Entrepreneur s startups spring 2013
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cv à Ì ql m—-
and unconventional 5 | | | = How to
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FEATURES
3ã 227 opportunities 64 Power tools
for less than $50,000 We've taken five different business types
When it comes to franchising, limited and picked the best computers, displays, funds don't have to mean limited options tablets and tech accessories for each to
By Tracy Stapp get the job done
By Jonathan Blum and Alex Dalenberg
50 Hot chicks
Egg-ceptional: A husband-and-wife team 70 Ex panded horizons
taps into the urban-farmer trend and builds A doggy daycare and a diaper service My Pet Chicken into a $2 million operation unlock their key to growth: franchising
By Marty Jerome By Jason Daley
58 Do-gooders
Running a business with a triple bottom line can offer a competitive advantage By Grant Davis
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CONTENTS ‹
DEPARTMENTS
6 Opportunity
Riding high: Childhood pals
find profits in fixie bikes
12 Location
Oklahoma City is no
Silicon Valley, but it may be the next entrepreneurial paradise 14 Learning curve To create a company that lasts, narrow down your passions By Diana Ransom 16 Money
Determine the right time to kiss your day job goodbye and become your own boss ¬ 2 Startups [Spring 2013] 18 Team
We're in this together: How to build your first advisory board
20 Tech
A reseller of excess
and overstock inventory
moves its data and services to the cloud
24 Shout out
Garner a following for your business with content marketing
29 Month one
Eastern Collective's cables
put a new spin on a tech necessity and find success in just weeks
74 Franchise 101
Before you start diving into franchising, make sure you understand the terminology
76 Franchise
success
An all-American coffee-
house concept brewed
from Soviet roots
80 Back page
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I make the crust by hand
I make the filling by hand But to build my business,
I need a hand
SMALL BUSINESS: YOU'RE NOT ALONE OUT THERE Sandy, owner of The Right Slice, makes pies Amazing pies And when tourists
asked to ship pies from her Hawaiian island shop in Kauai to the mainland, she went to The UPS Store” in her neighborhood Because while Sandy knows all about flaky crust and fruit filling, The UPS Store experts know all about packing and shipping And they can even put together
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Locally owned and ready to help At The UPS Store, we love small businesses We love logistics TT TU
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POSTERS ° FLYERS °* MENUS ° BUSINESSCARDS °* CERTIFIED PACKING EXPERTS
Trang 6Entrepreneur EDITOR IN CHIEE/VP Amy C Cosper EXECUTI 2 Carolyn Horwitz CREATIVE DIRECTOR Megan Roy EDITORIAL
EDITOR AT LARGE Grant Davis ASSOCIATE EDITOR Michelle Juergen
STAFF WRITER Jennifer Wang SPECIAL PROJECTS EDITOR Tracy Stapp EDITORIAL ASSISTANT Katherine Duncan
CONTRIBUTING EDITOR Shayna Sobol ART & DESIGN
DESIGN DIRECTOR Richard R, Olson ART DIRECTORS Evelyn Good, Nancy Roy
PRODUCTION ASSISTANT Monica Im
CONTRIBUTING PHOTO DIRECTOR Samantha Cassidy CONTRIBUTING WRITERS
Jonathan Blum, Alex Dalenberg, Jason Daley, Marty Jerome, Logan Kugler, David Port, John Patrick Pullen
ENTREPRENEUR.COM VP, DIGITAL David Pomije EXECUTIVE EDITOR Laura Lorber
DEPUTY EDITOR Teri Evans
SPECIAL PROJECTS DIRECTOR Colleen DeBaise CONTRIBUTING EDITOR Diana Ransom
TECHNOLOGY EDITOR Jason Fell ASSOCIATE EDITOR Kathleen Davis
STAPE WRITER Catherine Clifford ASSISTANT EDITOR Brian Eha IP DIRECTOR Patrick Freeman
SYSTEMS AND NETWORKS ADMINISTRATOR Christina Andonov IT SUPPORT SPECIALIST David Bozanic
AD OPERATIONS DIRECTOR Michael Frazier TRAFFIC COORDINATOR Jose Paolo Dy ONLINE SYNDICATION EDITOR Petya Yordanova
DIRECTOR, SITE OPERATIONS Jake Hudson INTERNET PRODUCTION MANAGER Kevin Murray DIGITAL MEDIA DESIGN SPECIALIST Austin Allsbrook
SENIOR WEB DESIGNER Veronica DeLuca DIGITAL VISUAL DESIGNER, ONLINE Amy Maude
DIGITAL MEDIA PRODUCER Don Lee )DUCTION ASSOCIATE Nicholas Jennes SENIOR SOFTWARE MANAGER Joseph Norris
