Franchise Business Models:

Area Development Franchises

The area development franchise license usually grants the franchisee the right to open a certain number of franchises in a given area. There is usually a production schedule where the franchisee must open a certain number of franchises during a certain period. As the franchisee stays on track in opening the franchises in the area, she has the exclusive area where no other franchisees can be allowed to open a franchise. As the franchisee acquires an area and eventually pays royalties, usually there are reduced franchise fees in the beginning and reduced royalties ongoing. Buying a franchise area developer territory requires that you are a “people person” since you will be working with franchisees in your territory and prospective franchisees.

Territory: The area development franchisee maintains an exclusive geographic territory as long as the opening schedule is maintained. The territories range from a small city to parts or all of a larger city.

Level of participation: The area development franchisee will be very involved in the beginning of the first store to make sure it is successful. Another important function will be to look for qualified real estate to open the next few locations. Once several locations are open, the franchisee will need additional assistance to manage several units.

Typical liquid capital required: $60,000 to $120,000 initially to secure the area development franchise area, pay all franchise fees and have additional start-up capital. The franchisee will then need to be able to finance the rest of the start-up costs for each franchise as it opens. These are general numbers and may vary significantly for some opportunities.

Master Franchises

A master franchise allows the franchise company to expand in a specific territory, often a major market or in one or more states. Sometimes called a regional developer, a master franchisee has all the rights of an area developer and usually takes on a larger area. The main difference is that the master franchisee in addition to opening franchises at a much reduced franchise fee and royalty can also sell unit franchises, multi-unit franchises and area development franchises and make a nice return on the sale. Buying a franchise master usually receives a part of the royalty paid by each franchisee. There may be additional income available from distribution of products through the franchisees in the area and possibly even some real estate interest. The master becomes almost like a franchisor in the area without having to experience all the trial and error the original franchisor went through. The master franchisee will usually want to open at least one unit internally to operate for income and use as a training ground. Master franchises are rare. Most franchisors do not offer them. When they are available they are usually sold quickly. The income available from a master franchise can be extremely lucrative. The initial investment is low compared to the type of value you can build in the master franchise asset. The flexibility is also the greatest at this level.

Territory: Most franchises usually cover a large metropolitan area, an entire state or even several states or country. It is an exclusive area and will remain exclusive as long as the master franchisee meets the development schedule of franchises in the territory.

Level or participation: The master franchisee will usually set up at least one unit internally and use a manger to manage it while working on selling other “subfranchises” and helping them to operate properly. Very rarely is a master franchisee “hands on” in a unit franchise. They tend to spend more of their time operating like a business consultant or coach to their franchisees to help them become successful.

Typical liquid capital required: $100,000 to $250,000 is needed to acquire the master franchise territory and for initial liquid capital to start the area. Financing will be secured for the start-up of the unit franchise. Again, these are general numbers and may vary significantly for some opportunities.

Franchises work by increasing profits for large companies by having someone else pay for the starting of a business, and in turn offering the franchisee proven systems of success and a name brand. It also takes hard work, dedication and commitment to make a success of it – just as it does with any business idea.

What do you need to know before purchasing a franchise:

• The advantage that you have in franchising is that you are leveraging the brand of a bigger organisation and benefiting from the input that they can give you – in the form of design, advertising, marketing, sales advice and training.
• Find out who else operates this franchise. Has anyone else made it succeed? Are they successful and are the costs and revenues anticipated by the franchisor realistic? You should be able to see the financial records of the franchisor’s business and see how it works.
• Compare the opportunity you’re having with those available elsewhere. Does the product you’re going to be selling compare well with the opposition? How difficult will it be to find customers? Are other franchisees operating successfully?
• Is the business viable? Is it legal and ethical? There are plenty of scam ideas around, with fraudsters offering vast sums of money for ‘work at home’ franchises. These are not proper franchises and, in many cases, are simply a ruse for separating you from your money.
• Does the business appear capable of supporting the marketing, advertising and training that it has promised you? Don’t panic if you don’t have the requisite product skills. What does matter is that the franchisor provides training to get you up to speed.
• Budget carefully. Some franchises make clear what your maximum revenues are likely to be. Check the financial projections carefully because your stage payments to the franchisor will be going out anyway. If your business isn’t making sales targets, you’ll find yourself massively out of pocket if you’re not careful. Get your accountant or lawyer to check the numbers in detail.

