Watch Me Franchise!

If you are thinking about investing in a franchise business, then it is important to do ample research before reaching out to one of the franchise’s sales representatives. To help with your research, we gathered the top 10 myths about franchising and debunked them for our readers.

Myth 1: All Chain Restaurants are Franchises
Whenever people see a chain restaurant, from Outback® to Olive Garden®, they always assume it is a franchised unit. However, there are two business models that these chains commonly use. The first involves selling franchises, and the other involves hiring individual store managers to run corporate owned locations. You might be surprised to learn that the following chains do not franchise: Cheesecake Factory®, Lone Star Steakhouse®, O Charleys®, and Bob Evans®.

Myth 2: Buying a Franchise Means Guaranteed Success
Although your odds of success are statistically higher with a franchised business, there are no guarantees. Even with a proven business concept, no business venture is without risks. Hundreds of franchised businesses close every month. However, studies show that the most common reason a franchise fails is because they do not follow the system.

Myth 3: It’s Wasteful to Invest in a Franchise, Just Open your own Business
All franchises have an initial fee that must be paid to open a location. Some people view this as a waste of money. However, studies show that nearly 95% of franchised businesses remain open for at least 5 years, and 94% of franchise business owners consider themselves successful. The money you give the franchisor lets you in on a proven business model that will make your business much more likely to succeed.

Myth 4: Starbucks is the Worlds Largest Coffee Franchise
As we mentioned in myth #1, there are two business models used by large chains, and although many people assume Starbucks® franchises their stores, they actually do not. The only Starbucks® locations that are not corporate owned are those inside hotels and grocery stores. There are numerous coffee shops that do franchise, but none of them is as massive or well branded as Starbucks.

Myth 5: All Franchise Business Models are Tested & Proven Successful
Unfortunately, there are no laws or requirements that say franchises must be tested or meet any success standards. There are very specific laws pertaining to the information given to prospective buyers in the Franchise Disclosure Document (FDD), but none for gauging the success of the business structure.

Myth 6: You need to be Wealthy Already to Invest in a Franchise
Although it can cost tens of thousands of dollars – or even hundreds of thousands – you do not necessarily need to have that much in your bank account. There are multiple different ways you can finance a franchise. Examples include personal loans, self-directed investments, small business administration loans, and home equity loans.

Myth 7: Running a Franchise Business is Easy
Although a franchisor will provide the franchisee with training and direction, the day-to-day operation of the store is your responsibility as the owner. There is no such thing as an easy business opportunity. Even with a proven business plan, to be successful you are still going to have trials along the way.

Myth 8: Bigger is Always Better
When it comes to selecting a franchise to invest in, a recognizable brand can generate almost instant customers. However, these established franchises often have much higher fees and can be difficult to work with. Some actually prefer smaller franchises as they are easier to work with and have a more personal touch.

Myth 9: Opening a Franchise Business is Cheaper
Some people assume that opening a franchised business will be cheaper then opening up a traditional business since they will save on marketing costs. Unfortunately, even with a very well known franchise, you will still need to allocate funds for marketing. Additionally, royalties and fees can frequently offset these savings.

Myth: Higher Initial Fees Means Better odds of Success
The old saying, “the more money you invest, the more money you make,” is definitely not true when it comes to franchises. Just because the initial fee is sky-high does not mean that you will have better odds of success. As we mentioned before, all business ventures include risk, and there is never a guarantee that you will be successful, no matter what franchise fee you pay or what the franchisor tells you.

Now that summer is here, it is a great time to throw a theme party for your staff, and their friends and family. Throwing these types of parties can provide tons of benefits, most of which are outlined below. However, it is essential that the party still maintain a professional atmosphere. Remember that this is still a work function, and business codes of etiquette will still apply.

1. Happy employees
Throwing a party for your employees is a great way to say “thank you for all your hard work.” Providing alternative benefits, such as throwing parties, is a great way to keep your employees happy and feeling like a part of a family. It is also a great way to break up the day-to-day business interactions that you usually have with them.

2. Improved productivity
By rewarding employees with parties, and other fun events, it will help improve their overall productivity by making them feel invested in the company. And when employees feel this type of investment they usually want to see the business succeed and will spend less time slacking off when they are in the office.

3. Team bonding
Work parties, especially summer parties, present great opportunities for team bonding. While you are planning out a party, make sure that you include team building activities, such games or athletic challenges.

4. Opportunity to meet family
If you open up a work party to people besides just employees, then it can allow you to not only meet, but get to know your employees friends or family. And by getting to know the people close to your employees it can help you get to know them on a more personal level as well.

5. Tax breaks
Do not forget that you can write off half of all the expenses related to throwing an employee party. So feel free to go all out and throw the best summer party your employees have ever been to!

6. Connect with employees
By throwing a summer party, and more importantly by actively participating in the party’s events and socializing with your staff, you can connect with your employees on a more personal level. This will not only help them feel invested, but it can also give you an opportunity to get a feel for how they function in a non-office setting.

7. Stay outside the box
In today’s competitive business environment it is a good idea to have your business stand out from the crowd by offering modern benefits like parties or other team bonding events.

8. Why not?
With perfect summer weather, team bonding, and tax benefits, why not throw a party for your employees? The benefits are huge and with the right planning you can easily keep the cost relatively low. Plus, who doesn’t enjoy a good summer party?

Embedded below is the next episode in the WatchMeFranchise Business Tips Video Series. Our goal with these videos is to provide useful information to business owners in an enjoyable format, and I think that with this new video we accomplish that goal. The topic of the video covers common mistakes that nearly all small business owners make, and how you prepare for them. So sit back, relax, and enjoy as hostess Amanda Scarr discusses the top 10 most common mistakes business owners make.

According to a DollarDays.com survey, over 85% of small business owners are already beginning to feel the impact of rising fuel costs. As gas prices continue to increase and the economy continues to weaken, small business owners will continue to feel the pain in more ways then one.

