Emotional Challenges You’ll Face as an Entrepreneur
No doubt, entrepreneurship requires a whole lot of mental energy. With its highs and lows, excitement and fear—which you may feel all at once—there are times when time feels too short and failure seems to be lurking close by.
These feelings might not be fun, but they’re normal. After all, choosing entrepreneurship means you are choosing risk, acknowledging that the chance for failure is alive and well.
So, if you find yourself overwhelmed by the psychological challenges of entrepreneurship, remember that they’re all part of the journey—the destination you wanted and needed to go on. Building something out of nothing is not simple, which is why it’s commendable that you’ve chosen this path. It’ll get better, the challenges growing less intimidating and more controllable, if you just keep going.
Six Keys to Entrepreneurial Success Post-pandemic
While the world begins to return to some semblance of normalcy in a post-pandemic era, there is no doubt that Covid-19 has forever changed our experiences, especially for the working world and entrepreneurs. But this is a good thing, for a lot of reasons.
One of the best parts of being an entrepreneur is the ability to work for yourself from virtually anywhere. This is a concept that became normalised for many non-entrepreneurs during the pandemic and helped boost the profits for many new and existing entrepreneurs alike.
Every situation is thus a learning experience and entrepreneurs have the opportunity to learn a great deal from it.
Keys You Need to be a Successful Entrepreneur
Have you ever considered running your own business, but doubts assail you and uncertainty stops you? It is not for less because only a small percentage of the new businesses that are created manage to survive: ” 82% of the new companies do not reach four years of life” . This is what the economists Oriol Amat and Pilar Lloret indicate in their book “Advancing, keys to survive and grow”.
Working for yourself has a special appeal because you can be your own boss. However, the path to becoming a successful entrepreneur can be tortuous since not all of us are trained to take charge of their own business, especially those who are used to working for others and who also do not have financial notions basic. Entrepreneurship is not easy, especially if what we want is for the business to last over time and generate wealth for us.
The global economic crisis of recent years has pushed many people to undertake en masse, but am I really ready to undertake?
Managing These Three Resources Is The Key To Entrepreneurial Success
Managing money and assets is one of the most critical parts of being a successful business owner. Yes, you need a good idea, an unwavering spirit, and a dedication to your company, but a foundational key to your success is understanding resource management.
Entrepreneurs have many types of resources available to them, only one of which is monetary capital. Let’s break down the top three assets entrepreneurs need to manage—money, time and knowledge—and how to maximize impact.
No matter what level you are at on your journey to success, you could probably stand to learn from someone else’s expertise. Want to see your money and your company go further? Consider investing in a business coach. When you are ready to take the next step in your company, and have a handle on some of the basics (like payroll, insurance, and billing), a business coach should be your next financial investment.
Franchise Businesses Sell At Higher Price Point
When it comes to resale value, franchises beat non-franchise businesses, according to a new study from Palm Beach Atlantic University’s (PBA) Rinker School of Business.
After examining 2,159 business resales over a ten year period, the researchers found that franchise businesses sold at a 1.5 times higher price than non-franchise businesses. In addition, small businesses in the food/restaurant category sold at a .5 times higher price than other personal and professional small business categories.
“Our research supports the value of a franchise branded business,” said Dr. John P. Hayes, director of PBA’s Titus Center for Franchising. “If two people operate the same type of business over a period of years and enjoy similar sales, the franchise business is more likely to sell at a higher price point. Business owners ought to be aware of that information in advance of launching a business.”
The study titled “Determinants Impacting Resale Premium Disparity when Selling a Small Business: A predictive Non-Linear Approach,” will be published in the Fall 2021 issue of the “Journal of Business and Economic Studies.”
Franchisors and Franchisees Must Learn to Deal with Change
If there is one thing that the Pandemic taught us, especially those in the franchise industry, is that certain events both large and small require change. It is a given that the recent Pandemic represents extraordinary change having last occurred 100 years ago. Franchise brands face frequent challenges requiring change including, a formidable new competitor, franchisee resistance to certain promotional programs, declining franchise system growth or a public relations problem like when the Subway Foot Long Sub, was found by a customer to be less than a foot long. When these situations arise, franchisors and franchisees must be equipped to implement change to meet the challenge.
Expect that franchisors will be required to implement changes to their franchise program from time to time some minor and some major. When a franchisor wants to make a change, based upon the magnitude of the change, it should be communicated to the franchisees before the change is implemented providing advance notice.
What You Really Need to Look for When Considering a Franchise
Buying a franchise is a fantastic way to become a business owner. If you’re interested in acquiring one, many people will offer to help. All of them have an interest in your purchase, typically a percentage of the sale. It’s a market like any other.
