The Educated Franchisee Insider Newsletter

The Educated Franchisee
The How-To Book for Choosing a Winning Franchise April 2010
Author ImageGreetings!

Well, it has been five years since the very first monthly newsletter and I have to say it has been a joy.  We have grown from just a few subscribers five years ago to over 5,000 monthly readers today - and the distribution list continues to grow daily.

In addition, The Educated Franchise is now one of the bestselling books on franchising based on Amazon ranking.  Every day I get emails from readers.  It feels good to know that I have been able to help people.

Based on the success of the newsletter, I know that many people like it.  My question is - how can I improve it.  Please reach out and let me know.  All ideas are welcome.

Next week I will be on vacation with my wife - first time away from the children in 8 years.  We cannot wait.  Hope you are all having a great spring break and I look forward to hearing from you.

Best Wishes,
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Rick Bisio
Link ImageCredit Scores Losing Value in Loan Decisions.
Credit scores are often touted as the make-it-or-break-it factor for business loans and credit lines. But even entrepreneurs with high business credit scores may have trouble getting financing.
This is partly because business-credit scores-as well as personal-credit scores-have become a weak indicator of repayment ability, at least in the eyes of some large lenders.

"It's a lagging indicator," says Kathie Sowa, a commercial banking executive at Bank of America Corp. "We are underwriting more on a traditional basis. We look at the full picture," she says.

Go To Wall Street Journal, Click Here
Link ImageLife Plan Before Business Plan
Many people dream about owning a small business. You may be one of those people who have had a "notion" for years that someday you would be president of a company, successful beyond your wildest dreams. Turning that dream into reality is an evolutionary process. It involves not only having a solid business idea but also knowing the "business of running a business."  You will need to get your arms around stuff like accounting, marketing, and operations, but before you dive into crunching numbers for your business plan, consider this:

It is my strong belief that would-be entrepreneurs need to develop a life plan before they ever write a business plan.  Why, you ask?

Go to Small Biz Trends, Click Here
Link ImageHealth Reform Expected to Spur Entrepreneurship.
As the health reforms signed into law this week begin to take effect over the next four years, one consequence to watch is to what extent would-be entrepreneurs feel comfortable leaving their jobs to start businesses. If people can get affordable insurance outside of their jobs, some number of workers who mainly stay in their jobs for health benefits will leave to start small companies or work for themselves, the reasoning goes.

The job lock factor is particularly salient for those with pre-existing conditions or families where one spouse's employer insurance covers the whole family - right now buying insurance on the open market can be prohibitively expensive or impossible for people in these situations. The new law won't unleash a flood of entrepreneurs immediately because many changes won't take effect for several years, but it is likely to shift how and when people decide to start new businesses in the years ahead.

Apple ImageHow to Hit a Curve Ball

Every so often, entrepreneurs find themselves facing the unexpected, whether it's a drop in sales, revocation of a credit line, or the emergence of a strong new competitor.

What's important is how they approach, confront, and overcome the "out-of-left-field" news that can leave a small business reeling, says Scott R. Singer, managing director at The Bank Street Group, an investment banking firm based in Stamford, Conn. Singer, who co-wrote the new book How to Hit a Curveball (Portfolio, April 2010), spoke recently to Smart Answers columnist Karen E. Klein. Edited excerpts of their conversation follow.

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There is a reality in life.  Greater knowledge drives better decisions and better decisions reduce business risk.  Franchising is all about risk reduction but not all franchises are low risk.  The Educated Franchisee is designed to empower you.  By following the advice and guidance presented in this book you will recognize high quality franchises and confidently pass over those that are not.

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Author - Rick Bisio