By Wayne Mates
Over the past several years, I have had the opportunity to analyze a number of business plans from entrepreneurs and start up corporations seeking funding. I have seen great ideas, some feasible business plans and some not. Some are ahead of the times and others outdated. A few select ones I have invested in (none in Nigeria!), but virtually all I have not invested in for any number of reasons.
What I have come to realize is that the companies that I started and were successful would not have a chance of success in today’s world. But what I also have learned is that the principles on which I founded my companies are more viable than ever today. Reflection on past successes and the lessons learned can be applied to success in the present. Never mind the future, for it may never come.
The companies I founded over my career have been businesses that provided valuable information or low cost marketing alternatives to its clients. One that would never survive today is Atlantic Marketing Group. It started in 1984 as a print marketing company with a series of Town Almanacs and Directories in Maine. We segregated small Maine communities and promoted the businesses in the town to the local market.
Competing against local newspapers (cable TV was pretty much non- existent, although I was in negotiations to buy one back then), we added a twist. In each annual almanac we included local telephone listings along with a series of articles about the community. The cover of each publication was an original artwork by a local artist, hand chosen by our art director, a former art director for Vogue Magazine with an eye for flair and good taste.
We mailed our almanacs free to each household in the community. Every resident had access to all the pertinent information in the community, plus its businesses. It was very successful leading to the purchase of Smile magazine and marketing of medical newsletters to a number of medical professions internationally.
The idea behind the company was to provide low cost, targeted marketing opportunities to companies that wanted and needed to reach the marketplace with their products and services.
When I founded this company, computer technology was in its infancy. Through computer technology we were able to use the same article over and over by merely inserting a different medical professional name. This dramatically reduced the cost of producing publications. I am pretty sure no one before me had done this.
This company could not succeed today. Why? Very simply, it is printed medium and print cannot survive profitably today. Is this idea still good? Maybe. With social media marketing and email marketing each company can now reach their market very efficiently. I have seen some business plans that come close to replicating this model in our internet intensive world.
I have copies of all the publications in my library and thumb through them occasionally thinking my timing was incredibly uncanny.
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Filed under News, Start Up by on Sep 26th, 2012. Comment. 
By Wayne Mates
Last week, I wrote about considering a franchise and deciding to forgo buying one. I started a similar business without the support of a franchise operation. It was a decision I made after researching the pros and cons of a franchise and what advantages a franchise would give me. For many people buying a franchise is the better decision.
If you are looking to go into business for yourself, you can buy a franchise for almost any type of business. Hotels, restaurants, dollar stores, business services and fitness centers all offer the chance to buy into a tried and proven business opportunity. You can buy an existing franchise from either the current owner or direct from the franchisor.
What are the advantages of going with a franchise? Let’s take a look at some of the reasons a franchise may make sense for you.
- Established Business Plan – When you buy a franchise, you are buying an established proven business idea. The franchisor has a proven method of operation and proven products or services.
- Minimize Risk – You want to make a profit and maintain a business that will grow and expand. Far fewer franchises fail in business than other business startups. Studies have shown that 90% of franchises are in business after 5 years as opposed to a 90% failure rate of non-franchised businesses.
- Name Recognition – A big reason to purchase a franchise. When you open for business, you expect marketing support from the franchisor. Many people in your market area will recognize your business because they have been exposed to the business name or products. A new startup lacks that recognition.
- Support – Most franchise operations have an owners association. You have an opportunity to ask questions of experienced franchisees if you run into issues that the parent company cannot resolve. Chances are good that any issue you confront has been solved by either the parent company or another franchisee. You do not have this support network in your own business.
- Financing – Many franchisors have relationships with banks or other lenders to finance a portion of the franchise fee and working capital. As long as you have good credit, some assets and have taken the company’s business plan and modified it to your circumstances, you may be able to qualify for funding. A non-franchised startup can have difficulty establishing funding to operate.
If you do not experience founding a new business, a franchise can save missteps in your startup. If you have the desire to be in business for yourself, but not by yourself, consider a franchise.
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Filed under News, Start Up by on Mar 12th, 2012. Comment.
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