Category: Entrepreneurship

A recent report commissioned by the UK based Women's Enterprise Task Force (WETF) dispels the myth that female businesses owners are charged more than men for loans by banks. The report also found that women tend to be better at repayment than their male counterparts and that their businesses are often seen by banks as lower risk.

Other key findings include:

*women succeed at or above the rates of men when seeking bank finance, which is a major encouragement to women thinking of starting up in business in this challenging climate.

*women are less likely than men to have been rejected due to poor business planning, and are less likely to have been unable to make a repayment on loans, suggesting that women can be better at managing their business finances.

*women are less likely than men to have the knowledge and confidence to access venture capital and equity funding, which can be productive sources of growth finance. To address this issue, the WETF inspired the creation of the Aspire Fund, a co-investment fund that targets high-growth women-owned businesses. The fund has made its first investment and is considering further ventures.

*women constitute more than half of the population and 46% of the British labour market however they are less than half as likely as men to start a business, and make up only 28% of the self-employed. Even with this under-representation, it is estimated that women's enterprise contributes £130 billion turnover and £70 billion GVA each year to the British economy. If British women were to reach the enterprise levels of their US counterparts, there would be an estimated 900,000 more start-ups and £23 billion more GVA each year.

To read the report in full, visit the Women's Enterprise Task Force website.

Lately when I review my weekly copy of The Economist, I am reminded of the fact that we are in "the eye of a storm." Major corporates have failed and others are barely holding on. Furthermore, while governments across the globe are working frantically to shore up the markets, things are far from being stabilised. To some degree we can blame the media for revelling in the story and talking up the notion of a crash or worse yet a major depression.

This has trickled down to would be entrepreneurs - either those starting up from scratch or getting into business via a franchise. And as I've seen in my own practice, this has caused some to sit on the sidelines. Others are swimming against the tide and doing all they can to pull themselves and the globe at large out of this cycle. Particularly as despite the challenges, having done their homework in regards to the market opportunity, they feel compelled to move forward and make things happen.

This makes me think about the famous "Citizenship in a Republic" speech given by former American President Theodore Roosevelt at the Sorbonne, Paris, 23 April 1910. A memorable quote from that speech reads:

"It is not the critic who counts: not the man who points out how the strong man stumbles or where the doer of deeds could have done better. The credit belongs to the man who is actually in the arena, whose face is marred by dust and sweat and blood, who strives valiantly, who errs and comes up short again and again, because there is no effort without error or shortcoming, but who knows the great enthusiasms, the great devotions, who spends himself for a worthy cause; who, at the best, knows, in the end, the triumph of high achievement, and who, at the worst, if he fails, at least he fails while daring greatly, so that his place shall never be with those cold and timid souls who knew neither victory nor defeat."

Thus as I work with potential franchisees, I am honing in; looking for clues to determine - who amongst the many - will get in the arena. Truthfully, it is not always easy to tell. Sometimes even the most compliant franchisee candidates become overwhelmed with fear and walk away. Others surprise me and charge forth like raging bulls because they understand that while some large companies have failed, there are many other businesses out there thriving. In fact, some industries within the franchising sector could be considered recession resistant. Therefore with proper research and validation, the returns sufficiently justify taking the risk. Particularly as the British Franchise Association recently pointed out: "It's not a matter of pretending that the market conditions aren't tough, because they are, but the inherent strengths of franchising lets it stand out from the crowd."

Last month, I attended the CREATE your Future Conference organised by Women Unlimited. The event was focused on providing inspiration as well as practical knowledge and skills that women business owners could use straight away in business and life.

One of the entrepreneurs that presented was Julie Meyer CEO of Ariadne Capital. I was really looking forward to her speech as I'd watched a video interview she'd given at cmypitch.com and was curious to learn more about the woman who a decade ago co-founded networking group First Tuesday which was sold in 2000 for £33 million.

Julie didn't disappoint. She talked about how men and women are built differently and as such approach business differently. She pointed out that:

• Women learn a lot by sharing.
• We know a lot more than we think we do.
• We want to build each other up.
• We don't want to take credit for other people's work; just our own.
• We understand our role in the community/eco-system.

