4 Considerations Before Investing in an Oil Change Franchise Under 100k

Published on: 14 January 2019 Last Updated on: 02 March 2020

With such a wide array of goods and services on the market nowadays, it’s no wonder that several types of franchises have emerged in various industries. The competitive market is already saturated with restaurants and coffee shops. If you want to invest in this type of business, think about going for an oil change franchise.

Here are some factors to consider before investing a substantial amount in an oil change franchise:

1. Study the Ownership Model:

Most oil change franchisors give their franchisees the freedom to develop their branches the way they want it to grow. However, it’s still best for you to determine whether the ownership model stipulated by the terms and conditions of the business will be useful for your goals and work style.

When buying a franchise, you’re required to support the brand’s rules and processes from accounting to hiring and marketing. Be familiar with the regulations implemented by the leading company and consult with online resources such as franchiseknowhow.com to learn more about how franchising works.

2. Know the Franchise Costs:

You won’t just be buying legal rights to use the brand name and logo for your oil change business. The franchisor may also expect you to purchase equipment from them. Fortunately, you can assess if you can pay off the business’ costs since the law has mandated corporations to present a Uniform Franchise Offering Circular (UFOC).

This document provides an outline of the fees that come with the franchise. It also includes your rights and restrictions. This way, you can gauge if the franchisor’s prices are reasonable and realistic.

Other costs you must consider include:

Initial Payments – This franchise fee serves as a down payment to secure your spot as a franchisee. The average initial franchise cost ranges from $20,000 to $35,000 for most franchises.
Royalties – Also known as ongoing franchise fees, franchisors require royalties to be paid monthly or annually. The amount depends on your agreement with the company. Typically, it can be a percentage of your gross revenue or a fixed amount such as $1000 per month.
Marketing Fees – Because you’ll be part of a bigger organization, you may need to finance a common advertising or marketing fund. This money will be used for promotional efforts usually at a national level.
Required Purchases of Goods – The franchisor may restrict you from buying oil from other suppliers. Check if their pricing is competitive and if you can actually get a profit if you push through with the franchise.
Real Estate – If you’ll be renting a place for your franchise, include the cost in your calculations because you may need to pay for deposits before you can start your business.
Legal Files – This includes the cost of insurance, licenses, permits, and other legal documents.

3. Determine How to Fund Your Franchise:

One of the significant advantages of an oil investment is that it has a high return on investment. However, before you think about your profits, you need to consider how to fund your franchise first. It’s vital that you know the best sources of financial support that will help your business grow.

These are a few financial options for you to start an oil change franchise:

Franchisor – The main company can help you through debt financing. Franchisors often offer financing for some parts of the business instead of you shouldering the entire cost.
Small Business Administration (SBA) – This agency can help you with your bank loan to jumpstart your business. Their loan programs guarantee longer repayment periods to bolster your franchise’s growth.
Banks – These lenders work with the SBA to provide financial aid to small businesses. You can also use a home-equity line of credit or a second mortgage on your house, but it’s not encouraged because you risk losing your property if you can’t repay your debt.
Family and Friends – The people you trust, and who believe in you, are valuable sources of funds. You can negotiate the repayment period and interest rates with them. Be sure to pay them back according to the terms you both agreed on.

4. Talk with Your Target Market:

The people in your city or town probably already have a place where they have their oil changed. Don’t be discouraged, though. You can talk to prospective customers about their experience with the oil change stations in your area. Take note of their complaints on a particular shop and use those to improve your service.

Conclusion:

Investing in a franchise can provide you with an established brand that will be easier to market than a startup. You will also get enough support from other franchises and gain insights from them on how to facilitate the growth of your business. Consider the factors above and assess whether an oil change franchise is best suited for your goals.

