Tag: Definition

What is a mutual fund? definition and meaning #stock #mutual #funds #definition

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mutual fund

An investment vehicle managed by finance professionals that raises capital by selling shares (called units) in a chosen and balanced set of securities to the public.

A mutual fund’s capital is invested in a group (portfolio) of corporate securities, commodities, options, etc. that match the fund’s objectives detailed in its prospectus. The level of a mutual fund’s income from its portfolio determines the daily market value (called net asset value) at which its units are redeemable on any business day. and the dividend paid to its unit holders. Mutual funds are of two main types: (1) open end fund. where the capitalization of the fund is not fixed and more units may be sold at any time to increase its capital base. (2) closed end fund, where capitalization is fixed and limited to the number of units authorized at the fund’s inception (or as formally altered thereafter).

Mutual funds usually charge a management fee (typically between 1 and 2 percent of the fund’s annual earnings) and may also levy other fees and sales commission (called ‘load’) if units are bought from a financial advisor. The term mutual fund, used mainly in the US, has no legal bearing, and may be referred to as unit investment trust or a unit trust in the UK and other British Commonwealth countries.

  • She didn’t want to invest in any in particular stock, so she invested in a broad index mutual fund to lower her risk.
  • When researching investment options for his retirement savings, Jeff decided that mutual fund s with a mix of stocks and bonds would be the best choice for his personal goals.
  • The economics students prepared for their lessons on mutual fund s by researching corporate security and portfolio options to determine the daily market value.
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Business-to-Business (B2B) Definition – What is Business-to-Business (B2B) #free #business #listings

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Business-to-Business (B2B)

What is Business-to-Business (B2B)?

Business-to-business B2B refers to commerce between two businesses rather than to commerce between a business and an individual consumer. Transactions at the wholesale level are usually business-to-business while those at the retail level are most often business-to-consumer (B2C).

Recognizing Business-to-Business

The dollar value of business-to-business transactions is significantly higher than business-to-consumer activity because businesses are more likely to purchase higher priced goods and services and purchase more of them than consumers are. A bicycle manufacturer, for example, will purchase a truckload of bicycle tires or a coffee manufacturer will buy a massive, industrial bean grinder. Compare that with what s purchased by a biking enthusiast or the individual coffee aficionado.

How Business-to-Business Selling is Different

Selling to a business is different from selling to an individual consumer. Key sales and marketing differences for business-to-business transactions include:

  • Selling sometimes requires participating in a bidding process by responding to a purchaser s request for proposals. On the business-to-consumer side, this compares to asking various auto dealers to provide their best offer on a specific make and model.
  • The decision-making process on a purchase can take days, weeks, or months, depending on how the purchasing company works and the size and nature of the order.
  • Purchasing decisions are often made by committees, so each member needs to be educated and sold.
  • The dollar value of goods or services sold is much higher than on the consumer or retail level, so the buyer needs to take steps to minimize risk. That sometimes involves requesting a product prototype or customization.

Business-to-Business Doesn t Exclude Business-to-Consumer

A company selling to businesses can also sell directly to consumers. A bead manufacturer selling its beads in bulk to costume jewelry manufacturers might also package them in smaller quantities sold to crafters at craft stores. A telephone manufacturer can sell in bulk to companies or one at a time to consumers shopping online or at an office supply store. A firm that provides health and wellness consulting to corporations can also advise individuals one-on-one or in group presentations.

It s About the Customer, Not the Transaction Size

While business-to-business transactions often involve high prices and volume, they can also happen on a much smaller scale when a small business sells products or services to another small business. The hallmark of business-to-business commerce then, is the participants two businesses rather than a business and a consumer.

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Business To Business (B To B) Definition #china #business

#business to business

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Business To Business – B To B

What does ‘Business To Business – B To B’ mean

Business to business, also called B to B or B2B, is a type of transaction that exists between businesses, such as one involving a manufacturer and wholesaler, or a wholesaler and a retailer. Business to business refers to business that is conducted between companies, rather than between a company and individual consumers. Business to business stands in contrast to business to consumer (B2C) and business to government (B2G) transactions.

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BREAKING DOWN ‘Business To Business – B To B’

A typical supply chain involves multiple business to business transactions, as companies purchase components and products such as other raw materials for use in the manufacturing processes. Finished products can then be sold to individuals via business to consumer transactions. In the context of communication, business to business refers to methods by which employees from different companies can connect with one another, such as through social media. This type of communication between the employees of two or more companies is called B2B communication.

