Tag Archives: business

5 Money Matters to Consider When Buying a Franchise

Man stacking coins in increments as a concept of investment growingIf you are planning to invest in your own franchise, one of the vital steps you need to take is a thorough due diligence exam to make sure that you’re on the right path prior to signing an agreement. You’re probably confused and inundated with millions of questions, but the following are vital money matters you need answers to before taking the leap.

1. The Initial Investment

In general, initial franchise fees differ from several thousand dollars to a couple of million dollars. You will need to get a clear understanding of fees and how much you’ll need to get the franchise off the ground and earning.

2. The Liquid Capital

Apart from the startup costs, you’ll need sufficient operating capital for a couple of months until you break even. Knowing this magic number will help you prepare financially and determine when you’ll start reaping profits.

3. The Franchise Company’s Financial Capability

Knowing how financially strong the franchise company is could lend you an idea of how successful your franchise could be. Consider asking how they experienced consistent growth and their plans expansion plans if any. You will likewise want to find out if where they get the significant portion of their income, whether from selling franchises or royalties, or perhaps because they assign a sufficient amount of funding to their operations.

4. Your Potential Profit

While the franchisor can’t possibly forecast how successful your franchise will be, they must have an accurate idea of how much their franchisees make. Make certain to ask beyond the gross sales since this doesn’t operate expenses such as rent, labor, etc.

5. The Ongoing Fees, Marketing Fees and Royalties

You need to take a step back and understand how much you’re expected to pay the franchisor with regards to miscellaneous fees like royalties, marketing, etc. You need to determine how much this would cost, so you could set the right budget and accounting for royalties.

Before you invest in a franchise and sign on the dotted line, get clear answers to these crucial money matters. Once you do and you’re satisfied with the franchisor’s answers, you’ll feel more confident about investing in and running your very own franchise.

Best Practices to Run a Successful Warehouse Business

Business partners of a warehouse storeRegardless of how utterly messy your lives might be, you can never let that define your business as well. Every business requires a high degree of commitment and organisation to succeed. Especially when running a warehouse business, you’re required to pay attention when it comes to arrangement and maintenance.

Utilize these tips to run your warehouse successfully.

Employ the 5S (methodology)

The 16th-century Japanese workplace organisation method is still as convenient and up-to date. It includes five practices.

• Sort
Clearing unnecessary inventory in your warehouse is the first way to do away with the stumbling blocks in your business.

• Set in order
Once that is done, organise your new stock strategically in a manner easy to access.

• Shine
You don’t want your products ruined by dust and contaminations by failing to clean your warehouse. A dirty warehouse will deteriorate the value of your products.

• Standardize
Set high standards from employees to organisation and maintenance.

• Sustain
Finally, make sure all your efforts will always be worthwhile by maintaining these rules.

Mind your employees

Your employees play a significant role in the success of your business. For this reason, their safety and health are a top priority. Machines and business owners can only do so much. Educate them on the warehouse safety precautions such as dressing appropriately, ventilations, and equipment usage just to mention a few.

You do not have to witness your business go on a downward spiral due to hospital expenses, employees’ strikes and boycotts.

Get efficient racking systems

Most importantly, a warehouse business needs storage systems. There are various ways to store products in a warehouse. Choosing the best storage option largely depends on your type of products, amount of inventory and space available. To maximise your storage space and cut future maintenance costs, pallet racking systems make a durable storage option.

These ideas integrated with work ethics and a right attitude is the first step to a great and fruitful warehouse business.

Important Role an Ad Agency Plays in the Success of Your Business

Advertisers on a MeetingIf you want to get ahead, your brand must stand out from the rest of the competition. You must persuade and convince your target customers to patronize your product and choose it over other brands.

That is where an effective ad agency in Salt Lake City such as Red Rider Creative can help your business.

What Is an Advertising Agency?

An ad agency works with a client company in creating a goal-oriented and effective advertising campaign. The aim is to make the target customers see the client in a positive light. The ad agency helps connect the company with its target market.

Using persuasive, unique, and attention-grabbing ads can make your brand stand out.