When choosing a franchise avoid:

• Purchasing a franchise that does not offer adequate training or support.
• Spending several weeks of your precious time and effort trying to find the perfect franchise, but never finding it.
• Settling for the wrong franchise, when one of their competitors might have been a better investment.

So, before you spend a tremendous amount of time searching endlessly for that perfect franchise, make sure you are right for the business model itself. If not, don’t despair. There are other ways to “own what you do.”

Franchising is not an easy option and it can fail just like any other unsuccessful operation. If you’ve invested your home in it, you could lose it just as if any other business venture was financed by putting your home on the line. You should be prepared for a lot of hard work to make it succeed. Remember also that you won’t be the only person sharing in your success if everything goes to plan.

What makes a good home based business opportunity? Most important is whether it is the right opportunity for you. There are many different reasons why people want to work from home. Some may be tired of the daily commute. Some may be living in a remote part of the world where jobs are few and business opportunities even fewer. Some may be more interested in work at home opportunities to allow them to earn extra money while they have to take care of children or elderly relatives. Others may be looking for a way to start their own business and home seems the ideal base from which to start off their enterprise.

You can make a full-time living with your home business if you setup correctly, get started right, and choose a business at which you are likely to succeed. To do that you should look and all the business opportunities that are available to you. There are very many home business opportunities and you want to be sure that you’re making the right choice.

If you are now looking for a business, doing market research, or just wondering if you can find a home business that would be good for you, we recommend these:

1. Internet home based business. An Internet home business will give you the flexibility to work where you want to, when you want to, so you can control your working hours and mix it in with your daily home routine. There are many business opportunities online that promise to bring you riches beyond your wildest dreams.The lifeblood of any Internet business is traffic. Without it you have no business. There are many ways to drive traffic to your site and you should investigate all or most of them and pick a method that suits you. Then focus on that method until you get good at it. When you identify your home based business opportunity it is good to use pay per click ads which is the fastest way to get traffic if it’s in your budget. You should also be using search engine optimization tactics to help the search engines find your site and bring you free traffic.
2. Affiliate marketing. Affiliate marketing has the potential to make you rich, and the best part, your allowed to be creative all day long. If you are looking for a great home business opportunity but don’t know where to start, consider affiliate marketing. Many people decide they want to work at home on the Internet or even start their own online business but don’t know what steps to take. You may have considered joining a company such as the Pampered Chef or Avon or Mary Kay and selling items for a living, but realized the party hosting, door to door lifestyle just isn’t your thing. If you want a home business that can be done without any public interaction, definitely consider affiliate marketing. With affiliate marketing, you promote someone else’s product and when you make a sale, you get part of the profits.
3. Network or multilevel marketing (MLM). Network marketing by definition requires building up a down line of other sellers who earn you money from the additional members you recruited and from the products they sold. Having a down line is really great because it allows you to earn passive income, money that you don’t have to work for to receive. Some of these programs requires fees to join them. The fees can often times be very excessive and the company will usually try to up sell you into buying additional products like training materials and samples. These materials are design to help you promote their products or services.
4. Sell Products online. One most common way of earning money is by selling products in the internet. In order to succeed, you must pick one product that customers are willing to buy. In addition, you should have a site and you must have techniques on how to attract visitors to your site.
5. Create web content. Another method of Internet home based business is article marketing. Creating compelling web content (articles) is essential for success online. All Internet surfers, shoppers, workers and researchers turn to the Internet as a source f information and news in the first instance. Their secondary action is to buy/ sell/ recommend or sign up. You need to ensure that you are providing great content first and then directing your reader to an action.There are a great many ways to put content on the web. Ensure the information that you are putting out there is informative, original, correct and useful and you will find the increase in the traffic to your website. Web content is information about a particular subject that is written in a concise, knowledgeable and professional way. It can be presented in the form of a webpage, blog, article or forum post. All of these mediums all for other Internet users to search for and find your content – particularly if it is based around a specific keyword. If you write your content well, include a link back to your original blog/website and SEO your content well, you will have an excellent library of content on the web that continually links back to your website/blog. With article marketing you write articles that have links back to your site and submit them to article directories. This will build links pointing to your site and over time will drive traffic directly from the articles.
6. Click On Some Freebies. The freebies that may suddenly appear through your screen may cause annoyance, however, you can actually earn some money from them. So, click some freebies that you may encounter while surfing because who knows you might just earn the amount you need without ever costing you a penny.

