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Wombagging, a relatively new marketing term, is the attempt to protect your brand from negative online attention. Although there are a variety of wombagging methods, most of them involve some degree of dishonesty. Therefore, despite the many advantages of guarding the reputation of your brand, it is important to carefully consider the implications of wombagging before deciding whether to take part in it.
For effective distillation, the proper reboiler technique must be in place due to the heat involved in the process. Reboilers provide heat at the bottom of industrial distillation columns. They can be regarded as heat-exchangers that provide sufficient energy to heat liquids at the bottom of a column to their boiling points. The steam from the boiling liquid is what provides the heat for vaporization. There are various types of reboilers, each with its advantages and disadvantages.
PPS sampling, or probability proportional to size sampling, is a sample-selection technique used in surveys. This technique helps to yield a representative sample of the population studied. It is typically used when a global population contains subgroups of various sizes. PPS sampling will allow for the groups to be equally represented although they are unequal in size.
The franchise business structure has several benefits for the start-up entrepreneur. One of the main benefits is the opportunity to attach yourself to a stable name brand; as opposed to starting a new business from scratch. Another benefit is the freedom, although freedom in a franchise can turn into a double-edged sword. The limited freedoms granted to a franchisee can create conflict and come with some risk attached.
Offshoring can cut a business's costs dramatically, but also might damage the United States' domestic economy. A discussion of offshoring brings mention of a very similar concept: outsourcing. These two share many of the same characteristics and sometimes offshoring amounts to outsourcing. In general, offshoring means work and usually jobs leaving the U.S.
Corporations are a class of businesses that possess status as independent legal entities separate from their shareholders. Businesses require capital to start up and run their revenue-producing operations. Corporations can acquire capital in much the same manner as other businesses -- by incurring liabilities or through investments by owners. Equity method is an accounting method used to account for investments that accord the investor significant influence in the corporation.
A PLC, or Public Limited Company, is the legal designation of a company in the U.K. that gives or sells shares of the company to anyone who wishes to buy them and has limited legal liability. The London Stock Exchange only admits PLCs onto its list, and only if they follow a strict regulatory process. The advantages and disadvantages of a PLC should be weighed before entering into such a business venture.
Incoterms are terms relating to international trade that were created in 1936 by the International Chamber of Commerce. This organization created these 13 terms to offer a way for all companies in all countries to bridge the gap between language barriers. Incoterms are designed to allow all companies shipping and buying internationally to understand the terms of shipment regardless of the language the terms are in. The definitions of these terms have been modified several times throughout the years, with the last modifications made in 2010.
Once they may have been champion horses, thundering along noisy racetracks to cross the finish line first, thereby earning healthy profits for those who backed them. Now that their racing days are over, it seems nobody wants these former stars of the racecourse, and their fate seems unclear. Could there possibly be any benefits in adopting these once-noble creatures? If so, what are the potential downsides?
Capital Asset Pricing Model (CAPM) is a theoretical framework that illustrates the association between risks and the expected rate of return of an asset. CAPM is used in the valuation of the risk. The principle idea of CAPM is that you should be compensated for the time value of money and the risk. Though CAPM is very important in calculating investment risk and the return on investment that you should expect, it has some drawbacks.
Grants for self-employed women working in America are designed largely to improve the economic standing of low-income women who are interested in finding successful career options. Other opportunities exist to provide funding for expenses for established businesses run by women, such as payroll or equipment purchases. Some nonprofit foundations use grant awards to fund programs or other nonprofits developing programs to increase self-employment opportunities for women.
In the corporate context, questions of labor standards and workplace equity are at the heart of the productivity debate. These queries help senior personnel concentrate on protecting a company's core business, paying and treating workers fairly, minimizing operating losses and investing in growth opportunities that combine technological acumen, employee genius and profit potential.
