Key Factors to Consider When Buying a Travel and Tour Franchise

If you are considering investing in a travel and tour franchise, it is likely that you have many questions. For many people, the idea of setting their own business can be incredibly daunting experience, but also one of the most liberating experiences of their lives. In this article, we will look at some of key considerations which you should factor in when making this decision.

The travel and tourism industry is literally booming globally – now contributing over two trillion pounds to the economy. More and more people are thinking about how they can get involved in the travel and tourism industry, recognising the explosive and exponential growth. Starting your own travel business from scratch is one option that people often consider, however starting without a network of contacts or even a base starting point can be extremely tricky. A huge number of start ups will fail within 12 months, so always try to avoid this pitfall.

The more popular market to success within the travel industry is the travel, or tour franchise market. What this essentially means is instead of setting up a travel business from the beginning, you can buy a travel franchise which actually gives you a firm starting point to begin your business. There are quite a few travel franchise businesses online, however there are probably only a couple of established businesses. If you do choose to purchase a tour franchise, make sure to do your research and pick the franchise company which is the best fit for you.

So what can you expect in terms of support when you buy a travel franchise? When buying a franchise, there are always different levels of support. Think of this a three-tiered membership: platinum, silver and gold. The more initial investment that you are willing to put up, means the greater level of support and guidance that you are likely to receive. Nonetheless, there are some common levels of support which you should expect from all travel franchises.

The first thing you should expect is a fully comprehensive training or induction programme. Lots of franchise operators will actually offer a residential training course, so this is likely to be an intensive course over a number of days or weeks. This can be a great opportunity to spend significant time with the franchise tour operators and really pick their brains, whilst trying to soak up an incredible amount of information.

It is also likely that they will be inducting a number of other new franchisees at the same time. This is also a fantastic opportunity to meet some like minded people who are also at the beginning of the same journey that you are on. If you can take the opportunity to spend time with them and get to know their motivations behind setting up a new franchise, you can increase your knowledge but also begin to build up your travel network. In the travel industry in particular, your network and who you know can really be a determining factor in how well you do.

You can also expect some of the more practical tools for setting up a new franchise. This might include a laptop, hopefully pre-loaded with any specialist software and templates that you might need. This may not always be included as a standard support tool, so you should always try to make sure that you fully understand everything that is being provided. A functional website, which is branded towards your company name and logo, is also something which you expect.

Finally, you might also receive some branding materials, such as leaflets, tri-folds and business cards. Remember when you meet potential clients, handing them a business card can be a great way to exchange your details with them and keep in touch.

The Single Worst Mistake You Can Make When Buying A Business

Okay, so you’ve spent several months shopping around for a business to buy.

You have your financing lined up.

The numbers look excellent.

Everything seems profitable, and everything is perfect.

Except for one thing.

And that is…unless you’ve bought a business with a system in place that literally “runs itself” — whether or not you show up every day — all you’ve done is buy yourself a glorified job.

A job where you will probably make (if you measure your income per hour) less than most of your employees.

A job that will likely cause you an enormous amount of stress, anxiety and pressure every single day of the week — including weekends.

Why do I say this?

Because that is what happens many times when someone buys a business without the proper systems already installed.

You see, the key to buying a business is making sure you buy one that works on its own, whether you are there or not.

I like the way best selling author Robert Kiyosaki explains it in his book, “Rich Dad, Poor Dad.”

He defines the ideal business as the kind where you can go away for a year (or longer) and come back to find your business stronger than when you left.

In other words, the “machine” that runs your business should be so fine-tuned your presence is almost an interference. Where you actually make more money when you’re out playing golf or goofing off with your kids at Disney Land.

Of course, this begs the question of how exactly do you find businesses like that, especially for sale?

That’s a good question.

Luckily, the answer is pretty simple:

And that is don’t even bother looking at a business that is not worth at least a million dollars.

In fact, the bigger the business the better.

Why?