AGER, APPLICATION DEVELOPMENT Mahendran Arullendran MANAGER, DIGITAL AUDIENCE DEVELOPMENT Jack Nguyen MARKETING
AARKETING Lisa Murray
SENIOR MARKETING COMMUNICATIONS MANAGER Lucy Gekchyan COMMUNITY MARKETING MANAGER Rocky Vy
ASSOCIATE MARKETING MANAGER Wendy Narez MARKETING SPECIALIST Jake Fournier
ART DIRECTOR Jane Maramba GRAPHIC DESIGNER Andrew Chang BUSINESS
PRESIDENT Ryan Shea
ASSOCIATE PUBLISHER Justin Koenigsberger
FRANCHISE & BUSINESS OPPORTUNITIES ADVERTISING SALES ASSOCIATE PUBLISHER—FRANCHISE Paul Fishback ACCOUNT EXECUTIVES Tim Evans, Brent Davis, Simran Toor, (949) 261-2325, fax: (949) 752-1180 CLASSIFIED ADVERTISING RPI Classifieds (727) 507-7505, fax: (727) 507-7506
PRODUCTS AND SERVICES ADVERTISING Direct Action Media,
‘Tom Emerson (800) 938-4660
ADVERTISING COORDINATOR Mona Rifkin ONLINE ADVERTISING COORDINATOR Monica Santana
EXECUTIVE STAFF CHAIRMAN Peter J Shea
SENIOR VP, OPERATIONS Mike Ludlum
SENIOR VP/CFO Joseph Goodman
DIRECTOR OF BUSINESS DEVELOPMENT Charles Muselli
SENIOR ACCOUNTANT Ray Widjaja
STARE ACCOUNTANT Jane Otsubo
ACCOUNTS RECESVABLE MANAGER Lynn Van Winkle VP, CONSUMER MARKET Mark J Tavarozzi
PULFILLMENT MANAGER Marian O'Reilly CONSUMER MARKETING ASSISTANT Shirley Samsudin
MARKETING MANAGER Jillian McTigue CORPORATE COUNSEL Ronald L Young
FACILITY ADMINISTRATOR Rudy Gusyen
EXECUTIVE ADMINISTRATIVE ASSISTANT Yvette Madrid
Vol 28, No 1, Entrepreneur's Startups (ISSN 1533-7435) is published by Entrepreneur Media Inc., 2445 McCabe Wy Ste, 400, Irvine, California 92614 Entrepreneur Media Inc (“Entrepreneur”) considers its sources reliable and verifies as much data as possible, although reporting inaccuracies can occur; consequently, readers using this information do so at their own risk Each business opportunity and/or investment inherently contains certain risks, and its suggested that the prospective investors consult their attorneys and/or accountants, Entrepreneur's Startups is distributed with the understanding that the publisher is not rendering legal services or financial advice, Although persons and companies mentioned herein are believed to be reputable, neither Entrepreneur, nor any of its employees accept any responsibility whatsoever for their activities Entrepreneur's Startups s printed in the USA, and all rights are reserved ©2013 by Entrepreneur No part of this magazine may be reproduced or transmitted in any form or by any means without written permission of the publisher Unsolicited manuscripts and photographs will be returned only if accompanied by a stamped, self addressed envelope All letters sent to Entrepreneur willbe treated as unconditionally assigned for publication, copyright purposes and use in any publication or brochure, and are subject to Entrepreneurs unrestricted right to edit and comment
Trang 8OPPORTUNITY Childhood pals find profits in stripped-down bicycles yclists are an exceedingly loyal crowd: Hard-core riders
make blood oaths
to brands like Trek, Cannondale, Giant
and Specialized,
Trang 9xí ng vs
ato Ti S PIZZA PUB C ONCEPT
Coun take ‘von a Town Near You -Soom
For franchising information email us at: info@rosatisfranchising.com
or call Tim McCarthy at: 847.915.9174
Trang 10OPPORTUNITY “Because we’re smaller, we’re able to innovate faster.” —Zach Schau,
Pure Fix Cycles
But Pure Fix Cycles, which brought in nearly $4 million in 2012, has posi-
tioned itself to become a big wheel in the bike biz in just two short years
The company, founded by four child- hood friends, sells roughly 2,000 of its
no-frills bikes each month both online
and through a nationwide network of 300 bike shops Incredibly, the team got
their start while designing bike frames between college classes
In 2010 Austin Stoffers and Michael
Fishman were seniors at the University
of Wisconsin, Madison, when they de-
cided to go bike shopping Madison has
one of the largest cycling communities in the country, but they still couldn’t find
what they were looking for—a simple, functional, good-looking set of wheels
for under $1,000 “We found a void,”
Stoffers says “So we did our research on
why bikes are so expensive, and we found it was because of the gears Adding eight
or 30 gears to a bike is costly.”