B2B Relationship Development

Business to business transactions require planning to be successful. Such transactions rely on a company’s account management personnel to establish business client relationships. Business to business relationships also must be nurtured, typically through professional interactions prior to sales, for successful transactions to take place. Traditional marketing practices also help businesses connect with business clients. Trade publications aid in this effort, offering businesses opportunities to advertise in print and online. A business’s presence at conferences and trade shows also builds awareness of the products and services it provides to other businesses.

B2B E-Commerce

The internet provides a robust environment in which businesses can find out about products and services and lay the groundwork for future business to business transactions. Company websites allow interested parties to learn about a business’s products and services and initiate contact. Online product and supply exchange websites allow businesses to search for products and services and initiate procurement through e-procurement interfaces. Specialized online directories providing information about particular industries, companies and the products and services they provide also facilitate business to business transactions.

B2B Examples

Business to business transactions are the backbone of the automobile industry. Many vehicle components are manufactured independently and auto manufacturers purchase these parts to assemble automobiles. Tires, batteries, electronics, hoses and door locks, for example, usually are manufactured by various companies and sold directly to automobile manufacturers. Service providers also engage in business to business transactions. Companies specializing in property management, housekeeping and industrial cleanup, for example, often sell these services exclusively to other businesses, rather than individual consumers.





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What is business continuity management (BCM)? Definition from #business #loan #rate

#business continuity

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business continuity management (BCM)

Business continuity management (BCM) is a framework for identifying an organization’s risk of exposure to internal and external threats.

The goal of BCM is to provide the organization with the ability to effectively respond to threats such as natural disasters or data breaches and protect the business interests of the organization. BCM includes disaster recovery. business recovery, crisis management, incident management, emergency management and contingency planning .

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According to ISO 22301. a business continuity management system emphasizes the importance of:

  • Understanding continuity and preparedness needs, as well as the necessity for establishing business continuity management policy and objectives.
  • Implementing and operating controls and measures for managing an organization’s overall continuity risks.
  • Monitoring and reviewing the performance and effectiveness of the business continuity management system.
  • Continual improvement based on objective measurements.




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What is business process management (BPM)? Definition from #business #broker

#business process management

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business process management (BPM)

Business process management (BPM) is a systematic approach to making an organization’s workflow more effective, more efficient and more capable of adapting to an ever-changing environment. A business process is an activity or set of activities that will accomplish a specific organizational goal.

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The goal of BPM is to reduce human error and miscommunication and focus stakeholders on the requirements of their roles. BPM is a subset of infrastructure management. an administrative area concerned with maintaining and optimizing an organization’s equipment and core operations.

BPM is often a point of connection within a company between the line-of-business (LOB ) and the IT department. Business Process Execution Language (BPEL ) and Business Process Management Notation (BPMN ) were both created to facilitate communication between IT and the LOB. Both languages are easy to read and learn, so that business people can quickly learn to use them and design processes. Both BPEL and BPMN adhere to the basic rules of programming, so that processes designed in either language are easy for developers to translate into hard code.

There are three different kinds of BPM frameworks available in the market today. Horizontal frameworks deal with design and development of business processes and are generally focused on technology and reuse. Vertical BPM frameworks focus on a specific set of coordinated tasks and have pre-built templates that can be readily configured and deployed. Full-service BPM suites have five basic components:

While on-premise business process management (BPM ) has been the norm for most enterprises, advances in cloud computing have lead to increased interest in on-demand, software as a service (SaaS ) offerings.

See also: business process outsourcing (BPO ), Web Services Description Language (WSDL ), enterprise application integration (EAI ), business process reengineering (BPR ), business activity monitoring (BAM )

This was last updated in January 2011

Continue Reading About business process management (BPM)

Related Terms

CEO and other C-suite executive titles The CEO, or chief executive officer, is part of the C-suite. Other C-suite executive titles include the chief financial officer. See complete definition innovation management Innovation management is the process of managing an organization’s innovation procedure, which helps increase competitive. See complete definition product development (new product development, or NPD) Product development, or new product development (NPD), is the process of bringing new or updated products or services to a target. See complete definition

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What Is Business Law? Definition & Overview – Video & Lesson Transcript #business #partnership

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What Is Business Law? – Definition & Overview

Business law is a broad area of law. It covers many different types of laws and many different topics. This lesson explains generally what business law is and how it’s used.

Definition of Business Law

Business law encompasses all of the laws that dictate how to form and run a business. This includes all of the laws that govern how to start, buy, manage and close or sell any type of business. Business laws establish the rules that all businesses should follow. A savvy businessperson will be generally familiar with business laws and know when to seek the advice of a licensed attorney. Business law includes state and federal laws, as well as administrative regulations. Let’s take a look at some of the areas included under the umbrella of business law.