When you are pursuing a home business opportunity you do not have to spend a lot of money to start your business. There are very many things at you can do to make money with your home business without having to spend a lot of money on an Internet store, in a web site, or expensive inventory.

Start working on your own personal wealth and stop working on the clock. Earn what you’re worth and make that change TODAY!

What qualities do someone has to posses before he or she can regarded as an successful entrepreneur? Being an entrepreneur is more than just starting a business. It is about having attitude and the drive to succeed in business. All successful entrepreneurs have a similar way of thinking and posses several key personal qualities that made them so successful in business.

All successful entrepreneurs have the following qualities:

• The main quality is “inner drive” to succeed. They are very ambitious people and always try to implement their ambitions in life. Entrepreneurs set real goals for themselves and is focused and determined to achieve their goals and try to achieve them regardless of the obstacles they see on their way.
• Entrepreneurs have a really strong belief in themselves. Every successful entrepreneur believes completely in their ability to achieve any goal. Their self optimism can often been seen by others as flamboyance or arrogance but entrepreneurs are just too focus and don’t spend too much time thinking about smbd’s un-constructive criticism.
• Successful entrepreneurs always search for new business ideas and innovation. All entrepreneurs have passionate desire to do things better and to improve their products or service. They are constantly looking for new ways to improve.
• They have a spirit of competition in their blood. Successful entrepreneurs thrive on competition. The only way to reach their goals and live up to their self-imposed high standard is to compete with other successful businesses.
• And lastly, they are highly motivated and energetic. Entrepreneurs are always on the move, full of energy and highly motivated. They are driven to succeed and have abundance of self-motivation.

All successful entrepreneurs know how to generate business ideas:

1. They always read and study as many things as possible. You need to investigate specific information of what you are going to sell. For example, if you want to be involved in real estate business, you have to study everything about your subject matter.
2. After you have done your study, think hard about the solution to that specific problem. Then stop and relax. Let your subconscious mind works for you. The idea or solution will come to you at much unexpected moment. For me, idea or solution comes to me when sleeping.
3. Refine your raw idea until it is up to your satisfaction. You can always do your own research on the raw idea by asking questions to target market to test the feasibility of the idea and how to improve the idea further.

“The best way to get something done is to begin.”

“It does not matter how slowly you go, so long as you do not stop.”
Confucius

Welcome, Entrepreneur! Even if you do not have your own business now, but you want to organize something, you already are an entrepreneur in your heart.
If you do the first steps into the world of business, and you are looking for information “how to open a business” or “where to start”, then this article is for you! It has lots of free and most useful information that will allow you to start your own business successfully:

The main questions in business creation are:
1. The algorithm that will successfully open a business in any area of business and show what to do when it seems that it does not work and all efforts in vain
2. How to start a business and what steps are necessary to pass.
3. How to save time and money in establishing your own businesses.
4. How to create a business in accordance with the laws of business and make it competitive

Two major challenges confronting aspiring entrepreneurs are:
1. Where can I find an interesting business idea

2. Where to get money for this idea

“To solve a problem or reach a goal, you don’t need to know all the answers in advance.
But, you must have a clear idea of the problem or the goal you want to reach.”
~W. Clement Stone~

Usually you can see such a situation:

• If a someone has money he thinks: “The hardest part is to invent the idea, and calculate it to the last detail.”
• If there is no money, but there are ideas, thoughts following lines: “I have a lot of ideas in my head, one is more better and more profitable then the other. Ah, if I had money, I would open a business!”
• The third situation is when there is no ideas, and no money: “I wish I had enough money for…”

If a person thinks that its task is difficult, then so it would be. And if you will diligently seek answers to this questions, then after a while you will see (unless of course you will) that most of the problems are solvable, and the organization of the business can be a struggle for a place under the sun, and the game and the competitors in this game can become assistants.