The solution: fixed-gear, single-speed
bikes, or “fixies,” which have been trendy among city riders for almost a decade Instead of having a complex multi- sprocket gear shifter mounted on the
back wheel, fixies are rigged like most children’s bikes, with one gear Sure, single-gear bikes require a little more mustard to propel up hills, but they’re cheaper, more reliable and, if kids and urban hipsters are any indication, more fun than their multigear counterparts
That's why the Pure Fix boys set out to design the ultimate, budget-friendly fixie, Adding college friend Zach Schau
and his computer-whiz brother Jordan
to the posse, they mocked up designs for
their dream rig, and Stoffers, whose fam-
ily has import-export experience, worked on finding an overseas manufacturer to
Trang 11Ets yan S60) OPPORTUNITY Home-Based Travel Franchise of traveler 1 cruising a satisfy
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Trang 12OPPORTUNITY
>a store they built 165 bikes priced at $325 each,
expecting to slowly sell them over the heir eyes course of the next year Instead, they
sold out over winter break “It blew our e bike, minds,” Zach Schau says
They entered their company in a uni-
› never a versity business-plan competition and
te t sell 9 walked away with $7,000, which they used to put in a larger, second order The
bikes sold out in two weeks “We kept doubling our order, and we'd sell out
Pur re Fi ix Cycles even before we received the bikes,” Schau
says “We had no grasp of the demand,
and never had enough bikes.”
After graduation the guys moved Pure
Fix to Burbank, Calif They hired Andy
Abowitz, a former senior executive at
Priceline.com, as president and began selling their bikes nationwide, using
their own distribution system, which
kept costs remarkably low “Usually
with bicycles there’s a distribution chain, with large companies purchasing from manufacturers and selling to distribu-
A FabuLouS ee CaLL today to start
Direct Mai AdvertiSing ~ your Paty to
Trang 13tors,” Schau explains “By acting as our
own distributor and supplier, we're able to have an affordable product right
off the bat.”
‘The system also enables Pure Fix to
provide superior customer service to its
bike-shop dealers “Early on, if someone
had a situation, we'd throw a replacement
bike in the car and drive 40 minutes to
bring it to them,” says Schau, who notes
that unlike larger bike companies, Pure
Fix has no minimum order, which allows
smaller shops to take a chance on them
“We'll do anything to keep business, and that's gone a long way for us.”
But the reason behind the company’s
hot streak isn’t necessarily cost or cus- tomer service, it’s the stylish product
To wit: The same simple fixie comes in
more than 15 color combinations, like
a gray frame with orange wheels, or a
green frame with white wheels Some even have glow-in-the-dark rims
“Once a store gets their eyes on the
bike, it’s never a difficult sell,” Fishman
says “It’s a great-looking product that hits all the margins they want to hit It’s turned out to be the fastest-selling line for a lot of them.”
The guys cite their small stature and super-lean operation as prime advan-
tages “Because we're smaller, we're able
to innovate faster We can switch our manufacturing process and come out with something new almost immedi- ately,” Schau says, pointing to recent
innovations like frames for kids and a fixed-gear “trick” bike
But perhaps their ultimate secret weapon is their youth The twentysome- things want what their young custom- ers want—that’s why they got into the business in the first place “At Trek, they need to get past 100 gatekeepers, all
with different agendas, to have someone
say yes to a new idea,” Schau says “With us, it’s just five, and we're already on the
same page.” —JASON DALEY
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Trang 14LOCATION
SNAPSHOT:
OKLAHOMA C Pop.: 591,967
Pop with college degree: 27.9 percent
Median home value: $129,300
Median household income: $44,973
Easy does it
klahoma City may not receive the O buzz generated by the startup
communities in California and on the East Coast, but its low cost of liv-
ing and labor, central location in middle America, good schools and low taxes and
regulations have turned it into what looks
like an entrepreneurial paradise
“There’s strong access to capital here and an aggressive financial attitude among the banking community to fund
new businesses,” says Roy Williams,
president and CEO of the Oklahoma City Chamber “And there’s a core of
entrepreneurs here to help new busi- nesses get off the ground, because they got help back when they started.”