Starting a Business

Much of business law addresses the different types of business organizations. There are laws regarding how to properly form and run each type. This includes laws about entities such as corporations, partnerships and limited liability companies. For example, let’s say I decide to start my own pet grooming business. I need to decide what type of business I want to be. Will this be a partnership? Will it be a sole proprietorship? What papers do I need to file in order to start this business? These questions fall under the laws that govern business entities. which are state laws. The type of entity I pick will also affect how I pay my federal income taxes. These, of course, are federal laws.

Next, what will my business be called? Let’s say I decide on Barks Bubbles as a name for my dog grooming company. Now I need to know if anyone else already has that name. This is a trademark question. Patents. copyrights and trademarks are part of intellectual property law. The federal law governs most intellectual property law. Then I need to know if I’ll require any special type of license for this business. Do groomers need a license? Am I allowed to have animals on my property, or do I need some sort of special permit? I’ll need to check my local and state laws to find out. How will I advertise my business? Am I allowed to say that I’m the ‘best in town?’ This question falls under consumer protection law. which can be federal or state law. Wow. That’s a lot of business law, and I’m not even open for business yet!

Buying a Business

Now let’s say I decide to buy a business instead. I’m going to buy Patty’s Pampered Pooches from my Aunt Patty. There are many business laws that govern how to buy a business. If I buy Patty’s business, do I now own the actual store? This is a real estate law question. Do I own the pet grooming equipment in the store? This is a property law question. Both of these fall under state law. Am I now the boss of Patty’s employees? This is an employment law question.

Can I start hiring my own employees and ordering supplies? This will involve contract law. since I’ll be making new agreements with people regarding my business and determining which of Patty’s agreements I need to uphold. Contracts are legally binding agreements made by two or more persons, enforceable by the courts. Businesses are involved in many different types of contracts, and as a result, there are many interesting cases involving breach of contract. A breach of contract is when one party doesn’t hold up his or her end of the bargain. It’s common for parties to dispute the terms of a business agreement or disagree on how the agreement should be performed.

For instance, consider the famous case of Locke v. Warner Bros. Inc. Sondra Locke was a longtime girlfriend of Clint Eastwood. When the two broke up, Locke sued Eastwood for support. As a part of their settlement, Eastwood negotiated a contract for Locke with Warner Bros. Locke was given a director’s contract, where Warner Bros. would pay Locke for any projects she directed or produced. Locke proposed more than 30 projects, but Warner Bros. never hired her. She sued Warner Bros. for breach of contract, saying that Warner Bros. never intended to hire her in the first place. After a court ruled that Locke had enough evidence to proceed with her case, the parties settled.

This case demonstrates the importance of making good contracts. A wise businessperson will be sure to enter contracts with a good understanding of the content and a good faith interest in upholding the contract.

Managing a Business

There are many laws that concern managing a business because there are many aspects involved in managing. As you can already see, running a business will involve a lot of employment law and contract law. For my new business, I’ll need to know how to hire, what my contracts should look like, what kind of benefits I have to provide, how to pay employee insurance and taxes and even how to properly fire an employee. Many of these employment and benefit laws are federal laws and regulated by government agencies. For example, the Equal Employment Opportunity Commission is a federal agency that enforces employment discrimination laws.

If I also decide to sell things as part of my pet grooming business, like dog collars or dog treats, then I’ll need to be familiar with the laws on sales. For businesses that conduct sales, it’s especially helpful to be familiar with the Uniform Commercial Code. or UCC. This publication governs sales and commercial paper and has been adopted in some form by almost all states.

What happens if I provide services but have trouble getting paid? Let’s say I groom several dogs for Victor’s Vet, but he won’t pay my bill. Can I demand payment or report him to the credit reporting agencies? This is a debt collection law question. Debt collection laws are mostly federal laws. For instance, many of our debt collection laws are found in the Fair Debt Collection Practices Act, or the FDCPA, which is enforced by the Federal Trade Commission.

What happens if Victor just didn’t like my services? Let’s say Victor accuses me of purposely sabotaging his chances at a national dog show by giving his poodle a bad haircut. Can Victor sue me? And, if so, will his lawsuit be against me personally, or will it be against my Barks Bubbles business entity? This scenario falls under tort law. Torts are private, civil actions for wrongful deeds. Tort law is usually state law. This is an extensive area of the law and includes things like work injuries and negligence claims.

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Closed System in Chemistry: Definition & Example – Video & Lesson Transcript #closed #system

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Closed System in Chemistry: Definition & Example

This lesson provides a basic definition of a closed system from thermodynamics. Examples are included to provide students with illustrations of closed systems that are encountered within chemistry.