Two reasons:

1.) First of all, if you use private investors, it’s easier to get financing for these kinds of businesses.

Frankly, you will find it MUCH easier to get financing from investors (as opposed to a bank, for example) because they are always looking for good deals.

And if you can show them the business makes sense, many investors will jump on board with you in a heartbeat.

2.) And secondly, if you have a large, multi-million dollar business, you will have more than enough money to pay an experienced manager to “run” everything for you.

In fact, if you find a good business running on all cylinders — where everything has been profitable for at least five years straight — you should do whatever it takes to keep the current management in there and stay as far away from the office as possible.

After all, if the manager has been running things smoothly and profitably without you before, then there is no reason why it shouldn’t keep running smoothly and profitably whether you show up or not.

Anyway, the bottom line is this:

The worst mistake you can make when buying a business is buying one that is dependent on you being there.

If you want to really enjoy owning a business (and basically just cash a check for a living) then buy a business that has a fine-tuned system that runs and grows itself — without you having to be there.

Raising Finance For Starting Or Buying a Business

The most important thing is raising business finance once you have thought of a new business idea. An idea is just like a seed. You need to grow the same by raising the business finance to buy equipment or establish a workplace or even manage marketing. There are many ways through which you can arrange for money when you intend to start any business. You may borrow some from a friend, family member, or financial institute as per your needs.

Guide To Arrange Start up Funds For Business

* First, find out how much you need to invest in the business. Then check your savings. Starting your business might be risky; hence you need to arrange for the capital very wisely. Never use the retirement funds.

* Approach your friends or family members to arrange money for investment. But ensure that you make business agreements even while raising business finance from them also.

* You can also approach venture capitalists to arrange for venture capital. They contribute the money for new companies but ask for higher returns. But they usually lend for very big projects.

* Try to get the loan from a bank. Various loans facilities are available in different banks. Banks usually check for the history of the company for which you intend to borrow the money. Since you intend to start a new business, you can begin with small banks.

* Approach angle investors. Angle investors are those who intend to make more out of the capital they have invested. They act as investors in your business and also provide guidance for it.

* You can use credit cards to obtain funds. You should use this option only if you do not get funds from anywhere else. Although nowadays various people who are starting a new business use credit cards for raising business finance.

* You can even place an advertisement on the Internet or in the newspaper, citing the business for which you want the funds. The advertisement that you place should tell in detail the plan for your business and amount of funds needed by you.

* Another important way for raising business finance is to borrow money from life insurance. You can obtain loans against various policies.

* Various states also have Business Development Commissions. They help in the establishment of new business. They along with business expertise also offer money for starting new business.

Before you actually start raising business finance, take care of the following points:

* You must have detailed business plan ready in your hand. As when you approach investors for funds, they will like to see your business plan. Only if they like the same will they invest in your business. Hence ensure that you have detailed business plan.

* Always be confident in front of the investors and show them that you will do what you intend.

* You may intend to make a person partner in your business who has given you money. But before doing so, ensure that you can work with them.

Tools To Consider Buying For Your Woodworking Business

Starting a home based wood working business will require a plan. This plan should show you to get through the initial startup in a cost-effective and timely many. Part of this plan should also include a list of tools you will need to help make your home based business profitable as soon as possible.

Some of these tools can either be cordless or corded. The cordless type will be portable in that they can be used anywhere. Cordless tools will not require an electrical outlet except when the batteries need to be recharged. It should be noted operating cordless tools in a cold environment will mean the batteries having to be recharged more often. You will have to recharge the batteries in a warm environment to speed up the charging process. Using corded tools will be less expensive to purchased and will operate in colder environments more efficiently.

Some tools you need to consider to purchase during the start-up of your wood working business are many. They can be or cordless or corded. Many will require no power put just your muscle power. Here are some to consider.

