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Welcome to Bizland News - Edition 20
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June
2003 |
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Well
folks you might be wondering why this month's edition of Bizland News
is so late! Truth be told - I have a very very good excuse! I have
been holding out on sending it so that I could share my news with
you after I had shared it with my boss and colleagues - see
the picture on the right!
Yes,
it's official, my husband and I are finally having a baby! As some
of you know I have been broody for some time now, so at last we have
taken the plunge, and there is no going back now! Pregnancy is as
awe inspiring as they say - but they don't tell you how tired you
are going to feel all the time and while I expected a bit of
morning sickness - well let's just say it's no walk in the park! But
at 13 weeks now I am nearly over the worst and
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should (hopefully) be getting my energy back and will be swopping my nausea
for that "pregnancy glow" - can't wait! But no worries, I have been
managing fine so far and business will for the meantime continue as usual
(in between the frequent trips to the bathroom), although you might notice
a slightly shorter Bizland News in the future to focus on the important stuff
rather than the bits and pieces! (P.S. IT'S A GIRL!)
Since
it's a time of new beginnings, this month I thought I would focus on a new
start-up - quite an exciting project aiming to promote tourism to the townships.
In our articles small business expert Andrew Patricio offers advice on starting
up via Franchising - an easier way to get into business than starting from
scratch - so for those of you thinking of making the change and going out
on your own - do your research and take the plunge! It's never too late!
And even my book of the month is aimed at mom's doing it for themselves!
Feature Article: Franching as
a Business Opportunity
by Andrew Patricio
of smallbusinessonline.
I
believe franchising is a good way to get in your own business. The main advantage
of franchising is that you are in your own business but you have the added
advantage of having a network of people that are there to assist you in achieving
your goals, but it does cost money.
Franchising has grown phenomenally in South Africa over the last 10 years.
Most of us deal with some or other franchise on a daily basis, whether it
is to buy fast food, repair our cars, buy petrol etc.
What is a franchise?
A
franchise is a legal and commercial relationship that exists between the franchisor
(the owner of the brand) and the franchisee (the owner of the individual franchise).
The franchise agreement sets strict guidelines on how the business will be
run. For the use of the business system and the trademarks the franchisee
pays a monthly royalty, which can be between 2% - 20% depending on the franchise.
The franchisor usually assists in offering the following:
·
Site selection
· Training
· Product and service suppliers
· Development of the business plan
· Assistance with applying for finance
· Marketing and advertising
· On-going head-office support
Before
deciding to purchase a franchise ask yourself the following:
·
Am I prepared to handle the workload and often long hours that could be
required?
· Do I have sufficient money to purchase and operate the franchise?
· Will I be able to handle the staff?
· Do my family support me in my decision?
· Will the business keep me occupied mentally and physically?
· Will I be able to abide by the strict discipline required
by franchising?
· Is franchising right for me?
Research
and Business Plan
Ensure
that you do the same research that you would do for a start-up business when
purchasing a franchise i.e.:
·
Develop your own business plan.
· Do your own market research.
· Don't take everything the franchisor says for granted investigate.
Questions
you should ask the franchisor:
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How
long has the franchise been in business? |
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Is
the franchise financial position strong? |
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What
are the initial start-up requirements? |
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What
services are offered as part of the start-up requirements? |
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Is
training of staff and management offered? |
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Does
the franchisor assist in the development of a business plan? |
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Does
the franchisor assist in launching the business. Will they be there
to guide you in the first week or so? |
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How
much will you pay monthly as a royalty and advertising fee? |
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What
advertising and promotional support is offered by the franchisor? |
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Does
the company have support staff that will visit your business in person?
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Can
they give you a list of franchisees and their phone numbers that you
can contact? It is a very good idea to visit franchisees and ask them
as many questions as possible.
Choose franchisees in different areas and one's from areas that are
similar to the area that you intend starting in. Take a list of questions
with you and see if the information the franchisor gave you tallies's
up with the results they are achieving. |
Ask
franchisees:
·
What their monthly expenses are?
· Are they happy with head office support?
· Are promotions and marketing working?
· Are the happy with their decision to purchase the franchise?
· Ask them about the negatives of being part of the group?
Is
the group a member of the Franchise Association of Southern Africa (FASA)?
They act as a watchdog body for the franchise industry and offer both buyers
and sellers some protection. Remember being a member of FASA does not guarantee
that the franchise will be successful.
Be aware of franchisor's that don't seem to be too interested in your abilities
and qualifications. If the deal sounds to good to be true it probably is.
Don't rush to sign any agreement speak to your legal and financial advisors
first.
