How much does it really cost?

How much does it really cost?

Having a business is one of the dreams of the many Filipinos around the globe.  When you came to a food cart franchise advertisement and got excited to see that having a business is just around twenty to thirty thousand pesos, you should come down and start planning the business. There is a saying "Let us cross the bridge when we get there," but I would advise that this is not the type of bridge that you will enjoy when you get there unprepared.

You should think of where you will be placing the cart? What would be the appearance of your business area, should you have some repairs or construction to do? What is the spending power of your target market of your chosen location? Who will operate the cart and how much will you pay them? What other products will you be selling to add to your daily sales? These and allot more to anticipate before you begin putting your funds in the business.

You will need funds in searching for your location; you will be needing funds for the locations’ rental fee that will be requiring months deposit and months of advance; you will be needing budget for renovation whether slight or complete remake; you will purchase equipment like freezer or chiller that are not included in the franchise package; you have to purchase initial inventory for your business to operate and you have to invest in people to mandate the operation of your business. All of these you will be needing enough or more than of the budget that you expect. You should also have some capital funds that will be available during your first quarter or a half for your operations.

Now let’s do the math:

For a customized BUSINESS PLAN 

contact Mr. Ace Generalo at 0908-2064187

Let’s check the expenses that you had in finding a location, if you have been commuting in finding a location you will spend an average of 500 per day, that’s around 8 hours of searching. But if you brought your car during the search you will have an average of 800 spent during the search. What if you were not able to find one in one day, you will be spending more. Let’s just say you spend an average of 2,000 pesos. Next thing is the rental terms that you had with the location, let’s say that the rental is 8,000 pesos and the lessor asked for 2 months advance and 2 months deposit, that is what they usually ask in commercial spaces. And let’s assume that you spent an average of 5,000 pesos for renovation, cleaning and painting it bright. And let’s assume that you had franchise package bought for Php 25,000 plus some additional products bought worth Php  5,000. Your products might need a freezer especially when you go for food business, that is not included in the franchise package you bought, so you will be purchasing a freezer let’s say worth Php15,000.

Now here is the computation;

Location search         Php 2,000

Rental fee

   8,000 x 4 months        32,000

Renovation                       5,000

Franchise Package          25,000

Addl products                   5,000

Freezer                            15,000

For a total of           Php 84,000

Now that is Php 84,000 to set up your business. You see? It’s not just the Php25,000 that you will be needing to set up the business. These are all estimates you can do some bidding and haggling to make it low.

The fund needed to put up the business is Php 84,000.00 but here you are not yet starting your business. To start a business you should have a crew that you have to pay to operate the business and conduct the day to day selling, Food cart business is not required to comply with the existing basic rates of employment; first, because we are part of the Small and Medium Enterprises; second, is that the crew that you are hiring does not need professional expertise; and third, because you are still testing the business in the market. So you can pay your crew around Php150 to 250 a day depending on your negotiations, plus your crew can be some young out of school youth that needs to earn money to compensate his needs, not the one who have a family and have plenty of mouths to feed.

Now that you know the cost of setting up the business let us now compute the cost of operating your business. Your monthly operational cost includes the following;

Monthly rental        Php 8,000.00

Electric consumption    1,000.00

Water                                 500.00

Labor

     200 x 30 days            6,000.00

Miscellenous                  1,000.00

Total                     Php  16,500.00

The cost of your monthly operation is Php 16,500.00. There you will find a miscellenous fund of 1,000.00 that will take care of sudden expenses like running out of ketchup, cooking oil or gas. Remember that this is just an estimate, anything that you may do to save from the expenses will be part of your profit.

contact Mr. Ace Generalo at 0908-2064187

Now how much budget do you really need for the business?

The budget you will need is the budget for setting up the business plus budget for some months of operation. That’s the real investment!

The budget for setting up the business        Php  84,000.00

Monthly budget for 6 months

       (16,500 x 6)                                              99,000.00

GRAND TOTAL                                        Php 183,000.00

I always suggest a minimum monthly budget for 6 months because you cannot have the real response of the market in 2 or 4 months. Some market response are superficial, sometimes its on the timing.

So when your budget is ready, you can start your business!

NOW! If you have the budget and 

wants to save your self from the hassles!

Another option that you can have is the MINI7 Franchise!

ALL-IN, HASSLE FREE, WORRY FREE!

REAL FRANCHISE PACKAGE!

Mini 7 is a co-managed franchise with the package of 

P250,000 

one time payment.

It is an all in package that will give the investor the chance 

to become a BRANCH OWNER of  Bee Smart Franchise Inc. 

