Connect with us

Startups

5 Things to Do Before You Franchise Your Business

Published

on

Opinions expressed by Entrepreneur contributors are their own.

As a business owner with multiple years of success and a value proposition that resonates with your target audience, growth and expansion are likely top of mind. You may already have multiple locations — also doing quite well — and you’d like to explore how to scale. Your concept might be an ideal candidate for franchising, where you can maintain the brand continuity and quality that’s helped you make a name for yourself, while recruiting additional owners to expand your market share. It can be a heady time, full of excitement and possibilities. But it doesn’t mean you should rush headlong into this decision without first doing a proper amount of research and due diligence.

Shutterstock

To assist with your dream of replicating your successful business model, here are five things to know before you franchise your business.

1. Firm up your brand identity

Owning a successful business that’s now a candidate for franchising is already an accomplishment. But before you reach out to a franchise attorney who bills by the minute, make sure you firm up your brand identity. This should be an open-ended, rhetorical exercise in which the ownership, staff and customer base can participate. The goal in mind is to not only define your business concept but also communicate the value proposition responsible for your success to date. What problem do you solve for our customers? What makes your brand successful? How are you unique from the competition? Is your product or service currently in demand? Would this brand attract interest from ownership candidates? Why or why not?

Discover how you can firm up your brand identity, as this will become the nucleus of your franchise offering.

Related: Franchising Your Business, Part 1: Making the Decision to Franchise

2. Compare and contrast

With more than 3,500 franchise concepts on the market today, there are plenty of examples for you to research and study. Look at franchise business models that operate in your industry or specific business sector. But don’t be afraid to also look at a few that operate in other categories. You can read about the highly-rated concepts that earned a spot on the 2022 Franchise 500 list, but it’ll also be wise to investigate the business models of brands of which you haven’t yet heard. After all, you’ll also be one of them when you first start. Focus on how these concepts communicate their value proposition to prospective owners. Ask yourself, “Would I be interested in owning this franchise?” Research about 50 or so. Then make a list of reasons why certain concepts are appealing, and why others aren’t. You can learn from both examples when it comes time to franchise your brand.

3. Create your brand’s owner persona

From the research you’ve conducted above, develop your brand’s owner persona — a three-dimensional look at your ideal franchise owner. Using the culture, values, mission and value proposition of your brand, create a profile that describes not just who is a match to own a franchised version of your business, but also why. What would their motivations be? What is the best way to reach them? Using your brand attributes, what personalities and leadership characteristics would be crucial for owning a successful franchise operation? The research you’re doing for these first three tips will pay off in the next two steps.

Related: Am I a Good Franchise Candidate?

4. Draft your franchising assets

Using the information and conclusions from the research you’ve conducted so far, develop the first drafts of the franchising assets you’ll need to have on file before you can begin. This includes your business plan, franchising agreement, an operations manual and all 23 sections of your proposed Franchise Disclosure Document (FDD). You’ll want to model your assets from the best examples found in your research phase. These first drafts are just that — initial attempts at putting together the assets for franchising your business concept. These drafts are your opportunity to put your brand on a pedestal and communicate your vision for establishing a successful franchise system. These assets will be your starting point when it’s time to call in the professionals.

5. Call in the experts

You’ll notice this is the final tip included in this roundup of advice. That’s on purpose — you want to be as prepared as possible when you solicit expert advice from the professionals. It’s recommended that you bring in a franchise consultant who works on the brand side of the business, and a good franchise attorney. Get a good referral and find those who have an established track record of franchising a brand and concept. Set up separate appointments to allow each of these experts to offer their best advice in a one-on-one setting. You’ll learn quite a bit from both, so be prepared to take copious notes. Expect that you’ll be given direction on refining the franchise assets you’ve put together in draft form.

If it still makes sense to use franchising as the vehicle for your brand’s growth after careful planning and thoughtful consideration, it may be time to begin the capital and financing portion of the journey.

Related: 9 Factors to Consider When Choosing a Franchise Attorney

Startups

Cyber Monday shopping expected to set record but annual growth has slowed | Adobe

Published

on

Cyber Monday shopping sales hit at least $6.3 billion through part of the day in the U.S. today, according to the latest online shopping data from Adobe Analytics.

It’s not unusual for Cyber Monday and Black Friday online shopping results to break records, but it this economic climate it’s encouraging to see it happen. Still, growth has slowed from 2021 and 2020 holiday seasons.