For more information on franchising in Southern Africa contact
Franchise
Association of Southern Africa
24 Wellington Road, Parktown 2193
Tel: 011 484 1285 Fax: 011 484 1291
Email: fasa@fasa.co.za
Website: www.fasa.co.za
©
Reproduced
with kind permission from Andrew Patricio of
smallbusinessonline.
In Brief: The Business Plan
by Andrew Patricio
of smallbusinessonline.
A
business plan is still the best method ever developed to test the viability
of your business idea. Whether you are in business already or intend starting
a new venture, make sure that you have a well thought out and constructed
business plan. A business plan will not guarantee your success but it will
improve your chances of succeeding. You may even decide not to go into business
once you have completed your business plan. Click
here to read on.
Back to Contents
Find
out about current small business news, tenders, available imports and exports,
upcoming expo's and a business dairy at Emarket. Click
here for more information.
Durban
Workshops - small business trainers Synergise will be hosting two events
in Durban in upcoming weeks. The first is a networking breakfast on the 25th
of June with a talk on "How to Achieve your Potential". The second
is a five week course on "How to Run Your Own Business" starting
on the 18th of June. For more information please contact Kim on 082-929 5467
or email kim@synergise.co.za.
Free
Software Download - Keep track of over 150 accounts, make deposits, write
cheques, transfer funds, enter pay, and balance your checkbook - all with
Budget 1.6.4. Click
to download.
Mompreneurs
- A Mother's Practical Guide to Work-At-Home Success 
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Are
you a devoted/frustrated homemaker? Then Mompreneurs is just
the tonic you’ve been waiting for. The book dishes out
the goods on stay-at home-moms who’ve made it, how they
made it, plus advice on how to get started, and balancing career,
family and childcare. |
Back to Contents
This month's Success Story: Accommodating for Success: Muzi Mohale
of www.Accommodation.co.za
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29
year-old Muzi grew up and was educated in Swaziland, being the only
male and eldest of seven children. Having completed his schooling, he
moved to Johannesburg in 1994, and attended the Benoni Technical College
to study financial management, supplementing his income by doing odd
jobs for student placement agency Dial-A-Student. Having completed his
studies, Muzi was first employed as an accounts clerk at an office furniture
company, after which he worked for a media publishing company in a variety
of positions.
It
was in 2002 that Muzi's love of travel led him to sign up for a course
run by the Sunday Times called "My B&B", and it was then
that he thought about a career change. He initially considered establishing
a youth hostel in Soweto, however he did not have the capital to do
so. He did some more research, and discovered
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that township-based tourism businesses were not being catered for online,
and so he decided to combine his love of travel with his fascination with
the Internet, and thus his online travel portal was created.
The
portal is about community-based tourism, profiling tourism businesses in townships
and rural villages across South Africa. Muzi explains that this gives tourists
the opportunity to experience first-hand how ordinary people live: "This
is real life experience without any sophisticated facilities on offer, especially
in rural villages." Muzi was, however, surprised to discover the number
of township establishments offering upmarket facilities such as satellite
television and en-suite bathrooms! Muzi also profiles tour operators who offer
packaged tours, as well as eateries who in the past struggled to get listed
online. Each profile offers a brief description and three photographs to give
tourists a small view of what is on offer.
Muzi
has since affiliated himself with an international travel website which offers
confirmed online booking facilities for accommodation and tours - services
which are generally not offered by township businesses. He is always on the
lookout for exchange link opportunities with other international sites relevant
to the industry, and charges commission on bookings generated through his
site's online booking facilities.
The
going hasn't been all plane sailing for Muzi. He comments that even today
he struggles to get properties to list on his site and has spent a lot of
money on advertising which has not seen expected returns: "People from
the township communities are not familiar with the Internet and the potential
of tourism as a business." However, now in his third month of having
his site up and running, he has received a number of enquiries from potential
tourists wanting to visit South Africa's shores. Muzi also attends a range
of travel and related expositions to introduce his services to targeted clients.
Muzi
offers the following advice to aspirant entrepreneurs: "Once you've decided
on going solo, don't give up because there are a lot of obstacles along the
way." He also stresses the importance of seeking professional advice
where possible. Muzi has high hopes for the future of his new venture, and
ultimately hopes to turn the portal into a subsidiary of a publication focused
on community based tourism.
Muzi
can be contacted on 073-135-8198 or email muzi@accommodate.co.za.
Visit his site at www.accommodate.co.za.
Back to Contents
"I'm a great believer in luck, and I find the harder I work
the more I have of it" - Thomas Jefferson
Please send us your comments or questions to sallyh@bizland.co.za or post them on our
Discussion
Board.
Until
next time...
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