Everything Start-Ups Need to Know about Cybersecurity

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StrategyDriven Starting Your Business Article |Cybersecurity|Everything Start-Ups Need to Know about CybersecurityManaging a start-up involves skill, dedication and an ability to multi-task. When you are getting your young business up and running, you will likely have to prioritize. When your funding is limited, it can be all too easy to neglect invisible threats like cyber-attacks, however, doing so can signal disaster for the future of your company.

Your Small Business Is Not Immune

Many entrepreneurs, start-up founders and small business owners believe that their company is small so that it can, essentially, get away with flying under the radar, when it comes to cyber-attacks. This point of view is very detached from reality.

One study found that nearly 45% of small and medium-sized businesses report having fallen victim to a cyber-attack in the past. A further 50% of those surveyed reported that they suffered from a data breach that targeted both employee and customer information.

There are a few reasons why a cyber-attacker might choose to target a start-up like yours. Firstly, cybercriminals are aware that small and young businesses tend to have fewer cybersecurity measures in place. For this reason, cyber-criminals might choose to target your business simply because it is easier for them to target you than a more secure company.

Secondly, it is common for cybercriminals to target small businesses as a means of gaining access to larger businesses. One example of this is the 2013 Target cyber-attack. The cybercriminals gained access to Target by first hacking a small partner company, the local heating, ventilation and air conditioning company. This cyber-attack resulted in a huge customer data breach that was eventually settled for a sum of $18.5 million.

The Effects of a Cyber-Attack Can Be Devastating

You might not be going to suffer consequences quite on the same level as Target’s historic settlement, but even a low-level cyber-attack can be devastating for a young start-up. A cyber-attack can affect the long-term health of your business in a variety of different ways, such as:

Reputational Damage

Reputation is everything in business, especially for young start-ups that have so much to prove. A successful cyber-attack can ruin your reputation, a consequence that can forever tarnish the name of your business.

Financial Damages

There are many reasons why a cyber-attack might result in financial damages for your start-up. A cybercriminal might gain access to your data and products to hold them for ransom, or you might be liable to legal consequences as a result of a data loss.

Loss of Productivity

Downtime caused by a cyber-attack could result in a huge loss of productivity that could last for hours or weeks on end.

How Start-Ups Should Protect Against a Cyber-Attack

As USWired outlines, the most effective way of protecting your start-up against the threat of a cyber-attack is to outsource your IT services to experts. With the help of an expert, you will be able to gain access to a customized security solution that meets the needs of your business. This solution can be both proactive and reactive to reduce the threats of a cyber-attack.

In addition to employing the help of a cybersecurity expert, you should also train your staff. Educating your staff about possible cybersecurity threats, and the best ways to stay safe will help you to further reduce potential threats. Since some forms of cyber-attacks, like phishing attacks, target uneducated people, training your staff can be a very effective line of defense.

The Power Dynamic Between Two Parties: Everything You Ever Wanted to Know About Franchise Agreements

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StrategyDriven Starting Your Business Article |Power Dynamic|The Power Dynamic Between Two Parties: Everything You Ever Wanted to Know About Franchise AgreementsIndividuals looking to purchase a branch of an existing business might find they must sign a franchise agreement. This binding contract outlines the terms and conditions for the franchise as dictated by the franchisor. Each franchise must adhere to all terms and conditions or risk losing its license. The power dynamic between the two parties differs from that seen with most contracting relationships, and the franchisee must understand this. This agreement governs every aspect of the franchisee’s business and the role of the franchisor.

The franchisee has little room, if any, for negotiation, which is why they must understand the components of the contract before signing any documents. This helps in preventing the parties from becoming involved in a lawsuit over a failure of either party to live up to these terms and conditions. However, individuals must know what a franchise is, the terms of a standard franchise agreement, and any requirements before signing the agreement. This helps to ensure there is no question the franchisee is making the right choice.

What Constitutes a Franchise Agreement?

Individuals must understand what makes up a franchise agreement to ensure the document they are signing legally qualifies as this type of contract. The Federal Trade Commission (FTC) has established a definition of a franchise, referred to as the FTC Franchise Rule, to clear up any confusion about which businesses fall into the category. According to this rule, a business must meet three general requirements to be considered an official franchise.

A franchisor brand and franchisee’s business must be substantially associated and share a common brand. The franchisor maintains control over how franchisees use its brand in business operations or provides meaningful help in this area.
Each franchisee remains an independent contractor rather than a joint employer. As a result, the franchisor controls brand standards but doesn’t receive say in the franchisee’s human resources or daily business operations. As long as they adhere to the brand standards requirements, these areas fall under the control of the franchisee.