WE will REGISTER the business, 

INSTALL the business, 

OPERATE the Business and then 

TURN-OVER them to YOU!

contact Mr. Ace Generalo at 0908-2064187

A much more detail is prepared upon meeting, for the meantime here is the overview of the business

_________________________________________________________________________

SEC REGISTERED

70% of the branch will be owned by the investor or franchisee, 30% of ownership will remain with Bee Smart because it (Bee Smart) will co-manage the business so that the franchisee will enjoy proper monitoring and management of the business and more assurance of success and profit.

Upon Payment the Company (Bee Smart) will start processing the SEC registration or articles of incorporation. All fees are covered in the (250,000) investment package.

BUSINESS PLAN DISCLOSURE

Bee Smart Franchise will disclose the full detail of the business plan to the franchisee as guide to the daily operation in terms of short term and long term plans of the company to the franchisee.

NO PROBLEM FOR THE OFFICE/OUTLET SPACE RENTAL 

The company will look for location of the outlet, within the area with the help and suggestions of the franchisee. The payment for the rental which covers the advance and deposits, as will be required by the lessor is already covered in the 250,000 investment package. 

contact Mr. Ace Generalo at 0908-2064187

FIRST 3 MONTHS OPERATION

The Company will cover the first three (3) months operation of the outlet and will implement the full plan of the business, together with the trial and errors depending on the response of the market. Rest assured that with the experience of the company in handling food cart franchising some problems are expected and will be prevented. Franchisee may expect not to invest more money during this pioneering period. After 3 months, full turn over of the operations will be given to the franchisee or his/her management staff. These staff are trained by the company during those 3 months. After the turn over, the company will still monitor the outlet as STANDARD PROCEDURES based on the business plan.

OUTLET SET-UP, EQUIPMENT AND CONTENTS

The company (Bee Smart) will give the outlet the following tangible and intangible items and services

1. Complete Business Registration, (SEC, Mayors, BIR, etc)

2. Selection and rental of the outlet

3. Renovation and repairs, (as needed or negotiated with the lessor)

4. Installation of office equipment

      a. 1 complete set of computer 

      b. printer

      c. cash register

      d. 2 office tables

      e. 2 office chairs

      f. 2 desk fan

     g. Installation and training of staff on the POS system 

             (POS worth 35,000)

     h. Design and turn over orientation to the staff of the outlet website

             (Site worth 20,000)

     i. marketing materials, brochures, flyers etc.

     j. whiteboard

     k. office supplies

     l. installation of phone with DSL and WIFI

5. Installation of Wholesale Section

     a. 1 unit Chest Freezer

     b. 1 unit chiller

     c. 2 units product shelves (2ftx3ftx6ft)

     d. 1 unit counter table

     e. P20,000 worth of variety of equipment & materials for sale  

     f. P30,000 worth of variety of wet & dry products

6. Installation of Retailing Section

     a. 1 unit Basic Food Cart

     b. Training and monitoring of the crew

     c. 3 dining tables

     d. 9 dining chairs

7. Installation of Franchising Area

     a. 3 dining tables

     b. 12 dining chairs

     c. white board

     d. marketing collaterals (tarpalins, posters, flyers, manuals etc)

    

(installation of aircon will be option of the franchisee)

INCOME AND SHARING OF PROFIT

all profit sharing will be based on the laws as set by the articles of incorporation. But there can be internal arrangement as advised by the company accountant. There will be monthly income for the franchisee in terms of a pay-roll that will start on the 5th month of operation. All finances will be intact and deposited to the outlets corporate bank account. The Franchisee will be the final signatory of all check payment by the outlet as prepared by the monitoring team of the company. Daily sales are deposited daily to the outlet's corporate bank and can be monitored by the franchisee through the PO System of the outlet.

MARKETING AND ADVERTISING

The company and the outlet will continuously work together for the marketing and advertising activities of Bee Smart Franchise and all the brands that it handles. meanwhile, all through out the operation the outlets will be conducting local marketing activities as advised by the company or through initiatives of the outlet with the approval of the company.

OUTLET OPERATIONS

The outlet will conduct its daily operations as an order and sales office, a wholesale store for local business people, a retail convenience store and as a franchising branch that cater interested individuals to become a franchisee.

OTHER DETAILS WILL BE DISCUSSED INSIDE THE OFFICE DURING YOUR VISIT

contact Mr. Ace Generalo at 0908-2064187

_______________________________________________________________________

Application Process

1. Meeting orientation to the franchise business

2. Disclosure of the Business plan

3. Upon your approval, the reading and signing of contract

4. Payment of the package

Establishing Procedures

1. Upon payment of 250,000

2. During 1st to 2nd week, processing of the SEC registration

3. During 1st week, scouting for location of the outlet

4. 3rd week, renovation of outlet

5. 4th week, installation of the outlet

6. Start of operation

 For more info, please contact Mr. Ace Generalo at 0908-2064187

or visit our website http://www.beesmartfranchise.webs.com/

The REAL WORD-OF-MOUTH POWER

What movie have you watched recently?