Consumers spent $6.3 billion up through 3:00 pm Pacific time for Cyber Monday. Adobe expects that when the final tally is in, consumers will spend between $11.2 billion and $11.6 billion for the day, making Cyber Monday the biggest online shopping day of the year (and of all time).

Today, the top 15 hot sellers (not in ranked order) have included Legos, Hatchimals, Disney Encanto, Pokémon cards, Bluey, Dyson products, strollers, Apple Watches, drones, and digital cameras. Gaming consoles also remain popular, along with games including Mario Party, FIFA 23, Madden 23 and Call of Duty: Modern Warfare II.

Over the past weekend, the top sellers were included Hot Wheels, Cocomelon, Bluey, Disney Encanto, L.O.L. Surprise dolls, Roblox, and Fortnite in the toys category. Nintendo Switch, Xbox Series X and PlayStation 5 remain the top selling gaming consoles, with popular games including FIFA 23, God of War Ragnarök, Call of Duty: Modern Warfare II, Madden 23, and NBA 2k23. Other hot sellers included Apple iPads, Apple MacBooks, digital cameras, Roku devices, drones, gift cards and Instapots.

Black Friday online shopping sales were $9.12 billion, up 2.3% from a year ago, and Thanksgiving itself came in at $5.29 billion, up 2.9% from a year ago. Those were above Adobe’s projections. Last year, consumers spent $10.7 billion on Cyber Monday.

Strong consumer spend has been driven by net-new demand, and not just higher prices. The Adobe Digital Price Index, which tracks online prices across 18 product categories (complements the Bureau of Labor Statistics’ Consumer Price Index, which also includes prices for offline only products and services like gasoline and rent) shows that prices online have been nearly flat in recent months (down 0.7% YoY in October 2022).

Adobe Analytics says Cyber Monday will set a record.

Adobe’s numbers are not adjusted for inflation, but if online inflation were factored in, there would still be growth in underlying consumer demand, the company said.

On a category basis, toys were a major growth driver in the days leading up to Cyber Monday, with online sales up 452% over the average day in October 2022. Appliances (up 305%) and baby/toddler products (up 289%) also saw strong demand, in addition to electronics (up 276%) and apparel (up 258%).

Shoppers will find record discounts today for computers (peaking at 27% off listed price). Deals will also be found in nearly all categories tracked, including apparel (19%), toys (33%), electronics (25%), sporting goods (16%), televisions (15%), and furniture (11%). Those looking to buy an appliance should consider waiting until Thursday (December 1), when discounts are set to peak at 18% on average.

Weekend spending remained strong

Consumers spent over a Black Friday’s worth of ecommerce over the weekend at $9.55 billion, up 4.4% YoY ($4.59 billion on November 26, up 2.6% YoY / $4.96 billion on November, up 6.1% YoY). Season-to-date (November 1 to November 27), consumers have spent a total of $96.42 billion online, up 2.1% YoY.

And while the big days (Thanksgiving Day, Black Friday) have reached new heights, consumers spent at record levels all season. Since November 1, shoppers spent over $2 billion every single day, with 19 days above $3 billion in online spend. Broad, early discounts were the main drivers for the shift in consumer spending.

“Shoppers have seen massive discounts this past week, which is the exact opposite situation from last season when supply chain constraints kept prices elevated,” said Vivek Pandya, lead analyst at Adobe Digital Insights, in a statement. “While discounting will have an impact on margins for retailers, it is also driving a level of demand that can help brands build long-term loyalty and net some short-term gains.”

Additional Adobe Analytics Insights

Over the weekend, online sales of toys were up 383% (compared to average daily sales for the category in October 2022), with baby toys seeing strong demand (up 252%). Other categories that surged over the weekend include jewelry (up 230%), sporting goods (up 239%), and apparel (up 217%).

With online spending hitting new records and inflation impacting consumers, flexible payments have become a big story this season. In the last week (November 21 to November 27), “buy now, pay later” orders have risen 68% and revenue has increased 72%, when compared to the week prior.

Over the weekend, smartphones drove over half of online sales for the first time (52%, up from 48% last year). Adobe expects mobile shopping to dip on Cyber Monday however, based on historical trends. Many people are back at work and using laptops, which will be the preferred device for shopping online.