But a franchise is a major purchase. Your decision should be based on your or your family’s interests in mind. You need to be able to look past the hype, promises and tactics to find the opportunities that are best for you. That requires knowing what factors really matter when evaluating options.
Most articles about franchise selection outline the obvious considerations. You want something you find interesting and something affordable. You want to work with an accomplished franchisor who provides good training and ongoing support. You want to read their Franchise Disclosure Document (FDD) to explore all the nooks and crannies of the business. You need to crunch the numbers to get a better estimate of the costs to run the business in your area.
The Role Timing Plays in Your Decision to Buy a Franchise
Buying a franchise is an investment. Specifically, an investment in your future.
That said, it wouldn’t be unreasonable for you to want to look at investing in a franchise the same way someone who’s involved in the world of finance looks at investing. For example…
“Buy low and sell high. It’s pretty simple. The problem is knowing what’s low and what’s high.” – Jim Rodgers, American investor, and financial commentator
Makes sense right? In franchising? Absolutely.
According to YCharts.com, as of April 2021, the S&P 500 two-year return was 41.94%. (The S&P 500 two-year return is the investment return received for a two-year period, excluding dividends, when holding the S&P 500 index.)
For the purpose of this post, if a portion of your money was invested in the U.S. stock market for the last couple of years, you were able to keep your job, and you kept your household expenses in check, you may be positioned right for franchise business ownership.
Why the Hiring Crisis is a Moment of Reckoning for Restaurants
The stories of restaurants struggling to find labor aren’t subsiding. Texas Roadhouse CEO Jerry Morgan said last week, as year-over-year sales skyrocketed 126.7 percent in April, “challenges continue to exist in this environment, the biggest being staffing.”
The steakhouse chain is getting plenty of applicants, “but not everybody is really motivated to get a job,” Morgan said.
There’s been an unusual uptick in no-shows. Turnover is actually lower than historic levels, but employees simply aren’t turning up for interviews.
“And maybe that’s because of the payments that they have,” he said, referencing the $300 weekly unemployment boost extended through the beginning of September in President Joe Biden’s $1.9 trillion American Rescue Plan.
“The money is coming to them a little easy, just my opinion, but that’s where our concern is,” Morgan said.
This is the pulse of today’s labor debate for restaurants, which has surged to the forefront of the industry’s COVID-19 recovery story.
2021 Summer Restaurant Trends
With the summer months rolling in, restaurants being brought to full capacity and tourist season getting into full swing, it is important that your establishment stay ahead of consumer trends to best serve your guests. Aside from the obvious health and safety and delivery trends, there are a few others that, if incorporated, will have guests coming back again and again. Here we take a look at a few of the top restaurant trends for summer 2021.
Tasting menus where guests get to sample various new and popular dishes have become extremely trendy in today’s restaurant scene. These menus create a festive atmosphere and give guests an opportunity to try a variety of flavors. They are a favorite of foodies across the globe and give your chef a chance to show off their skills, creativity, and versatility.
So, What’s the Deal With Ghost Kitchens?
Luis Mota had no interest in running a ghost kitchen.
When he first opened his Mexican restaurant La Contenta in Manhattan’s Lower East Side in 2015, he was actively against delivery, as “the food suffers too much,” he says. A restaurant, to him, is about “sitting, enjoying, relaxing,” none of which are possible when there’s only takeout and delivery and no dining room.
But then last March the pandemic decimated business at both his restaurants, forcing him to lay off much of his staff and survive on loans from the government. He had been about to open his third restaurant. Instead, he turned that space into a ghost kitchen, creating a short menu of popular items, ponying up for the hefty fees charged by third-party delivery companies, and spending thousands of dollars on takeout containers and paper bags. He’s saved some money in staffing by making the switch, but he’s just barely covering his costs through sales.
The Future of Ghost Kitchens
Based on current trends, ghost kitchens will be integral to the future of the food industry. The global ghost kitchen market is expected to reach $1 trillion by 2030.
As QSR Magazine explains of the ghost kitchen model, “It’s an ever-more-appealing prospect as the $17 billion U.S. online food delivery market climbs toward a projected $24 billion by 2023, according to data portal Statista.”
Ghost kitchens won’t be going anywhere when Covid-19 social distancing measures ease. Philadelphia-based restaurateur Branden McRill explained this to the Today Show:
“The appeal of this flexibility and the variety of options won’t disappear when the pandemic is behind us, McRill said. Think about how we used to go to the movies, he said, when you had to watch whatever you could get tickets for at the time it was showing, vs the streaming era now, ‘where people want to get exactly what they want at exactly the time they want it,’ he said. People have short attention spans too, he said, and constantly want to try new things. More traditional restaurants will be hard pressed to keep up, he added.”
As they look forward to the future of dining, it seems likely that more and more traditional restaurants will invest in the virtual kitchen model.