Franchise financing in Canada has some major similarities to the U.S. market, but is different in some key respects. This article will explore some of those similarities and differences that we have observed in the marketplace. More and more entrepreneurs are of course looking at franchise financing for a combination of both employment and entry intro entrepreneurship under a reduced risk mode. That is to say that a proven franchise concept enhances chances of business success.The potential franchisee has chosen his business, and has hopefully prepared either on his own or with professional help a business plan that ultimately has two purposes: to successfully finance the venture, and secondly, to monitor long term progress against initial goals and projections and assumptions. The business plan, when properly done, will allow the financing requirement to ‘ fall out’ of the financials. That is to say that proper opening balance sheets and cash outlays will identify the total financing needed. The financials need to be specific in this area.In Canada the majority of franchise financing is done under the auspices of the CSBF loan program. This is the equivalent of what our friends in the U.S. call the SBA ADMINSTRATION. CSBF stands for CANADIAN SMALL BUSINESS FINANCING program, and is a federal government program under the auspices of Ottawa. The important point here is the government has allowed the Canadian chartered banks to ‘ administer ‘ the program. The government in effect ‘ guarantees’ the loan to the banks that participate in the program.Franchise loans under the CSBF program have excellent rates, terms, and structures. Typically these are 3% over prime rate, 5-7 year terms, and flexible payment and repayment schedules. In the current liquidity crisis and market turmoil re bank financing etc many banks have either altered their view of certain elements of franchise financing, or in some cases have pulled out directly from certain business segments that they view as too risky, or in which they carry too much exposure. The restaurant /hospitality industry is a good example. A vast majority of franchise financing is done for the Canadian restaurant and hospitality industry.Many business owners augment the CSBF franchise loans with HELOC’s. ( Home equity lines of credit ) These HELOC’s tend to backstop the funds put into the venture via the bank and government loan. Unfortunately many Canadian prospective franchisees have to tap into RRSP savings, which has some tax implications they should discuss with their advisor.Franchise financing in the current 2009/2010 environment requires a solid owner equity investment. In some cases this amount approximates 100%. That has the bank loaning you $ 100,000.00 under the CSBF program, and you committing $ 100,000.00 also. This examples of course assumes you need $ 200,000.00 for your venture in this instance. Opening balance sheets prepared by the owner or their advisor and consultant should reflect positive working capital ratios that meet the government program requirements.The CSBF loan program finances only certain asset classes, and owners should investigate or rely on their advisor or consultant as to what can be financed. Typically soft costs such as franchise fees are covered by the owner directly, and not financed. Franchise financing is more challenging today given that many lenders have either temporarily ( or permanently!) exited the marketplace. The franchisee should investigate all options thoroughly and understand what financing options are available and which options best suits their needs and personal financial situations. This can be done with proper due diligence or with an experienced advisor in the franchise financing industry.
A Guide to Help You Pick the Best Air Purifier for Your Loved Ones
Holidays are around the corner. This is the time of year when people start purchasing gifts for their loved ones. If you are going to purchase an air purifier for someone you love, we have some helpful tips for you. If you want to purchase the best unit, you may be able to use this guide to your advantage. Read on to find out more.
1: Set Your Budget
Just like anything you purchase, make sure you have set your budget first. The price of the unit will vary based on a lot of factors, such as the capacity, filter type, features, and brand of the unit. If you don’t have a flexible budget, we suggest that you go for a product that is available to purchase for less than $300.
2: Consider the Needs of the Recipient
Your next move is to consider the needs of your recipient. If you are going to purchase this unit for everyday use, we suggest that you go for a unit that comes with a HEPA filter. On the other hand, if your loved one has a specific need, we suggest that you consider a specialized unit.
For example, if they are more prone to respiratory issues, such as allergies and infections, we suggest that you get a UV purifier for them. The devices are designed to neutralize viruses and bacteria.
