franchising process

The first thing that needs to be done when thinking of franchising is to develop a sound plan. This plan must take into consideration the numerous issues confronting a new franchisor: speed of growth, territorial development, support service, staffing, and fee structure. Larger companies need to address more complex issues such as channel conflict, anti-trust and resources allocation issues.

After which comes the need for proper legal documentation. The franchisor will need a franchise contract to protect them from different issues. Basically, there are literally hundreds of different business issues that must be address in a good franchise agreement. And the decisions that they come up dictates the franchisor’s success.

Then, franchisor must develop a highly developed operations manual. This manual must contain not only the systems to be used, but also the checklists, policies, procedures, and tactics that will allow these systems to be uniformly enforced.

Lastly, franchisor must learn how to market and sell franchises. They must learn how to attract the prospective buyer and know the necessary materials that will help them make a sale. It also needs to be educated in proper sales, disclosure and compliance technique.

different pricing objectives of businesses

Different business has several different objectives in mind when setting a pricing strategy. We all know that pricing is a very important thing to marketing and development of value packages. Price is also a critical ingredient in consumer evaluations of the product. Here are some popular objectives business wants to meet over time.

• Achieving a target return on investment or profit. Ultimately, the goal of any business of whatever industry is to make a profit by providing goods and services to others.
• Building traffic. Establishments often advertise certain products at or below cost to attract people to the store. The objective is to make profits by following the short-run objective of building customer base.
• Achieving greater market share. Some businesses are using price incentives (quality) to gain market share in their industry.
• Increasing sales. Sometimes a firm will lower prices to increase sales. This move could hurt profit margin in the short run, but will enable the company to become more financially secure in the long run. The prices could again be raised after sometime.
• Creating an image. Certain products are priced high to give them an image of exclusivity and status.
• Furthering social objectives. Some companies intend to set low price so that people with less money can afford the product.

Note: Short-run objectives differ from long-run objectives. Both should be understood at the beginning and put into the strategic marketing plan. Pricing decisions should be influenced by other marketing decisions regarding product design, packaging, branding, distribution, and promotion since all of those are interrelated.

importance of knowing the market

One of the most important elements of small-business success is knowing the market. In business, a market is consists of people with unsatisfied wants and needs who have both the resources and the willingness to buy. For example, we can confidently state that most students have the willingness to take a break at the beach. However, few of them have the necessary resources so pay for the Outer Banks beach rentals or satisfy this want.  Of course, it is not good for travel agency to pursue them.

Once you have identified your market and its needs, you must set out to fill those needs. The way to meet your customers’ needs is to offer top quality at a fair price with great services. Remember it isn’t enough to get customers – you have to keep them.

make over makes a difference in customer oriented business

Continues improvement is what customers expect from restaurants. If I am not mistaken people would always look for new things. Oftentimes new stores will dominate over the older one since it invites more customers especially if it presented elegantly and attractively.

That is when renovation and upgrades come in handy. Putting in new stuff to replace the old ones will definitely change the look of a restaurant. Example, if the restaurant used to traditional ceiling fan, a change to stylish Minka Aire will definitely make a statement. The step ensures that the owners are looking forward to serving their clients better not only using their menus, but through excellent furniture and fixtures.

The management may also decide to completely renovate the place. This will not only refresh the minds of customers, but it will also allow owners to reconsider the traffic flow of the restaurant for greater efficiency.

Whether you are merely renovating a kitchen, the ceiling or are taking the plunge with a complete restaurant renovation, getting excellent interior design experts is the key to its success. Other than that it will also save some time and money.

benefits of meeting employee expectation

In business, everyone should be treated fairly and equally. But, not all people are alike. There are people who are motivated to work because they have a sense of achievement, others would want to work because of their goals, while there are also people who are expecting to get something from the company.

We all know that expectations can greatly affect an individual’s motivation. The amount of effort employees exert on a specific task depends on their expectations of the outcome. Most often than not, most of the employees would ask themselves what is the reward if I complete the task and is it worth my effort?

But, remember employee’s expectation varies from one person to the other. Therefore, they establish their own vies in terms of task difficulty and the value of the reward. That is why most huge corporations vary their rewards every time they give it. There are times they give free tickets or tour abroad, diamonds or jewelry, appliances and so on. With the company announcing the reward before hand, most employees will scramble to work hard and better just to get the reward.

Here are five steps to improve employee performance while meeting expentancy theory:

1. Determine what rewards are valued by employees.
2. Determine each employee’s desire performance standard.
3. Ensure those performance standards are attainable.
4. Guarantee rewards tied to performance.
5. Be certain that rewards are considered adequate.

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