Subcontractors work when they want, taking on as much or as little work as they please. They set their own rates and decide which jobs they take. Being a subcontractor can be lucrative and enjoyable, but it also has downsides, such as having to pay for your own benefits. Deciding whether to be a subcontractor is a personal choice, so carefully weigh the pros and cons before making a final decision.
Many companies sell products or services to customers on credit. The customers receive the opportunity to make the purchase without the requirement of paying for it right away. Sometimes businesses need access to cash before the customer pays his bill. These companies discount their receivables as a way of receiving cash before the customer pays. Several benefits exist for companies that choose this option.
Audit sampling is the process of selecting specific transactions for examination during the course of an audit to come to a wider conclusion on whether an account balance is materially misstated or internal control over financial reporting is operating effectively. Audit sampling is used often in forensic accounting, accounting engagements that relate to legal proceedings, whether in process or anticipated. It is important for auditors and clients to understand that audit sampling has advantages and disadvantages.
Supplier buyouts occur when one company purchases the rights and products of another company to sell as its own. This often occurs as a leveraged buyout, in which the purchasing company acquires a suffering company using little to no capital. Though some view a buyout as a negative event, there are advantages for the purchasers, consumers, employees and managers of the supplier who go through one.
When an institution is large enough to have a number of separate parts or departments, it must decide whether to practice centralized or decentralized budgeting. To practice centralized budgeting is to make all budgeting decisions from a single location. This method offers a number of advantages to those who practice it.
A principle of workplace equity dictates that employees be treated fairly in all employment decisions, without regard to their gender, color, race or other personal differences. While workplace equity holds clear advantages for employees, the employers win as well. Thus, if you're a manager or business owner, workplace equity is a principle worth embracing.
A business owner who needs money to expand a business has a number of options for arranging financing. One option is private equity. Private equity is an investor, or group of investors, who loans money directly to businesses to help the business expand. However, there are a number of disadvantages to private equity financing that a business owner should understand before pursuing this form of investment.
A public warehouse is a storage facility open to any firm or individual in need of space to store goods in exchange for monthly rent. The arrangement could be temporary or long term. Renters will generally pay per square, pallet or foot they use in the warehouse.
In economics, comparable worth relates to the measurement of the labor of men and women as being equal in value or worth. Since introduced in the early 1970s, the comparable worth approach to the value of labor has stated that men and women should be compensated equally when their individual work requires the same levels of skill, knowledge, ability and effort. Even after the Equal Pay Act of 1963, women's wages are reported to still trail those of men by as much as 60 percent in some areas.
A network of 165 community-based organizations in the U.S. and Canada, Goodwill Industries assists those who face employment challenges by offering job training and placement. In addition to assisting people with disabilities or those who simply lack education or work experience, the non-profit helps ex-convicts attain "the skills and the tools they need to find work, launch careers and rebuild their lives," according to Goodwill's "Road to Reintegration" publication.
Companies are always on the lookout for new ways to reduce costs and maximize profits. One method that has gained considerable popularity in recent years is offshoring, which refers to the sourcing of products, parts and labor from foreign countries. Although it is an effective way of reducing costs, it has also generated a considerable amount of controversy in all levels of American society.
Most companies are funded by a combination of debt and equity. Debt financing can come in the form of loans from banks or from the sale of corporate bonds. Equity funding is generated by the sale of stock to investors who then acquire ownership rights in the company. While most companies use both forms of funding to some extent, there are advantages and disadvantages to both.
Corporate restructuring is a process in which a company changes the organizational structure and processes of the business. This can happen through breaking up a company into smaller entities, through buy outs and mergers. When a company uses one of these methods, it could strengthen the company or it could create more problems than it is worth.
A properly organized seminar offers attendees a wealth of information in one place in a condensed period of time. Seminars are often composed of several speakers, each one providing information from a different angle or perspective. People who attend seminars can learn, while those who present at seminars gain exposure for their products or services.
Some companies find themselves in the position of holding many receivable accounts and little cash. These companies often consider different methods of acquiring cash to meet their daily operational costs. One option these companies consider is discounting their receivables and receiving cash. Business owners need to consider the advantages and disadvantages of discounting their receivables in order to make an informed decision.