Definition of a Closed System

You have probably put soft drinks in a cooler under ice to keep them cold. When the lid of the cooler is closed, nothing can get in or out, and the insulated walls appear to keep all of the contents nice and frosty. However, if enough time passes, the ice does eventually melt into water. This is an excellent example of a closed system. What is a system, and, more to the point, what is a closed system? How are closed systems used in chemistry?

Cooler with iced soft drinks

The concept of a system comes from thermodynamics. a branch of physics that studies the transfer of energy between objects and their surroundings. A system within thermodynamics is defined as part of the physical universe. The system could be a car engine, a mass of air in the atmosphere, or even a soft drink can. Systems are separated from the rest of the physical universe (or the surroundings) by a boundary that can real (such as the walls of a cooler) or imaginary, used to focus on a specific part of a complicated situation, such as the combustion cylinder within an engine.

An engine with cylinders shown

Systems are classified in three basic ways: open, closed, or isolated. These describe how energy and matter are allowed to enter or leave the system. Within an open system. matter and energy freely cross the boundary of the system. For example, the Earth can be considered an open system because sunlight reaches the surface of our planet, meteorites can enter our atmosphere, and we can send objects out into space. Closed systems. like the closed cooler described previously, allow energy to cross the boundary of the system, but matter is prevented from being added to or removed from the system. Isolated systems allow neither matter nor energy to cross the boundary of the system.

The Earth, an open system

Examples of Closed Systems in Chemistry

Closed systems in chemistry are extremely useful for conducting chemical reactions, and rearranging atoms within matter to give new combinations of atoms. They are used in the laboratory as well as chemical industries such as the manufacture of medicines. The reactions occur in a special vessel known as a chemical reactor that has been sealed to prevent any matter from entering. The sealed reactor is now a closed system allowing for the careful control of the flow of energy across the walls of the reactor through heating or cooling.

A chemical reactor that acts as a closed system

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How old does your car have to be to be a classic? #how #old,

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How old does your car have to be to be a classic?

The definition for a “classic” car differs depending on if you are getting the definition from a car club, insurance company or your state department of motor vehicles.

The Classic Car Club of America (CCCA ) has a list of cars that are recognized qualifiers as classic. The CCCA’s definition of classic refers to cars made between 1925 and 1948, however there are many exceptions to this long list. The list is very specific as to what makes of each model are given the “classic” designation.

Most insurance companies consider your car an antique or classic if it is at least 15 or 20 years old or older (depending on where you live), garaged when not in use, and driven less than a set amount of miles (generally less than 2,500 miles per year but some insurance company gives up to 5,000 miles/year).

Many insurance companies also require that you own at least one other vehicle for “regular” use. Regarding the insurance itself, if you have more money in your car than what the blue book lists, you will need to get it appraised and get and get an “agreed value” insurance policy. It will cost you less than a standard policy, and more importantly, you’ll get the true value of your car should it be damaged or totaled. Under agreed-value policy terms, the insurance company and the vehicle owner discuss the value of the vehicle –and agree on it — so that it is covered up to that dollar amount in the policy.

To learn about insuring a classic car, check out our guide to insuring classic cars .

The department of motor vehicles (DMV) definition for a classic car differs from state to state. In general, though a classic is any vehicle older than 15 years while an antique is more than 25 years old.

To find out your state’s definition of a classic car and how old it must be to be considered a classic or antique check with your state’s DMV.

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Business Ethics Definition #business #loans #rates

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Business Ethics

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BREAKING DOWN ‘Business Ethics’

Business ethics ensure that a certain required level of trust exists between consumers and various forms of market participants with businesses. For example, a portfolio manager must give the same consideration to the portfolios of family members and small individual investors. Such practices ensure that the public receives fair treatment.

The concept of business ethics arose in the 1960s as companies became more aware of a rising consumer-based society that showed concerns regarding the environment, social causes and corporate responsibility. Business ethics goes beyond just a moral code of right and wrong; it attempts to reconcile what companies must do legally versus maintaining a competitive advantage over other businesses. Firms display business ethics in several ways.

Case Studies

In the case of a company that sells cereals with all-natural ingredients, the marketing department must temper enthusiasm for the product versus the laws the govern labeling practices. Some competitors’ advertisements tout high-fiber cereals that have the potential to reduce the risk of some types of cancer. The cereal company in question wants to gain more market share. but the marketing department cannot make dubious health claims on cereal boxes, or it risks facing litigation and fines. Even though competitors, who have a larger market share of the cereal industry, use shady labeling practices, that doesn’t mean every manufacturer should engage in unethical behavior.

