Nevertheless, the time has probably come in your company where freedom is still a dream and the lifestyle you envisioned didn’t include working 90 hour weeks with little time off for yourself or your family.

The hard truth is that your business has probably reached the level of your own incompetence. That’s the bad news.

Knowledge

The good news (if you are willing to accept that uncomfortable fact) is that incompetence, ignorance and just plain old ‘not knowing’ can be cured very simply: by getting, acquiring and applying new knowledge.

Most people think businesses fail due to lack of cashflow or capital. While those certainly are factors, most businesses I’ve seen fail do so because of lack of knowledge.

Had all those owners who had cash flow or capital issues only known more, those issues could have been turned into factors of production, rather than of failure. Simply put, if you have cashflow problems, it’s a matter of you not knowing enough about cashflow. If you have employee issues, it’s because you don’t know enough about people and managing teams.

If you have sales problems, you don’t know enough about sales. If you have profit problems, you don’t know enough about how to get profit. That’s where knowledge comes in.

To cure your cash flow problems, you need to learn more about cashflow. To solve your people problems, you need to learn more about people. To remedy your sales problems, you need to learn more about sales. And to get more profits, you simply need to learn more about how to get profits.

So where can you possibly go to learn?

One thing is certain, you don’t need a university degree to succeed in business. Besides, the bookstores are full of books, CDs and DVDs. The level of information and education that is available nowadays is stunning – and most of it is free for the taking. Why make the same mistakes others have already made and found solutions for? That’s what learning and knowledge is all about. And the application of that knowledge is where true wisdom comes from. Because until you actually do something even the term “action” is only a theory.

Knowledge is both the key and the cure – and the first word you can use today to turn your business around for the better.

Article reprinted courtesy of My Business Magazine

KFC Corporation V Iowa Department of Revenue is one of the most interesting and important cases on franchise taxation in the last 20 years in America.

The ramifications of this ruling are important to anyone working within a franchise system in the United States, so over the next couple of blogs we will discuss the case and what it means in some detail.

KFC V Iowa Department of Revenue was based on the belief by the state that KFC was responsible for paying corporate income tax in the state based solely on its receipt of royalties from franchisees in Iowa.

In June 2009, an Iowa District Court upheld the state's imposition of tax. KFC quickly appealed the decision to the Iowa Supreme Court, which heard oral arguments in the case in May 2010 and issued its decision on December 30.

In the case, KFC argued to the Iowa Supreme Court that the Department's assessment of tax violated the Commerce Clause of the U.S. Constitution.

Previous Supreme Court case law had found that the Commerce Clause required a taxpayer have a physical presence in a state before the state could require the taxpayer to collect and remit the state's sales and use taxes.

The Department of Revenue disagreed with KFC's position, arguing that the state could impose its corporate income tax on KFC regardless of KFC's physical presence in the state.

So what was the ruling and what are the ramifications for franchises based on it? Stop back for my next post and hear the rest of the story.

Do you have one good reason "why" you should expand or go into business for yourself – even if the "sky is falling"  in this economy?

How about 10?

Right now is absolutely the best time to get into business, and I’ll give you 10 good reasons "why" – no matter what other people or the media say.

So how come a good "why" (or 10) is so important?

Seeding your mind with good rational reasons "why" not only helps the logical side of your brain accept new beliefs, you’ll soon discover you'll begin to see all situations as opportunities, just like great entrepreneurs do.

So here are my 10 very good reasons to start your business right now:

1)      Everything is cheaper.

Let’s face it, there is great value right now in this and in world markets. This is the right time for fantastic deals in virtually every category, from land and equipment to commercial office space, personnel and labour. As asset prices have been knocked down, there is really no better time to get into the real estate or financial markets, or even heavy equipment and construction. Some people have waited years to find value in these markets – and now that time has come.

2)      You can hire more team and better qualified people.

In an era when even Microsoft is laying off, you can find great resources at affordable rates. Thinking about getting your high-tech start up off the ground? There's no better time than right now. Thinking about forming a professional services firm? There are plenty of engineers, accountants and attorneys looking for their next opportunity.

3)      People are looking to change suppliers.

From a cost perspective, everything is "on the table" for most companies. If you can come in with greater value even if your prices are higher, you have a good chance at winning new business. You also have the advantage of being the “new kid on the block” when it comes to pitching your products and services, and many companies are desperate to find new partnerships with new companies with a different, better or more innovative way of delivering those products and services.

4)      Ownership equals tax incentives.

Business ownership offers a variety of tax benefits that aren’t available to employees. While taxes should never be the sole reason to go into business for yourself, it should be one reason to add to you “benefits of business ownership” list.

5)      Family and friends don’t want to (or can’t) invest more money into the stock or real estate markets.

That means they may be willing to finance a portion of your new venture, or the expansion of an enterprise that has proven itself over time. The main benefit is that they know you and have a relationship with you – and if you have a solid business plan that delivers real numbers, you’re chances of raising the capital you need increase exponentially.

6)      Suppliers are giving better credit.

Because the credit markets have virtually shut down, the business-to-business credit flows are keeping money circulating out of sheer necessity. That means a bullish outlook for companies looking for good terms on stock and/or inventories. The main advantage is that all parties have more incentive than ever for finding true "win-win" situations that allow for cash and stock flow. When everyone is looking to survive, great deals can be had.

7)      You can get good PR by showing you are "going against the trend."

The media loves aberrations – and if you are optimistic by expanding or getting into business now, you would be in that category. That means you can generate some great PR by demonstrating your “alternative” view of the market.

8)      You can buy everything you need at auction.

In addition to everything being less expensive, you can find great deals at auctions, especially in terms of any large equipment and office furnishings. Auctions are also a great place to find hardly used or “gently” used restaurant and bar supplies at great prices. These days, you may even be able to get deals on fleets of vehicles and trucks for a delivery service or hauling or construction company.

9)      You can find great  "low money" or "no money" down deals.

This is simply being aware of good opportunities others have buggered up, and finding deals where you could get an entire business simply by taking over a lease (along with all the equipment). Many business owners want out at “any cost,” meaning you can negotiate great “win-win” deals that allow the current owners an escape while giving you an opportunity to turn around what could be, if run right, a very viable business.

And finally …

10)  You’ve lost your job and you have to do something.

Sometimes, the best business decision is the one you are forced into, and the incentive (as well as need) for income is often enough to push those previously "on the fence" to strike out on their own. There’s nothing wrong with being in this position; it simply means there is greater urgency to do something that will start to generate income as quickly as possible.

There you have it. A new kind of "Top 10" list for those looking for good reasons to prosper and grow in this environment.

After all, it’s not circumstances that truly define us, but rather how we react to those outside forces that ultimately determines our success.

This article is reprinted courtesy of My Business magazine, one of the leading business publications in Australia.

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