The franchisee pays a fee for the right to operate a franchise under the franchisor’s trademark. This fee may be a one-time payment when the relationship is established or an ongoing fee, although there are certain exemptions both parties must know of.

States may also establish laws regarding the definition of a franchise. The agreement serves as a license that dictates the rights and obligations of each party and protects the intellectual property of the franchisor. Furthermore, it ensures consistency among the franchises. However, the agreement allows for some flexibility to ensure the franchisor can adapt to changing times and remain competitive. Nevertheless, the agreement allows each franchisee to manage its independently owned business daily while adhering to the brand standards. This remains a key component of a franchise agreement.

Standard Franchise Agreement Terms

Franchisees agree to adhere to certain requirements and regulations in exchange for benefiting from a provider business model. The franchise agreement outlines each provision the franchisee agrees to, and a thorough understanding of the provisions ensures a smooth partnership between the franchisee and franchisor. What are some things a person might expect to see in a franchise agreement?

Grant

When a person or entity enters a franchise agreement, they receive limited use of the brand’s trademark images. This includes slogans, logos, images, and more. Furthermore, the franchisee receives the right to use the franchisor’s operating procedures as outlined in the agreement. This permission is referred to as a grant but does not allow the franchisee to use these items freely. The agreement must clearly state any expectations and limitations. For instance, a tire company operating as a franchisee may be given permission to advertise on social networks using the brand logo and images, but cannot create custom hats and sell them to advertise their specific location.

Fees

When the two parties enter a franchise agreement, the franchisee typically pays an initial fee. A continuing fee is then remitted on a predetermined schedule to maintain the agreement. In addition, the agreement often includes multiple side fees. For instance, each franchisee contributes to an advertising or brand fund the franchisor uses for brand marketing purposes and other purposes defined in the contract. Potential franchisees need to review this information carefully to ensure they understand what they are responsible for when it comes to additional fees.

Territory

If the franchisee will open a brick-and-mortar location, they need to know their territory within a specified geographical area. Multiple locations of the same franchise in proximity to one another could hurt the revenue for each location. The franchisor should prevent this by clearly defining territory limits for each franchisee. Some franchise agreements lack this information, as the franchise agreement contains no information concerning exclusive or protected territories. However, the territory specifics need to be defined. Furthermore, franchisors must deal with the reservation of their rights inside each franchisee’s territory. This includes internet sales and alternative distribution sites.

Signage plays a role in territory rights. For example, certain restaurants today have a location inside a shopping mall and another in the parking lot. They cater to different clientele, as the location inside the mall hopes to lure hungry shoppers. The exterior location hopes to attract those driving by and individuals who wish to pick up food without leaving their car. The franchise agreement should outline where each location can place signs.

Time Limit

Most franchise agreements come with an end date and information about renewal rights. Not only will the document list the length of the relationship, but the agreement should include information about the rights of a franchisee successor to enter a new agreement and location upgrade requirements. Detailed information such as this helps to minimize disputes in the future, as both parties know what they are agreeing to before they sign the document.

Training and Support

Franchisors usually provide new franchisees with training and support, from site selection to quality control. They do so to ensure the brand remains properly represented at all times during the agreement. The level of support varies by the franchisor and the documents should outline this.

Proprietary Data

Intellectual property and proprietary data remain the most valuable assets of a company. Franchisees receive access to this information temporarily. However, the franchise agreement should outline exactly how the franchisee may disseminate confidential data and trade secrets. Furthermore, this information must be state specific to avoid any issues.
For example, a franchisee may not share customer information, standard operating procedures, or other sensitive data with people outside of the franchise. Doing so violates the franchise agreement and may lead to the franchisee losing their license without reimbursement.

Criticism

A franchisee might find they are unhappy with certain portions of the franchise agreement. However, under many agreements, the franchisee remains prohibited from sharing these criticisms. In addition, the agreement should outline what happens in the event of a breach. In certain cases, the franchisor receives the right to end the agreement without reimbursing the franchisee.

Times have changed and many companies now take a political stance. This could lead to criticism of this stance rather than the brand. To avoid this, a franchise agreement might state franchisees cannot make major investments or campaign donations without receiving permission from the franchisor. This information appears in the franchise agreement.

Indemnification

Most franchise agreements contain an indemnification covenant. If the franchisee acts negligently or commits some wrongdoing that harms the franchisor, the franchisee becomes responsible for any losses related to their actions. The franchisee must know of all expectations and ensure they remain in adherence with all safety regulations regarding the operation of their business.