Another case study involves quality control for a company that manufactures electronic components for computer servers. These components must ship on time, or the parts manufacturer risks losing a lucrative contract. The quality control department discovers a possible defect, and every component in one shipment faces checks. Unfortunately, the checks may take too long, and the window for on-time shipping could pass, and that, in turn, delays the customer’s product release. The quality control department has the option of shipping the parts, hoping that not all of them are defective, or the company can delay the shipment and test everything. If the parts are defective, the company that buys the components might face a firestorm of consumer backlash, which may lead to the customer to seek another, more reliable supplier.

Statistics

The National Business Ethics Survey comes out every two years. In the 2013 edition, respondents saw an all-time low in unethical behavior. Around 41% of employees saw misconduct on the job, compared to 45% in 2011. The survey concluded that possibly an uncertain economic climate led to less risk-taking in for-profit businesses leading more managers and executives to act more ethically. The survey found that 60% of misconduct on the job occurred among managers, and 25% of employees blamed senior-level managers for unethical behavior.





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What is a Turnkey Franchise? Franchise Definition by FranChoice #designing #business #cards

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What is a Turnkey Franchise?

You ve probably heard the term turnkey many times and may have wondered what it means in terms of franchising. Turnkey basically refers to a franchise package so complete that everything you need to start the franchise will be done for you.

On the surface, this sounds like a great idea. You pay your fee and the franchisor researches the location, signs the lease, builds out the unit, supplies you with start-up inventory, finds and trains the staff, and orchestrates the grand opening. All you have to do is turn the key to open your new business.

Buyer Beware

There are plusses and minuses to a turnkey franchise. It could be a great advantage to you because of the work and aggravation it can save. It may also be an unnecessary expense if the package is overpriced for what it offers.

If the business you are looking at getting into says it is a turnkey opportunity, here are some ways to evaluate the value of the package offered.

  1. Most franchisors offer only a partial turnkey program, doing some but not all of the items mentioned above. Make sure you understand what they will help you with and what tasks you ll need to tackle yourself.
  2. You should expect to pay a reasonable price for the labor involved in putting the package together, but not an outrageous price. If the price seems high, ask for a breakdown of the services provided.
  3. Group purchasing power is a definite benefit of franchising. You can expect to get a good deal on the components needed for the business since you are taking advantage of the buying power of the chain. Make sure you have an understanding of the savings.
  4. Ask the current franchisees about the value of the turnkey package. You ll be calling them anyway as part of your due diligence so be sure to cover this topic thoroughly. Ask them if they feel they got a fair value for the turnkey package and if the process went as smoothly as they expected.
  5. Finally, remember that you are paying a large up-front franchise fee and substantial ongoing royalty payments to this franchisor. These are accepted costs of a franchise business. You should not also have to pay a large markup above the actual costs to put the turnkey package together. Take the time to understand all facets of the process and the associated costs.

When the reverse is true

That being said, there are always exceptions to the rule. Some franchisors do not charge a royalty but actually make their profit by selling you the components of a franchise. For example, a smoothie franchise may sell you their proprietary kiosks and ingredients rather than charge you a royalty fee. The franchisor s profit comes from the mark-up on the products they sell you.

Again, you should expect a fair price and the best way to determine if the price is fair is to ask the existing franchisees. Ask them if they are happy with the prices they are charged and if they shopped around before signing with the franchisor to see if this was the best deal they found.

The wave of the future

As franchising becomes more and more sophisticated, most franchisors offer at least partial turnkey features. They understand that it is to their benefit to provide their franchisees with every possible advantage to give them the best chance at success.

With retail franchise concepts, the franchisor is likely to provide the equipment and fixtures to the franchisee. The franchisee will then hire a local contractor to assemble and install everything. This balances the need for the consistent look and feel the franchisor wants with the same level of cost control for the franchisee.

In addition, the more the franchisor provides the franchisee in the way of training, marketing, materials, products, build-outs, etc. the more consistent the brand is from one location to the next. This also generates more revenue for the franchisee.

It still takes you to make it work

A true turnkey franchise is a company that supplies franchises with a business in a condition ready for immediate use, occupation, or operation, according to a dictionary definition. In most cases, a franchisor will do a lot to get you up and running but you will still need to take care of a number of start-up items yourself.

But whether a business is or isn t a turnkey opportunity, or is a partial turnkey operation, don t forget that there is still one element of the equation that a franchisor cannot provide and that s the drive, talent and determination of the franchisee to make the business successful. That is completely up to you!





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