Archive for September, 2009

Choosing a bad name may not make or break your business, but it sure can make the road ahead rockier, especially when it comes to branding and believability. Before you commit, first ask yourself: Is it easy to say? Is it easy to spell? And is it easy to see?

Your name is the first thing potential clients will see or hear, so it had better leave a lasting impression.

Where do you start? First, pick a name that’s memorable. New businesses come and go, but it’s the ones whose names stand out that get new clients.

Think about it. The harder the name is to say or spell, the harder it is to find in the phone book or on the Internet. Plus, if people are afraid to mispronounce it, you’ll miss out on all that good word-of-mouth public relations.

Next, pick a name that gives a clue as to what your business does. Just because your favorite flower is a daisy doesn’t mean you need to incorporate the word daisy into the name of your auto body shop.

Sure, business names are personal, especially with small firms. But too many businesses focus their branding on what they like rather than the tastes of their target audience.

Also, try to stay away from trends. Pick a name that is timeless and branding that will appeal across the board.

If you’re running a day care center, for instance, you’re marketing to the child’s parents, siblings, grandparents and community. Choose a name that is gender-neutral, age-neutral and location-neutral.

What’s the long and short of it? The longer the name, the harder it is to say — and type, when you’re thinking about Web domain names. Long names tend to get abbreviated or shortened in marketing materials and Web addresses, which ultimately leads to confusion and frustration.

Think about Google, Target, Kodak, Pepsi, Ingles, Belk and Taco Bell. Just about all the great company names and products are short and easy to say, usually one word or two.

What about personal names? They can add credibility to your company, like McDonald’s, L.L. Bean and Williams-Sonoma. But in my book it’s better to pick something catchy that lends well to a great logo and great image design. Think Amazon, Yahoo, Krispy Kreme and Juicy Couture.

So, what’s next? Stake your claim. Register your assumed name or file your incorporation papers right away. Get your domain name from services like www.godaddy.com or www.dotster.com. And start using either TM (trademark) or SM (service mark). You don’t have to register them to use them.

For more protection, the cost of purchasing a U.S. trademark or service mark is a drop in the bucket compared with trying to defend it later, especially if you’re thinking about nationwide growth or franchising.

When is a license not just a license, but also a regulated franchise?  If you are expanding your business through the authorized use of your trademarked products or services, you may think: “I don’t want a franchise, just make it a license agreement;” or “A trademark license isn’t a franchise is it?” or “I want to set up dealers, those aren’t franchises, are they?” This article tries to answer these questions.

Franchise laws have been applied to contractual relationships that to some appear far removed from the traditional franchise industries, including software licenses, merchandising licenses, and Internet technology licenses.

Franchising as an identifiable form of business began in the 1950’s with such chains as McDonald’s, Holiday Inn, H&R Block, Century 21, and KFC. Growth accelerated in the late 1970’s, and shows no sign of slowing. With the growth of franchising has come government regulation, to curb perceived industry abuses. In the U.S. about 40 states and the Federal Trade Commission (“FTC”) now regulate franchise offers. continue

Rule 504

This rule is considered by many as the perfect answer for the company just starting out that needs to raise less than $1 million but can’t afford to go through the whole SEC registration process. Until they grow to a point where they can afford it, Rule 504 offers such companies an out:

• An exemption to raise up to $1 million
• No disclosure criteria
• Few general solicitation and resale restrictions
• No limit as to the number or type of investors

Actually, Congress’s original intent in 1982 for Rule 504 was to “set aside a clear and workable exemption for small issuers to be regulated by state blue sky requirements, but by the same token, to be subjected to federal anti-fraud provisions and civil liability provisions.” Rule 504 exemption is provided for almost any type of organization, including corporations, partnerships, trusts, or other entities. However, it is not applicable to companies already reporting to the SEC (subject to the ’34 Act) or investment companies. continue

The decision to purchase a franchised business can be an exciting and rewarding decision.

There are many types of franchise businesses offering you new opportunity, independence, growth, challenge, a comfortable income, prestige and security.  However, many important questions need to be answered, both by you and by the franchisor before you make a decision to buy.

There are over 2,500 franchise businesses being offered throughout the United States today.  The right one for you will depend on many factors such as the franchise fee; start up costs of the business, your financial goals, available business locations, business hours and experience required.

One important thing to know is that franchising is almost a sure thing.  Less than 4% of all franchises fail according to the U.S. Department of Commerce.  That is amazing because the failure rate for non-franchise businesses is as high as 85%. continue

Thinking of getting into your own business? Don’t know where to begin? Don’t know what type of business or the costs associated might be?

Profran Consultants are profession franchise consultants who understand what you are experiencing and know how confusing the process might be for some. Our consultants want to make the experience a pleasant one by educating you in the procedures of search for the right franchise, understanding what a franchisor wants from you and coaching you in the process that allows you to have a better chance of succeeding in by accepted. Most people don’t realize that franchises are not sold but awarded. You cannot buy a franchise, but instead be licensed to operate the business under the franchisor’s trade name and marks. continue

With all of the investment opportunities that are available, how does a private investor make the selection of who, what and when to invest in a particular project? If you speak with an average private investor and ask how they made the decision to invest, they will tell you they rely on their instincts as much as their due diligence. Of course they investigate management looking at past history, achievements, successes and accomplishments along with the overall business concept that must make sense are taken into consideration. Paying attention to the benefits of investing is extremely important too. But it’s that feeling in the pit of the stomach that seems to cause the decision. Does it feel good?

All private investors are looking for that “home run” investment opportunity that will provide them with a return on investment of ten times or more the initial investment within a short period of time. How often does a home run occur? More often than most private investors realize. continue

For the past 50 years or so, the majority of private investors who have been fortunate enough to purchase shares or units in a franchisor company have not been disappointed when one of two things took place. Either the company was bought out or went public. I am only speculating, but I believe the average returns could be triple digit. Over my 30 plus years in the field of franchise development, I’ve witnessed a number of companies with returns  of over 100 times what the individual private investor initially put into the company.

There is no doubt, anyone investing with a franchisor that realizes 10, 15 even 20 times a return would be extremely happy if it took place within a 24 to 36 months period of time. Profran Consultants can assist you in sharing private information about several companies that are presently offering equity through a private placement offering which is in compliance with Security & Exchange Commission regulations.

Profran Consultants has launched its national affiliate marketing program that allows individuals the opportunity to promote and sell the services of the Company through web site banner campaigns, e-mail campaigns and word of mouth. Affiliate earn income when an individual or company contracts the services of the Company. Affiliates can earn from Franchise Consultation Services, Franchise Development Services, Private Placement Offering Services and from the Purchase of a Franchise that the Company represents.

You can learn how the program works by going to Profran Consultants Affiliate Program or Go directly to our Register Page to sign up.

There comes a time in the evolution of every business   that  a  decision  needs  to  be made concerning whether or not to expand to reach a larger marketplace and, if so, the best method to achieve that goal.

Franchising, which is one method of expansion, has become increasingly popular in the past three decades.  There is no doubt as to its success but the important questions are whether it is right for you and whether you are ready to be a franchisor.  To help you answer those questions, let’s explore what being a franchisor requires, mentally, physically and financially. continue