An agenda is a list of topics to be introduced and discussed during a meeting. Agendas are useful for many meetings such as those in government institutions, nonprofit organizations and businesses. Agendas generally include a reading of the last meeting's minutes or notes, relevant announcements, a review of the topics for discussion and a roll call. Although agendas take time to set up, in the long run they can save time and resources.
Many businesses purchase enterprise resource planning (ERP) systems to manage various business processes within the organization -- including accounting, human resources and purchasing -- in one integrated system. SAP -- an acronym for a German phrase meaning system analysis and program development -- is a computer program that some businesses use for their ERP system; it includes features for nearly all business operations.
When companies choose to issue bonds, they consider a variety of features to add to the bonds to make them more marketable. They may add a convertible feature. Convertible bonds allow the bondholder the option of converting her bond into common stock at a specific date. Collateral bonds include a claim against the company's property if the company defaults on the bond obligation; this provides additional security for the bondholder. Many companies offer serial bonds, which stagger the maturity dates over several years.
Gender equality in the workplace is an ongoing social, ethical and political issue, even with laws in place that make it illegal for employers to discriminate based on gender. The notion of comparable worth refers to determining the value of jobs to ensure that jobs traditionally held by women receive the same compensation as those traditionally held by men when each job requires the same skills, education and risk levels.
Business restructuring involves changing a company without destroying it. It is not a liquidation, but a transformation. Though it frequently receives a bad reputation, the need for business reorganization may be fueled by rapid business growth or, adversely, its decline. This can take the form of a formal restructuring under the supervision of a court, such as through a Chapter 11 reorganization bankruptcy case, or it can be a completely internal business restructuring strategy.
According to the Department of Corrections in Jacksonville, Florida, securing employment following prison release in one of the most significant factors in preventing relapses into crime. Yet the vast majority of employers are adamant against hiring ex-convicts, despite that the majority of ex-convicts are willing and eager to return to work. Understanding that the estimated 25 to 40 percent unemployment rate among ex-offenders is a likely contributor to the 44 percent relapse rate for ex-offenders within only a year of being released, the federal government offers incentives to employers who offer ex-offenders a chance to turn their lives around.
Companies record all accounting transactions using ledgers. A general ledger contains the balances from every account the company uses for financial recording and forms the central location for reporting financial transactions. Subsidiary ledgers contain detailed information from selected accounts. The balance of each subsidiary ledger must equal the balance for the corresponding account in the general ledger. Several advantages exist when companies use subsidiary ledgers.
Many companies, including restaurants, clothing stores, and movie theaters, offer franchising opportunities to people who want to be business owners. Franchises may be placed in a predetermined location based on corporate requirements or at a place the franchisee selects. Owners of franchises are required to abide by the parent company's rules, but the advantages of franchising remain attractive for some people.
Confidentiality is important in a wide variety of circumstances. A lot of information is sensitive; for example, business decisions can be compromised if too many people know about their specifics or people can get an upper hand in negotiations. On a more private level, patients deserve to keep their personal information to themselves.
Financial professionals who provide planning and investment advice to individual investors are financial intermediaries. Usually referred to as financial advisers, these intermediaries help channel savings from individuals into investments. This service is important because individuals want opportunities to grow their savings, and it stimulates economic growth and development. Financial intermediaries can help manage investment risk with their specialized knowledge and experience. The advantages of using intermediaries include risk management, fiduciary responsibility, increased liquidity for individual investors and professional advice.
The economic system of the world allows for fluctuations in the value of monetary currency, such as the dollar. The dollar can become stronger compared with other currencies, or it can become weaker. The primary condition behind the creation of a strong dollar is the maintenance of a strong economy, meaning foreign investment in the dollar as well as international trade using the dollar).
