losing it.
- - Set up a secure order form on the internet, and get ecommerce merchant accounts, you can trade world-wide. Ecommerce credit-card processing a/cs come in two varieties: Third party, whereby you ‘pimp’ off somebody else’s account, and a true ecommerce credit-card processing a/c, which is yours and yours alone. This latter option not as handy as it sounds if your payment gateway vendor (the service that funnels your orders to the bank) doesn’t have good fraud protection. If you’re just starting out, or you have a low volume of sales, utilize a third-party provider to start with. See how it goes, get a feel for the business, then change.
- - If your ecommerce cc processing account is terminated for reasons of fraud, you will find it very hard to get another one. Effectively, you go on a blacklist. The good news is that most gateway vendors now have good fraud protection. Still, vigilance is necessary. If an order seems suspicious, a bit too good to be true, it probably is.
- - If you have a bank a/c of years standing, a good credit rating, or a business bank account, there’s no reason you can’t get an ecommerce cc processing account.
- - If you want to sell on the internet, you need to accept credit cards. To accept credit-cards, you need a cc processing a/c, or access to one. There’re two ways of getting this: Get your own credit-card processing account, or ‘pimp’ off somebody else’s.
- - You can utilise a third-party to process your payments. They take a percentage of the sale. These are very good if you’re just beginning in business or you have a small business. They also offer more options for payment. This encourages sales. Here are some popular ones: 2Checkout.Com, WorldPay.Com, PayPal.Com and Google Checkout.
- - Chargebacks: A chargeback occurs when somebody asks their cc company for a refund. They claim they didn’t get the goods, or they bought the goods, or the products were not as advertised. This is passed on to the processor, who in turn debits the merchant. Or drops him entirely. You don’t want too many of these.
- - Don’t leave large amounts of money ‘on deposit’ in any web-based company; they’re not banks, and even banks go bust sometimes.
- - Third-party factoring sites have to be very stringent; they are answerable to their own credit-card processing account provider. Too many bogus orders and they go out of business. This is why third-party factoring services like 2Checkout are very useful to a greenhorn merchant: fraud prevention. They can screen out dodgy orders.
- - Most sellers would like to think they can sell worldwide. The fact is most of the world is impoverished; MOST countries can’t afford your products. So some citizens attempt to acquire them illicitly. A smart merchant would forbid most of the world from accessing his cart and only accept orders from the USA, Australia, Canada, Western Europe and New Zealand, and his home country. Harsh, but you’ll rest easier at night.
- - If an order looks dodgy, it probably is. Contact the client by email or ‘phone. If you don’t get a satisfactory reply or doubts remain, refund the card. Don’t let greed cause you to make a mistake.
- - When you’re making $1000+ a month, get your own cc processing a/c. Look for ‘merchant services’ at your local bank. Having one’s own credit card processing a/c means paying less in processing fees.
I hope these few beginner ideas will be of some use to you in looking for inexpensive merchant account services.
About the author: Nicky Svengali is an author for
merchant account providers and
web hosting provider internet sites in London in the UK.
Posted by tigertom on Mar 16, 2009 in
business Here are some tips on hiring a good lawyer:
- - Choose A Professional. The worst mistake you can make is choosing a lawyer you can’t trust. There are thousands of solicitors on the net. It’s necessary to discover one you can rely on. You want a good deal but it’s important you’re choosing one with a high standing. Ask your friends, family, neighbours and colleagues for recommendations.
- - It’s A Competitive Market. There are many web sites proffering legal services. Most are directories or resellers. A reseller is someone who passes you onto the lawyer who will actually handle your case. This can save you money, or be a damned nuisance. The attorney you choose ought to be in sync your requirements and circumstances. You do not need an ambulance chaser for a serious criminal charge. If you’re skint, some good lawyers do ‘pro bono publico’ work; free, ‘for the public good’.
- - What’s Involved In Your Case? You need to get the overall picture, and what your role will be as the case plays out. You also want to get an idea of how good a communicator your solicitor is. Attorneys are advocates; if they cannot communicate clearly to you, they’ll likely not have the ability to do it in a law court.