These traits give us a great advantage. Thus, women should worry less about breaking through glass ceilings and build our cathedral. That's why she created Arianne Capital - to create her own rules of engagement and more importantly spread her wings. In regards to what makes a winner, Julie points out that:

• They feel like one before they are one
• They expect success
• They focus on their unique contribution to the world
• They build long-term relationships with people
• They look for their unfair advantage
• They don't treat the losers like losers

With that, the critical success factors include:

1. Be as Unreasonable About Success as an Entrepreneur: Entrepreneurs have a view of the market and/or a consumer behaviour, which drives them to bring an innovation to life.
2. Acknowledging that You Know More Than You Think You Do: Don't just trust your instincts but listen, hone and refine your instincts.
3. Invest in the success of others: Focus on being a net contributor to the system rather than a net taker, and what you find is that your sphere of influence over the system increases.
4. Be Radically Open To The World: Build reliable means to continually pull in what's relevant and potentially threatening to your business.
5. Exact Accountability: The best entrepreneurs and executives are both leaders and good managers.
6. Create the Conditions of Trust so that Great Things can Happen.

With this sort of mindset, no wonder Julie's business which has equity stakes in 24+ high-growth private companies continues to go from strength to strength. Should also mention that she is one of the entrepreneur investors in a new online version of BBC's Dragon's Den.

Being a franchisee/franchise consultant, I read a lot of articles and books about franchising. Hands down, my favorite is: Street Smart Franchising by Joe Mathews, Don Debolt and Deb Percival. In fact, I now consider it a must read for anyone considering investing in a franchise business and so recommend to all my franchisee candidates.

One of the surprising statistics that you learn upfront is that 99% of those who investigate franchising walk way. The 1% who move forward have similiar issues/complaints to the 99%, they just have different future intentions.

Thus whereas the 99% investigate franchises with the intention of dismissing various franchise opportunities so then can rule out self-employment as a career option, the 1% make a firm commitment to put the past in the past with a view to altering and creating their desired future.

Basically, the franchisee candidate has "come to a place in their life where they would rather take a shot and fail than sit in the bleachers and wonder what it's like to play." They refuse to listen to the inner criric who often times takes hold causing the candidate to make a fear based decision and not move forward.

One of reasons franchise candidates give for delaying or walking away from the process is timing. But as outlined in Street Smart Franchising: "the 99% percent hold on the the fallacy that there's a perfect business which can be started at the right time. The 1% know they have to go out and create the right business and make it the right time."

To read a chapter of this all important book titled: why I should invest in a franchise business, go here. You can also order this book and others related to franchising via my amazon associates store.

Are you a Execpreneur or Lifepreneur? If so, then Rachel Elnaugh, one of Britain's high profile female entrepreneurs -- who has publicly experienced all the highs and lows that comes with this territory -- suggests that these two types of enterpreneurs (see definition below) should seriously consider opting for a franchise instead of taking the plunge with a completely new business.

In an article for The Franchise Magazine, Elnaugh indicates that there are "huge benefits to entering business via the franchise route, particularly if it is someone's first dip of the toe into what are frequently shark infested entrepreneurial waters. Most people's business journeys are roller coaster rides, which endure for a lifetime and feature many different projects and ventures over the years. This journey is made a lot easier if they don't experience a 'wipe-out' with their first business."

'Execpreneurs', who are typically emerging from the corporate world where they are used to working within a system and having lots of infrastructure and support;
'Lifepreneurs', who want the flexibility of being their own boss but are fairly risk averse and frequently underestimate just how much energy, effort and capital it takes to get a completely new business off the ground.

To find out if you are one of these entrepreneurs, you can take the free entrepreneurial profile test by visit Rachel Elnaugh's Internet site.

I myself am an execpreneur. No surprise really since much of my professional career was spent working for global professional services firm before I became a franchisee/franchise consultant with the MatchPoint Franchise Consulting Network. Rachel's top tips for Execpreneurs include:

• Consider creating a business with a small team of colleagues based on the same sector where you have enjoyed corporate success, focussing on a niche in the market currently unexploited (or considered too small) by your current employer.
• Alternatively, look at franchise opportunities which give a measure of business independence within an existing proven operating system and support structure, as your first venture into business.
• Execpreneurs are used to having a budget to operate with, so ensure that the business is properly funded from the outset - and that your level of funding provides for at least a year's trading before you anticipate coming into profit.
• Expect to run with imperfection in the beginning - it takes time to hone processes, systems and products/services to the point where the business runs like a well oiled machine.
• Don't be so rigid in your planning that you can't respond to new opportunities where these arise through customer demand - you may often open up whole new revenue streams which you had not previously considered. In other words, make the business customer-centric rather than operations lead.