Though many people dream of becoming self-employed, there are a number of advantages to working for an employer. In many ways, it is simpler and much less stressful to have a job working for an employer than it is to be self-employed. However, there are also disadvantages to working for an employer. Before making the decision to be an employee or self-employed, a person should carefully consider the differences to determine which is best for her personal situation.
Matched sampling is a statistical method that helps a researcher create a representative sample of a group when the sample he is using is not a random selection from the group. Matched sampling is useful for analyzing political surveys and customer reviews. Many people don't respond to these types of questionnaires, so the researcher needs to apply the information from the people who do respond to predict the beliefs of the general public.
The concept of Total Quality Management is rooted in the idea of providing all of the tools, training, and experience necessary to measure the entire quality control of an organization. It can also provide the intercommunication required to avoid departmental problems and quarrels that would otherwise bog down the process and result in costly delays or mistakes. In order to understand the concept of Total Quality Management, or TQM for short, there are a number of advantages and disadvantages that must be considered.
One of the main goals of many workers is to advance in a career field to positions that offer more responsibility, better pay and better benefits. Some workers are able to advance in their careers through seniority. Seniority is a system in which workers who have worked for a certain employer or held a certain position longer than others enjoy benefits over newer workers. Unionized employees often work in seniority systems.
E-payment is a general term used to describe any type of payment that is made online, for an online good that is then shipped or transferred to the buyer or an online service. E-payments are one of the principal features that make all e-commerce possible and many different forms exist. E-payments are also a relatively new method of payment and they have downsides that businesses are working to mitigate, improving the experience for all consumers.
Micropayments are small payments, generally under $2, that are made for content that can be accessed via the Internet. Many micropayment systems have been developed in the first 10 years of the 21st century, but had not yet achieved widespread success as of 2011. For most products, the disadvantages of micropayments have outweighed the advantages due to a number of factors.
A co-op or cooperative is a business or housing development that is member-owned. These members take the responsibility of voting other members in, though businesses are still publicly traded. If you are thinking of joining or starting a co-op, it is important to consider the advantages and disadvantages before getting started.
In almost every market situation, there is healthy competition between suppliers to offer the best product at the most reasonable price to attract consumers. There is a substitute for almost every product and consumers are free to purchase a similar, less expensive product elsewhere. This enables both the consumer and the producer to affect price levels. There are, however, certain industries where alternative products are unavailable and only a limited number of suppliers, either because of technical capabilities or access to raw materials, provide the item in question. This market situation is an oligopoly.
Government agencies, sociologists and marketing agencies use self-completion questionnaires to collect information from the general population and consumer groups. Typical advantages of this type of survey are typically low costs and that respondents appreciate anonymity. On the other hand, there is no guarantee that enough surveys will be filled in to form an accurate view of the research group.
Various "flavors" of corporate buyouts exist. Maybe you've heard of a leveraged buyout. That means the purchase of a company through its assets and a large number of stocks that the company owns. Or perhaps you've read in the business press about management buyouts. That's when management purchases enough stock to gain a controlling interest in the company from shareholders. While many are all too familiar with the downside of buyouts, few understand the advantages of buyouts.
There are several benefits in having a factory. Many things people take for granted wouldn't be possible without factories. However, factories also have drawbacks. They can be built close to large cities or small towns. Wherever a factory is developed, it will have both advantages and disadvantages.
There are two primary forms of financial capital used to finance companies: debt and equity. Equity is the term used to describe the ownership value held by shareholders in the form of stock. There are different classes of stock, primarily preferred stock and common stock. Common stock, as the name suggests, is the more common of the two. It includes voting rights in the company but, in terms of financial reimbursement, comes after debt and preferred stock in the event the company is liquidated in bankruptcy.
Depreciation is an accounting term that describes the loss of value of an item over a period of time. Businesses use depreciation as a way to show the loss of value of equipment they have purchased, primarily for tax purposes. If you are running a business and have purchased items for use in conducting business, such as equipment, computers or desks, there are good reasons why you should or shouldn't depreciate these items.