1. Hand Held Circular Saw and Chop Saw.

This is hand tool that can used to cut wood and is very portable in both cordless and corded versions. Circular saws are also used to cut masonry and metal. These types of saws are often called shop saws and use special circular blades that cut through these materials. When using a chop saw get the proper training to do so and use proper personal protective equipment such protective eye ware and gloves. Not properly using such a tool can lead extreme personal injury.

You likely will never need a chop saw in you woodworking business. However a hand-held circular saw will be useful and are very safe to operate.

2. Impact Driver

These are high torque tools that can often do the work of the common more effectively with regards to speed of getting the job done. These are very popular tools used the construction industry. Carpenters, plumbers and electricians prefer the impact driver over the drill driver. However there will a number of applications the drill driver will be more useful especially if need to use the hammer drill setting of drill driver.

3. Reciprocating Saw

This tool is another portable tool that can be used to cut through wood or metal with the proper blade. The cutting action is accomplished by a push and pull action or the reciprocating action of the blade. Proper use of this tool is required as serious personal injury can result. Always remove the battery when changing the blade on such a device. If the tool is corded always unplug the device when changing the blade or making any other changes to the devices. before handing over the device to another person use its locking feature.

Starting up a wood working business will require the purchase of a number of tools Choosing a proven wood working plan should contain a list of the tools needed to help you start profiting with few problems and in a timely manner.

Best Regards

Best Regards

Buying a Business With Its Own Cash – And Not a Penny of Your Own

After reading this article, you will be ready to start applying your knowledge and reach your American Dream of owning a business. This comes with a serious effort on your part; however, by reading this article, I assume you’ve decided to take this long journey and start making a change in your life. I’m going to introduce you to some easy ways to get the money you need through the modern-day miracle of leverage. We’ll start with an approach that enables you to make the business actually pay for itself without requiring you to reach for your wallet.

Question: Is it true that the method of taking money out of the company’s cash flow is reserved exclusively for financial gurus?

Answer: It is partly true. Most leveraging techniques have that reputation. And frankly, they shouldn’t. If more people knew about them, many entrepreneurs would have been in business long ago. Such techniques only seem to be reserved for financial experts because they [the techniques] appear more frequently in strategic financial markets. You hear of many major acquisitions worth billions of dollars. Yet, you will never hear how it happened or what was involved. This information never goes public. As will be mentioned in Strategy 4, by developing a strong network with corporate leaders, you will definitely have access to that valuable information even though you might not work in the field.

These are actually hidden secrets that I’m revealing to you right now. The power of information will allow you to go far. However, it’s up to you to make the effort in searching for more information about the company that you want to acquire. Remember, the most powerful tool you have while you are dealing with the seller is showing him your knowledge in the industry and how it can be beneficial for him (and yourself, of course) to sell you the business. And, believe me, you too can put these powerful, yet simple, tools to use immediately.

Question: What is the easiest way to explain how to use a business’s cash flow for financing purposes?

Answer: Let me start by giving you some perspective on how much money we’re really talking about. One expert explains it this way:

“The amount of cash an average business puts into its cash register over just two or three weeks is usually enough to cover the down payment to buy that business”.

Think about it. The cash that collects in just a matter of days is usually enough so that, with some creativity, you can use it to satisfy the seller’s down payment. That can work no matter what type of business you are pursuing. Since there is no law that says you can’t “borrow” that money, all you have to do is figure out how to use the cash collected to pay for the business once you have acquired it. This easy if you have a C.P.A to calculate your cash flow in order to know how to approach the seller with your proposal.

Question: How does the process work?

Answer: A few steps are required. You, or your C.P.A, must determine the net cash flow generated over the first several weeks of business by determining the difference between cash receipt totals and operating expenses.

Question: What are the proper procedures to evaluate a business, and what should I prioritize to make my decision?

Answer: There are several methods used to evaluate companies. Typically cash flow, assets, or replacement values, or a combination of these, are considered when determining the value of a company. The following lists various valuation methodologies typically used by valuation firms.