1. Direct Cost Increase
Whenever you drive for a business purpose – even to and from work – you are paying more then you did a year ago. This direct price increase may only be slight for wage earning employees, but small business owners typically drive a lot more. Between trips to the local Office Depot, frequent visits to their place of business, trips to the bank, and trips on behalf of customers, that extra $0.50 - $2.00 per gallon can really add up.

2. Increased Shipping Costs
One place the cost of fuel has had a direct impact on is the cost of shipping. This increase is passed-down directly to the consumer. This means that the price of everything is going up (i.e. price of supplies, inventory, merchandise, etc.), and the overall cost of running a small business will continue to reflect this problem.

3. More Reliance on E-mail and Fax
Due to the direct increase in shipping costs, small business owners are increasing their usage of e-mail and fax machines. Paying to ship large documents or contracts just costs too much these days. A lot of businesses are also turning to virtual fax machines that let you scan documents to fax out and receive faxes through one’s e-mail address.

4. Less Employee Candidates
Due to the high cost of commuting, people are beginning to only seek employment near their homes. This can drastically reduce the number of applicants who will apply for a position. It is especially troublesome for restaurant owners or stores that frequently hire teenagers.

5. Higher Wages for Employees
When you do find and hire employees, it is likely that you are going to have to pay them higher wages to compensate for the higher commute expenses. This is especially true for businesses located outside of a dense city and your employees must drive long distances to get to work.

6. Less Face to Face Meetings
Pretty much everyone in the country is looking to reduce his or her gas consumption and save money. This means business owners will need to adapt to more virtual means of communication that avoid the gas of driving to face-to-face meetings. Expect to conduct additional business calls, and even videoconferences. These forms of communication are less personable, thus reducing the chances that you will “win” a contract or a customer based upon your people skills.

7. Higher Prices for Prime Locations
The housing boom a decade away led the path to sprawl, where middle income Americans moved to the suburbs in record numbers. However, with record fuel costs, they are driving less. This means the cost of prime locations is likely to skyrocket. Consumers are no longer willing to drive long distances to get a good deal. In addition, advertising will waste money if your store is a long drive for potential customers.

8. Less Drive by Traffic
As consumers drive less and seek-out alternative modes of transportation, the importance of drive by traffic and advertising is going to be less and less effective. Instead, owners of brick and mortar stores are going to need to adapt to more results-driven forms of advertising.

9. Consumers with Less Disposable Income
Business owners that offer products or services deemed as “luxuries” are going to have trouble as people are beginning to cutout unnecessary expenses. Some business such as elite gyms and pricey coffeehouses are likely to feel this effect more so than fast food restaurants.

10. Less Profit per Sale
Between higher costs of production, clients with less disposable income, increased wages for employees, etc., your bottom line profit per sale is likely to decrease. However, with hard work and a savvy strategy, there are still plenty opportunities for success even in the current unstable economic climate.

While we were at the first annual Roni Deutch Tax Center® franchisee convention the WatchMeFranchise team was able to squeeze in one more video with our spotlight franchisee Heather Spell. In this video, Amanda and Heather just finished browsing the vendor exposition and as you can see, Heather stocked-up on promotional items. Be sure to check back in a few weeks for the next installment in our business tips video series.

Last week was the first annual Roni Deutch Tax Center® franchisee convention in Reno Nevada. The WatchMeFranchise team was on hand at the convention and we were able to get a couple of videos with our spotlight franchisee Heather Spell. In the first video below Amanda interviews Heather about her desire to open a second store, and what she has learned from going through the process already. Enjoy the video, and check back next week to see Heather and Amanda getting their fair share free gifts from the Vendor Expo.

1. Always Motivated
Everyone knows that you need motivation and drive to be successful in life. However, it is important to remember that when you are running a small business you will need to be able to not only motivate yourself, but motivate your employees as well.

2. Goal Oriented
Successful business owners are always goal oriented – they know what they want to achieve and how long it will take them to get there. Additionally, having clear goals for both yourself and your employees will help keep everyone motivated.

3. Time Management
When you own a small business, time equals money. If you want your business to be a success you will need to understand time management. You will need to plan how to best use your own time and the time your employees are on the clock.

4. Money Management
In addition to managing time, as a small business owner you also need to be able to properly manage your money. Although money should not be the only reason you open a business, you do need to be able to judge what is profitable and what is not. Fortunately, there are tons of accounting programs that can make money management a lot easier.

5. Personal Health
Many small business owners often forget to take care of their health when things get busy. Sure, it is easy to grab some food from the drive-thru on your way home, but picking this up as a habit can have a negative impact on your business. Poor nutrition can lead to a lack of energy and being susceptible to flues and colds. Remember, you are the leader of your business and need to be both mentally and physically able to lead.

6. Ability to Adapt
Having the ability to adapt is one of the most common habits of successful business owners. When something is not turning a profit, you need to be able to quickly drop it from your business and move on. On the other hand, when some new product or service comes out, adapting early can provide quick and easy revenue.

7. Risk Taking
Successful business owners need to be confident in taking risks. You have to take risks to reap rewards. However, keep in mind that there are times when a risk you take will blow up in your face. The most important lesson to learn is to get smarter, not “scared-er”. Learn from your experiences and move onto the next project. Do not become incredibly cautious or passive out of fear, otherwise you will never succeed.

8. Good Communication Skills
Being able to communicate well with others is a must. In addition to communicating with your staff and customers, you also need to be able to network with other business owners. You will have needs that you cannot efficiently or cheaply address on your own. That is why establishing healthy alliances with complementary business owners is key.

9. Open to Suggestions
In addition to being able to communicate with others, you also need to be able to listen. No one is ever-right 100% of the time, and there are times that even the most successful business owner will need to heed the advice of others.

10. Work Long Hours
Do not make the mistake of thinking that just because you own a business that you will be able to take tons of time off. Successful business owners are committed to their business and frequently work 60 or even 80-hour weeks.