For instance, a franchisee may sell food that has passed its expiration date. Doing so leads to customers becoming ill and suing the company for damages. The franchisee must reimburse the franchisor for any losses experienced because of this behavior. A franchise owner might wish to invest in indemnity insurance to protect themselves in the event of a problem.

Right to First Refusal

A franchisee might find they wish to sell or transfer the business. Before doing so, they must alert the franchisor. At this time, the franchisor may exercise their right of first refusal. If the franchisor declines to do so, the franchise owner may sell or transfer their interest.

Termination of the Agreement

All franchise agreements come with a termination clause that details how either party can end the contractual relationship. This clause shares key terms regarding the timing of the notice, procedures each party must follow, and how they will handle damages from an early termination.

Non-Compete Clause

Franchise agreements often come with a non-compete clause. This clause prohibits the franchisee from opening a similar business for a specified period after dissolving the franchise agreement. In addition, it may state a distance the franchisee may open a new business upon dissolution of the franchise agreement. Each state establishes the level of restriction permitted in a non-compete clause.

As with any legal document, each person must carefully review a franchise agreement before either party signs. Consult with a business attorney to review the documents, as this added step ensures they answer any questions before the franchisee enters the agreement. The cost of the consultation is minimal compared to the legal fees each party will accumulate if a problem arises. Working with an attorney to review the agreement reduces the risk of this happening.

The Ultimate Guide to Starting Your Own Small Business

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StrategyDriven Starting Your Business Article |Starting a Small Business|The Ultimate Guide to Starting Your Own Small BusinessStarting your own small business can be daunting. This is why we bring you a step-by-step guide to help you get started.

While naming your business and creating a logo is important, ever wondered how determining your business structure or crafting a detailed marketing strategy might affect your business?

It’s easy to get confused and lose motivation because there’s so much to consider. Rather than guessing where to start, follow our checklist to start your own small business.

1. Refine the idea

If you’re thinking of starting your own small business, you’re likely to have an idea of what you wish to sell or at least what your target market is.

Research your competitors to understand how they work and figure out ways how you can do it better.

If you think your business will be able to bridge a gap that your competitors can’t, then you’ve got a solid business idea.

If you’re hesitant to start a business, you can consider opening a franchise. The business model, brand following and concept are already taken care of; all you need is funding and a good location.

Brainstorm your company name

Your business name should be memorable, short and should be able to nail down your idea’s value. Brainstorm ideas with your team or search business name ideas on the web.

Determine your target market

The excitement of starting your own small business can easily make you forget your target market.

Identify how you’ll provide value to your customers, how you’ll communicate with them and how much they’re willing to pay. Iron out all these seemingly small details during the ideation phase to achieve success.

2. Design a Business Plan

You have a business idea in place and now it’s time to consider answering a few important questions such as:

  • What’s the purpose of my business?
  • What’s my product’s USP?
  • How will I finance my business?

These answers will help you create a business plan.

A well-thought-out business plan will help you avoid the most common mistakes new business owners make.

Conduct a Thorough Market Research

Invest in focus groups, conduct surveys with your target audience, research public data and SEO in order to make a full-proof business plan.

Market research will help you understand the behaviour, needs and preferences of your target audience as well as your competitors, both of which have the power to transform your business.

Conduct competitive analysis and collect demographic information to understand the strengths, weaknesses, opportunities and limitations of your market.

Craft an Exit Strategy

It’s wise to consider an exit strategy when drafting your business plan. You need to have a few exit routes to help you look at the future.

When you go to a movie hall (or board an aeroplane), what’s the first thing they show you? Where the exits are.

A good business plan will help you understand where your business is going, how will it overcome any obstacles and how will it sustain itself.

3. Focus on Your Finances

Determine how you’re going to fund your business. Do you have the funds or will you borrow money?

A whopping 29% of startups fail because they run out of money. Overestimate the costs a little to ensure that you have enough to cover up for unexpected expenses.

Understand your funding options. Do you have sufficient means to start the business? If not, will you be taking a business loan or a grant? Would it be better to bring in an investor or opt for crowdfunding?

Conduct a break-even analysis to help you determine profitability, price your products and analyse data properly.

Contrary to popular belief, refrain from overspending when starting your own small business.

Monitor your expenses to ensure that you stay within the pre-decided budget.

4. Determine the Business Structure

You should have a clear idea of the kind of entity your business will be in order to register your company.

Would it be a sole proprietorship, partnership, corporation or limited liability company?

The structure of your business affects everything from your personal liability to how you file taxes therefore, understanding different business structures is crucial.