Forecast for Cyber Week

Adobe expects Cyber Week (the five days from Thanksgiving Day through Cyber Monday) to generate $34.8 billion in online spend, up 2.8% YoY, and represent 16.3% share of the full November through December holiday season.

Cyber Monday is expected to remain the season’s and year’s biggest online shopping day, bringing in between $11.2 billion and $11.6 billion. Black Friday generated a record $9.12 billion in online spend, up 2.3% YoY, while Thanksgiving brought $5.29 billion in online spend, up 2.9% YoY.

Adobe analyzes direct consumer transactions online. The analysis covers over one trillion visits to U.S. retail sites, 100 million SKUs, and 18 product categories.

Source link

Continue Reading

Startups

Snowflake 101: 5 ways to build a secure data cloud 

Published

on

Today, Snowflake is the favorite for all things data. The company started as a simple data warehouse platform a decade ago but has since evolved into an all-encompassing data cloud supporting a wide range of workloads, including that of a data lake

More than 6,000 enterprises currently trust Snowflake to handle their data workloads and produce insights and applications for business growth. They jointly have more than 250 petabytes of data on the data cloud, with more than 515 million data workloads running each day.

Now, when the scale is this big, cybersecurity concerns are bound to come across. Snowflake recognizes this and offers scalable security and access control features that ensure the highest levels of security for not only accounts and users but also the data they store. However, organizations can miss out on certain basics, leaving data clouds partially secure. 

Here are some quick tips to fill these gaps and build a secure enterprise data cloud.

Event

Intelligent Security Summit

Learn the critical role of AI & ML in cybersecurity and industry specific case studies on December 8. Register for your free pass today.


Register Now

1. Make your connection secure

First of all, all organizations using Snowflake, regardless of size, should focus on using secured networks and SSL/TLS protocols to prevent network-level threats. According to Matt Vogt, VP for global solution architecture at Immuta, a good way to start would be connecting to Snowflake over a private IP address using cloud service providers’ private connectivity such as AWS PrivateLink or Azure Private Link. This will create private VPC endpoints that allow direct, secure connectivity between your AWS/Azure VPCs and the Snowflake VPC without traversing the public Internet. In addition to this, network access controls, such as IP filtering, can also be used for third-party integrations, further strengthening security.

2. Protect source data

While Snowflake offers multiple layers of protection – like time travel and fail-safe – for data that has already been ingested, these tools cannot help if the source data itself is missing, corrupted or compromised (like malicious encrypted for ransom) in any way. This kind of issue, as Clumio’s VP of product Chadd Kenney suggests, can only be addressed by adopting measures to protect the data when it is resident in an object storage repository such as Amazon S3 – before ingest. Further, to protect against logical deletes, it is advisable to maintain continuous, immutable, and preferably air-gapped backups that are instantly recoverable into Snowpipe.

3. Consider SCIM with multi-factor authentication

Enterprises should use SCIM (system for cross-domain identity management) to help facilitate automated provisioning and management of user identities and groups (i.e. roles used for authorizing access to objects like tables, views, and functions) in Snowflake. This makes user data more secure and simplifies the user experience by reducing the role of local system accounts. Plus, by using SCIM where possible, enterprises will also get the option to configure SCIM providers to synchronize users and roles with active directory users and groups.

On top of this, enterprises also should use multi-factor authentication to set up an additional layer of security. Depending on the interface used, such as client applications using drivers, Snowflake UI, or Snowpipe, the platform can support multiple authentication methods, including username/password, OAuth, keypair, external browser, federated authentication using SAML and Okta native authentication. If there’s support for multiple methods, the company recommends giving top preference to OAuth (either snowflake OAuth or external OAuth) followed by external browser authentication and Okta native authentication and key pair authentication.

4. Column-level access control

Organizations should use Snowflake’s dynamic data masking and external tokenization capabilities to restrict certain users’ access to sensitive information in certain columns. For instance, dynamic data masking, which can dynamically obfuscate column data based on who’s querying it, can be used to restrict the visibility of columns based on the user’s country, like a U.S. employee can only view the U.S. order data, while French employees can only view order data from France.

Both features are pretty effective, but they use masking policies to work. To make the most of it, organizations should first determine whether they want to centralize masking policy management or decentralize it to individual database-owning teams, depending on their needs. Plus, they would also have to use invoker_role() in policy conditions to enable unauthorized users to view aggregate data on protected columns while keeping individual data hidden.