Although taxes and the economy are gaining the attention of the media in their coverage of the presidential candidates (finally!), one important economic factor is still being neglected – small businesses. Presidential candidates have failed to address – and the media has yet to press the candidates – how their economic plans will impact this part of the economy that accounts for 50% of the private sector workforce and nearly 70% of the gross national product.

If you are a small business owner, you are probably going to want to know how each candidate’s proposals will affect your business. The largest issue that you should probably being paying attention to is the candidate’s view on health insurance. Studies show that health care is the most costly and unstable issue currently facing American’s small business owners. Therefore, it is no surprise that all the presidential hopefuls have now released health care proposals.

Democratic Candidates
Although Sen. Hillary Clinton’s chances of winning the nomination are diminished, she is still a candidate. However, since Clinton’s and Obama’s health care plans are so similar we have lumped them into one category. They both support plans that are based around the idea of a “pay-or-play” program where employers are either required to provide health care, or contribute to the cost of coverage. In addition, both plans offer tax breaks, additional requirements on insurance companies, expanded government-provided health care, and expanded use of technology in the medical industry.

Although there may be dozens of similarities, there are sizeable differences between Clinton’s and Obama’s health care proposals. Clinton’s plan calls for mandated health care, which means the government would essentially require everyone to have health insurance. She has compared her plan to current requirements that all automobile drivers have auto insurance. However, Obama’s plan does not have this requirement. Consequently, approximately 15 million Americans would “fall through the cracks”, as Clinton supporters like to point out. To counter, Obama suggests he will encourage families to obtain coverage but not mandate it. His “encouragement” would be in the form of $2,500 in tax incentives.

Another important factor small business owners should consider are the plans respective exemptions. Clinton’s plan would exempt some small businesses, but no official number has been announced. She would offer tax incentives to encourage those exempt to offer coverage anyway. Obama, on the other hand, states that he would exempt small businesses with fewer than 15 employees.

Republican Candidate
The issue of health care has been much less important to the Republican candidates throughout this election cycle. Although all the Democratic candidates came out with health care plans early in the election cycle, Republican hopefuls took longer. Sen. John McCain did not even release a health care plan until after he was considered to have won the nomination. Even then, the plan he released is light on details and contains mostly small modifications to the current code.

The McCain Plan essentially comes down to giving more responsibility and control to individual patients. It calls for removing current tax breaks given to employers to provide health insurance, and replace it with a $5,000 credit to families to purchase their own health care. He suggests that it would encourage choice and competition in the market, thus lowering current prices. “I’ll work tirelessly to address the problem,” Mr. McCain claimed in a speech at the University of South Florida. “But I won’t create another entitlement program that Washington will let get out of control. I won’t do it. Nor will I saddle states with another unfunded mandate.”

However, Democrats claim that by not compelling insurance companies to cover people who typically experience trouble obtaining coverage on their own is a glaring omission. In an even more competitive market, anyone with current health problems will be deemed high risk and experience unreasonable premiums. This could make coverage impossible for certain lower and middle-income individuals. Democrats point out that these individuals are what is causing the current health care crisis in America and The McCain Plan fails to even acknowledge it. In response to the criticism, McCain claims that it would be up to both the federal and state governments to help those who cannot get insurance on their own.

Below is a new video featuring our spotlight franchisee Heather Spell looking back at her success this tax season. In the video she talks about the lessons she learned from this season, and gives advice for other franchisees. At the end, she talks about how she has already begun looking for space to rent for her second store. Check back in the next few weeks as we begin to follow Heather as she expands her business and opens another Roni Deutch Tax Center™.

Happy tax day everyone! In case you have forgotten today is your last day to enter the 12DaysOfTaxes $500 gift card give away! Make sure to remind you friends and family to enter, if they have not already.

To celebrate the end of tax season most people will go out and blow all of their refund on something wasteful like a new car or television. But before you do, consider the following 12 smart ways to use your tax refund.

1. Pay down your credit card debt
2. Save it for a rainy day
3. Make an extra mortgage payment
4. Open an IRA
5. Invest in the market
6. Prepay major bills
7. Upgrade faulty appliances
8. Open a college fund
9. Service your car
10. Invest in yourself
11. Prepay a future vacation
12. Donate it to charity

To see more information check out 12DaysOfTaxes.com

Tomorrow is the last day of taxes, but as tax season ends it is still important to think about your finances all year long. Especially in the weakening economy, it is more important then ever to make sure and plan for your retirement. Below is a list of 11 common retirement planning methods, for more information including their tax advantages check out 12DaysOfTaxes.com.

1. 401(k)
2. Roth IRA
3. Roth 401(k)
4. Traditional IRA
5. Simple IRA
6. Social Security
7. 403(b)
8. 457 Plan
9. Thrift Savings Plan
10. Veteran’s Pension
11. Old Fashion Savings

Tax day is less than 48 hours away, but do not worry if you have no filed your tax return yet. With e-filing and federal tax extensions you are not late. However, if you wait until after April 15 to take any action, then you will likely face penalties and fees. Follow these top 10 ways to make your last minute filing adventures a little more EZ.

1. Gather all your important documents
2. Use last year’s tax return as a guide
3. Practice on paper
4. Do not rush, you will make mistakes
5. Visit a local CPA or tax preparation office
6. Do not just take the EZ route
7. Do not short-change yourself
8. Hold onto your receipts
9. File an extension
10. Prepare for next year

Today is the ninth day of taxes and to celebrate we are reminding everyone to include all available tax credits on your tax return. Below is a list of the nine most common tax credits, for more information check out 12DaysOfTaxes.com.

1. Earned Income Tax Credit
2. Lifetime Learning Credit
3. Saver’s tax credit
4. Environmental Credits
5. Child and Dependent Care Credit
6. Child Tax Credit
7. Additional Child Tax Credit
8. Hope Credit
9. Adoption Tax Credit

Below is the second episode in our Business Tips Video Series. This video features our hostess Amanda Scarr discussing the ten most common business tax deductions. With tax day less than a week away it is important to make sure you take advantage of all business tax deductions that are available to you.

