FINANCIAL EVALUATION OF FRANCHISE INVESTMENTS

Investing in a franchise is basically the same as buying any business. The financial aspects are covered in the SCORE Brief Buying a Business. In addition, however, an important aspect of buying a franchise is evaluating the investment consequences from the franchisee’s viewpoint; the discussion below outlines a method for such an evaluation. 1. Determine the cost of the franchise privilege: What is the total franchise package price? $___________ Estimate the value of all tangible items furnished in the package: Merchandise or inventory $___________ Equipment … 
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Purchasing for Manufacturing Businesses

Introduction: This is a list of the basic procedures needed to ensure that purchasing (acquisition) needs are met for companies that manufacture a product. Included is a “sample” Purchasing Agreement to supply a material used in the manufacturing process. Ethics / Integrity: Purchasing for the business must be carried out with integrity and high ethical standards. Simply put, this means all dealings with suppliers and vendors must be honest, fair, consistent, and above board. Purchasing must not compromise its objectivity or show favoritism (or the … 
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Pricing Procedures for Retail

PRICING PROCEDURES FOR RETAIL When your company purchases and sells a product, the revenues derived from sales of the product will directly affect the success of your business. Though pricing strategy and computations can be complex, the basic rules of pricing are straightforward. Prices must cover all costs. See SCORE Brief 4.05, Profit and Loss (P&L) Statement. The most effective way to retain or improve the profit margin is to reduce fixed and variable costs, and adjust price as necessary. Prices may need to be … 
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Incorporation In Ohio

INCORPORATION IN OHIO The corporation laws of Ohio are prescribed by statute in Title 17 of the Ohio Revised Code. In accordance with the statute, persons desiring to organize and operate as a corporation in Ohio must file certain documents granting the authority to operate as a corporation. This filing is done with the Ohio Secretary of State 180 E. Broad Street, Suite 103 Columbus, Ohio 43215 A good starting point is: Ohio 1st Stop: http://business.ohio.gov/starting/ The 1st Stop Business Connection is one of the … 
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Start-up Costs of Going into Business

Start-Up Costs of Going into Business When starting a business, you need to plan for your initial costs and understand their taxation. The following list includes typical amortizable start-up costs involved in starting a business. Pre-Opening Salaries and Wages – including instructors/trainees Prepaid Insurance Premiums – learn more at SCORE Business Brief 09.00 Inventory Legal and Accounting Fees Rent Deposits Utility Deposits Supplies Advertising and Promotions – brochures, business cards, flyers, newspaper ads, etc. Licenses – permits – inspections – learn more at SCORE Business … 
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Financial Questions & Answers for Every Small Business

  Finance issues that every business must be aware of. This is our third finance roundup of briefs. We are going to begin with Credit Score. CREDIT SCORE As the owner of your business your personal credit score is not something that can be ignored. Before discussing the credit score , let’s differentiate it from the credit report. The report estimates the credit worthiness of an individual, corporation, or even a country. It is not one number, as is the credit score. It is an … 
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Buying or Selling a Business

This brief roundup will give you the basics for buying or selling a business. Buying a Business It is a fair assumption that when an operating business is purchased, the intent of the buyer is to acquire a present or prospective profit generator – a known entity that will provide a reasonably predictive return on the investment. Buying a company is much like courtship. It is a process not known for rapid conclusions. Done correctly it is a long process that requires a great deal … 
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International Trade Resources

International Trade Resources:   Int’l Trade terms are called Incoterms. For a definition of terms, see: http://en.wikipedia.org/wiki/Incoterms Letter of Credit (Description) A Letter of Credit is a binding document that a buyer can request from his bank in order to guarantee that the payment for goods will be transferred to the seller. A letter of credit gives the seller reassurance that he will receive the payment for the goods. In order for the payment to occur, the seller has to present to the bank with the … 
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So Just Who is Your Customer Anyways?

  Embarking on an entrepreneurial endeavor is no easy task. Figuring out who is your customer, who is going to buy your product or service can be even harder. At first thought you might think, “well everyone is a potential customer,” but is that really the case? Often times if you really reflect long and hard on the product and/or service you are offering to the world, you will start to see some clearly defined characteristics of what your customer looks like, acts like, and … 
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Employee Safety and Health

Is employee safety and health important? An effective safety and health program can save $4 to $6 for every $1 invested. It’s the right thing to do as it pays off in lower costs, increased productivity, and higher employee morale. How can I avoid employee injuries and illnesses? Develop a safety and health program. It can reduce your injuries, illnesses, costs and avoid any potential legal issues which could shut your business down if serious violations occur. There are five elements a program should have: … 
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