12 Startups [Spring 2013]
If that sounds like a description for
any healthy startup community, it is But Williams points out a subtle difference:
“We attract businesses that'd rather be
a bigger fish in a smaller pond instead of competing against everyone fighting for attention on the coasts.”
The choice, then, is yours: Do you set
up shop in a city where rent, taxes and payroll costs exert significant pressure to succeed quickly or run out of cash, or
do you move to a place like Oklahoma
City (or to one of the other metro areas
listed here), where you can buy more time to figure out your strategy and build a sustainable company? Whatever the case, know that you have options *TREP TURF _3 more cities ripe for startups KANSAS CITY
Reason: Google’s wiring the city
(on both the Kansas and Missouri
sides) with the fastest internet connection in the country
LAS VEGAS
Reason: Zappos CEO Tony Hsieh is spending hundreds of millions of dollars to create a startup
culture from scratch
PORTLAND, ORE
Reason: A host of cloud-technology businesses have given it a new
Trang 15FASTSIGNS _Ï Gl W5
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LEARNING CURVE
Keep it in focus
Too many passions can derail you Find one that sticks
tartups fail all the time But why?
S In many cases, a new venture falters
for obvious reasons—not enough
capital; before its time; founder fatigue
the list goes on Yet other instances of fail-
ure seem inexplicable Take Loosecubes, for example In November, after two and a half years in business, the New York
City-based office-sharing community that
had attracted 25,000 “loosecubers” in
employees who get laid off often look for a new job in the same field, entrepreneurs can consider something entirely differ- ent They can break new ground, explore undiscovered territories While fraught with uncertainty, it’s also exciting It’s the thrill of the launch I suspect this is what happened to McKellar
If you can identify with these flights
of fancy—and you're aware that they've
Make sure that there’s something in your entrepreneurial passion that will hold your focus well after
your initial idea has matured
more than 60 countries called it quits
To me, the idea seemed primed to take
off—and, in fact, was already taking off ‘The 16-person company had reeled in
$9 million in venture capital funding dur- ing its run It even spawned copycats such
as Desktime in Chicago Plus, Loosecubes founder Campbell McKellar is one of the
most poised and articulate young entre-
preneurs I've ever interviewed
So why did Loosecubes close up shop?
‘That's still unknown McKellar isn’t
talking to the media My suspicion is her reasons had to do with passion— precisely, too many passions
Like novelists who write several books,
entrepreneurs often harbor multiple
business ideas, and they love all of them
‘This is where problems arise; rather than building and running one business for de- cades, they’re itching to give the next idea a try In fact, selling or shutting down a
business can serve as a form of catharsis
Naturally, there’s a financial loss asso-
ciated with failure, but there’s also a sense of closure that people in the career world don’t really ever get to feel That busi- ness (aka your baby) is gone And while
14 Startups [Spring 2013]
become an impediment to your business trajectory—let me offer a suggestion: Instead of seeking your bliss by creating
specific products or services, fall for some-
thing that can work across any business
Exhibit A: Tony Hsieh It’s well known
that the serial entrepreneur and CEO of Zappos has a major crush on customer service That’s his thing no matter what business he’s in His long-held belief that quality customer service will make or break consumer companies helped
him create a beloved online retailer,
which Amazon.com acquired in 2009 for
an estimated $1.2 billion
Now, customer service may be Hsieh’s cup of tea, but yours may differ And
that’s OK Just make sure there’s some-
thing in your entrepreneurial passion that will hold your focus well after your initial idea has matured Your eventual success
depends on it —DIANA RANSOM
Home in on your
Trang 17
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MONEY
Kiss your day job goodbye
How to determine if you can afford to work on your startup full-time hen Katie Finnegan and Erica
Bell quit their day jobs at a
New York-based consulting
firm in May 2012 to work on their online
fashion startup, Hukkster, they hadn't
raised a single cent of funding The com-
pany wasn’t even earning any revenue when the twentysomethings decided to jettison their steady paychecks for the promise of startup stardom
“We were bootstrapping with our own savings to build out the first version of the website,” Finnegan says “It was not the safest leap of faith.”