Replacement Cost Analysis:

o Generally, the value of a company does not relate to the value of replacing the assets of the company. Sometimes the replacement value of the property, plant, and equipment (PP&E) is far higher than the fair market value of the operating business. Sometimes the value of goodwill, such as customer relations, corporate logo, and technical expertise are far higher than the replacement value of the PP&E.

You can often choose a particular industry by expanding facilities already owned, investing in entirely new facilities, or by purchasing all or part of a new company operating in the industry. The decision as to which investment to make depends, in part, on the relative cost of each. Of course, an investor will often consider capacity utilization, location, environmental, political, and legal issues among other things in determining where and how to invest. These issues may outweigh the importance of the replacement cost analysis; in such cases, this valuation method is not used to determine the fair market value of the company.

Asset Appraisal Analysis:

o It is generally possible to liquidate the PP&E assets of a company, and after paying off the company’s liabilities the net proceeds would accrue to the equity of the company. It is necessary to determine whether such liquidation analysis should be performed assuming rapid or orderly liquidation of the assets. However, even when assuming an orderly liquidation of a company, it is generally the case that an operating company will be of substantially higher value. It is not appropriate to use the asset appraisal approach in this case because the company is operating successfully; under such circumstances, in the industry in which the company operates, the company’s fair market value will almost certainly be in excess of the value of its assets on a liquidated basis. The sum is more valuable than the parts. It is appropriate to appraise non-operating assets using an asset appraisal approach to determine their value as part of the fair market value of the company.

Discounted Cash Flow Analysis.

o Another determinant in a company’s value is the anticipated cash flow. Discounted cash flow analysis is a valuation method that isolates the company’s projected cash flow that is available to service debt and provide a return to equity; the net present value of this free cash flow to capital is computed over a projected period based on the perceived risk of achieving such cash flow. So as to take into account the time value of capital it is typically appropriate to value the company’s cash flows using a discounted cash flow approach.

Total Invested Capital.

o Each method of valuing a company or its business units places a value on the total invested capital. These various values are compared to reach a definitive fair market value. Often it is appropriate to weight the various implied values for total invested capital based on the relative effectiveness of each valuation method used for the analysis. When the value of the total invested capital has been determined, any claims to that value that have a more senior right than common stock are subtracted to determine the fair market value of common stock. These other claims include the fair market value of all debt, outstanding preferred stock, outstanding stock options, and share appreciation rights. Non-operating assets that had not been previously valued must be accounted for and added to total invested capital. These generally include cash and the fair market value of any non-operating assets.

Terminal Value.

o An owner may expect cash to flow to capital over an indefinite period of time. While valuation models often use predictions of future cash flows, it may be necessary to represent the value of the cash flow that can reasonably be expected to extend beyond the horizon of the projections. This value, known as the terminal value, is often calculated by multiplying the fifth year cash flow by a multiple. Selected multiples commonly use the median multiple of total invested capital to comparable companies selected in the comparable public company analysis. The selected multiple may be discounted to reflect the company’s performance or size characteristics relative to comparable companies. This is quite similar to dividing the cash flow by the weighted average cost of capital and including a growth factor.

Question: Well, that is all great. However, how will that help me in the purchase of the business?

Answer: You negotiate a deal that enables the seller to receive the down payment directly out of the cash flow once you’ve taken over the company. If this sounds too good to be true, here is an example of its viability:

An aspiring young entrepreneurial couple, Sandy and Kevin, wanted to buy a thriving restaurant and pastry shop in Northern Virginia. Although they were bright and energetic, and possessed some experience in the food industry, they nevertheless lacked-by a long shot-the ability to pay the $100,000 the seller wanted down on the total price of $500,000. (The restaurant’s annual sales equaled $1 million, some of which came from a thriving commercial business selling its fresh roasted coffee to local gourmet supermarkets and coffee shops.)