5. Build a Great Team

Starting your own small business can mean you running your business on your own or hiring a small team to help you get started.

Companies that have a good company culture have a 4X higher revenue.

Clearly define the responsibilities and roles of each employee, consider their feedback and figure out ways to work together early on will help you save a lot of headaches later on.

6. Branding and Advertising

According to 77% of B2B marketers, building a strong brand is the key to a company’s growth.

Understand how you can build your brand and the cost-effective marketing strategies you can invest in to help you establish yourself in the minds of your target audience.

A few places to get started are:

  • Logo: Should be easily identifiable, relevant and easy to recall.
  • CRM: Use CRM software to understand the market demographics. A killer email marketing campaign will do wonders for your new business.
  • Social Media: Are an excellent means to spread the word about your business.
  • Website: 85% of customers conduct online research before making a purchase. Create a clean, minimal, mobile-friendly website that has the capacity to convince your potential customers into long-term customers.

Update your website and social media accounts with interesting and informative content to help you build a rapport with your customers.

The Wrap Up

Starting your own small business is so much more than the launch and first sales are just the beginning of the business.

You need to stay afloat and start making profits to help you grow your business. It’s going to take a lot of time and effort.

Understand that the success of your business depends on the decisions you made before you launched your business. So, invest in research, craft a detailed business plan, keep a track of your finances and create a marketing strategy to take your business to new heights!

About the Author

StrategyDriven Expert Contributor | Shristi PatniShristi Patni is a content writer and owner of F and B Recipes. She enjoys writing about Intuitive Counseling and Spiritual Mind Treatment. Formerly the Chief Content Officer at Raletta, she is currently working on her second cookbook.

 

How to Start Up Your Own Healthcare Business

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StrategyDriven Starting Your Business Article |Healthcare Business|How to Start Up Your Own Healthcare BusinessIt can be easier said than done to start your own business; however, if you are interested in the healthcare sector, it could be a beneficial career option that you may never have thought about before. Healthcare is always in demand, especially in the current day and age, in which the ever-growing elderly population will need more medical services. With this in mind, it is certainly an avenue to consider for the long term. As with any business, doing your research will help iron out any obstacles initially and, hopefully, sets you up for success.

In this guide, we are going to look at how you can start your own healthcare business:

1. Choose your specialty

There are many different routes within healthcare; therefore, it is important to discover which most interests you and where your specialties lie. First, consider what you are most passionate about and can see yourself doing daily. From here, then you will need to contemplate whether or not you would prefer to start a business from scratch or own a franchise.

There are certainly pros and cons to both; therefore, it will be based on how much responsibility you would like and whether you would like to try a new idea or develop someone else’s brand.

2. Know which qualifications you need

When starting out in healthcare, you need to prove that you have the relevant knowledge under your belt to prove that you are a trustworthy and reliable professional. As healthcare is based on the wellbeing of others who may be putting their life in your hands, the relevant qualifications are essential. If, however, you do not have any practical experience, you could hire staff who do. This is particularly important if you are planning on running a franchise, as your responsibilities will be mainly management and administration-based instead of dealing with the public. On the other hand, if you are planning on running a business single-handedly, the relevant qualifications are typically vital in this industry.

3. Get the right funding

When it comes to running a healthcare business, it’s important to secure the right funding as a start-up company. This industry can be extremely costly when it comes to securing education, premises, equipment, marketing, and staff to keep up with the huge demands. Start-up loans would be the most advisable option as they are easier to secure as a brand-new business; however, you could even start a crowdfunding page that your friends, family, and acquaintances can donate.

Do be aware that you will not start earning much profit with any business immediately, so you may need a financial buffer to get you through the first couple of months. The Accounts Receivable component is an option to bridge the gap between each payment, so you have enough income to keep the business ticking over.

4. Do not forget about marketing

While healthcare is a field that is always in demand, it does not necessarily mean it is a given you’ll secure customers. Since individuals are placing their health and wellbeing in your hands, they need to ensure that it is a dependable company that has their best interests at heart. However, unless you have physically proven your skills, it is impossible to show potential customers exactly what to expect from you without marketing. Digital marketing now allows businesses to branch out to customers across the world almost instantly and creates a brand image that you are proud to show off to the world.

However, if you do not have a background in digital marketing, it can be hard to quickly get to grips with the various tools, platforms, and strategies required for the best chance of success. Check this Hip Agency’s blog content about dental marketing as an example to understand how to best market your healthcare business niche to your target audience.