Read Also:

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

View all posts

5 Tips to Finding Better Talent for Your Bar Business

Bar business owners or managers face an almost universal challenge: hiring the best staff. It's not about filling shifts nowadays. Your cooks and servers all play a part in the customer's experience. Choosing the best talent for those roles and your cocktails are equally important to your business’s success. Even a novice bar manager will tell you how crucial staff can be. Here are 5 useful tips to get the best employees. 5 Tips to Finding Better Talent for Your Bar Business: Bar business owners must follow the below mentioned points to select the best talent for their organization. 1. Attitude is Important: Your staff is your bar’s face. If a server or bartender approaches a customer with a negative attitude, the customer will leave, never to return. If you feel your staff is not performing well, ask yourself if you can trust them to run the bar for you. Staff is bound to mess up, but it’s their recovery that matters. If their attitude is affecting other employees, do something about it before they bring the whole bar business down. If you hire a great pro with a bad attitude, your cocktails will look nice, but your clientele will flee. Work ethic, team dynamic, and personality are much harder to teach than how to pour a drink right. Part of the process is finding job candidates. The other part is training them. As competition for great employees increases, bars now need to make more effort and tell a better story about the value of working in a team. There’s an imbalance between demand from bars and supply of quality staff. The people you hire have the greatest effect on the bar’s overall culture. 2. Know Your Market: Knowledge of the bar industry is important, but it’s not the only factor. Comprehension of best practices, industry standards, and good suppliers should be second nature to a decent bar manager. Do you know what the market in your area is like? Who are your main competitors? Is the bar you manage just another place to go, or is there a gap you can fill? Why might someone go to your bar business instead of the one down the street? Bar managers need to understand the competitive landscape they inhabit. 3. Hire the Right Bartenders: You cannot afford to hire fresher as bartenders and then train them to deliver. This will eat into your revenue and you will never get the desired results. The bar industry is a vibrant industry that faces a lot of attrition. If you are strategic in terms of looking for the right people, you will be successful. It is always a good idea to have at least 2 experienced bartenders and 4 fresher. This helps maintain the standard and helps you prepare the next rung of the leadership. A good bartender for your bar business is a big reason why some bars are successful, while others shut shop within a few months. Investing in the right bartender is probably going to be one of your toughest decisions. Train Employees to Upsell: Upselling customers is a great way to boost profits in your bar. This is where profits are made and success stories crafted. Upselling involves influencing customer preferences so that they end up making a choice that is beneficial for your establishment. It is also about the staff reading the body language of consumers. For example, if someone is celebrating a promotion, a staff can garner the public opinion of the group and suggest a far more expensive bottle than the one the customer had originally intended to purchase. Peer pressure, wanting to show off and winning over loved ones are reasons people fall easy victims to upselling. A bigger bill means better tips. People usually fix their tips at roughly around 10 to 15 percent of the total bill. Upselling helps boost employee morale as they get more tips and earnings from the same. By training your staff to upsell, you will be contributing to a better working environment. 4. Build Positive Relationships with Staff: Experienced bar managers know that success isn’t possible if you don’t manage your staff wisely. To establish an open and positive rapport, try to build positive relationships with them. A frustrated staff member affects performance, morale, and customer experience. While it’s often claimed business shouldn’t be personal, this is changing in many industries. When bar managers form relationships with their staff, they establish a personalized connection with someone who will become a reliable, long-term employee and attract people to your bar as well as keep loyal patrons coming back. Take the time to interact with your staff. 5. Believe in your Staff: It may seem easy to be a bar manager, but it’s definitely not. If you decided on this job because you thought it was glamorous, you might want to reconsider your decision. However, if you are running a bar because you want to, stay confident and passionate and project this mentality onto your staff. Encourage them and believe in them. They will reciprocate and this will reflect on the customer experience in turn. Your clients will keep coming back. They will visit you whenever they're thinking of a place to go out because of the positive, laid-back atmosphere you’ve managed to create. Final Thoughts: The right employees and attitude are very important for smooth operation, but getting a reliable bar POS system is just as essential. Your bar needs a firm grasp of cash flow, inventory management, and data. Moreover, an outstanding POS system will expedite and ease the bar management process. You can’t afford to dispense with a solid POS system. Read Also: The Best Red Wine That Suits Your Taste Is Your Company Offering Enough To Potential Employees?