5. Implement a unified audit model

Finally, organizations should not forget to implement a unified audit model to ensure transparency of the policies being implemented. This will help them actively monitor policy changes, like who created what policy that granted user X or group Y access to certain data, and is as critical as monitoring query and data access patterns. 

To view account usage patterns, use system-defined, read-only shared database named SNOWFLAKE. It has a schema named ACCOUNT_USAGE containing views that provide access to one year of audit logs.

Source link

Continue Reading

Startups

WhatsApp rolls out new ‘Message Yourself’ feature globally • TechCrunch

Published

on

To get a roundup of TechCrunch’s biggest and most important stories delivered to your inbox every day at 3 p.m. PDT, subscribe here.

We’re joining the Cyber Monday fun with 25% off annual subscriptions to TechCrunch+ content and analysis starting today until Wednesday, November 30. Plus, today only, get 50% off tickets to discover the vast unknown and attend TechCrunch Sessions: Space in Los Angeles!

Okay, we haven’t done a newsletter since Wednesday, and while the U.S. team was chillin’ like villains, the rest of the team was hard at work, so here’s some of the highlights from the last half-week of TechCrunchy goodness! — Christine and Haje

The TechCrunch Top 3

  • Talking to yourself just went digital: Instead of having that internal monologue stay in your head, now you can play out all of your thoughts to yourself in WhatsApp, Jagmeet writes. The messaging platform began rolling out an easier way to talk to yourself today after completing beta testing.
  • Great Wall of porn: That’s how Rita and Catherine describe the bot surge in China that is making it difficult to get any legitimate Twitter search results when trying to find out something about Chinese cities. Why, you ask? Rita writes that “the surge in such bot content coincides with an unprecedented wave of (COVID) protests that have swept across major Chinese cities and universities over the weekend.”
  • Your calendar, only more productive: Get ready for your calendar to be more than just a place to record things you have to do that day. Romain writes about Amie, a startup that grabbed $7 million to link your unscheduled to-do list with your calendar. The app also enables users to be social with coworkers.

Startups and VC

Dubai-based mass transit and shared mobility services provider SWVL has carried out its second round of layoffs, affecting 50% of its remaining headcount, Tage reports. The news is coming six months after SWVL laid off 32% (over 400 employees) of its workforce in a “portfolio optimization program” effort geared toward achieving positive cash flow next year.

There’s a couple of new funds in town, too! Harri reports that Early Light Ventures plots a second, $15 million fund for software ‘underdogs,’ while Mike writes that BackingMinds raises a new €50 million fund to fund normally overlooked entrepreneurs. He also writes about Pact, an all-women led VC for mission-driven startups, backed by Anne Hathaway.

And we have five more for you:

Lessons for raising $10M without giving up a board seat

Blackboard showing soccer strategy

Image Credits: Ihor Reshetniak (opens in a new window) / Getty Images

Over the last two years, intelligent calendar platform Reclaim.ai raised $10 million “using a more incremental approach,” writes co-founder Henry Shapiro.

“We’ve done all this without giving up a single board seat, and Reclaim employees continue to own over two-thirds of the company’s equity,” rejecting conventional wisdom that founders should “raise as much as you can as fast as you can.”

In a TC+ post, Shapiro reviews the process they used to identify follow-on investors, shares the email template used to pitch the SAFE, and explains why “a larger cap table means more founder control.”

Three more from the TC+ team:

TechCrunch+ is our membership program that helps founders and startup teams get ahead of the pack. You can sign up here. Use code “DC” for a 15% discount on an annual subscription!

Big Tech Inc.

Amazon’s recent cost-cutting measures seem to be affecting more than just its delivery business. Manish writes that the company is shutting down its wholesale distribution business, called Amazon Distribution, in India. Amazon had started this unit to help neighborhood stores secure inventory. The company didn’t say why it was closing this particular business down, but Manish notes that this is the third such Amazon unit to be shuttered in India.

Meanwhile, Natasha L reports that Meta has gotten itself into trouble again with the European Union’s General Data Protection Regulation (aka, the agency that regulates data protection). Facebook’s parent company is being hit with $275 million in penalties for what the agency said was breaches in data protection that resulted in some 530 million users’ personal information being leaked.

Now enjoy six more:



Source link

Continue Reading

Trending

URGENT: CYBER SECURITY UPDATE