Duties of an Advertising Agency

Following are the things that your ad agency can do for your business:

Understand the Company and Its Products/Services. – To come up with an effective campaign, the agency must first understand the client company and what it is all about. They must get well acquainted with the client’s products and services.

Plan and Create an Effective Ad Campaign. – The creative process of planning and brainstorming starts once the agency identifies the client’s specific needs.

These may include improving sales, the introduction of new products, highlighting the brand’s benefits, convincing new customers, and retaining old customers. The campaign must be within the client’s budget. The go signal for implementation must come from the client, who may also request for a rework.

Come Up with the Appropriate Strategies. – The strategies will depend on the client’s goals. Some companies outsource all their marketing tasks to their ad agency. The agency then handles the brand building process. They will work to improve sales by using different promotion techniques.

Understand what your ad agency can do for you. This way, you will know what specific functions they can take over from your staff. This will result in a more streamlined and effective advertising campaign.

Understanding Cushion Matting Materials

Rubber matting in blankCushion matting offers practical solutions to those whose professions involve standing all day. Padded floors provide comfort and by extension keep fatigue and other stress-related health concerns at bay. They find use in residential, industrial and commercial settings.

And because mats are not created equal, it pays for consumers to understand the various products that are available in the markets. Keep in mind that not all mats are for heavy-duty applications.

Carpet or Cloth

Carpets are a commonly used anti-fatigue option. They are slip resistant and provide warmth within wet or humid environments. They, however, provide minimal support, especially when you compare them to elastic surfaces and rubberized cushioned mats.

This is because your body weight flattens them, making the surface below nearly as hard as regular flooring.

Foam mats

Foam matting comes in two main classifications; closed cell and open cell structure. Both kinds of foam provide a springy surface created by the trapped gas pockets. The consumer would get the sensation of walking on air, and this significantly reduces stress on the joints when standing for hours on end.

Vinyl and Rubber matting

Both Vinyl and rubber mats are resilient and durable. They are the most widely used anti-fatigue mats, which by the way you can get from vendors such as Mattek, in the markets. They offer great support and are perfect for heavy-duty applications. They are also ideal for harsh or abrasive environments.

Gel mats

Gel mats, as the name suggests, are durable matting with encased gel-like material. Such floor covering provides optimal comfort levels and alleviates pain and stress. While gel mats may expensive, reviews indicate that the value they offer is worth every extra coin charged.

Their delicate nature, however, makes them ideal for light only applications.

Anti-fatigue applications come in different kinds of materials. You ought to understand your needs, preferences, and objectives to choose the right matting option. Ensure that the choice you make does not depend on cost alone.

Microbes and Water: The Enemies of Stored Diesel Fuel

Above ground fuel tank holding diesel fuelDiesel fuel can last up to a year in its tank without problems. This stability can be a benefit to farmers or to residents in remote areas who need accessible fuel in long-term storage. In fact, you can even extend the life of diesel fuel up to five years when you treat it with a fuel stabilizer.

Prevent Condensation

Get rid of water contaminants by using products that either emulsify or demulsify it. Of course, prevention is better than cure. Keep diesel fuel safe from water by keeping your diesel tanks full. Lack of air space inside the tank discourages condensation, which can lead to the formation of water.

Kill the Microbes

You can still save your diesel fuel tank contaminated with microbes by treating the fuel with a biocide. Prevent microbes from forming in the first place by applying the biocide whenever you place diesel fuel in a long-term storage. Diesel fuel stabilizer already acts like biocides, so you can simply use such products unless you want actual biocides.

Degradation Agents

In spite of the stability of diesel fuel, two elements — microbes and water — can still affect its quality. Both of them can cause degradation in diesel, leaving you with darkened fuel that has sludges, gums, and varnishes. Water is the more serious enemy though, as its presence can encourage the growth of microbes.

Signs of Contamination

When you fill your vehicle or tractor with the water-contaminated diesel, you will experience engine problems that indicate the presence of water. The engine may cut out suddenly, and black or white smoke may come out from your engine.