On the eighth day of taxes the government gave to me… eight e-filers filing! With modern technology and the government’s e-file program filing your tax returns has never been easier! Below are the op 8 reasons to e-file this tax season.

1. Convenience
2. Speed
3. Less IRS Employees
4. Security
5. Faster Money
6. Delayed Payment
7. IRS Confirmation
8. State Returns

Today is the seventh day of taxes, and to help families dealing with financial trouble because of the housing market slump we have put together the follow list of tips t help lower your property taxes.

1. Understand Your Local Tax System
2. Review Tax Property Card
3. Think Twice About Remodeling
4. Limit Curb Appeal
5. Walk with the Assessor
6. File an Appeal
7. Move to a Lower Taxed Area

The 12 days of taxes is almost half way over, but do not worry you still have 6 more days to enter our contest for $500 in gift cards. Just check out 12DaysOfTaxes.com and tell us what is your favorite thing about tax season.

Today’s featured article discusses 8 different crazy taxes that are levied upon citizens of this country. The 8 taxes are listed below, but for a full explanation check out 12DaysOfTaxes.com.

1. Illegal Drug Possession

2. Profit from Illegal Drug Dealing

3. Utah Nudity Tax

4. Money received from bribes

5. Jock Taxes

6. Stolen Property Taxes

7. Alabama Card Tax

8. Maine Blueberry Tax

Tax day 2008 is just one week away! If you are stressed about tax season then take a deep breath and head over to 12DaysOfTaxes.com. You can enter to win $500 in gift cards, and enjoy our videos and articles. Today’s featured article is “5 Legal Ways to Lower Your Adjusted Gross Income.” Below are the 5 different tips, but to check out the full version head over to 12DaysOfTaxes.com.

1) Take all available deductions

2) Make charitable contributions

3) Pay extra into your 401(k)

4) Defer income until next year

5) Use your credit card for year-end expenses

Last week, the WatchMeFranchise team stopped by Heather’s store for another video blog entry. Heather was swamped with work, but, fortunately, her husband Gentry was available instead. In the video, hostess Amanda Scarr spoke with Gentry on the different ways they have been marketing their business. As you will see, the Spells have used the corporate marketing materials, internet marketing, and a few other actions to further promote their business. I hope you will enjoy.

Today is the fourth day of taxes, and the featured topic on 12DaysOfTaxes is the covered the top 10 mistakes people make on their tax returns.

Below is a list of the top 10 mistakes, to check out the summary of each mistake head over to 12DaysOfTaxes.com.

1. Math Errors
2. Sign and Date Your Return
3. Attach Forms
4. Social Security Number
5. Check Subject
6. Verify Check Amount
7. List all Dependents
8. File Form 8606
9. Save Copies
10. File on Time

The government gave to me… Three French returns, two W-2’s, and a partial payment in a money tree! Today is the third tax of taxes, and the featured video surrounds the idea that taxes are not just something we have in the United States.

Today’s featured article is titled “Average Tax Rates of 70 Countries around the World,” and includes the average personal and business income tax rates of 70 different countries. Check out the full table by clicking here.

Today is the second day of taxes, and the featured article at 12DaysOfTaxes.com is titled, “9 Ways to Cut Down on Paper Usage this Tax Season.” Below is a summary of the article, but be sure to check out 12DaysOfTaxes.com for the full version along with details on how you can win $500 in gift cards!

1. Keep all important documents and tax forms in a designated file, drawer, or even box.

2. E-file your state and federal income returns.

3. E-file quarterly tax payments.

4. Save copies of online purchases on CD-R and thumb drives instead of printing them out.

5. Use software or electronic payments for payroll taxes.

6. Use a virtual fax instead of a fax machine that prints out on paper.

7. If you intend to buy a new car, consider making the purchase online.

8. Paper has two-sides: use both!

9. Print preview before every print.

This year the employees of the Roni Deutch Tax Center™ are taking a unique approach to tax season. We have launched a new interactive website at 12DaysOfTaxes.com to encourage taxpayers across the country to celebrate tax season instead of fearing it. To help get people celebrating, the site will feature a new video and advice article each day leading up to April 15th. We are also sponsoring a contest to win $500 in gift cards, where all you need to do to win is tell us what is your favorite thing about tax season. So head on over to 12DaysOfTaxes.com, and be sure to tell everyone you know about it!

Today, the first “day of taxes” features RDTC Inc. employee Sue Ann Wilkes singing the phrase, “on the first day of taxes the government gave to me, a partial payment in a money tree.” The associated article is titled “12 Different Ways Americans Are Taxed,” and describes the following 12 different ways to Americans pay the government:

1. Income Taxes
2. Business Taxes
3. Payroll Taxes
4. Capital Gains Taxes
5. Inheritance Taxes
6. Sales Taxes
7. Property Taxes
8. Excise Taxes
9. Gift Taxes
10. Retirement Taxes
11) Tariffs
12) Tolls

To read the full article, and see the first video installment please check out 12DaysOfTaxes.com.

Last week, the WatchMeFranchise team stopped by Heather’s store to get a quick update video. Her store has been open for a few months, and even though business was light for the first few weeks it has really picked up. In fact, Heather is worried that they might not be able to handle all the last minute procrastinators who are waiting to file their tax returns. However, too much business is usually the best kind of problem.

Everyone makes mistakes: it is how we learn and grow. New business owners are no exception to this rule. Below is a list of the top 10 mistakes that nearly all business owners make, and tips for how you can avoid making them yourself.

1. Thinking too small or too big
This first mistake is one that can go either way for new business owners. If you think too small, you may lose a potential deal. This could be because you do not feel confident going-up against an established competitor. On the other hand, if you think too big you can wind up biting-off more than you can chew. It is important to remember how much your business can handle and to position yourself to support expansion.

2. Loosing your focus or drive
Too many new business owners get caught-up in the excitement of opening their own business and over work themselves too much, too soon. Upon not reaping immediate rewards, they are then too quick to drop the business venture. Remember that opening a new business is a long-term project and you need to stay focused. Yes, you are going to work long hours, but make sure to take breaks and not over exhaust yourself too soon.