Fortunately, the seller agreed to pitch in and finance the $400,000 difference over five years at 10% interest. This happens often, especially with a good deal of persuasion. The couple’s problem, however, was raising the remaining $100,000. Kevin’s parents believed strongly in their son and daughter-in-law’s skills and determination and decided to loan them $20,000 to be paid back at their convenience. That certainly helped, but they still needed $80,000. In order to reach this goal, the couple’s C.P.A developed a cash flow statement for the first month of his clients’ new ownership. Their suppliers wouldn’t require any payment for a month so Sandy and Kevin would not have that expenditure. However operating expenses such as rent, payroll, and utilities had to be considered.

Upon seeing the numbers from the financial analysis, Sandy and Kevin were convinced they could easily draw $80,000 from their business within four weeks. But the big question was: How could they convince the seller (who expected a $100,000 check on closing) to wait three to four weeks for his money?

This is where creativity, persuasion, and earnestness were required. Strategizing with lawyers and their C.P.A, Sandy and Kevin devised a plan that enabled the seller to withhold the final papers of the sale for four weeks. During that period, they would pay the seller approximately $20,000 a week. If they missed a payment, the seller would have the right to renege on the deal. The seller agreed to this proposition giving Sandy and Kevin their American Dream for no cash of their own.

This example represents over 80% of all take-over and acquisitions. In the worst-case scenario, the seller may not cooperate; in this case you should understand that he probably was never seriously interested in selling his business. It is possible that the seller was waiting to see how far you would go during the negotiating process, which brings us to the next question.

Flood Damage Update – Top 10 Mistakes When Buying Flood Damage Insurance

What do you mean I’m not covered for flood damage? Unfortunately that’s what millions of homeowners are saying each year with shock and sometimes horror.

Of course they never thought it could happen to them, after all they don’t live in a flood zone. But nevertheless they experienced a record rain storm, sewage backup or county flood control failure. The good news was know one was injured, the bad news is they didn’t purchase the right flood insurance policy or worse – they had no policy at all.

To help you avoid this fate, here’s the top 10 mistakes most people make when it comes to buying flood damage insurance.

1. Assuming you need to live near a large body of water, a flood zone or low lying areas to benefit from flood insurances.

Most floods are caused by several different causes aside from living near a large body of water. For example, rain, snow or ice storms, hurricanes, and water or sewage backup, in addition to dam or other flood control failure and more.

2. Assuming your standard home insurance policy covers flood damage.

This is one of the biggest reasons why it’s so important to stay educated and up-to-date on insurance matters. Why? Because most people assume they’re covered by flood or water damage in their standard insurance policy. Surprise! You’re not.

The fact is most standard policies don’t cover flood or most water damage. For this you’ll need a separate policy or rider.

3. Assuming you can’t buy flood insurance if you’ve been turned down by traditional insurance companies.

You can buy flood insurance as long as your community participates in the National Flood Insurance Program.

4. Assuming all flood insurance is too expensive.

The average flood insurance policy costs as little as $353 a year for coverage.

5. Assuming Federal Disaster Assistance will pay for flood damages.

Federal disaster assistance doesn’t pay for flood damages. At best it can help to provide low interest loans if you qualify – and only if the President declares the area you live in a disaster.

6. Assuming you don’t need flood insurance if you live in a low to moderate risk area.

Almost 25 percent of all flood insurance claims come from areas with low-to-moderate flood risk.

7. Assuming you must purchase a full flood insurance policy.

You may qualify for the Preferred Risk Policy (a lower-cost flood insurance policy) that provides contents coverage beginning at $39 per year.

8. Not finding out what’s covered by Replacement Cost and what’s covered by Actual Cash Value?

It’s important to find this out to make the best informed decision of what kind of policy to purchase and who to purchase it from.

9. Assuming you’re covered from flood damage if you rent.

Your landlords policy only insures the building not your personal property. However, you can purchase an insurance policy for your personal possessions.

