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Educating Tomorrow's Franchisees
October, 2013
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As we discover knowledge, it always feels new to us; however, many of the basic tenants of wealth creation date back more years than most understand. 'The Richest Man in Babylon' tells a tale of wisdom discovered on clay tablets written over 8000 years ago. Why clay tablets? Well, they had not discovered paper yet! Amazingly, the principals of independence, honor and wealth creation are just as applicable today as they were so many thousands of years ago.


1)      Pay yourself first. Take the first 10% of the money you earn and keep - don't spend it on clothes, dinner or fancy cars. Keep it. Every dollar you pay to yourself is a future income producer for you.


2)      Control your expenditures. Reducing your living expenses is the same as giving yourself a raise. Reducing expenditures gives you more free capital to save and invest. Everyone can find a way to survive on 90% of their current income if they so desire.


3)      Invest your money. Don't let money sit idle. Think of each dollar as a worker. You want each dollar to work as hard as possible.


4)      Guard your savings from loss. Do your due diligence, rely on competent advisors and invest wisely. Stay close to you investments and watch over them. Wise investments reap rewards. Careless investments do not.


5)      Own your home. There is no reason to rent a home when you can own the home. Owning your home provides both security and stability.


6)      Own you income stream. There is no reason to rent your time to someone else when you can own the business and the income stream. Owning your business provides both security and stability.


7)      Continue to learn. As you continue to learn you will increase your ability to make good decisions and accumulate wealth.


It is amazing to know that these fundamental cornerstones were being discussed 8000 years ago. It is also amazing that each person can only 'discover' these principals when they are ready. Two thumbs up for the book - 'The Richest Man in Babylon'


Have a great October.




Rick Bisio
Founder of The Educated Franchisee
Franchise Sector Adds 15,000 Jobs As Growth Outpaces Economy

The U.S. franchise industry created 15,040 new jobs in September powered by continued growth in the restaurant sector, according to data from the ADP's National Franchise Report.

Restaurants accounted for the most new jobs, representing 9,190 new hires. "As has been the case throughout the past year, job gains among restaurants were the primary driver of monthly franchise industry employment growth during the month of September," said Ahu Yildirmaz, senior director of the ADP Research Institute, in a statement.


Leisure, professional and personal services and real estate industries also contributed to job growth.


While the numbers are down slightly from the 16,160 new jobs created last......

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SEC Releases 'Crowdfunding' Rule.  (aka 'Angel Syndicate')

ntrepreneurs and start-up companies looking for investors will be able to solicit over the Internet from the general public under a new proposal issued by U.S. regulators on Wednesday.

The "crowdfunding" proposal, if adopted by the Securities and Exchange Commission, would be a major shift in how small U.S. companies can raise money in the private securities market.


Private companies are currently allowed to solicit only accredited investors - those with a net worth of at least $1 million, excluding the value of their homes, or annual income of more than $200,000.


The crowdfunding rule would let small businesses raise up to $1 million a year by tapping unaccredited investors.


It remains to be seen if the plan goes far enough in limiting regulatory costs so that small businesses find crowdfunding desirable.


Business Valuations Going Up - A Good Time to Sell a Business.


By industry, sales of small businesses so far this year have mostly been service companies, followed by retailers and restaurants, according to BizBuySell. It defines small businesses as those with fewer than 500 employees, and it tracks transactions reported by business brokers across the U.S., an online valuation provider for small businesses, said the median valuation for businesses using the site rose to $1.3 million in the third quarter from $860,000 during the same period in 2012.


"Now there's a better balance-sheet story," said Dave Rader, head of SBA lending at Wells Fargo & Co., which closed 12% more small-business loans, excluding real estate transactions, between January and September of this year compared with the same period in 2012. "Cash flows are positive, profits are improving and you have buyers who saved over the last few years," he said.


Small-business lending has been rising. The SBA backed 12,976 so-called 7(a) loans totaling $5.3 billion in the third quarter, up from 11,442 loans totaling $4.3 billion a year earlier, according to the SBA. These loans can be used to assist in the acquisition of an existing business as well as to establish a new business or expand an existing one, among other uses.


Go to Wall Street Journal, Click Here
Affordable Healthcare Plans for Entrepreneurs


After coming up with an idea for a smartphone-application business in mid-2012, Josh Lee started building it on nights and weekends, in part because quitting his sales job at a technology firm would have meant losing his employer-sponsored health benefits.


Mr. Lee, of New Holland, Pa., suffers from occasional severe headaches called clusters, and his wife depended on the coverage, too. He says he was worried that the cost of health insurance would be out of their reach and he wasn't sure if his business idea would work.


But six months later, Mr. Lee's employer handed him walking papers and he found himself having to purchase a health plan on his own for the first time.

"It was kind of scary," recalls the 38-year-old. "When you work for someone else, you don't realize what goes into buying health insurance."........


..... Mr. Lee, the Pennsylvania entrepreneur, says his research led him to a bare-bones family health plan that costs $350 a month and has a $3,500 deductible. His startup, called SnapMyAd, has just 10 paying clients. It makes a free phone app that lets users send photos they take of brands to advertisers in exchange for rewards, and charges advertisers $500 to $2,500 per promotion.

Go to Wall Street Journal, Click Here
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Author - Rick Bisio