3. Taking on too much by yourself
No one can do everything themselves, and if you try, you may end up losing your energy. It is always a good idea to seek the help of others. This can be through employees or professional services. That way you can focus your energy on your own goals and not worry about smaller details.

4. Sacrificing your personality
Your business is going to be an extension of yourself. As a business owner you will likely work long hours and when not working, you will probably still be thinking about business. In order to make this kind of commitment you need to love your business and know that it is part of you. If you sacrifice your personality to fit an image of what your business should be, then you will likely lose the drive that got you to open the business in the first place.

5. Not properly tracking advertising
When you are spending money to advertise your business it is important to how if your money is being spent effectively or not. There is no point in spending thousands of dollars for a billboard that never generates new customers. Whenever you purchase advertising always make sure you can track the return on investment so that you can allocate more money for those that provide a higher return.

6. Investing too much in one client
New business owners are often quick to rearrange their entire business structure for their first “big client.” Some people will even move their business location or develop new products for specific clients. While this is not necessarily a bad idea, make sure not to put all of your eggs in one basket. Not every client will last forever and you do not want to be forced to close your business if you lose your biggest client.

7. Going against your gut instincts
When you open a new business you always want to heed the advice of others. But do not let someone else’s opinion overshadow your gut instincts. You are the owner of the business and you need to trust your own ideas. You may not always be correct, but the mistakes you make will help you learn and grow.

8. Not getting involved in the community
Attending local events and becoming an active member of the community are great ways to get free attention to your business. Networking is an important part of building up good business relationships that can lead directly to customer opportunities. For more advice on participating in the community check out our recent article titled, “8 Ways to Help the Community & Promote your Business.”

9. Managing employees poorly
Poor employee management can be detrimental to a new business owner. Managing employees is not something that comes naturally to everyone, and creating bad relationships with employees can create serious problems for a business owner. For ten tips of properly managing employees, check out the first episode in our business tips video series.

10. Trusting that signed contracts will be honored
Although any document that contains an agreement and signatures is technically a legally binding contract, in order to enforce it you will have to go to court. This can cost thousands in legal fees and waste a new business owner’s valuable time. Business agreements are relationships that are based in trust. If you keep quality relationships with trustworthy clients then you will not have to worry as much about what is written on paper.

Participating in the community is always a great way to promote a local business, but most business owners have no idea where to start. Consider any of these 8 tips to help your community and promote your business at the same time.

1. Attend local chamber of commerce meetings
By attending local chamber of commerce meetings you can network with other business owners and influential members of the community. These meetings are also good to attend as you can get a feel for the mood of your community. This can help you decide what causes are important in the community, and what other actions you should take.

2. Offer discounted or free products to service people
Giving a sizeable discount, or even offering free services, to specific groups is another great way to get your business involved in the community. Firefighters, teachers, nurses, etc. are all groups that can benefit from these programs. For a great example of helping the community, check out information on the RDTC Appreciation Month.

3. Participate in community coupon books
Elementary schools and other non-profit organizations frequently sell coupon books as a fundraiser. Being featured in these books not only can drive local customers to your store, but it also sends potential customers a good feeling about your business.

4. Join a local business owners association
Every city has local business owners associations. If you want to promote your business or make alliances with other businesses then joining one is a must.

5. Speak at a local business association
In addition to attending local business associations, why not speak at one? If you have something interesting to say this can be a great way to get recognized by other business owners. While your speech should remain on topic, you can easily drop a few mentions of your business and the services you provide.

6. Sponsor a fundraiser or charity event
By sponsoring a local fundraise or charity event you can help out those in need while also making a name for your business. These types of events can range from a small bake sale all the way to a community carnival, depending on your budget.

7. Sponsor a local sports team
This may begin to get a little too expensive for some small business owners, but if you want your store to get recognized in the community sponsoring a local sports team is a great way to do it! Additionally, you can claim the expenses as charitable contributions and receive tax benefits.

8. Run for a local office
If you decide to run for a local office it will be a huge commitment, but it will give you the ability to really make a difference in your community. There are dozens of local offices you can run for, but make sure to choose a part-time one that will not take too much time away from your regular position.

The month is appreciation month for all Roni Deutch Tax Centers. The goal is this program is to our appreciation for individuals serving in the community by offering 50% off standard tax preparation fees. Listed below are details and dates on which groups are being offered this great discount:

• Teacher Appreciation Week: March 1-7
• Heathcare Appreciation Week: March 8-14
• Emergency Worker Appreciation Week: March 15-21
• Volunteer Appreciation Week: March 22-28

This program is a great way for franchisees to get involved with the community, and also a great way to show gratitude for individuals who go above and beyond to help others. Please enjoy the following video of Heather discussing her experiences with Appreciation Month so far. And check back later this week for advice on how you can help the community and also create more awareness of your own business.

The Watch Me Franchise team is happy to announce that the Roni Deutch Tax Center has launched a new site, 12DaysOfTaxes.com. While most people dread the two weeks leading up to April 15^th, the employees of the Roni Deutch Tax Center celebrate it! Check out the teaser video below, and be sure to check back on April 4^th when the full site launches.

With tax day a little over a month away small business owners around the country are scrambling to find a way to lower their federal tax liability. Consider the following top 10 business tax deductions to get a good refund this tax season.

1. Startup Expenses
IRS rules allow you to deduct up to $5,000 of your expenses in starting a business. These expenses are known as capital expenses and you can deduct them during the first year you are in business. If your total startup costs exceed $5,000 then the remaining amount must be deducted over the next fifteen years.

2. Auto Expenses
If you use a vehicle for business purposes then you can deduct some of the associated costs. The specific rules around auto expenses are tricky to understand but you can either track and deduct all the business-related expenses, or take a standard mileage rate.

3. Education or Learning Materials
Any costs associated with business related education can be deducted. This includes both payments made for self-improvement and for your employees. Night classes, seminars, conferences, and even books are great examples of learning expenses.