What beauty soap have you been using?

What song have inspired you most?

What food is your favorite?

          One time, a friend was really funny in telling me about a movie that he have just watched. He told me about the story, the visual effects, the characters and how creative the movie was. I have been really curious that on the next day I brought another friend with me and watched the movie. When we got home, the people around us was so amazed to hear us talking about the movie. The next day I was giving a talk in a seminar and I was actually relating the movie in my topic.

          Another morning, I woke up with a head ache and went to the store to buy some medicine. The sales lady made me choose among five brands that were effective in removing head aches, I end up buying the one see recommended to me that according to her was effective based on her experience. When i got home I went to the kitchen to have some breakfast with my mother, after I finished eating I brought out the medicine from my pocket and a glass of water. When my mother saw me, I told her I have a headache and she brought out a medicine box and handed me another brand of medicine that according to her was effective. I end up drinking 5 medicines on 3 hours interval that day and never got a chance to analyze which brand was effective.

            People especially our family and friends tend to recommend medicines, soaps, clothes, food and movie to each and everyone. Not just on emergency cases but even on small chit-chats, we always look for topics to discuss with to create communication and built or maintain our relationship. Caring is another factor why we do this, because we want other people to have good experience or quick solutions to their problem by recommending things that we have experienced ourselves.

          It is different from advertising, people advertise because they were paid to do so. They create flyers, brochures,  audio or even television commercials to recommend the product that paid them a price. Product endorsers tends  to research or try to test and experience the product first before they endorse it, but some or maybe just a few tend to do it just for the money.

          When we recommend or endorse products we put our names with it. When it become helpful to the user they also share the product with others which becomes their recommendation with our names removed and their names on the front. But when the recommended product isn't effective, expect for the blame and the labeling of never to get recommendations from you again.

          Word of mouth is a lifestyle, many company tries to use it for their benefit. There are ethical ways to maximize word of mouth on a business, But some company are abusing this medium which in turns damages or even destroy relationships. My recommendation to business owners or endorsers (not just the high-earning artists but down to the sales persons who wants their product be sold) If you want your product to maximize the real power of word of mouth do not just invest on promoting your product big time, start with your few buyers and invest on the benefit and effectiveness of your product. Soon you will have these buyers endorsing your product that you don't have to pay them fees. It will become their lifestyle, your products will be recommended and you will have advertising for free. That's the real power of word of mouth.

Franchisee: Are Franchisors your BOSS? or YOUR PARTNERS?

The Three advantages of Franchising that I always discuss are Tradename, System and Partnership.

Have you just purchased a franchise business, like food cart business? or are you planning to have one?

Do you just purchase the products from the owners so that you can sell? He’s not a franchisors, he’s your supplier.

Do you just operate the cart on your own way and not by the system that the owner have gave you? Thats not franchising, you have just built your own.

Does the owner or any representative visits you and monitors your sales and giving updates and advice on operating the business? If not, well that is not a franchising company, that was just a store were you bought your business materials and equipments.

Did the company gave you tips on how you can earn more from your business? If not, that is not a franchising that was just a sales company.

Did the company required you to have a complete business permit? did he gave you plans to have your own receipt? Even though SME’s or Small and Medium Enterprises are not strict on taxes and permits, it only show that the company have no big plans for you.

In Franchising, the franchisee becomes the partner of the franchisor. Not just because they sell the franchisors products or uses the franchisors tradename or are beneficiary of the franchisors system. Another factor and the prime factor is because the franchisee have also invested their life saved money to start a business with the help of the franchisor. The Franchisee is gambling their money on the idea, tradename and system of the franchisor.

More Partners

When you go for franchising, you automatically become  in partner with many people. Aside from the franchisor who gave you the idea on operating the business, the other franchisee are also your partners. Remember that you share common or related tradenames, you must help in maintaining the quality of products and services being served in the business. They are not your competitors, if they have good service and you have good service the customers will keep the good experience in their mind and when they come to visit other branches they will expect the same good service and experience the same treatment that they have with your branch.

The franchisor’s employees are also your partners, they were employed to give you a good service. You dont have to go through the difficulty of going to crowded wet markets nor to find the best quality but cheaper raw products to buy, the employees are waiting for your orders and they will deliver the product to your store at the most punctual and possible ways. There are also marketing franchise advisors that can give you tips on how to sell more and create more profits from your store. 




Constant communication is important in any business start up whether if its a  preparation inquiry, product ordering, trouble shooting in operations, management, handling of employees, advertising, marketing activities and many more things that you can learn from the franchising company. Remember, they cannot tell it all to you and you may not comprehend on their ideas in one sitting, it is a long and  continuous process. Patience and understanding has a vital role in the success of every business, and they dont come in an instant.