You've likely eaten at McDonald's. You might have changed your car's oil at a local Midas. Maybe you even use a home cleaning service. One thing you might not know is that you can be an owner of any one of these businesses. Franchising allows entrepreneurs to become owners of individual establishments of large corporations or companies. There are several rules and requirements, requiring specific operation of the franchise -- providing several advantages as well as disadvantages.
If you're a landlord, your ultimate goal is likely to keep your properties occupied and avoid vacancies at all costs. Keeping your rental properties filled keeps the income flowing and helps ensure you will maximize the return on your real estate investment. Vacancies not only mean lost income, but can also increase your expenses.
Brokerage models are business plans for Internet advertising initiated and operated by a broker. Such models identify ways that companies can expand their earnings through online exposure and business connections. The broker plan provides business owners with an outline of profits so that they can be aware of activities that gain and spend money. Although brokers typically charge a fee for services, there are several advantages associated with the brokerage model.
Offshoring simply means offshore outsourcing. This means a U.S.-based company will outsource its work to an overseas-based company. The most common outsourcing destinations are India, Philippines, China and South America. The process of offshoring is prevalent since the 1970s. Many large multinational companies prefer offshoring for the benefits it offers to them. The benefits of offshoring are many.
Some people toy with the idea of leaving their jobs to start their own business. Being self-employed has it's advantages and disadvantages. And before taking this step, it's wise to consider every aspect of being self-employed, and then decide if this life is right for you.
Help desk support can be provided through a telephone call center, by email or via online chat. When customers have a problem with your products, they want you to tell them how to fix it. Help desk support can also be provided internally to the company's employees. Help desk works in favor of both the customer and the company by identifying flaws in the product, providing customer satisfaction and generating sales leads.
Collective bargaining is exercised by unions to gain better pay and working conditions for their members. The process of collective bargaining involves representatives from management and from workers' organizations attempting to reach mutually agreeable solutions between the two groups. When this process breaks down, the result is often a strike or work stoppage.
Protectionism is the practice of imposing restrictions on international trade as a means of protecting the local economic structure and performance. This practice has been condemned by liberal philosopher and economists, such as John Stuart Mill and professor Richard M. Ebeling, for a variety of reasons. In the philosophical level, protectionism is accused of suppressing free will on the market, while economists stress protectionism's repercussions on the market's growth and competitiveness. However, in certain respects, protectionism can have a number of advantages for the economy and society.
Cytotechnologists are scientists who look for changes in cells. They primarily look for instances and types of cancer, although their work yields discoveries about other diseases, too.
A church bulletin gives congregants and guests important information about your church. Not only will they learn the dates and times of upcoming religious services, but they will also read articles from your clergy members and view advertisements from local businesses. Many congregations print their bulletins in black and white to save money. However, the advantages of color printing make it worth considering.
Relocating a business process like manufacturing for example, from one country to another is what defines off shoring. In an economic climate that is not too conducive to business, cost reduction is a primary factor being considered by most organizations. Western countries have already begun off-shoring (outsourcing) work to countries like India, Philippines and China because the low operation costs. The main advantage is the huge savings in labor cost, which is far lower than companies would pay in the western world.
The 5s concept is based on five Japanese words that begin with the letter "S" (seiri, seiton, seiso, seiketsu and shitsuke). By implementing it, companies can improve production rates and overall efficiency. The 5s philosophy is considered essential to lean manufacturing and represents five disciplines necessary to maintain a visual workplace. The five disciplines, translated into English, are sort, set in order, shine, standardize and sustain.
The Capital Asset Pricing Model was developed in the 1960s and continues to exert an influence today despite criticisms that it does not address realistic market conditions. CAPM provides investors a way to predict the return of an asset for its level of systematic, or market, risk. CAPM rests on a number of assumptions, which allow it to focus on the relationship between return and systematic risk, but therein, too, lies its weakness.
