Posted by – June 22, 2011
Some entrepreneurs choose to start a business from scratch and others choose to buy businesses that are for sale. Another option an entrepreneur could consider is purchasing a franchise. Purchasing a franchise can be easier than buying a business or starting your own. When you start your own business, there are often a lot of headaches involved until you have found a routine your business can settle into. Buying a business can be difficult because of the transition between owners. Franchises come with business models, practices and policies in place and no awkward transition phase. Like starting any small business, franchising comes with a cost. If you are thinking of investing in a franchise, consider the following costs:
- Franchise fee. You will have to pay an initial fee usually between $20 000 and $50 000 that covers training, support and site selection.
- Inventory. When purchasing a franchise you will be required to purchase a certain amount inventory that varies based on the franchise.
- Legal fees. You should hire an attorney to read over all legal agreements from the franchise owner. Franchise attorneys usually charge between $1 500 and $5 000.
- Supplies. The franchiser should give you an estimate of the cost of the supplies needed to run the franchise.
- Build-out costs. These costs have to do with furniture and equipment purchased for the store location. Build-out costs vary from franchise-to-franchise.
For your small business small needs, contact the Winflow Financial Group.
Posted by – June 13, 2011
Creating a steady cash flow is important to any small business, especially a business that finds themselves working with a negative cash flow. Cash flow is the money you have leftover after your expenses are paid. Cash flow is useful for growing and expanding your small business. To increase your cash flow, consider the following:
- Pay attention to financial statements and track where your cash goes each month. This will help you analyze if there are any ways to cut back on expenses and determine the health of your business.
- Research potential customers ahead of time. Do credit checks on prospective clients to ensure they will pay you on time. The longer you let another business owe you money, the longer you are actually funding their business.
- If you have several loans, consolidate them. This involves combining your small loans into one big loan. You are likely to save money on interest payments.
- Optimize your stock. If you have a surplus of inventory lying around, get rid of it. It will just cost you more money to store it. Be careful not to overstock when ordering inventory.
If you would like more advice on improving your company’s cash flow, contact the Winflow Financial Group. Our trained consultants can be reached at 1.800.956.6897.
Posted by – June 10, 2011
Deciding to open a retail business can be a big endeavour. According to Canada’s Business Service Centre, 80 percent of all retail stores fail within the first five years. To ensure your business is successful, consider the following:
- Skills a retail business owner should possess include a knowledge of a current trends, sales and market demand.
- Pick a store location that is away from the competition. For more details on choosing the best store location for your small business, read Picking a Store Location for Your Small Business.
- Spending up to 6 percent of your overall budget on advertising when you first open is a good way to establish your brand.
- Identify your target market and base inventory orders around it.
- Take training courses in human resources, management and designing a retail space if you don’t possess the skills.
- Hiring security staff and putting in shoplifting measures will save your business money.
- There are two types of pricing in retail: mark-ups and margins. A mark-up is based on the cost of the item and retail clothing typically has mark-ups between 43 and 67 percent. Margins are based on the selling price of the item. Retail clothing can see margins between 30 and 40 percent.
If you need advice about opening a small business, the Winflow Financial Group can help. Our trained consultants can be reached at 1.800.956.6897.
For more articles about opening small businesses, see below:
A supply chain is a series of companies who co-ordinate their activities to deliver goods and services to consumers and gain an advantage over the competition. Being part of a supply chain involves working with:
- Storage Facilities
Managing a supply chain involves overseeing materials and finances as they move from supplier eventually making their way down to the consumer. A supply chain manager has three main duties to oversee:
- Supplying raw materials to manufacturers.
- Converting raw materials into finished products through manufacturers.
- Ensuring the products reach the company through your network of distributors.
Supply chain managers are also responsible for finding the most optimal methods of transporting and distributing their inventory. To ensure an optimal supply chain make sure to:
- Minimize transportation costs as much as possible. This will save you and your consumers more money down the road.
- Ensure quick deliveries. Plan out the fastest routes for your drivers ahead of time.
- Use the right type of transportation. There are many different methods of transportation to utilize when distributing inventory. Choose one that best suits your economical and inventory needs.
- Move merchandise in the proper quantities. Moving too much or too little inventory will just end up costing you money.
For more information on supply chain management read this Canada Business page.
For advice on your small business needs, call the Winflow Financial Group at 1.800.956.6897.
Purchasing management involves controlling goods and services that come into the company and managing relationships with suppliers. It also involves being knowledgeable in a number of areas. If you are considering doing the purchasing management for your business ensure your able to do the following:
- Recognize market trends and economic conditions that affect buying.
- Have a working knowledge of the supply chain and inventory procedures that are necessary for proper purchasing management.
- Have a working knowledge of business and tax laws as it can be beneficial as the purchasing manager.
- Find new suppliers through trade shows, the Internet and conferences to ensure you have found the best value.
- Understand spreadsheets, marketing, technical product information and mathematics as it pertains to your company.
When making decisions on where to buy, more goes into it than just saving money. Good purchasing managers will ensure that:
- Good relationships are maintained between the supplier and the purchaser.
- There is an uninterrupted flow of goods and services.
- Alternative suppliers are found if necessary.
- They have found the best value which means the right blend of supplier and costs.
- The quantities purchased are economical for the company.
If you are having trouble with the purchasing management of your company, Winflow Financial Group can provide assistance. With over 50 years of collective business experience, our experts can ensure your purchasing management will work to make your small business more successful.