How To Choose The Best Legal Structure For Your Business

Starting a business can be exciting, scary, and - let’s be honest - confusing! You don’t need an MBA or any other business degree to start a successful business. But, there are other important things that you need to make right from the beginning. While there are many things that need to be done correctly from the start of the business, there is one thing where you cannot make a mistake Choosing The right business structure. Your business structure is important in many ways. It decides how your business will showcase in front of others, what power you will have over your business, and most importantly, what type of taxation it will fall under. Seeing how the current entrepreneurs are so hung up on sole proprietorship that they do not see the benefits of other business structures. Today, we have come to take you on a journey and make you see the different business structures and what each offers to a business. What Is A Legal Structure Of A Business? Every new business requires the formation of a business entity that can be considered its identity in the market. This is where the concept of a legal structure comes in. A legal structure, also known as a business ownership structure, determines the flow of power within the business, the type of income tax you need to file, and highlights the risk to which your business is exposed. The most common legal business structures are as follows: Sole Proprietorships. Partnership. Corporation. Cooperative. Limited Liability Company (LLC). Related Resource: 5 Financial Risks of Starting a Small Business and How to Avoid Them Types Of Business Structure While there are many legal business structures, we have picked the most used currency in the world. This Legal Structure covers almost every aspect of legal business structure. 1. Sole Proprietorships This is the simplest form of legal business structure. In this type of business structure, one individual is solely responsible for the business profits, debts, and liabilities. This business structure works great for small to medium-scale businesses. This entity does not offer separation or protection of any personal and professional assets. While this is great for small businesses, it might be difficult to scale up. 2. Partnership As the name suggests, this type of business structure is owned by two or more individuals. The legal partnership structure can be further divided into two entities: General Partnership and Limited Partnership. A general partnership is where all the shares are equally divided among all the partners. In a limited partnership, one individual has control over all the business operations. While others are just contributors and shareholders for the profit. 3. Corporation When a business is considered a corporation, it becomes a separate entity from its owner by law. It is considered a separate entity that enjoys legal rights just like any other person. For instance: It can sue others. It can be used. Buy and sell a property. It even has the right to sell the right of its ownership. 4. Limited Liability Company (LLC) A Limited Liability is a hybrid structure that allows owners, partners, and shareholders to limit their liability while enjoying the tax and flexibility of a partnership business model. Under the umbrella of the LLC, members of the business are shielded from any personal liability related to the business as long as they have a written LLC Operating agreement contract. However, to do that, the business needs to have the best business bank accounts with all the necessary features. 5. Cooperative A cooperative business legal structure follows the concept of serving the same people who are working for the business. All the members are responsible for making business decisions, and whatever the profit business samples, it is shared among the members. A cooperative business structure offers the following advantages. Low taxes. Increased funding. Better discounts and services. Factors To Weigh Before Choosing A legal Business Structure While an individual can choose any business structure they like, there are a few considerations you need to look into. 1. Complex Procedure Businesses with fewer people don’t need complex procedures to rule their business operations. Instead, they can just follow a simple business format. However, if your business has many employees and offers different types of services, you must select a business structure that can support all your business requirements. The best way to understand what kind of legal business structure you need is essential that you understand the goals and a business structure that help you achieve the least complexity. 2. Continuity Of Existence You are not starting a business with a lifespan of only a decade. That means, while you are planning for your business, you must plan for its continuity. Hence, it is important that you see how a business is concluding. If you are thinking of securing your business for future financial security, you must also look into the right business structure to support your needs. 3. Control Business is all about control. If you cannot control how your business is operated, you will never be able to calculate the ROI at the end of the day. Hence, it is essential to decide how much control each individual requires to operate the business. For instance, if someone wants to have more control over their business, sole proprietorship might be a more suitable business structure. 4. Liability When running a business, you need to ensure that your personal liabilities are not tied down with your business. In that case, what will happen is that your personal liabilities will be used to cope with business losses. Hence, to separate your business from your personal liabilities, choose a legal business structure that protects your personal assets. Conclusion Choosing a business structure is dependent on what you want to achieve from your business. Depending on what you want from your business, you can go with any legal business structure. While you are free to decide for yourself which business structure you want to go with, it is a good idea that you take help from a business lawyer. A business lawyer can help you understand the differences and benefits more detailedly. They will even help you with all the paperwork needed to establish your business as a legal entity. Read Also: 6 Steps to Starting a Business in Michigan Why Do Businesses Need Lawyer’s Advice? 7 Ways to Plan a Smooth Business Succession Having Business in Foreigner Country, Advantages and Disadvantages