Now that you know how to keep your diesel fuel safe, you can better store the fuel and ensure its long-term storage. You will be glad five years from now that you did all you can to make your fuel last.

 

Australian HVAC Market to Reach $3B by 2022

HVAC system on roofdeckThe heating, ventilation and air-conditioning market (HVAC) in Australia will grow at a compound annual growth rate of 9% between 2016 and 2022, according to a Research and Markets report.

The market’s value will reach around $3 billion five years from now. Demand for centrifugal pump products and other HVAC supplies will continue to be high in Australia and New Zealand’s commercial, residential and industrial sectors.

Key Factors

HVAC manufacturers and developers are creating energy-efficient and modern HVAC units for different applications, driven by different government projects and sustainable initiatives. The report noted that Australia would continue to outperform New Zealand in terms of market by volume, which will increase to a compound annual growth rate of 7.33% between 2016 and 2022.

That’s because new cost-effective and energy-efficient technologies gradually emerge in the Australian market, amid growing customer concerns on HVAC products. The country’s HVAC market volume will also increase at 6.99%. However, the report expects New Zealand’s HVAC market volume to reach 271.40 thousand units by 2022.

Global Demand

Demand for Australian HVAC products largely stems from a growing population, a boom in residential construction projects and those in the commercial and industrial sectors. Some of the common products used in various industries include window, portable and split units for residential purposes.

For the global centrifugal pump market, a study estimated that it would increase to US$27.85 billion by 2021. The report categorised the market into three niches, comprising the axial, mixed and radial types of centrifugal pumps. Among the three, end-users mostly preferred the axial type, which accounted for more than 37% of the overall market revenue in 2016.

The HVAC market in Australia, New Zealand and the rest of the world continues to grow partly because of increasing demand from different industries.

 

3 Important Points to Remember When Exporting to China

Woman sending a package to ChinaAlthough it would have made a lot of sense if the largest export country for New Zealand is Australia, Kiwi’s neighbour ranks only second, according to Observatory of Economic Complexity (OEC). Up in first place is China, which contributes as much as $6.4 billion to New Zealand’s thriving economy.

China is home to almost 1.5 billion people, which is a huge market, but that’s not its only potential. Based on a Bloomberg report, the year 2016 ended on a high note with consumer spending going up. In other words, they’re buying.

Here are a few things to remember when exporting to China:

1. Labelling

Label may seem insignificant in the grand scheme of things, but according to leading label maker Unimax, it’s one of the most powerful marketing tools available. Knowing this, it makes sense to take labels seriously.

Many laws govern the packaging of your products for the Chinese market, which makes the design very confusing. Fortunately, New Zealand has capable companies that can provide packaging labels fit for your target market.

2. Partnership

Can you set up shop in China?

The answer is yes, but the process is tricky. Chinese business structures can be different from those in New Zealand. Many businesses try the partnership route—which means finding a company for a joint venture. These type of firms help create strategies to make your brand more suitable to the taste and culture of your Chinese market. It’s also one of the easiest structures to pursue.

3. Trademark

Trademarks, copyrights, and patents, to name a few, matter to businesses. These create and secure creativity related to your brand. Unfortunately, China frequently experiences trouble with trademarks. It pays to take the extra mile with your creative licensesIf you want to protect these valuable assets, file an intellectual property claim as soon as you can, especially since China follows the “first to file” system.

When it comes to overseas trade, China is one of your best bets. It might seem like a challenge, but New Zealand and China have been strong trading partners for decades. Support is also readily available; just know where to find it.

When the Transport Business Beckons

Transport business with trucksEvery product on a supermarket shelf or in a mall spent some time in the back of a truck before getting there. From any perspective, trucking is a lucrative enterprise. Trucking is an all-year-round business venture. However, before making a foray into the lucrative sector, you need to lay a solid foundation to ensure you hit the ground running.

Get the right vehicles

Not all trucks are created equal, and as such, you should take utmost care when making a purchase. You can opt to buy a ready truck or have a reputable transport engineering firm custom fabricate one for you. The latter approach can come in handy if you’re looking to serve a specific market. Whichever the case, be sure to settle on a robust model that is efficient to run.