10. Taking The First Policy You Come Across.

The best method of buying the most coverage for the best price is to comparison shop at least three different companies. You may be surprised at the price and/or service difference. By taking the time to follow and remember these 10 guidelines you’ll avoid the mistakes many people make when buying flood damage insurance.

Changing the Economy With the Buying Power of African-Americans

In an article earlier this year in Brand Week, Pepper Miller, founder of the Hunter-Miller Group, a research and consulting firm specializing in marketing to African-Americans, stated that self-segregation exists in the social media space, and has a huge impact on advertisers. “You really have to understand who you are talking to,” she told Brand week in a recent interview. Miller also discussed why engagement is a huge part of reaching black consumers, and she offered examples of some successful [and not so successful] ads targeting African-Americans.

The buying power of African-Americans is huge and powerful indeed. For example, African-Americans will command $1.1 trillion in buying power by 2011, according to the Packaged Facts reports, “The African American market in the US.” Moreover, affluent African-Americans control a disproportionate share of spending. There are currently 2.4 million African-American homes with annual incomes of $75,000 or more. Though they comprise only 17% of the African-American population, they account for 45% of total African-American spending power.

Affluent African-Americans have a greater propensity than other affluent to buy expensive luxury items. The African-American cohort continues to be a significant consumer segment that in some ways exercises more economic clout than the ever – popular Hispanic one, comments Tatjana Meerman, Publisher of Packaged Facts.

An article published by Multi-channel News echoed the same thoughts and stated that African-Americans purchasing behaviors differ in various ways, and ranges from what they buy at the grocery store to clothing style and magazine preferences. A study by BET (Black Entertainment Television) found that theU.S. African American population is expanding both in pure numbers and in buying power and has major influence on technological and media trends.

Moreover, according to “African Americans Revealed” – a study of more than 80,000 African-American consumers over 18-month span broken down into several individual research reports — African Americans in 2008 accounted for a 10% increase in population from 2008 versus 2000, while African-American buying power increased more than 55% during the same period to $913 billion. Perhaps the most exciting news, for those serial entrepreneurs researching products and the markets to focus on, this news should be exciting indeed, because by the year 2013 black buying power will reach $1.2 trillion dollars, a whopping 35% increase versus 2008, according to survey and study conducted by Black Entertainment Television Network, better known as BET.

As the economy has ruin dreams of many, and hopes have dashed for others, I fully contend with you that it might be a blessing in disguise. Perhaps you have dreamed of owning your own business for some time now, but never had the guts to leave your day job, for fear of the unknown. This is a normal reaction for many people, and certainly understandable, especially now in this uncertain economic climate. But that is precisely why it’s the best time, and the right time for you to start that new business, and or create that product idea you’ve had for many years, the same idea that friends and family have told you would do well on the market.

As you read this article, I’m in hopes you will gain new insight, and find new hope, joy and fulfillment of that dream that you had, and or have, and step out on your faith, armed in knowledge, wisdom, understanding, and insight as to how you’re going to make your dream a reality.

My articles, and all that I bring forth is to encourage and enlighten those who are seeking ideas for new products, starting a new business, building and enhancing a brand, or for those who prefer, find the perfect job.

For my parting words allow me to leave you with this amazing thought that if embraced can help turn our economy around once again.

Succeeding in any business one must first be a cheerful giver, but not everyone is so cheerful when giving unto to others. While the real foundation to any good business is hidden in their giving, more people will give with regret in their heart. Because of this attitude, economies all over the world are suffering. Givers can be divided into three types: the flint, the sponge and the honeycomb. Some givers are like a piece of flint – to get anything out of it you must hammer it, and even then you only get chips and sparks. Others are like a sponge – to get anything out of a sponge you must squeeze it and squeeze it hard, because the more you squeeze a sponge, the more you get. But others are like a honeycomb – which just overflows with its own sweetness.

As described in the above paragraph, I’ve tried to point out the three types of consumers and entrepreneurs we have in today’s economy. Some people are flints; others are like a sponge, and other people are like the honeycomb. Which one are you?

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