- - Shop Around. Get quotes from three or four professionals. You may be able to save yourself thousands in fees. Don’t employ a professional just because they have the cheapest rates. Consider the overall, long term fees and how important the case is to you.
- - A Law Firm Or Just A Referral Service? Referral companies have sites that make them appear to be the complete package. They take your case and then flog it to the real law firm who will pay them a fee. Once you’ve settled upon a few law firms, you can enter their business name in a search engine with the words ‘problem’ or ’scam’, and see what comes up. It may be revealing!
- - Gird Your Loins And Flex Your Wallet. Law is slow; preparation for a trial and then the trial itself will take months, sometimes years. Initial costs will be in the thousands. Costs are items like hiring expert witnesses, travel, depositions etc. The lawyer who represents you advances these initial fees that are associated with the trail and preparation.
attorney lawyer | civil lawyer | corporate lawyer | patent lawyer | criminal lawyer | litigation lawyer
- - Make Sure You Are Comparing Like With Like. When shopping for a lawyer on the internet, compare apples with apples. It’s foolish to line up a kid fresh out of school against a senior partner in a firm that dates from early last century. Suit the man to his employment!
- - Contingency Fee. When pursuing damages, try to hire a solicitor who’ll take on your case on a contingency-fee basis; he won’t get paid until you get paid. Make sure you clearly understand the payment schedule before you commit to the retainer contract. He’ll take his fees out of the money you get in your settlement; about one-third of your final settlement _after_ expenses are taken off the top!
- - The Firm’s Area Of Expertise: Some law firms web sites make it seem the firm specialises in cases like yours, but their experience is in other areas. A misinterpretation of pertinent law could be deadly to your case.
- - Ensure Your Attorney Is Aware that you will not pay anything that isn’t covered in advance by a signed and agreed-on estimate. If during the work new fees arise, make sure that your solicitor understands that you have to pre-approve the expenditure or it will not be paid for by you.
- - Put It In Writing. Disputes arise over assumptions not put down in writing. The attorney has his version of your ‘verbal agreement’, and you have yours. Disputes are best avoided by clearly spelling out everything in advance; the basis of a good contract.
- - Ask If The Solicitor Intends To Really Handle Your Case Himself. Many firms simply refer on the job to the ‘real’ specialist and get part of the fees in return. This might not be in your best interests.
- - Some Questions You Ought to Ask: How many years have you been in practice? How speedily can I expect my case to be finished? When can we meet? How long have you been with your current firm? Are you a partner or an associate? Time and accessibility. How much will the total cost be, approximately? How do you charge for your services? Can you give a detailed, written statement of cost? Is the first consultation free? Do you communicate via telephone, mobile phone, fax or email?
- - Demand A Written Estimate Of Fees, all disbursements and extras. They don’t usually get asked this sort of request. Make sure that the estimate includes an upper limit, an hourly rate and a schedule of chargeable items. Attorneys usually charge for telephone calls and photocopies. Be sure and cover contingencies with him. What will the fees be if the unpredictable occurs? You will want to be aware before you get a large bill. Attorneys aren’t charities. They’re in this game to make a profit and only the simple-minded would begrudge them. It cost a lot to get them where they are, so they charge you for it.
- - Educate Yourself About Basic Pertinent Law, both in theory and practice. Look up past cases. Then you may ask your lawyer informed questions, instead of paying his fees and hoping for the best.
- - Complete Disclosure. Be completely honest when reviewing your case with a solicitor. He can only succeed with your case if he’s aware of all the relevant info; if you keep something back it could trip you (and him) up further on. Tell him as much as you’re aware of. Do try to recall every relevant detail. Any related photos and literature you have will be very useful to him in evaluating your case.
- - A Lot Is At Stake. If you want to break a man, tie him up in lawsuits. Sit down with a number of lawyers before you come to a final decision. Consider trying to get a few recommendations. Unless you’re broke, free legal aid isn’t the way to go. You tend to get the law you pay for, regrettably.