Determine the size of your operation

Regardless of the size of your budget, you can set up shop and get the business started. As such, you need to define the kind of service you shall be running. If you only have one truck, you can hire a driver or be the owner operator and make the deliveries yourself. On the other hand, if you have a large enough budget, you can buy a fleet of vehicles and hire a couple of drivers. The most important factor to consider before taking these steps is to understand the market.

Carry out a market study

Despite the growing demand for trucking services, the competition remains steep. Hence, you need an in-depth scope of the market. With so many players on the field, you don’t want to fight for scraps and leftovers. Rather, you want to target a particular niche market and turn a tidy profit from the first trip. As such, you should identify a gap that needs filling. Alternatively, find a way to provide service in a field with shortcomings.

Increasing need for consumer goods creates a booming business for the trucking firms, making the profitable sector appealing to newcomers. These useful insights can help you start well when you decide to enter the trucking industry.

4 Proven Ways to Boost Your Business

Business

It takes time and persistence to succeed in business. By working smart, however, you can achieve your expansion goals with less time and effort compared to what others put in.

These four proven tricks help you grow your business:

Recruit Wisely

Successful entrepreneurs know the value of hiring the right staff. If you are in the finance sector, the need to hire the ideal candidates is particularly important, given the sensitive nature of the industry. Consult an accounting and financial services recruitment agency to select and hire the right people for your company.

Value Your Employees

It is one thing to hire the right employees. It is quite another to retain them and get the best out of them. Keep your employees satisfied and productive. Find ways to motivate, guide and support them. Be kind and respectful to them. In turn, they will be eager to reward you with loyalty, hard work and productivity.

Keep Customers Happy

All great entrepreneurs are willing to spend long hours to find ways of satisfying their clients. Go out of your way to know who your customers are, and look for ways to meet their needs. Encourage your customer’s feedback and perspectives, and work on them. With this attitude, you can guarantee the growth of your business.

Sell Online

The online market is growing at a massive rate. More and more customers are shopping online. Develop an online marketing strategy to benefit from this incredibly lucrative marketplace. The biggest advantage of online marketing is that it levels the playing field. You could compete with giant multinationals even if you are still a startup.

The business environment can be viciously competitive, particularly if you are in the financial sector. You will need to have a smart strategy to thrive. Provided you take the right steps, you can succeed where others struggle.

Marketing and Brand Management: 3 Things You Should Not Do

Brand Management Brand management is not an easy task. Sometimes, you think you’re on top of things, and then suddenly, something goes wrong. You might be wondering what you did wrong or if you could’ve done something to prevent what happened. The thing is the damage has already been done.

That said, watch out for these common mistakes people make when doing brand management.

Using All Marketing Tactics at the Same Time Without Researching

There are numerous ways to get buzz or attention for your brand these days. These include social media contests, promotional events, and viral videos. But before saying yes to all of your team’s marketing ideas, take some time to review them and determine whether a particular tactic could really help your branding and marketing efforts or not.

You don’t want these stunts to overshadow the product or idea you’re trying to market. Your marketing team might overhype your product only to find out soon that the product is not living up to the promises made.

Not Paying Attention to the Competition

While you should focus on your customers, you should also pay attention to your competitors. Competitor research is extremely important. In fact, PriceManager recommends investing in competitor price monitoring software and other research strategies. By familiarizing yourself with your competitors’ products and services, you can be sure that you’re always one step ahead of them.

Not Taking Care of Your Online Presence

Businesses, especially new ones, need to establish a strong online presence. Prior to launching, you should claim all your online profiles and handles. Create a functional and optimized website, get a Twitter handle, and create a Facebook page, Google My Business page or listing, and other social profiles. Inform and engage your target customers, and provide them an excellent user experience across all channels. Keep in mind that anything you post online can last forever, and a single mistake could easily damage your brand’s image.

Managing your brand is never easy, but by being aware of and avoiding these common mistakes, you can stay on the right track.