Tips for Building Relationships with Senior Managers

Managers are a special breed of people who lead by example, and if you have a team of senior managers in your organization, they also require motivation and leadership. Building and maintaining a strong relationship with your senior managers in an integral requirement, and with that in mind, here are a few tips on how best to build a good working relationship with your managers. Tips Of Building Better Relationships With Senior Managers Setting Achievable Goals: We all need to set realistic goals, especially those who manage others, and as their mentor, you should be helping your senior managers to set themselves attainable goals while making sure they are doing this with their teams. Once goals are set, it is important to keep them at the forefront of your mind, and should any employee underperform, the first things to look at is goal setting. There is also a great guide that explains how to set achievable goals, which you probably know anyway. Managing Performance: If you put your senior managers through a review of performance management training they will be better equipped to manage their teams’ performance, and this type of training course can be downloaded online, and for a single payment, you get to keep the very useful tools and resources that the course contains, and can use them in any way you see fit. You need to firmly establish the key elements of performance management, and by investing in a training program that you can deliver, you can help your senior managers to better manage performance. Dealing with Poor Performance: If a team player is underperforming, we must be careful not to negatively impact their morale, and with constructive analysis using a positive approach will help the employee to identify the causes of poor performance, while also helping them to rectify things. If you are at all unsure how to deal with poor performance, search online for a specific training course on the topic, and for a small cost, you can download dynamic training material that comes with full instructions for the trainer, and what’s more, you can use and re-use the materials, with zero restrictions. Managing Conflict: Conflicts among team players can literally destroy morale, and any good senior manager should be able to use a range of strategies to resolve conflicts in a positive manner, and it is always a good idea to review these strategies with your management team, and by downloading the right training course, you can boost your managers where it matters. Discipline is an important aspect of team management, and there are modules on managing conflict and maintaining discipline in the online training course, which you can access for a small investment. Your senior managers should look to you as their mentor, their guiding light, and if you source a dynamic training course that specifically deals with building relationships in senior management, you can deliver the contents to your team at your convenience. The material would be put together by recognized business gurus and designed to be very easy to deliver and comes complete with a step-by-step guide for the trainer. Read Also: The Best Dissertation Service With Personal Manager 3 Ways To Boost Employee Engagement In Your Business How To Make 360 Degree Performance Review Work For You!

4 Considerations Before Investing in an Oil Change Franchise Under 100k

1. Study the Ownership Model:

2. Know the Franchise Costs:

3. Determine How to Fund Your Franchise:

4. Talk with Your Target Market:

Conclusion:

What are the best business opportunities for 2019?

The Dos and Don’ts of Product Label Designing

Content Rally

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Technologies For Creating A Startup Idea

How to Download Facebook Videos on Android?

7 Rules of Effective Ecommerce Web Design

The 10 WordPress Plugins Every Sucessful Blogger Uses

Follow Us

Recent

One Perfect Day In Barcelona: A Deep Dive Through The Heart Of Catalonia

Building Resilience and Independence: The Role of Support Services in Family Well-Being

The Art Of Home Swapping: Creating Unique Travel Experiences

Sustainable Weight Loss: Your Guide to Long-Term Results

Related

5 Tips to Finding Better Talent for Your Bar Business

How To Choose The Best Legal Structure For Your Business

Tips for Building Relationships with Senior Managers

4 Considerations Before Investing in an Oil Change Franchise Under 100k

1. Study the Ownership Model:

2. Know the Franchise Costs:

3. Determine How to Fund Your Franchise:

4. Talk with Your Target Market:

Conclusion:

Share this Article

What are the best business opportunities for 2019?

The Dos and Don’ts of Product Label Designing

Content Rally wrapped around an online publication where you can publish your own intellectuals. It is a publishing platform designed to make great stories by content creators. This is your era, your place to be online. So come forward share your views, thoughts and ideas via Content Rally.

Leave a Reply

Popular

Follow Us

Recent

Related