Initially a very good option might be to create a home business. Start creating a home business working in parallel on the previous work. This will allow you to avoid the difficult transitional and painless period while starting a new business.
Set a goal, eventually, create more cash flow (income). Your first business – Your first school. Remember that. Do not grasp the grandiose projects until you have created 2 or 3 small, but quite profitable business.

“The secret to productive goal setting is in establishing clearly defined goals,
writing them down and then focusing on them several times a day
with words, pictures and emotions as if we’ve already achieved them.”

~Denis Waitley~

It must be remembered, any source of income, if you do not know the necessary laws of business and life, you can lose through no fault of your reasons. Therefore it is necessary not only to create a business and have a good income, but also receive financial literacy, as well as the necessary knowledge about life laws.

Financial literacy can help you in case of loss of your business to get back quickly on your feet. It plays a lesser role than in school. Be sure to read the following books: “Rich Dad Poor Dad” by R. Kiyosaki and Napoleon Hill’s “Think and Grow Rich”
Laws of Life will help you to avoid the bankruptcy of your cause and in time to take the necessary steps to overcome the critical situations.
In fact, at the initial stage to create a business you need: objective, a clear plan of action and knowledge of how to do it. The selection of business ideas is also an important step.
The best business idea is the idea that you have invented yourself. The already-made idea is often difficult to apply in practice. The reason is that each individual has its own perception of reality and it may be difficult to copy alien business idea because of the peculiarities of your perception of reality. Each person has their perception of the world and their ability to certain types of activities.
Never give up because of any failure, just find the cause of failure. This is the only way to succeed. Most successful people achieved success in one step up of defeat.
Get your act right now. Write on paper, your goals and desires. This will be your first step.
Remember, there always is the opportunity to start a business with very low initial investment, or even without any investment. Often, the initial capital is even harmful, because it creates a temptation to rely on him. But we should rely only on ourselves.
If you do not have the money to build your business and not even the very idea of business, which would you like and which provides a good potential profit, I suggest you the following. Continue to work on your job, learn the necessary literature to build your business and putting off 10% of their wages. This money will help you to build your business. You still live, but you will have a small start-up capital to start your business. During the year you put 10% of  your salary and study information that will help you to build your business. You’ll learn a lot during the year. In addition, you will learn how to create a business with little investment. Here you’ll need your little savings that you patiently postponed.
Everything is in your hands. Without training, the chances of creating successful and sustainable business are dramatically reduced. You do not need a lot of money for the first start, you’ll need knowledge.
Note another important point, perhaps the most important. Successful businessmen bring benefits that meet their needs. If you start a business just because of money, you stepped a very difficult path. On the first hand, a business must necessarily makes you happy, on the second, your business should be resolved the problem of other people. You’ll help them and for that people will pay you money. In this case, your business will be successful and many people will thank you. It’s worth a lot.
The success of any business depends entirely on how potential customers evaluate the value of your products or services. Each potential client must clearly see all the benefits that your proposal promise to them. And if your potential customers will not see their benefits, they will go to your competitors, who will be pleased to pick your clients up.

“Success usuallly comes to those who are too busy to be looking for it.”
~Henry David Thoreau~

Contrary to popular belief, you don’t need a huge outlay of cash – or any cash at all – to launch new business. Here’s how to start new business:

1. Stay at home. Renting office space is expensive and unnecessary during the first several months while starting new business. If your home is not conducive to concentration, create a movable office by working in coffee shops or other locations with free wi-fi. For professional meeting arrangements, pick a reasonably priced, but nice, restaurant for lunch. If you absolutely need an office, see if your town or city’s economic development office provides low-rent incubator space for new businesses.
2. Learn financials. It is helpful to know how to read financial statements even if you plan on hiring a bookkeeper or accountant when your business takes off. Self educate through the web. Learn the basics of balance sheets and income statements.
3. Hiring employees is another expense you can avoid in the start up phase of your business. If you don’t have cash to hire experts, but desperately need a graphic artist, writer or web designer, see if there is a pool of students you can draw from a local college or university internship program. Or, learn to do it yourself until you are making enough money in your business to hire a professional.
4. Once you have a website, let all your friends, neighbors and family know you have started a business (and include a link to your site); encourage them to forward the news on to their friends and business associates.
5. Become your own PR person. Learn the basics of writing a press release and send out an announcement to your local newspaper and trade publication about your new business. Post helpful advice (just don’t blatantly self promote) on blogs or online networking groups about your area of expertise.

And remember: being in business for yourself means starting early in the morning, working late into the evening most days, spending long Saturdays and busy Sunday afternoons with your new “baby.” It’s going without a vacation because there is no one else to operate and run the business when one is away.

Now, after reading all of this, is it worth it, this “going into business for yourself?” The answer is definitely “YES!” as long as you know what is needed, how to fill the need, and can fill it, and have the energy and desire to get the job done.

Forming a non-profit corporation is much like creating a regular corporation, except that non-profits have to take the extra steps of applying for tax-exempt status with the IRS and their state tax division. Here is a business technology about what you need to do:

1. Obtain nonprofit materials from your state’s corporate filing office.
2. Choose an available business name that meets the requirements of state law.
3. File formal paperwork, usually called “articles of incorporation,” and pay a small filing fee (typically $30 or $40).
4. Apply for your federal and state tax exemptions.
5. Create corporate “bylaws,” which set out the operating rules for your non-profit corporation.
6. Appoint the initial directors. (In some states you must choose your initial directors before you file your articles, because you must list their names in the document.)
7. Hold the first meeting of the board of directors.
8. Obtain licenses and permits that may be required for your corporation.

Contact your state’s corporations division

Your state’s corporate filing division, usually part of the Secretary or Department of State’s office, will often supply a packet of nonprofit materials that will be immensely helpful to you in forming your nonprofit.

This packet should include sample or fill-in-the blank articles of incorporation and your state’s nonprofit corporation laws. It should also contain a filing fee schedule, as well as forms and instructions for checking the availability of your proposed business name. Contact your state’s corporate filing office to obtain this packet.

Choose a business name

Before you form your nonprofit corporation, you need to decide on a name that complies with the rules of your state’s corporate filing office. The information packet you receive from the filing office should contain your state’s rules, but the following guidelines commonly apply:

• The name of your nonprofit cannot be the same as the name of another corporation on file with the corporations division.
• The name must end with a corporate designator, such as “Corporation,” “Incorporated,” “Limited,” or “Corp.,” “Inc.” or “Ltd.” (This is required in only about half of the states.)
• The name cannot contain certain words prohibited by the state, such as Bank, Cooperative, Federal, National, United States or Reserve.

Your state’s corporations division can tell you how to find out whether your proposed name is available for your use. Often, for a small fee, you can reserve the name for a short period of time until you file your articles of incorporation.

In addition to confirming that another corporation in your state isn’t already using your proposed name, you must make sure your name won’t violate a trademark owned by another company (in your state or out of state). To do this, you’ll need to conduct a trademark search.

Once you’ve found a legal and available name, you aren’t usually required to file or reserve the name with your state — when you file your articles of incorporation, your nonprofit’s name will be automatically registered.

Prepare and file your articles of incorporation

After you’ve decided on your business name, you must prepare and file “articles of incorporation” with the corporate filing office. This document goes by a different name in a handful of states; your state may instead use the term “articles of organization,” “certificate of incorporation,” “certificate of formation,” or “charter.”

Your state’s corporate filing office will usually provide you with nonprofit articles of incorporation — either a fill-in-the-blank form or a sample on which you can base your articles. Although preparing this document isn’t difficult, you do need to include specific language to ensure that you’ll receive tax-exempt status. Your state’s nonprofit formation packet, if available, may include the required information. If not, or if you need help understanding the requirements, consult a good legal self-help guide such as How to Form a Nonprofit Corporation, by Anthony Mancuso (Nolo), to make sure your articles comply with your state’s nonprofit law.