- - Do Some Sums. Get out pen, paper and calculator. What’s the worst that could happen? Do you have enough cash to cover the lawyer’s expenses if you lose? You should ask yourself if you truly need an attorney. Do you really need to begin proceedings? A lengthy court case can hang like a sword of Damocles over your head.
- - Any solicitor who will not give you an half-hour free initial consultation is not worth meeting. Tell them upfront you want to discuss all cash matters up front at the initial meeting. Most solicitor and client disagreements are caused by misunderstandings over cash.
- - Find The Right Lawyer. Most people find lawyers by the following methods: 1) In the US, you can contact state bar associations. 2) Lawyer referral services will refer you to a lawyer who specialises in your problem, for a fee. These services can be discovered in the yellow pages. 3) Recommendations from other businessmen, friends and family who have used a lawyer recently. 4) Advertisements. ‘No charge and ‘free’ are warning signs. If it sounds too good to be true, it probably is. Many worthwhile solicitors do not advertise. Avoid hiring one who knocks at your door unannounced. ‘Ambulance chasing’, known technically as barratry, is often forbidden by local bar associations. If he’s bending or breaking rules to find clients, how likely is it he’ll follow them to win your case in a court of law?
- - Learn How To Fire Him. A contract can specify that even if you sack a lawyer, he can still get a sizeable cut of any future payout or award you may receive on your case. Ensure you know how to dismiss your attorney, preferably before you hire him!
- - Know Your Options. Be sure your lawyer informs you of them. Solicitors don’t just pursue lawsuits. Lawsuits can be a most time-consuming and costly method for one to get compensated. Ensure your solicitor is open about other methods to resolve your problem, such as arbitration or mediation.
- - Ask What Can Be Expected As A Retainer. If you like a certain lawyer feel free to negotiate over fees. A solicitor likes to charge by the hour, but often their rates can be negotiated. There are too many solicitors with too few clients today. You can get a better deal.
- - Are You Getting The Best Deal from a energetic, capable person, or a fly-by-night carpet-bagger, who, when you need them the most, will not return your calls? Trust your intuition over your head.
I hope these few handy suggestions will be of some use to you in hiring a good lawyer.
N. Svengali is an author for
lawyer and
UK personal loans internet sites in London, UK.
Posted by tigertom on Mar 16, 2009 in
business The following are simple ideas on registering a business incorporation:
- - Benefits Of Incorporation: 1. You protect yourself and your personal assets from liabilities that may be incurred by your company. 2. You get more tax credits and can avail of more tax deductions. 3. You give your company a separate juridical ‘persona’ that is distinct from the owner(s). You protect your enterprise by placing it under a corporate ‘mantle’. 4. You expand your company and give it the necessary boost for growth instead of inhibiting such growth by grasping on to it. 5. You lengthen the lifespan of your enterprise even if something happens to you or to the other owners of the venture. 6. You increase the capitalisation of your business by getting more backers who will share the profits and losses.
- - Legal ‘Personality’: Choose which legal personality you want to give your company. You can choose to make it a stock or non profit, a limited liability firm or a general or close corporation.
- - Name: Choose a name for your company and have it reserved if possible because another enterprise might register that name ahead of you. Be sure that the name you choose does not have the words insurance, university, bank, college or other words that are not legally permitted.
- - Money: Decide on the amount of start-up capitalisation or the number of shares that would be authorised for the corporation. Also carefully choose a financial institution i.e. bank. This will be the place to hold your money and is an important decision.
- - Place Of Incorporation: The country or state where you will set up your enterprise is also very important since there are locations that are more corporate-friendly than others. Make sure that you choose a state that will provide the maximum benefits for your company tax-wise.
business incorporation | company incorporation | small business incorporation
- - Location: Your enterprise location is important. This will decide legally how you ought to run your business, it will also have a good deal to do with how successful your company is. Your business needs a location that promotes the future of the company.
- - Stability: One of the top mistakes your peers have made in the past, is moving their venture around too many times. When selecting your company incorporation, you need to have a definite location in mind. Likewise your enterprise name should stay the same from the beginning. This will promote the popularity of your product or service.