4. Advertising, Promotions & Publicity
Small business owners usually remember to write of the costs of paid advertisements, but do not forget that you can deduct any costs related to promoting your business. These expenses vary widely from business cards, sponsoring a community event, etc.

5. Professional Fees
If you seek out help from a professional, such as a lawyer or accountant, then you can deduct all related expenses. However, make sure to only deduct expenses relating to your business and not services for personal reasons.

6. Travel Expenses
Anytime you travel for a business purpose you can deduct all related expenses. This includes plane fare, taxis, hotels, meals, calls, faxes, etc. Just make sure that you keep all receipts so that you are prepared for an audit.

7. Business Meals & Entertainment
According to the IRS you can deduct up to 50% of the cost for business related meals and entertainment. This includes business lunches, catered office events, and even entertainment taking place immediately before or after a business discussion.

8. Coffee & Office Refreshments
In addition to deducting 50% off business related meals, you can also fully deduct any expenses for office refreshments you supply to your employees. This includes coffee, donuts, bottled water, tea, or anything else you want to keep stocked in your business’s break room.

9. Office Equipment
Section 179 of the IRS code allows small business owners to deduct up to $125,000 of the cost of new equipment for an office. Any additional expenses must be deducted over a number of years.

10. Charitable Contributions
If your business is a partnership, LLC, or S corporation then your business can make charitable contributions that you can pass onto your individual tax return. However, you cannot include donations of office equipment that has already been deducted.

Embedded below is the first episode of the WatchMeFranchise Business Tips Video Series. This is our new video project, providing quality business advice in an enjoyable video format.

The entry discusses the topic of managing employees. It also gives ten tips for effective management. Our goal is to try and produce at least one new entry in our Business Tips Video Series per month, so be sure to check back for our next feature!

Last week the WatchMeFranchise team caught up with Heather inside her store for a quick update. As you may recall, her grand opening was a few weeks ago, but unfortunately she did not have her sign up outside for the event. In the video below, Heather explains how she was pleasantly surprised to find that her sign was actually larger than she had expected. She also talks about her experience getting the correct insurance. She was fortunate to have a family member who works for Roberts & Phillips Insurance, and they were able to take care of getting Heather the best insurance rates. However, if you need help with getting business check out our advice entry on insuring your business.

If you are opening a franchised business, then odds are you will need to get a Federal Employment Identification Number (EIN). An EIN is basically a way for the government to identify businesses and it also allows business owners to pay their federal taxes. However, not all businesses necessarily need an EIN.

According to the IRS, you will need an EIN if you answer “yes” to any of the following questions:

• Do you have employees?
• Do you operate your business as a corporation or a partnership?
• Do you file any of these tax returns: Employment, Excise, or Alcohol, Tobacco and Firearms?
• Do you withhold taxes on income, other than wages, paid to a non-resident alien?
• Do you have a Keogh plan?
• Are you involved with any of the following types of organizations?

1. Trusts
2. Estates
3. Real estate mortgage investment conduits
4. Non-profit organizations
5. Farmers’ cooperatives
6. Plan administrators

Luckily, the IRS makes it very easy to get an EIN. To get yours, go to Apply for an EIN (Employer Identification Number) Online at the IRS website and click “Apply Online Now.” It will then ask you various questions about you and your business and will give you an EIN number upon completion.

There are dozens of myths and misconceptions when it comes to small businesses. Unfortunately, people often spout-off lies and bad advice on business without really knowing what they are talking about. Every one of us has probably passed along these misconceptions at some time or another, but now is the time to separate myth from fact. Below, please find the top 10 myths about small businesses.

10. To get customers you need to be cheaper.

New business owners frequently think that they need to have the cheapest prices if they want to get customers from competition. This is anything but true. Look at stores like Macy’s or Nordstroms – they do not have cheap prices but still attract customers. You do not necessarily want to overcharge your customers, but do not take a loss in order to offer cheap prices.

9. If you cook well, you should open a restaurant.

How many times have you overheard someone saying, “Wow, you are a good cook. You should open a restaurant”? Little do they know that opening a restaurant requires a lot more work than just cooking the food. As any small business owner will tell you, there are dozens, if not hundreds, of hurdles to opening a business. Then, after opening the restaurant, business owners typically end up hiring a chef and focus entirely on operating the business.

8. You should not worry about a business plan.

People often mistakenly think that if they do not need to secure funding for their business, it means they should not worry about a business plan. Technically, you do not need a business plan in this situation, but you should still compose one for your own purposes. Creating a business plan will allow you to research your industry, organize your thoughts, and set your long-term goals.

7. Good friends will work well together.

Every year, hundreds of new businesses are opened by friends forming partnerships. Unfortunately, just because you are good friends with someone does not mean you will work well together. Forming a partnership with another person is a huge commitment. You need to be 100% sure that you will be able to work together before you take this big step.

6. Failure is the opposite of success.

In life we are all taught that failure is the opposite of success. However, the opposite is true when it comes to small businesses. Failure is actually an essential part of success. When you open a business, you are embarking on a new journey, and you learn through trial and error. It is unlikely that any business is going to be immensely successful from the start. There are going to be failures and bumps along the road.

5) Watch employees closely or they will slack off.

As we mentioned in last week’s tips for managing employees effectively, you cannot expect your employees to be productive 100% of their shifts. By allowing employees to have some time to breathe they will be more efficient when they are working on a project. The last thing you want to do is cause employees unnecessary stress by breathing down their necks.

4. If you build it, they will come.

Small business owners often invest all of their money into opening their business and forget to save funds for marketing purposes. People think, “if I open my store, people will naturally just come in off the sidewalk.” Uh, not true. You might get a few walk-ins if you have a great location, but it is essential to advertise your business if you want to attract new customers.

3. You can write-off everything.

Too many people learn this myth the hard way. If you take too many business deductions it sends a huge red flag to the IRS and could cost you thousands in unpaid taxes and fees. A general rule for write-offs is to ask yourself, “would I make this purchase even if you did not have a business?” If the answer is yes, then the item you are purchasing is probably not a business expense.