Apply for your federal 501(c)(3) tax exemption

After the corporate filing office returns a copy of your filed articles, you can submit your federal 501(c)(3) tax exemption application to the IRS. (The IRS requires you to submit a copy of your filed articles with your application.) This is a critical step in the formation of your nonprofit organization since most of the real benefits of being a nonprofit flow from 501(c)(3) tax-exempt status.

To apply for your exemption, you must complete IRS Form 8718, User Fee for Exempt Organization Determination Letter Request, and IRS Package 1023, Application for Recognition of Exemption. For instructions on filling out these forms, read IRS Publication 557, Tax-Exempt Status for Your Organization. (You can obtain all of these items for free by calling 800-TAX-FORM, or you can download them from the IRS website.) If you need a bit of help deciphering the IRS-speak, consider downloading Nolo.com’s plain-English eGuide, Nonprofit Corporations: Qualify for Federal Income Tax Exemption.

After the IRS reviews your application, it will send you a letter indicating that it has approved your nonprofit status, or it might ask you for more information about your organization. The IRS can also deny your application outright. If this happens, see a lawyer who specializes in nonprofits.

Apply for a state tax exemption (if necessary)

In a few states (California, Montana, North Carolina and Pennsylvania), you must complete a separate application to get a state tax exemption. In other states, as long as you file nonprofit articles of incorporation and obtain your federal 501(c)(3) tax-exempt status, your state tax exemption will be automatically granted. In still others, to get your state exemption you must send in a copy of the IRS determination letter that granted your federal exemption. Contact your state tax agency to find out what steps you must take.

Draft corporate bylaws

Next you must create bylaws, the internal rules that govern your nonprofit corporation. Bylaws contain rules and procedures for holding meetings, voting on issues and electing directors and officers. To create bylaws, you can either follow the instructions in a self-help resource or hire a lawyer in your state to draft them for you. Typically, the bylaws are adopted by the corporation’s directors at their first board meeting.

Appoint directors

Directors, who meet and make decisions collectively as the board of directors, have the authority (and responsibility) to manage and run the nonprofit corporation. Many states allow nonprofits to have just one director, but other states require at least three.

The directors should first adopt the bylaws and elect officers — state law usually requires a president, secretary and treasurer, and sometimes a vice president as well. Then, the directors should authorize the newly elected officers to take actions necessary to start the business of the nonprofit — for example, setting up bank accounts and admitting members.

After the meeting is completed, minutes of the meeting should be created and filed in your corporate records book. For more information, see Running your nonprofit corporation.

Obtain licenses and permits

Many businesses, whether operating as for-profit or nonprofit corporations, partnerships or sole proprietorships, are required to obtain state or local licenses and permits before commencing business. So, while you may not be subject to the kind of red tape that entangles profit-making enterprises, you should check with your state department of consumer affairs (or similar state licensing agency) for information concerning state licensing requirements for your type of organization. For instance, a local business license (sometimes called your “tax registration certificate”) may be required for your activities, and if you sell anything to consumers, you’ll need a sales tax permit.

1. Use Your Salary as Funding

Gregory Moore financed his big idea one paycheck at a time. The opportunity was obvious: Gregory Moore wanted to create a company that would securely transmit patient and payment data between hospitals, doctors, clinics, and insurers. In 2000 he took the proposal to software maker TeraHealth, which then hired him to make it a reality. But TeraHealth didn’t pursue the effort, so Moore began building the business on the side. He used his salary to hire a coder and spent nights and weekends filing incorporation papers and creating sales brochures. He even set up a basic office.

The Monday after he left TeraHealth in March 2001, his new company, Harbor Healthcare, was open for business. Moore booked his first revenue about a month later. TeraHealth grumbled, but Moore had records proving that he’d hatched his idea long before he joined the company.

The key, he says, is “to use your salary to invest in the startup as much as possible before jumping ship.” After five years and several rounds of angel funding, he still owns a majority of the firm’s equity.

2. Turn Common Complaints Into a Business Plan

Jeff Gallino and Cliff LaCoursiere decided to give customers what they really wanted. You know that feature your customers are always asking for? If your employer won’t deliver it, maybe you should.