Two other importants things to highlight from Elnaugh's article:

1. A little known fact is that most new start-ups take a good two years to come into profit - a long time to wait while you still have to support your lifestyle, especially if that includes a mortgage plus a family. Franchise owners on the other hand frequently find themselves making money after only a month or two of opening.


2. The failure rate of franchises is less than five per cent compared to the fall-out rate of something like 65 per cent for normal business start-ups.

Franchise Exhibitions are a great way for a franchisee candidate to speak with many franchisor representatives and get information on a wide range of franchise brand. One of the marquee exhibitions for the UK market is the British & International Franchise Exhibition on 20th & 21st March at London Olympia.

At the show will be:

High quality franchises, accredited by the British Franchise Association, offering top opportunities from a section of business sectors - from management consultancy and recruitment to food & drink, health & fitness, cleaning companies, and children's activities. The diversity and breadth of these franchises will ensure that regardless of your interests, you are sure to find an opportunity to suit your needs. Investments range from as little as £5,000 to over £1 million.

Franchise adivsors such as the MatchPoint Franchise Consulting Network will also be at this exhibition. Tickets are £8 if you order in adance and £13 on the door. I have 10 free tickets that I'd like to give away. So if you are considering franchise ownership and would like to attend, simple send an email with your name and postal address and I'll sent one to you. Offer is valid while supplies last.

Article below should be a must read for anyone seriously considering franchising.

Is Franchise Ownership in Your DNA?
Franchising isn't for everyone. Read on to see if you have 8 key characteristics to survive in a franchise.

By Jeff Elgin, Entrepreneur Magazine, February 16, 2009

Many people believe franchise ownership is for the true entrepreneur--the type A personality with the confidence to blaze new trails in the business world. The truth is actually quite different.

Franchising is about following a proven system to replicate the success of the original unit that the franchise is based on. Entrepreneurs often create innovative new businesses, but it's the Steady Eddie types that tend to produce most of the success in franchises.

The ability and willingness to follow directions is a key marker of someone who would make a good franchisee. After all, if the franchisor has already established a franchise model that works, a person would be wasting time if he tried to fight the system and create something different. Besides the ability to follow a system, there are a number of other personality traits common to most successful franchisees.

Discover if franchising is right for you, by ordering your free copy of the Experts Guide to Franchising via the FREE Franchise DVD website.

A preview of this DVD is below:

It should be noted that this DVD was created by the MatchPoint Franchise Consulting Network as franchising is the fastest growing sector of the service and retail business world today. Everywhere you look, franchised businesses are visible in the following industries: automotive, business services, food/restaurant, retail, technology, home improvement/maintenance, personal care, technology and more.

Upon studying the benefits of buying and owning a franchised business, it is easy to understand its appeal: an affordable initial investment, a proven track record, an established operating system and the support of a franchisor are all attractice to the prospective business owner.

However, if you are considering purchasing a franchised business, there are several important questions to consider before making a decision. Is franchising the right business model for you? How will you finance your franchise? What is owning and operating a franchise really like? What legal issues are there to consider? Should you use a franchise consultant? These questions and many more are addressed in the DVD which you can order via the FREE Franchise DVD website.

Donald Trump gives some great advise in his book: Think Big: Make It Happen in Business and Life.

Specifically:

• Find your passion and love what you do.
• Do not do things you don't like just for the money.
• Do your best, be passionate, and good things will come to you.
• Give your goals values that are not monetary.
• Know that passion conquers fear.
• Serve your passion by taking action every day.
• Take great joy in doing a great job.
• Focus on the solution, not on the problem.
• Handle pressure by learning not to dwell on negative thoughts and opinions of others.
• Learn from mistakes, but do not let them take you down.
• Be mentally tough and never give up.
• Push yourself our of your comfort zone.

As he further writes: "in the game of life, money is how you keep score.Yet the real fun is not in simply scoring; rather it is in the excitment you will have coming up with creative ways to get the ball in the goal. Find your passion in doing something useful for people and the money will follow."

"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."

—Warren Buffett