2. You will have more free time.

With this myth, the exact opposite is usually true. Nearly all-new business owners find that they actually have much less free time when they open a business – especially in the beginning. Yes, your schedule will be more flexible but it will not be lighter. Being a business owner is more of a life style than a job. If you are going to be successful, you will probably need to dedicate most of your time to it.

1. The customer is always right.

This is one of the oldest – and most incorrect – myths about running a small business. No, the customer is not always right. In fact, they are frequently wrong. If you always tell customers they are right, then you can wind-up losing thousands of dollars to customers who take advantage of you. There is nothing wrong with correcting a customer who is in error. However, you always want to be polite and professional in doing so.

Expanding too rapidly can be a problem for any major franchisor. Many franchises have a built-in customer base that can support national expansion. These businesses – such as gyms, tax services, and some fast food restaurants – use business plans designed to generate new customer opportunities in various locations. Unfortunately, some franchises do not have this built-in customer base. In addition, franchised businesses can suffer from over saturation. This leads to not only a halt in expansion, but also cause the decline of nationwide sales.

Over expansion has become even more of a problem with modern franchising techniques that include multi-store owners and private investments in corporate offices. These investors can lead to forced expansion that does not take demographics and customer opportunities into consideration. Below are four examples of franchises that expanded too fast and suffered the consequences.

Baja Fresh

In the early 2000s, Baja Fresh became the victim of over-zealous expansion. The eatery was on a slow and steady path of success until they were bought out by Wendy’s in 2002 for a reported $275 million. After the sale, Baja Fresh had a large and rapid push for national expansion.

However, the corporation lost sight of the owner’s original business model and focused too much on how to expand as fast as possible. A little over a year later, same store sales numbers began to drop. They suffered a 4.6% drop in 2003 followed by a 6.4% drop in 2004. Despite attempts from Wendy’s to convert the restaurants into family friendly fast food locations, their sales continued to decline. Wendy’s efforts were too little too late, and they eventually sold Baja Fresh to private investors for only $31 million in 2006.

Any eBay Franchise

With the massive success of eBay in the early 2000s, a few different eBay consignment drop-off store franchises began to pop up. These franchises offered simple business models with relatively low franchisee and start-up fees. In 2005, Entrepreneur magazine named eBay drop-off stores as one of the 13 hot businesses of 2005.

By 2008, these stores were no longer considered great business opportunities. People realized that they have low profit margins, high operating costs, and a weak inventory. In 2006, the owner of the first drop-off store went out of business due to high costs and low profits.

Krispy Kreme

Krispy Kreme Doughnuts used a blend of low-cost marketing and high quality products to create a cult like following. Their expansion began slow and saw stock prices skyrocket within only a few years. They were even given the title of hottest brand in America by fortune magazine in 2003.

Unfortunately, once the company went public, they began to expand too much too soon. While trying to appeal to investors, the company diluted its cult status by opening dozens of locations and licensing donuts to grocery stores and gas stations. Within only a few years, many of the franchised units were forced to close as the company’s profits drastically declined.

Boston Market

Whenever there is an article written about the dangers franchisors face with over expanding, Boston Market is always mentioned. In 1993 Boston Chicken – which later changed their name to Boston Market – went public and began to focus on a national expansion.

However, the company lost sight of their goal to provide chicken in a casual setting and instead focused on maximizing profits. They changed their name to Boston Market and added numerous non-chicken items to their menu in an attempt to appeal to a wider audience. Soon, the business began to function more like a real estate mortgage company then a franchisor.

Eventually, in the late 90s, the company filed for Chapter 11 bankruptcy and was purchased by McDonalds. They attempted to expand the Boston Market brand with frozen meals and other products but eventually sold Boston Market to Sun Capital Partners in August of 2007.

People opening a business for the first time may find it difficult to properly manage their employees. Every employee is different and what is effective with one may not be effective with another. However, if you keep these 10 tips in mind, you will find it easier to manage your employees.

1.     Establish Structure

Do not allow employees to walk all over you. Some type of structure must be established in the workplace in order to get the best performance form your employees. Set goals and deadlines for employees so they can be responsible for completing their work on time.

2.     Use Positive Encouragement

Encourage employees to meet goals and go above expectation by using positive reinforcement. Offering rewards or additional compensation for outstanding performance will encourage employees to reach for the stars. Additionally, it is always good to reward your entire team every now and then with company sponsored events or luncheons. This will not only serve as a reward, but will also encourage a team mentality.

3.     Follow Through with Consequences

When employees do not meet deadlines or behave inappropriately in the workplace, you need to enforce negative consequences. This ensures employees can learn from their mistakes. If you never enforce rules then some employees will take advantage of the situation.

4.     Always Lead with a Compliment

Whenever you need to criticize an employee, it is a good idea to get in the habit of always leading with a compliment. For example, “these reports look great, thank you for getting them to me so quickly. However, the last page looks a little sloppy and rushed. Could you take another go at it?” If you do not lead with a compliment, employees may feel like you are attacking them rather than giving constructive criticism.

5.     Make Reasonable Demands

Do not put unreasonable demands on employees. Keep in mind that the people you hire are new! These individuals may struggle with new tasks. You may need to a lot them more time to complete an assignment. If you demand too much too fast your employees will likely become stressed and frustrated – as well as looking for another job.

6.     Listen to Your Employees

Always make sure to listen to your employees and heed good advice. You may be the boss, but that does not mean that your employees’ ideas are no good. If you encourage employees to make positive suggestions then it will make them feel more invested in the company and want to see it succeed.

7.     Identify Expertise in Employees

Never be afraid to recognize expertise in employees. For example, let us say Heather noticed one of her tax preparers was especially knowledgeable and efficient at preparing small business tax returns. It would be a mistake not to send every small business client to that employee since they can quickly and correctly complete their tax returns. This also presents a great opportunity to recognize and reward the employee for their expertise.