The major advantage of a franchise system is simply this: reduced risk of owning a business. The proven system of a franchise offers a way for investors to review performance records and decide if they want to purchase one or more units of that business. The edge provide by the dependable brand can make the difference between a mega success or abject failure.
The Public Limited Company form of business organization is a unique structure that combines the advantages of corporations and private businesses. Similar to the Limited Liability Company form in most respects, PLCs are native to the U.K. and Ireland. Entrepreneurs seeking to start their own business should consider the advantages of a PLC before choosing a structure.
The Family and Medical Leave Act (FMLA) was established in 1993. This act entitles American employees to take time off their jobs for personal or family medical reasons, including the birth or adoption of a child, without fear of losing their jobs. This period lasts for up to 12 unpaid workweeks in a period of 12 months. This law is enforced by the U.S. Department of Labor.
If there is one factor that separates the modern era from those that have gone before, it is technology. Through new technology, mankind has united the globe in a continuous civilization that is capable of living standards and life expectancy never before experienced. There are many advantages of technology that can be outlined. Technology is so intrinsic to the way that people have come to live that its advantages are often overlooked.
Becoming a licensed practical nurse, or LPN, can provide you with a number of advantages that other careers do not have. The nursing industry is constantly growing, and LPNs are an essential component of the nursing hierarchy in the medical field.
A company that selects a B2B strategy decides to sell its products directly to other businesses. B2B (business-to-business) is an alternative to the B2C strategy, in which a business sells products to retail customers. With the B2B strategy, the business has fewer clients, but each client has a larger budget and makes a larger order. The product offering is also different, because the company focuses on selling products that another company wants to purchase.
Business structure is one of the most important aspects of starting and running a company. The term "business structure" refers to how a business is owned and interacts with the government. Sole proprietorships, partnerships and corporations are examples of different business structures. A limited liability partnership (LLP) is a special type of business structure that offers certain advantages to both partnerships and corporations.
Working as an electrician is a career that many people consider after graduating from high school. With this type of job, you benefit from several advantages that you cannot get from other jobs. You get to work with your hands, make a decent wage and get started quicker than with other careers.
Specialization is a key concept in managing labor and designating duties to workers. It involves workers who perform single tasks that are part of larger processes. A group of specialized workers can, together, make a finished product, even if none has the skills to produce it alone. The history of specialization extends back to the early years of the Industrial Revolution, when manufacturers found that assembly lines staffed with specialized employees were an efficient and cost-effective means of producing goods.
The advantages that lawyers enjoy are varied. In addition to the obvious benefit (in many cases) of a solid financial foundation, lawyers enjoy the prestige that comes from undergoing an intense educational path. Lawyers enjoy the advantage of acquiring such diverse skills as negotiation tactics, as well as building up their communication abilities.
Franchises represent a potentially lucrative opportunity for entrepreneurs and investors in many different markets. Franchises are structured with a central parent company that licenses individual owners to open branches of the franchise, using the same brand name but operating independently. Franchises offer the support of an established parent company but also place special requirements on franchisees.
Every business that sells products needs an effective way to manage its inventory, whether it's a small local business or a multinational manufacturer or retailer. Inventory management involves many complicated decisions. For some businesses the choice between a centralized warehouse to store inventory or several smaller regional warehouses will affect other inventory management decisions and have a major impact on how the business operates.
Employees usually don't get to decide if they get paid an hourly wage or a salary. The U.S. Department of Labor specifies that to be paid a salary, an employee must be paid a minimum of $455 per week and must work in an executive, administrative or professional position. Outside sales representatives also qualify for a salary. Receiving a salary has its advantages as well as disadvantages.
Economics is a social science dealing with how populations use and distribute resources. Comparative advantage is a basic principle of economics that describes a situation where a certain individual or group is able to produce a certain good at a lower opportunity cost than another individual or group. An opportunity cost is the cost of doing one thing instead of another. For instance, the opportunity cost of producing shoes is forgoing the production of other goods.