Ballsy? Yes Impetuous? Perhaps Recommended? Not always Dumping a paying job to launch an unproven busi-
ness concept with no profits is a big risk
But some founders do it anyway, and for
entrepreneurs who are looking to secure
investors, it may be a must “Investors
are going to want you in there full-time,”
says Chris Carey of Brooklyn's Chris Carey
Advisors “They want to know that you're
working 100 hours a week on your idea.”
For entrepreneurs who plan to boot- strap their way to profitability, keeping
cash flowing in from a day job when their
companies aren’t earning much is a mat- ter of necessity If you take a realistic look beforehand at what you'll need to do to get your startup going, you should have
a better idea of when—or if—it’ll be safe
to quit your day job What you uncover
by following the four steps below may be
the spark you need to stay committed to your dream—or it may be an indicator that you should go back to square one
You'll need to create at least three
financial documents for your
business: a profit-and-loss statement,
a balance sheet and a statement of
cash flow “The [profit-and-loss state-
ment] shows you whether you're making or losing money The balance sheet
shows you how much money you have, and cash flow shows you the sources
†1 Gather financial statements
16 Startups [Spring 2015]
of cash,” Carey says Together, the three
will provide you with an accurate snap-
shot of your business
Forecast business
2 performance With the docu-
ments above, piece together a realistic forecast of how your business
will perform each month You'll need to
know how much cash you can expect
to generate today and down the road
As you build the business, you'll need
to factor in sales growth along with
added expenses, according to Carey
Steer clear of rosy estimates; be brutally conservative “Typically, entrepreneurs will be overly optimistic about revenue and over-optimistic about containing
costs,” he says
Factor in your personal
3 costs When you quit your day job, you'll want to keep your
business afloat, but don’t forget about
personal expenses like rent or mortgage
List business costs such as salaries, travel
fees, benefits and auto expenses for you and any employees Leave out costs as- sociated with certain niceties you'd like
in the future, such as healthcare benefits
or new equipment—they’re irrelevant to your goal: quitting your day job As for
assigning yourself a salary, “Just make
it whatever you need to get by, nothing
more,” Carey says
Get a second opinion 4 Even the most level-headed
entrepreneurs should ask for a second opinion before moving forward,
says Kevin Spain, a general partner with Emergence Capital Partners, a venture
firm in San Mateo, Calif While an ac-
countant is likely worth his or her weight in gold during this process, you might also tap a trusted colleague or friend for
an opinion Says Spain, “Have some-
Trang 19
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Trang 20TEAM
Boarding school
Build an advisory team alongside your business plan
hink you're too small or too new to need a board? Not if it’s
I an advisory board populated by pros with specific expertise regard-
ing the ins and outs of your company Startups of all types can benefit from teaming with the kind of people who can
help them grow to become established
businesses—at little to no expense For advice on how to get started, we spoke
with Boston-based business coach Susan Hammond, author of the Advisory Board
Kit —KATHERINE DUNCAN
What is the advantage of having
an advisory board?
Many times entrepreneurs and business owners get myopic They're just trying to get their business off the ground, and they forget to look at the big picture Your advisors won’t, and they also become your advocates and network on your behalf
“You want people who want to
give back.”
—Susan Hammond, business coach
What types of experts should I look
for when assembling the board?
Start by conducting an honest skills
assessment of yourself and your senior
management team (if you have one), and figure out where the holes are If you
know what your goals are and you know
what your skills assessment looks like,
there will be a gap somewhere—those are the expert advisors you're looking for
18 Startups [Spring 2013]
Where do I find the right people? Anywhere: chamber of commerce, your kid’s PTA, your church, Rotary
Club—it’s basic business networking You might read about someone in the newspaper and cold-call them I recom- mend that you approach any [potential advisor] with a letter or e-mail—be very specific about what you're looking
for—and then interview them Gener-
ally when you get a critical mass of three people onboard, you'll find that they have connections that can help you find
those other advisors A total of seven is
as large as you want to get
Any potential advisors to avoid? My cardinal rule is do not invite family or friends, because they become yes people Plus, they’re going to give you advice whether you want it or not, so why put
them on your advisory board? I also don’t
believe in putting people such as your accountant, attorney or marketing con- sultant on your board; you already pay those people to advise you You're looking for people external to your company, who are going to challenge you, who may have gone through the same issues you have and will bring a different perspective How do advisors benefit from helping me?