Happy Franchising!
Bee Smart!

Are You Paying for the System?

Food cart franchising has been trending since its debut on 2005. But unlike its ancestors which are the push carts selling fish balls, squidballs and kikiam; or the pedicab of home-made pizza, sorbetes or ice scramble; dont forget to  mention the ever heavy or light “Taho” and “Balot”; all this ancestors are personally operated by their owners on a single handled retailing or a network of 3 or more retailers. Meaning to say, all this proprietorship are own investments, personally managed and time consuming trial and error experiences.

Unlike in a franchised business like this food carts, the franchisee or investor will just pay the franchisors to teach them, train them and share to them all those school of knox learned knowledge in starting, operating, sustaining, managing and accounting skills to run the business.

Know the market!

If you are to start your own business you have to study all the facets of the business. Starting with the “what product is IN in the market today?” in that way you will know what specific product is needed by the specific market on a specific location. You can do this by being in the area in a certainly long period of time, you have to know the demographics of the area, learn the spending power of the people in the area, get to know their likes and taste. You can conduct personal surveys or you can get people to gather the informations needed. All of which will cost you money!

Know the Product!

When you have a product in mind to sell, the next things is how to get it. Research on list of suppliers, the cheapest one will give you more profit, the high-quality one will sustain your product in the market for a long period of time and those suppliers who will give you  terms will most likely be your long term  partners.

Know the strategy!

You have the market and you have the product, now you have to know how make them meet. How your product will capture the attention of your market and how your market will purchase your product? You can create promo packages or  combo products that will capture the taste and budget of the buying public.

Know your system!

Now that the market is buying your products, you should create a system that will product your investment internally. create inventory procedures, reporting mechanics and thief proof accounting system that will take care of your growing business.

Know your growth!

Every successful businessman’s destination (not just dream) is the growth of their business. learn to make expansion programs, will you add more products or just variety of them? will you focus on a certain segment of the market or will you create packages that will lessen the generation gap of your clients?

Go for Franchise!

All these market researches have been experienced by the  franchisors. And as part of their expansion program for their business they have gone franchising to invite other  investors and enterprising individuals to share their success with.

Avoid the time consuming trial and error stage, instead of wasting your money on a whole course of learning the procedures, invest on franchising that will give you the crash course of each business concept! Avoid the hassle in hunting and searching for the best suppliers, the franchisors have already tested most of them. Avoid the hassle of going to the market selecting your every purchase, the franchisors are obliged to  serve you the highest quality product possible. Avoid the risk of theft and unruly services crews, the franchisors are free to train them. Lessen your risk in having a business, the franchisors have already spent their previous riches in taking the risk of doing business.

Avoid bankruptcy! Be a Franchisee!

Happy Franchising!

Bee Smart!

Franchise Tradename Wars

Its like naming a new born child! People will try to search the best name for their business that should be dynamic, easy to remember and simple. These are just few of the factors that affects your Tradename. But why is it really important for a business? it sure is important because your business will carry it for the rest of your operating lives.

Why does an investor have to buy the tradename of a franchise business? why dont they just make their own name? The answer to these two questions is simply Integrity, Identity and Image.

Image is the first thing your clients see! Remember the saying “You will know me when you forgot my name” its true! it really is.

Imagine a group of people trying to remember the name of a place, they tend to describe it.

They will say ;

“the place with that giant bee” (thats Jollibee)

“the one with that big footed yellow clown” (thats McDonalds)

“The gasoline station with the star!” (thats Caltex)

“The location of the Chocolate hills!” (thats Bohol)

Jay Conrad Levinson
Author - Guerilla Marketing

Identity is who you think you should be. According to the author of Guerilla Marketing, thats Jay Condrad Levinson, You as business people should dump image and try to build your identity. Image is what others think of you and Identity is what you think you are. And all your employees should know your identity and try to live in them. The image of many people to the McDonalds Company is a large multi national burger chain, but when Ray Crock discussed his real identity he said McDonalds is a large real estate company. And they really are, in fact they are the riches real estate owner in the whole world, second to the catholic church, McDonalds owns big parcel of land on every busy corner or street of most of the cities in the whole world. (ref; “Rich Dad, Poor Dad”)

Integrity is when the people handling the image meets the people handling the identity. when they meet up, talk to each other, communicated their experiences. And integrity takes a very long time to build but just like trusting, its very easy to break. Thats why when you have build your integrity try to keep it, do all things to maintain it and do what ever it takes to preserve it.

Now that is whats inside of a TradeName, if you really want to put up your own tradename all i can say is “Good Luck!” But if you want to lessen your problem, invest on a Franchise TradeName that has a good image, knows his real identity and holds on to its integrity.

Happy Franchising!  

Bee Smart!