5. Create a business plan

Before your idea of your business can become a reality, you will need to create a business plan. It is often the first starting point of any business that should indicate your plans and overall concept. Then, various steps need to be followed, and the document should include:

  • Executive summary – An explanation of the basic premise of your company.
  • Company description – The goals of your business and reasoning for starting up the company.
  • Services – A detailed list of the range of services on offer.
  • Marketing proposal – The strategies and methods that will be used to market your business and how your target audience will find you.
  • Management proposal – Describe the ownership and management of the business.
  • Operational proposal – Explain the operations of the business (either run as a physical business or online), the employees working for you, and your role within the company.
  • Financial proposal – The funding methods used to finance your business and break down the individual costs.
  • Long-term plan – Hoe you expect your business to grow in the next 5-10 years.

6. Register with the state

Healthcare is one of the few businesses that require you to register with the state. Your business will need to meet the exact state requirements and legalities before you can begin trading. There may be different rules and regulations in place depending on which state you live in; therefore, you may need to carry out in-depth research to discover what is expected and the laws that need to be abided by.

7. Hire great staff

If you believe you are going to need a team of staff to help conduct your business, you must take the time to employ staff that will give your business the best chance of success. Ultimately, your employees are the face of your brand and will reflect your business’ public persona, so you must select candidates wisely.

During the hiring process, ensure you thoroughly read through resumes and conduct background checks on each individual. This may mean scrolling through their social media platforms and ensuring they do not have a criminal record. This should help prevent legal action should an employee cause a serious unlawful issue while on duty.

These Tips will Help you to Start your Own Restaurant

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StrategyDriven Starting Your Business Article |Start a Restaurant|These Tips will Help you to Start your Own RestaurantIf you want to take the plunge and start your own restaurant, then you are certainly not alone. So many people want to take things to that next level, but at the end of the day, you also need to face the facts. Only one out of three businesses make it past their first birthday, but there are things that you can do to ensure that your restaurant business is a success in every way.

Don’t Do it for Vanity

You probably wouldn’t choose to buy a football club because you love the game. Why would you do the same for your business? Make sure that you have a genuine desire when it comes to starting your own restaurant and also make sure that you love what you do. If you can do this, then you’ll soon find that you are able to have the best time in your business venture.

Do your Homework

Everyone knows that the secret to running a great restaurant is understanding your customers. You need to make sure that you do your research and that you also make sure that the location is good too. Would you feel more comfortable running a fine-dining establishment or would you much prefer to keep it casual? You also need to make sure that you understand your strengths and weaknesses too. Having a plan is crucial if you want your business to stand out from the rest.

Choose the Right Chef

If you cannot cook, or if you do not want to be working behind the scenes then you need to make sure that you choose the right chef. Your best investment will always be in your chef, so if you are yet to get this asset sorted, then make sure that you take the time to do this. You need to find someone who can bring someone back time and time again, not to mention that you also need to choose someone who cares as much about your business as you do.

Put Someone in Charge

You have to trust in your brigade. After all, you’re paying them, so you need them to develop and then evolve into staff who are going to keep on pushing your restaurant forward. You also need to be the boss and you need to take responsibility where possible. You have to know what’s happening in every single area of your business too. Sure, you don’t want to be a control freak, and you also need to try and listen to the opinions of your staff. This will help you to act accordingly and it will make you a better leader.

Communication is Key

The key to starting a restaurant that’s successful also comes down to communication. You have to make sure that your management are talking to your head chefs, and that they are passing on the message well. That being said, it doesn’t stop there. You also need to make sure that your staff are working as a team with the customers. They are the ones who are paying your wages, so make sure that you do your part and that you treat them well. If you can, look into the SCHADS industry award too, if you‘re hiring a team.

Get your Menu Right

Long menus tend to lead to a lot of confusion. They will have your chefs running around, not knowing what to do as well. To make things even worse, you may find that you have customers walking in or walking out. Start with a simple menu if you can, and also make sure that the produce you are dealing with is high in quality to begin with.

Quality Control

Quality is essential, and so is consistency. You need to make sure that everything that goes out, is the best it can be. There’s absolutely no excuse for having sloppy plates of food lying around in your kitchen. If you know that it is not good enough, then don’t even think about serving it. If you do, then you may find that you end up ruining your reputation, and this is the last thing that you need.

Clean and Organised

You have to make sure that you keep your restaurant clean and organised. If you don’t run an organised kitchen then you may find that things become much more difficult. You have to make sure that there is a place for everything and that you put in the work to ensure that you monitor the process you have. As things expand, you may need to tweak things to keep everything nice and organised.