3: Think About the Available Space
Another primary factor is to consider the available space in the office or house of the recipient. For example, if they need a general-purpose unit for a small apartment, you may want to consider a filterless unit.
On the other hand, if they have plenty of free space, you may consider a bigger unit that features a higher airflow rating. These units are powerful enough to cover a large face.
4: Consider Extra Features
Lastly, we suggest that you consider additional features that they will just love. For example, some units come with an indicator that turns on when the filter needs to be replaced. This will allow the user to change the filter so that the device continues to work properly.
So, you may want to consider these features before you place your order. These features may not be important to you, but your friend may just be over the moon.
Long story short, we suggest that you consider these four tips if you are going to purchase a gift for your loved one on these holidays. Since the air is full of pollution during winter days, nothing can make a better gift than an air purifier. Therefore, you should consider these tips before looking for an online or physical store to make your purchase decision.
Why Couponing Is Important for Digital Marketing?
Let’s look back in the year 1887 when the fate of a brand changed overnight owing to a simple trick – Promotional Deals & Offers. In order to attract customers, Asa Candler the founder of a soft drink brand started distributing hand-written notes that offered the customers a glass of drink at 5 cents and the rest is history. With no time an insignificant carbonated soft drink became the market-dominating drink. Since then, the coupon has become an essential part of marketing to increase conversion rate and average order value.
Why Should Every Business Value Coupons & Offers?
In spite of this, some proprietors are cynical of its constructive use, as they believe promotional offers decrease the price of an item leading to lower revenue or undervalue the service or products. This is factual in the short run, but when you yearn for a stronghold in the market, a coupon is indisputably profitable. Merchants actually ignore 70% of the potential buyers by not proffering online deals, and it was never so true than this age of internet marketing. The rise of Google and other search engines has made it extremely easier to find deals and offers and, customers tend to pull the trigger of the brand that offers the highest discount. Promotional offers extend the budget of the buyers that in a roundabout way persuade them to buy more items.
According to research, 78% of the consumers are somehow influenced to shop a brand that he wouldn’t typically purchase due to an attractive voucher. Almost 68% of customers believe digital coupon has a positive impact on the brand and encourage them to try the product.
Why Should Promotional Coupon Be An Integral Part Of Digital Marketing Campaign?
• Nearly 91% of the loyal shoppers of a brand will look for a coupon before purchasing a product and unavailability of coupon tend to dissuade them. It’s prominent, promotional code has a positive impact on brand loyalty, vouchers bring the brand to a larger number of audiences and opens up a vast untapped market, that means coupon can increase brand loyalty for a larger segment of the users and in the absence of the deals they would have never preferred the merchant’s products at the first place.
• Recapitulating all the points we can say shoppers always want a great deal. If they can’t afford your product in the first place they can’t experience it and if they can’t experience it, the penchant, the affinity for your brand won’t grow. Promote online coupon codes to build positive word of mouth.
• In the age of the internet, people look for a recommendation before purchasing a product in social media platforms, and only brand loyalty encourages customers to leave positive feedback about the brands. 84% of buyers rely on online reviews in so far as personal recommendations. With the growth and immense popularity of instant sharing apps, online directories, social media sites and dedicated product review sites online reviews have become more influential in making a purchase decision. Reviews about your business don’t only impact the customers who are looking for information about the business on online platforms but also consumers who are looking for similar services or products that you offer. Positive online reviews from loyal consumers can bring new leads to your website.
• Website traffic is imperative as the number of visitors amounts to the number of opportunities to welcome new customers. The more traffic towards your website the more scopes you have to generate qualified leads, nurture, solve their problem and sell the service or product, make new clients, build a loyal group of customers and continue to enhance the business.
Nowadays there are several digital tools and platforms are at your disposal to meet customers’ loyalties and attention. Besides that offering tie-up with coupon sites to grow the digital presence of your presence and get hold of a larger group of customers, they are the boons for e-commerce platforms.