| Are you being paid what you are worth? Has | | | | percentage of businesses fail within the first two |
| anybody ever asked you that? Have you ever asked | | | | years. This seems to be the critical time. If you can get |
| yourself? | | | | past the first two years then the next critical time is at |
| The answer to this question really hinges on another | | | | the five year time period. After that, most businesses |
| question: "Do you work for a boss or do you work for | | | | will survive.The three things critical to any business are: |
| yourself?" | | | | 1 - experience and knowledge |
| If you work for a boss the answer must be a | | | | 2 - sufficient start up capital (money) and |
| resounding NO! You see, you cannot possibly be paid | | | | 3 - sufficient back up capital |
| what you are worth because your boss is being paid | | | | Without these three ingredients most businesses will |
| what you are worth. He or she then pays you at a | | | | fail. When this happens the owner becomes dejected |
| discounted rate. | | | | at the failure and loss. They go back to paid |
| For example, say your hourly rate is $12.00. You do | | | | employment often embittered about their loss. They |
| your job and when a profit is made, the boss looks at | | | | have to go back to the very thing they were trying to |
| the business figures and realises that you are actually | | | | escape from - a job. |
| worth $25.00 per hour. The boss keeps the $13.00 | | | | One way to minimise business risk is to involve |
| "over-ride" on your services. | | | | yourself in a reputable franchise. Depending on the |
| That is only fair as the boss is the one putting up all the | | | | funds you have at your disposal there are plenty of |
| money, taking all the risks and accepting all the | | | | good opportunities available from $20,000 to half a |
| responsibility for the viability of the business. | | | | million dollars or more. |
| Going back to the above example, if you were being | | | | The one thing that a franchise has in its favour is that it |
| paid $25.00 per hour you are unprofitable to your boss | | | | is a tried and tested formula for success. The Master |
| and it is pointless for him or her to retain your services. | | | | Franchisor has already proven his or her system over |
| Put simply, they cannot make money from your | | | | a period of time. If you are prepared to follow and |
| efforts. | | | | work within the boundaries of an already proven |
| When it comes to occupation and employment, there | | | | system, then franchising is definitely a good option. |
| are basically two types of people: | | | | In reality, a proven franchise eliminates the necessity of |
| 1 - those who are employees, and | | | | the first of the above listed requirements (ie |
| 2 - those who work for themselves. | | | | experience and knowledge) because you have a |
| Now, if you like the comfort zone of a five day, nine to | | | | mentor (the Master Franchisor and his or her system) |
| five job with no responsibility for the viability of the | | | | to watch over you. The Master Franchisor has a |
| business, that's fine. But what if you don't? | | | | vested interest in your success because it is part of |
| It would seem that most people begin to question their | | | | his or her success. |
| employment and future prospects between the ages | | | | With respect to point two above (sufficient start up |
| of 35 to 45. In this ten year time zone, many people | | | | capital) obviously you will need access to the |
| get "itchy feet." They feel like they want to experience | | | | necessary funds to purchase the franchise package. |
| something different. Some will move on to a better or | | | | However, the necessity to have a large source of |
| more highly paid job, still working for a boss. But others | | | | back up capital (point three above) is reduced |
| want to get into a business of their own and be their | | | | somewhat because of the greater chance of success |
| own boss. They want to "call the shots" - so to speak. | | | | you will have by following the franchise system. |
| Sinking all your life savings into a business can be a | | | | Franchising is definitely a worthy option, particularly if |
| very risky move. Just think - a large percentage of | | | | your business knowledge and experience is limited. |
| any savings you might have accumulated, plus any | | | | Before committing yourself to any business venture, |
| redundancy payout (if you are that fortunate) from | | | | either franchised or other, always do your due |
| your former employment, accrued annual leave | | | | diligence investigations and make sure you discuss |
| entitlements plus a visit to your (friendly?) bank | | | | your plans with competent legal and accounting |
| manager. | | | | professionals. |
| Before purchasing or developing your own business | | | | If you have doubts that you are being paid sufficiently |
| you had better be certain of one thing. Is it a winner? | | | | for the services you provide, then consider making |
| Have you done your due diligence research? | | | | some changes to make yourself a more valuable |
| Sadly, many people attempt to start a venture of their | | | | commodity. Studying subjects such as motivation, self |
| own, usually based on a hobby or interest of some | | | | esteem and personal development will be the catalyst |
| sort. Often these businesses fail miserably. A large | | | | which will enable you to do this. |