- - Directors: Only file your articles of incorporation after you have decided on your board members or board of directors depending on the type of concern you have decided to form.
- - Research Your Market. The financial success of your company will rely on understanding the service or product you will sell. In order to grow successfully in any enterprise you must research your industry. This will allow you to pick a name and a strategy for your venture.
- - Marketing: Define a clear marketing strategy. Getting publicity about the possibilities of your service or product is most important. However your strategy is implemented, you need to effectively and clearly expedite this important task. If expenses are an issue, keep your marketing traditional; perhaps an ad in the yellow pages and distributing business cards.
- - Chamber Of Commerce: Attend local Chamber of Commerce meetings. Many people do not realise that county Chamber of Commerce organisations hold meetings attended by local company owners. There may also be other obscure company owner associations. When you’re beginning your enterprise’s incorporation, these meetings can be invaluable.
- - The Small Business Organization (USA). If you’re starting your corporation the local office of the SBO can be a rewarding visit. They have loads of information about the business you’re starting in, the laws governing incorporation, the process to start your corporation and the requisites to keep it going.
- - Secretary of State Office (USA): The responsibility of governing your company as it pertains to state law is done by the Secretary of State in your home state. They’ll be able to give you every legal requirement needed to run your corporation.
- - Hire A Business Attorney. Your business incorporation might seem to be a big puzzle to you. A business attorney will understand each step that should be taken and will know where to file all of the documentation.
- - You Will Need An Accountant. Financial years, payroll, taxes and benefits; these are just a few of the items you ought to be familiar with to run your business. They can be handled by a licensed accountant much more effectively than trying to juggle everything by yourself.
- - An accountant can help you in many ways. Not only in making the best fiscal decisions for your company incorporation process, but also transforming your financial procedures. This could make a big difference when incorporating. It can bring many financial benefits particularly in the area of taxation.
- - Make sure each partner’s benefits, responsibilities and role are clearly defined from the outset. You ought to also ensure your enterprise has an exit strategy for each partner. This will protect all parties joining your venture.
- - Your company incorporation is a staged process. Ensure you do not dash through anything. Cautious planning and taking your time can help you succeed.
- - Keep your corporation issues and your personal life separate. Otherwise, you’re sabotaging the reasons you ever incorporated in the first place. If you have partners, it’s necessary to have specific partner-exit process in place. It will define the buy-and-sell parameters of a partner’s business interest. This can halt serious financial and legal issues from arising. Each procedure your concern will follow needs to be set down in the by-laws of your incorporation.
- - Most small businesses are classed as sole proprietorships or partnerships. This means that the venture is owned by one or two people, sometimes more. Having this classification would be good if the venture grows and it earns big profits because then only the owners share in the profit. However, when the enterprise goes down and it has to repay its creditors, the personal property of the owner(s) may be vulnerable to seizure. Incorporating the venture as a separate ‘body’ (corpus) means that the liability of owners to creditors would only be up to the amount of his/their investment in the enterprise.
- - Sole Proprietorship. In a small enterprise owned by one, two or more people and classified as either a sole partnership or proprietorship, the majority of expenses incurred (even operating expenses) are considered outgoings of the owners and can not be used for tax deductions.
- - Small enterprises classified as sole proprietorships or partnerships don’t enjoy a separate juridical ‘personality’ so the ‘persona’ of the business is attached to the ‘personality’ of the owners. This means they are liable for anything that happens to the business and to all who suffer damages from such events.
- - Sole proprietorships or partnerships are taxed heavily compared to corporations which have lower taxes imposed. Corporations can also apply for a lot of tax deductions. This makes a big difference to their profitability.
- - Small enterprises which are unincorporated have to fend for themselves unlike corporations which can hide under the cloak of the corporate veil. Under this principle the courts won’t interfere with the operations and business decisions of a corporation unless very necessary. The court will only lift the veil of corporate independence when it is proven that it is causing harm to other people.
I hope these few handy suggestions will help you in registering a company incorporation.
About the author: Nicky Svengali is an author for
business incorporation and
investment property internet sites in London in Great Britain.