8.     Provide Ways to Improve

Always provide ways for your employees to improve. Offer to pay for classes or conferences that will help employees improve their skills. Alternatively, offer to reimburse employees who purchase books on topics relating to your business. This will show your employee that you are willing to invest in them while helping them improve their skills.

9.     Give Employees Their Space

It is important to understand that employees are not going to spend every single second of their shift working. If under control, down time is not necessarily a bad thing. By allowing employees some time to breathe if will let them to stay more focused while working on a project. However, be careful not to give employees too much leeway, as you still want to have structure in the workplace.

10.     Do Not be Afraid to Fire Someone

At some point, you will have to fire an employee – it is inevitable. Some people just are not a fit for a specific position and you cannot be afraid to let them go. Additionally, budget problems may make it impossible to keep all your employees.

One important step in opening up any business, especially a franchise, is getting the proper business liability insurance. Most franchisors require you to get insurance, but even if they do not you should probably thing about getting it anyway. Having proper insurance for your store will protect both you and your business in various situations.

1. A criminal is a person with predatory instincts who has not sufficient capital to form a corporation.
–Howard Scott

2. I always arrive late at the office, but I make up for it by leaving early.
–Charles Lamb

3. Nothing is illegal if a hundred businessmen decide to do it, and that’s true anywhere in the world.
–Andrew Young

4. There’s no business like show business, but there are several businesses like accounting.
–David Letterman

5. Catch a man a fish, and you can sell it to him. Teach a man to fish, and you ruin a wonderful business opportunity.
–Karl Marx

6. I’ve got to keep breathing. It’ll be my worst business mistake if I don’t.
–Steve Martin

7. There’s no reason to be the richest man in the cemetery. You can’t do any business from there.
–Colonel Sanders

8. I think it’s wrong that only one company makes the game Monopoly.
–Steven Wright

9. I find it rather easy to portray a businessman. Being bland, rather cruel and incompetent comes naturally to me.
–John Cleese

10. I think any man in business would be foolish to fool around with his secretary. If it’s somebody else’s secretary, fine.
–Barry Goldwater

11. Never let an inventor run a company. You can never get him to stop tinkering and bring something to market.
–E. F. Schumacher

12. Informed decision-making comes from a long tradition of guessing and then blaming others for inadequate results.
–Scott Adams

13. Remind people that profit is the difference between revenue and expense. This makes you look smart.
–Scott Adams

14. Don’t worry about people stealing your ideas. If your ideas are any good, you’ll have to ram them down people’s throats.
–Howard Aiken

15. Nothing interferes with my concentration. You could put on an orgy in my office and I wouldn’t look up. Well, maybe once.
–Isaac Asimov

16. The gambling known as business looks with austere disfavor upon the business known as gambling.
–Ambrose Bierce

17. Corporation: An ingenious device for obtaining profit without individual responsibility.
–Ambrose Bierce

18. Punctuality is one of the cardinal business virtues: always insist on it in your subordinates.
–Don Marquis

19. In modern business it is not the crook that is to be feared most, it is the honest man who doesn’t know what he is doing.
–William Wordsworth

20. Only a monopolist could study a business and ruin it by giving away products.
–Scott McNealy

21. I don’t think meals have any business being deductible. I’m for separation of calories and corporations.
–Ralph Nader

22. When in doubt, mumble; when in trouble, delegate; when in charge, ponder.
–James H. Boren

23. I used to sell furniture for a living. The trouble was, it was my own.
–Les Dawson

24. You don’t want another Enron? Here’s your law: If a company, can’t explain, in ONE SENTENCE….what it does….it’s illegal.
–Lewis Black

25. A salesman minus enthusiasm is just a clerk.
–Harry F. Banks

26. The successful man is the one who finds out what is the matter with his business before his competitors do.
–Roy L. Smith

27. “In the business world an executive knows something about everything, a technician knows everything about something and the switchboard operator knows everything.”
–Harold Coffin

28. The first rule of business is: Do other men for they would do you.
–Charles Dickens

29. Few great men would have got past personnel.
–Paul Goodman

30. When I asked my accountant if anything could get me out of this mess I am in now he thought for a long time and said, “Yes, death would help.”
–Robert Morley

31. If advertisers spent the same amount of money on improving their products as they do on advertising then they wouldn’t have to advertise them.
–Will Rogers

32. If you think your boss is stupid remember; you wouldn’t have a job if he was smarter.
–Albert Grant

33. A verbal contract isn’t worth the paper it’s written on.
–Samuel Goldwyn

34. We didn’t actually overspend our budget. The allocation simply fell short of our expenditure.
–Keith Davis

35. His insomnia was so bad, he couldn’t sleep during office hours.
–Arthur Baer

36. To make a long story short, there’s nothing like having a boss walk in.
–Doris Lilly

37. Executive ability is deciding quickly and getting someone else to do the work.
–John G. Pollard

38. A bank is a place that will lend you money if you can prove that you don’t need it.
–Bob Hope

39. The two most beautiful words in the English language are ‘check enclosed’
–Dorothy Parker

40. Advertising is legalized lying.
–H. G. Wells

Quotes Collected From:

• Comedy-Zone.com
• BasicJokes.com
• SMBTM.com

Below are ten pictures from Heather’s Grand Opening this past Saturday. The WatchMeFranchise team was with Heather all day and we hope you all enjoyed our live coverage of the day’s excitement. Over the next few weeks we will begin focusing on Heather’s efforts to market her business and to diversify her services to increase profits. Check back soon as we continue to follow Heather on her journey to run a successful franchise business.

Today has been an exciting day. The WatchMeFranchise team spent all day with Heather at her store’s Grand Opening. We have followed Heather through the entire process of opening her store and are proud to have shared this exciting day with her. Be sure to check back over the next few days as we switch gears slightly and follow Heather through tax season.

As our live coverage winds down Amanda Scarr spoke with two of Heather’s employees, Rose and Lucia. Be sure to check back in an hour or so for our final live video with Heather and Amanda.