Franchises are a type of business relationship where a small entrepreneur pays a large company a licensing fee and is given the right to sell that company's products or services, using their brand and business model. Many chain restaurants are run as franchises, and large organizations see it as an easy way to increase their market share while garnering licensing fees. Entrepreneurs find several important accounting advantages in participating in a franchise instead of starting their own business.
When an entrepreneur decides to start her own business, she has many different options. Among the options for entrepreneurs is buying a franchise. A franchise offers a series of benefits including a protected territory and a recognizable product line, according to online small business resource Gaebler. Franchising offers advantages as far as finances go as well.
Franchising is the process in which a company (franchisee) gets into a fully fledged business by using the proprietary knowledge, processes and trademarks of another business' (franchisor) in order to provide products and/or services. The franchisee pays certain fees to the franchisor and the latter has a say in how the franchise operates the business in spite of the fact that the latter is considered the owner of the business. This arrangement can have advantages as far as management is concerned.
When franchising a business model with "layers," the first layer is the franchiser, who develops a way of doing business and next is the franchisee, who pays a royalty for the privilege of using the franchiser's business name and system, according to the International Franchise Association. Home inspectors have a choice of franchisers that they can work with to help them succeed in their business.
Franchising involves the selling of localized company sites to independent business owners known as franchisees. While the franchisee is considered the owner of the business and is largely responsible for its success or failure, the corporation has a say in how the franchisee runs the business. This arrangement can benefit the corporation in a number of ways.
A franchise is a business arrangement where the owner of a business (the franchiser) licenses others (the franchisees) to own and operate a business based on the franchiser's concept and trademark. One of the biggest advantages to the franchise form of business operation is in marketing. A new franchisee has the advantage of backing and marketing support that would not be available if he were starting a business from scratch. The business franchise typically already has a national or regional reputation that the franchisee can benefit from. It is a reciprocal relationship since the franchisor benefits when expanding into new…
A franchise is a type of business operation where an entrepreneur follows a proven business model as opposed to starting completely from scratch. The operator of an individual franchise is known as a franchisee, who pays a fee to a franchisor to obtain the rights to open a unit. This type of arrangement can offer an array of advantages for the franchisor.
Franchising is a business model that involves setting up a company whose products and systems can be smoothly replicated, and then selling the business idea to other entrepreneurs. An entrepreneur interested in franchising should be more interested in developing a business than in developing a product. For a franchiser, the business itself is the product to be sold.
Owning a franchise is a an attractive option for individuals interested in becoming entrepreneurs. Entrepreneur.com reports that as of the year 2010, there are a variety of franchises with start up costs below $50,000 while others cost more than $300,000. While start-up costs my vary by industry, franchise agreements offer entrepreneurs a host of advantages.
Franchising is a unique form of business arrangement. The original company (called the franchisor) enters into a contract with a second business (called the franchisee) in which the original company offers the second business the right to operate under the original business's name and the right to sell its product. The franchisor usually offers guidance and expertise to the franchisee. All of this is done for a fee, and though having a franchise isn't the same as starting a business from scratch, there are a number of advantages to the system. This is also true for international franchises.
Individuals choose to open a franchised business as opposed to starting from scratch for a variety of reasons. Perhaps the greatest advantage franchise owners have is a proven business model. In other words, the business has a greater likelihood of achieving success and profit. Franchise businesses exist in all sorts of market sectors. McDonald's Corporation and Subway provide two of the top 10 franchise opportunities named by Entrepreneur magazine for the year 2010; Jani-King provides a commercial cleaning franchise business and H&R Block uses franchises to provide tax preparation services.
Franchises offer a ready-made business to entrepreneurs who have the desire to run a business, but don't want to undertake the rigors and investment required to create a business model and brand from scratch. Buying into a franchise arrangement can be a simple and profitable venture for those less experienced in business, or for those who simply have a deep faith in the franchising company and believe they can do well selling their products.
