Why You Should Consider Local Area Marketing

Local area marketing (LAM) is the activities undertaken by franchisees to market and advertise within their local communities. Unfortunately, many franchisees choose to cap their marketing efforts at their contribution to their franchises national marketing fund, failing to realise the impact LAM can have on their business.

Whilst LAM can be vital to the success and growth of an individual franchise, franchisors often make it difficult for franchisees to feel as though they can undertake such activities, due to strict terms in their Franchise Agreements and a lack of support and guidelines. Often such agreements stipulate that franchisees must gain approval to conduct LAM, which isn’t without reason, as franchisors have worked hard to create and maintain a particular brand image. However, franchisees often find themselves lacking any guidance or materials to take the next step without potentially compromising the brands national image.

Nevertheless, LAM can be the element that makes or breaks an individual franchise, and franchisees should develop a plan to appeal to their local area and seek approval from their franchisor to launch it.

LAM has a wide range of benefits, including increased awareness, engagement and reach amongst the local community. It also aids in building customer loyalty and gaining repeat business. For franchisees, establishing a positive brand image within their local market is what will help the business survive long-term.

Often, especially with the rise in popularity of independent small business, consumers are turning away from the concept of large national chains, and feel driven to support local business. This is why it is key that franchisees are able to make this connection with their local community, and ensure that consumers can see they are one in the same.

Whilst LAM can be done through many channels, social media pages continue to prove the most popular form of community outreach. However, involvement in local events can be a highly effective awareness building tool, and sponsoring of local clubs and sporting teams can further cement customer relationships.

The good news is, LAM doesn’t just benefit the individual franchise, but can help build upon the reputation of the brand as a whole. Research by The Nieman Journalism Lab shows that social media posts targeted to smaller geographic locations are six times more successful than globally targeted posts. The high levels of success achieved through LAM suggests that franchisors should be taking action, encouraging their franchisees to invest in LAM, and providing the support and materials to help them do so in line with the national brand image.

In the start-up and expansion stage of a franchise, the majority of capital often goes to funding equipment and fit-outs, leaving very little capital left to invest in Local Area Marketing. If you’re starting your first franchise, or expanding to more locations, Cashflow It provides equipment financing so that you can channel your capital into marketing and advertising, to help grow your business.

CFI Finance provides various financial solutions, so if you want to hold onto your capital to invest in Local Area Marketing, apply online now. 

Franchising As A Path To Self-Employment

In recent years we have seen a notable change in the way we work, with a shift away from more traditional 9-5 jobs, and a move towards more innovative employment solutions. In addition to this, there has been a spike in the popularity of entrepreneurial ventures as the concept of self-employment captivates the mind of the young workforce.

Franchise Business identified ‘Adaptive Entrepreneurs’ as one of the top 10 consumer trends for 2018, going on to say that ‘There’s a strong trend for self-employment as consumers reject traditional 9-5 working models and are prepared to take risks.’ Other sources have also noted that it is likely a lack of available jobs in more traditional sectors of the market that is causing people to look into these alternative paths.

The franchise industry presents itself as a great opportunity for those looking to be their own boss and have more control over their employment situation. Despite slow economic growth across the country, the franchising sector continues generate solid results, employing approximately 472,000 people and pouring almost $150 billion into the economy, says Eden Exchange.

Furthermore, looking at a smaller segment of the Australian market, Raghu Rajakumar, director of the Eden Exchange, notes a 50% increase in franchise applications in Victoria compared to this time last year. Figures like this make it clear that whether it be an opportunity to launch into a new career, or the appeal of being one’s own boss, the franchise industry is booming as Australians make the move.

Taking the step from employee to self-employed can be daunting, and the cost of opening a franchise can require a lot of capital. If you’re looking at making the move but are a start-up franchise business who cannot obtain government funding, or doesn’t have the backing of private investors and don’t want to give away a controlling share of your business, debt finance could be the path for you.

Instead of purchasing the equipment you need outright at the start and using up valuable capital which may be needed at a later stage to promote or expand the business, get franchise equipment funding through a company like CFI Finance.

At CFI Finance we aim to take the confusion and the hassle out of your asset financing. We do this through our simple and fast application process, transparent contract, manageable payments, excellent customer service and solutions to suit your needs.

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Top EOFY Tips

As End of Financial Year (EOFY) quickly approaches, we look at 3 ways in which businesses can prepare, and 3 things consumers can do to make the most out of tax time. No matter if you’re running a business, or working for one, EOFY can be a stressful time. Here we discusses some simple things you can do to make the process as smooth as possible.

For Businesses:

Seek Expert Advice
No matter if you’ve been in the game for years or if this is your first financial year wrap-up as a business owner, it is always important to seek expert advice. If you’re ever unsure, the best choice is to consult someone who can look over your paperwork and make sure everything is compliant.

Claim Your $20,000 Asset Write-Offs
The Australian government offers an instant write-off scheme to qualified small businesses at EOFY. Any new assets purchased that are under $20,000 and installed by June 30 can be written-off instantly, and there is no limit to the number of assets. This is a great opportunity for start-ups or small businesses looking to upgrade their equipment and don’t want to wait the usual 5 years to see the return.

Get Everything In Order
Potentially our number one tip for businesses come tax time is to make sure everything is in order. Review your cash flow to ensure any big ticket items are accounted for and take some time to look at employee contracts and superannuation to make sure everything is up to date. Whilst this might seem like a minor thing, it can help avoid any major surprises come the EOFY, and also allows you to lodge your tax ASAP and realise the returns sooner.