That’s what Jeff Gallino and Cliff LaCoursiere did. Back in 2001 the two worked for ThinkEngine Networks, a Boston-based telecom equipment company. Gallino handled relationships with software partners, while LaCoursiere ran sales. The two kept hearing customers ask for a way to digitally sift through recorded calls and analyze them.

Gallino and LaCoursiere brought the idea to their employer, but they received a halfhearted response. So the duo wrote a business plan during off-duty hours and left ThinkEngine Networks in 2002. They funded their new firm, CallMiner, for a year with money saved from their salaries.

Gallino wrote the first version of their software, which builds an overall picture of what’s being said through speech recognition, pattern mining, and signal analysis. The product attracted angel investment and a venture round, including cash from In-Q-Tel, the CIA’s venture fund. Today, CallMiner’s applications are used by airline, energy, and cable companies to categorize call-center calls, while government agencies are evaluating the technology’s ability to automate intelligence gathering.

3. Convert Your Employer Into a Business Partner

Jeff Hilbert spun a doomed division into a successful startup. In 2002, when Jeff Hilbert was managing the design services division of Coventor, a chip-design software company in North Carolina, his unit was slated for the chopping block. However, Hilbert noticed that he had recently been winning a lot of business from wireless chip companies, so he asked Coventor to let him spin off the unit as a stand-alone company.

The board went for it and gave the startup (now it is called WiSpry) $6 million worth of patents and other intellectual property, seven employees, several hundred thousand dollars, and an office in Irvine, Calif., all in exchange for shares in the company. Today, Hilbert is CEO of WiSpry, which is developing a special chip for cell phones that could improve battery life by 20 to 40 percent. His advice: Don’t rely too much on a parent company. Sooner or later, all startups must be able to fend for themselves.

The present research focuses upon new businesses which are started from scratch. The theories of reasoned action and planned behavior are used to formulate hypotheses concerning self-employment intentions and subsequent entry into self-employment.  The findings strongly support the theory of reasoned action, but provide no support for the extension of the theory represented by the theory of planned behavior.

According to Business 2.0 Magazine

• Refer to the entrepreneurs’ support. There are governmental business programs for small business support. Following those programs there are benefits in rent, purchase of office equipment, and also the help in organization of new business for entrepreneurs-beginners is provided. Information on this issue may be requested from local government, because the assistance program for small business are of regional and sometimes even of urban level.

• Start a business from scratch. Such an option is fraught with difficulties. It is rather difficult to promote your business idea into reality. Be prepared that this will take you quite a lot of time, money and other resources. May be you’ll need to find some investors. However, everything is in your hands, and the success of your new business depends entirely on your persistence, perseverance and diligence. There are many cases known, when people achieved great success in business, starting from scratch and without any investment.

• Buy ready made business. To buy a ready business is much easier than to create it from scratch. Buying a business, you get rooms, warehouses, trained personnel, existing contracts; this in general is a ready operating system. It only depends on you what to do next: to develop the business and eliminate competition, or you may sell the business for a better price.

• Buy a franchise. This is quite a convenient way of starting a new business on the business arena. Franchising means that you sign a contract with a famous trademark (the franchisor). Then the franchisor gives you the right to use its technology, name, licenses.

Are you ready to become an entrepreneur?

First of all, to see whether your decision to start new business is a good idea, and whether you will become a good businessman, ask yourself the question: would you like to have a partner in business, like yourself? Try to answer this question objectively. If the answer is ‘yes’, then start your own new business. Even at the zero level of your business you must understand that you shouldn’t rush, because rushing you risk to fail in the beginning. Before you start implementing your idea, you need to conduct a marketing research, create the business plan, and keep attention to all the details.
Try to choose from all fields of activity the one you have an idea about. Remember that starting a new business you’ll have to learn a lot of things.  It is very important to know the essence of your business on a professional level. Thus you can control the whole work process from the start to the implementation of the product.
It is observed that if you have such knowledge, then the uniqueness of your type of business will help you to take a sure place under the sun and avoid the serious competition the old-timers of this business.