Success Stories | Tools & Solutions | Consult Your Guide | SmallBiz News  | Related Links | Advertise 

Welcome to Power HomeBiz Guides!

Home | About Us Contact Us | Site Map | Search

 
 

 

Starting a Biz
Working at Home
Financing a Biz
Growing a Biz
Managing a Biz
Marketing/Promotions
Ecommerce/Internet
Online Marketing
Business Ideas
Leadership/Mgt.

Consult Your Guide


Consult Your Guide
Starting a Biz
Financing a Biz
Business Ideas
Marketing and Promoting
Managing & Growing a Biz
Submit a Question
Meet Your Guides 

Related Articles


The Right Time to Franchise Your Business
Knowing the Do's and Don'ts in Buying a Franchise
A Checklist of Questions to Answer Before You Buy a Franchise
To Open or Not to Open a Major Franchise Business
Raising Money for Your Franchise
Achieving Success Through Franchising

Recommended Books


The Business of Fashion: Designing, Manufacturing, and Marketing
Inside the Fashion Business (7th Edition)
Case Studies in Merchandising, Apparel and Soft Goods
Apparel Manufacturing: Sewn Product Analysis (3rd Edition)
The Entrepreneur's Guide to Sewn Product Manufacturing
 
ab
 

The Right Time to Franchise Your Business

Q. I have a fairly successful home based business I started in my spare bedroom 2 years ago. I started from nothing and grew the business dramatically to over $120,000.00 in the last year. Growth has slowed but consistently gains over last year.

What I want to do is form a franchise for my business and sell it to others as a home based business. I'm hoping, if things go according to plan, to be able to have all my domains working as separate businesses that I will lease to people who want an Internet Business but don't have a clue how to start it or to do the web work and "lease" it to them (for lack of a better word) while I remain control of the domain name until the lease period is up. (Say... a year, or whatever we agree on.) In a nut shell, I will have a website with the product catalog. Each domain will be linked to that store catalog, though the business will be owned by several different people. They pay me an "Upfront" fee $3500.00(again I haven't worked out all the figures yet) for an established running business. (Like they walked up to a fully furnished Sears store and all they had to do is unlock the door.) The up-front, non refundable fee covers the website, fully automated, the product, hosting fees etc, everything in a nutshell. I get and keep a copy of the credit card they want to use for their business and I charge them a monthly fee of $150.00 for the domain, web hosting & maintenance of the catalog.

When they get an order a copy is sent to them and one to our Wholesale Warehouse. Each order is product that will be purchased from our Wholesale store. We use our merchant account to process their sales , and we will charge them a flat .50( or whatever) per transaction. If they want to get their own Merchant account and process their own sales we will have an option for that as well. Then our Wholesale Warehouse will drop-ship their order to their customer, using the name of their business so the customer is never the wiser.

Then after the agreed on price is met, they have the option of continuing on with us doing the work and paying us a fee, or they can go on their own and at that time the domain would be transferred over to them. WHO do I contact to make this a reality? Where would you go with it? I need a business councilor or something, someone who can help me structure this... who is it that does that sort of thing???  Rita 

 

A. Dear Rita: 

I commend you on your vision! Many people want to get from point A to point B, but do not know how to get there! You know what you want and need to do, and just need a few resources to make you reach your goals!

Freelance/Freeagent business managers DO exist, is just a matter of finding one that you can work with and that specializes in what you require. But, first, I recommend finding a SCORE (Service Corps of Retired Executives) counselor that you can consult with. These are volunteers offer free counseling services, and are 'been-there, done-that' people. I have one that I visit with via email on a regular basis, if for nothing else than to just bounce some ideas off of. You can check your local phone directory to see if they have an office near you, or go to http://www.score.org to do an online search.

If you want to work with an individual, and not a company, you need to find a consultant who either has the knowledge to do what you want (probably less expensive), or has the experience. To find such a person, it may behoove you to conduct some searches at major job opportunity websites, such as Ants.com, Guru.com, Monster.com or FlipDog.com. You have done well in knowing how you want the business to be set up, but be sure to be very specific about the duties you want such a consultant to perform. Additionally, you will need an attorney who specializes in setting up franchises to complete the paperwork for such.

Your other option is to work with a company who does nothing except help set up franchises. The one that I have had discussions and am familiar with is FranCorp (http://www.francorp.com). I cannot vouch for their work, but they were professional when I asked for more information about what they do. By using such a service, they help set the franchise of your business up, and then you can focus on the marketing aspects once the paperwork is complete.

I hope I have given you a starting point to begin your research. Best of luck and feel free to contact me if I can help you with anything else!cover

Best,

About the PowerHomeBiz.com Guide: 

Tammy Harrison is a successful home-based working mom for over five years. She holds a degree from Mizzou in Consumer Economics. Her business focuses on Marketing and Creativity for Small Businesses as well as numerous other small businesses. For more information, you may contact her at http://www.jdharrison.com  

 

The opinions expressed in this column are those of the author, not of PowerHomeBiz.com. Users should not treat the Guide's response as legal, accounting, or professional advice as all answers are intended to be general in nature. Such advice can only be properly given by qualified professionals who are fully aware of a user's specific geographical areas or circumstances, such as an attorney or accountant.

   

ab  

Special Top Sponsor

Sponsored Links
(Advertisements: Your Link Here)