 

For Consumers:

Contribute To Your Superannuation
Not only is paying a little extra into your superannuation account a great strategy to reduce the tax you pay this June, but will help set-you up in the long-term if you make it a yearly habit. Talking with your employer about salary sacrificing some of your income pre-tax can put more dollars in your pocket for retirement and reduce the income you’re taxed on. If you can’t salary sacrifice, not to worry, you can claim post-tax contributions as deductions!

Donate To Charity
If you’ve already given a little extra to your future self-through your superannuation, why not consider giving a little something to others through a charitable donation. Doing so is not only going to help a good cause but can even have a positive impact on your tax bill. Donations are often tax-deductible and can therefore help reduce your debt or grow your refund.

Make That Big Purchase You’ve Been Thinking Of
Just as you are trying to better your position come EOFY, so are business owners. Clearing out old stock has been a long-time strategy to help businesses get a better outcome during tax time and they are not the only ones who benefit. As a consumer you can score a big discount on a range of big-ticket items in the lead up to June 30. Whilst most people think this is limited to cars and white-goods, you can even get discounts on items such as holiday packages.

Looking To Refresh Your Franchise Front?

Whether it is fitting out your first franchise, or refurbishing an existing one, funding new equipment can be a big hit to a franchisees financing and draw vital capital away from other facets of the business. Fortunately, there is alternate options to financing fit-outs and refurbishments with your hard earned capital. Financing the equipment is the smart solution that provides minimal asset risk and allows you to retain your money to invest in other elements of your franchise.

CFI Finance can finance just one item of equipment or provide entire fit-outs and store refurbishment financing for serialised and non-serialised assets. We also finance custom-made equipment.

In the past we have financed full store refurbishments for hospitality businesses, gyms and pharmacies. Some examples of equipment financed include fridges, freezers, furniture for full store fit-outs, point of sale systems and even display cabinets. Funding your new commercial equipment is a smart alternative to purchasing the equipment outright at the start, which would involve outlaying a substantial amount of money that could be funnelled into other aspects of the business to fuel growth.

 

Some of the benefits of having your new commercial equipment financed through us include:

  • Retaining your capital during your start-up and expansion phases. Having this capital available will benefit your business’ marketing and expansion.
  • We offer competitive rates with our rental, leasing or business loan option. Payment options are simple and manageable.
  • Unrivalled customer service available 24 hours a day, every day of the week.
  • In most cases, no personal security is required.
  • You can choose between contract terms ranging from 1 to 5 years.
  • Repayments can be 100% tax deductible.
  • The process is quick and convenient. 
  • On our rental solution, there is an option to return the equipment.

We are specialists in the franchise financing industry and our directors have more than 2 decades of experience in the sector. We aim to make the process as simple, fast and transparent as possible with an easy online application, quick service and easy to understand contract.

Store refurbishments financing, for one or more pieces of equipment or the entire store fit-out can be applied for online via our website. The process is simple and fast.

  • Then apply online on our website, sending us the quote/invoice and selecting the option that best suits you from our rental, lease or business loan solutions.
  • We will assess your application and have you approved, generally within 24 hours.
  • We’ll raise the contracts and email them to you. We’ll also pay the supplier so that the goods can be delivered to you. It’s that simple.

Whether you’re store needs a full face-lift, or just one piece of equipment replaced, CFI Finance can help.

The Pros & Cons Of Used Equipment Financing & New Equipment Leasing

While it may seem like buying your equipment outright at the start of your new franchise or during the expansion phase is a more affordable option, in the long run this may end up costing you more if you need to finance the repair and maintenance of your equipment down the line. When you consider asset depreciation, financing your equipment instead of purchasing it outright is the smart choice.

 

There are a range of finance solutions available including:

  • Leasing options ranging between 3, 4 or 5 year terms, where you get peace of mind knowing you own the equipment at the end of the term.
  • Rental options which range from 12 to 24 months. If you don’t want to get locked into a long term contract, this is the option for you.
  • Business loans that allow you to pay off your loan over 3,4 or 5 years where you own the assets from the start of the contract.

The reason commercial equipment rentals, commercial equipment leasing and business loans are smarter choices than purchasing the equipment with your own capital is because it allows you to keep your cash to operate and expand your business. This is crucial during the start-up and expansion phases of any business, when promoting the business is of utmost importance and capital would be better spent on marketing, advertising and growing your business.

These various financial solutions are available through CFI Finance, who are committed to offering the most appropriate funding solution for your franchise business.

 

Some of the main benefits of financing your commercial equipment through CFI Finance include:

  • Excellent customer service. Friendly and experienced customer service representatives are here to assist you, 24 hours a day, 7 days a week.
  • Various financing solutions are available with manageable payment options, with contract terms ranging from 12 months to 5 years.
  • There is minimal asset risk.
  • In most cases, no personal security is required.
  • Repayments can be 100% tax deductible.
  • Because this is an off-balance sheet form of funding, there is no liability to record.
  • The application is simple and quick. You can complete the application at your convenience, online.

Whether you are expanding to a second or more locations or starting up your first franchise business, Cashflow It aims to take the stress out of equipment financing.

As specialists in the franchise financing industry with directors who have more than 2 decades of experience in the sector. CFI Finance aim to make the process as simple, fast and transparent as possible with an easy online application, quick service and easy to understand contract.