In companies that might ultimately raise venture capital, advisors will probably get some type of stock option Ina non-venture capital type environment, it’s really going to depend on what the
organization can bear; it could be $100
a meeting plus a great meal, or it could
be $1,500 However, if an advisor makes
it a priority that they get paid or get op- tions, they're the wrong kind of person
for you You want people who want to
Trang 21GRANITE TRANSFORMATIONS?
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Trang 22
mong the many deci- sions faced by new
business owners is what
they’re going to do about their
technological infrastructure
Mac or PC? Will everything
be catally contell d—
Trang 23ADVERTISEMENT —HOSE SERVICE CENTER SPRING 2013 BUYER'S GUIDE
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That was the bottom-line question when Jim Lager began his search for a new franchise investment opportunity As
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to franchised-based businesses The
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Lager purchased a PIRTEK franchise in
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Although Dallas is home to what he calls “a ton of hose shops," Lager
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2% `
“Most hose shops are not geared up
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“I'm not a hands-on hose and fitting guy," he says in a matter-of-fact tone “lL concentrate on having a good, solid relationship with my customers and with my employees My role is to take
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PIRTEK
Trang 24OLD SCHOOL
‘The company once had its own servers
and IT department, but recently it
moved everything to the cloud “If
we were starting all over again, we'd never consider investing in all that
hardware,” says vice president of op-
erations Nathalie Manecchia
But when DV&A first started, it
had no choice In the early 1990s the
company ran with an off-the-shelf accounting package, but its growth
demanded something more capable
With the help of external funding, it
invested in complex and expensive enterprise resource planning (ERP)
software designed to handle inven- tory, billing and the other tasks the
growing company required To run
the software, however, DV&A had
to invest in a stack of Dell servers “I
think we had a total of eight serv- ers that we purchased between 1998
and 2001 while we were ramping up,”
A CLOUDY FUTURE \ y
Now that she’s utiliz~
ing the cloud, Nathalie
Manecchia, vice presi- dent of operations for
Distribution Video &
Audio, says she wouldn’t have it any other way But she encourages companies to find the
package that best suits their business model
and requires the least
amount of modification out of the box
“It’s when you start
modifying existing
software—that opens
the door to expensive
coding, engineers,
consultants and so on,”
Manecchia says “Once
you start down that road,
you can never leave.” Another bit of advice: Don't fall under the spell of all-in-one solutions
Manecchia suggests breaking up your ser-
vices among different providers—one for e- mail, another for CRM—
so that if one suffers an outage (which does
happen), you're not
completely out of busi-
ness “They’re separate
applications that don’t
WY
need to talk to each other,” she says “For
example, your e-mail
doesn't need to interface with your ERP program.”
Lastly, find a balance between the reliability
of well-known compa- nies and the opportu-
nity to negotiate with
younger, hungrier suppli- ers “Everybody knows 8
Microsoft Exchange,”
Manecchia points out
“Why go with someone
who hasn't learned the ropes yet? At the
same time, the bigger
they come, the less-to-
no wiggle room there
is on price.”
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Trang 25Manecchia recalls The hardware cost
roughly $50,000 to $60,000, she says, but it also required the hiring of a full-
time IT person and pricey consultants to do custom programming
By 2001 the company was disenchant- ed with the whole setup “The licensing fees were horrible, and upgrades were a nightmare,” she says “Plus, you needed
consultants to maintain it and a data- base administrator to run it and keep
everything backed up.”
DV&A switched to lower-end soft-
ware, making do with QuickBooks, spreadsheets and an off-the-shelf
mail-order management program, which
eliminated the need for most of the infrastructure But since the company
already owned the servers, it carried on
with its in-house setup for file sharing “Tt wasn’t neat, it wasn’t pretty, but it
worked,” Manecchia says
As 2007 approached, the servers
began to break down “We started EntrepreneurS FRANCHISE 888.582.2150 www.CruisePlannersFranchise.com
scavenging parts from the nonworking ones to keep the working ones going,”
Manecchia says, “and it finally got down to where we had maybe one working file
server At that point we asked ourselves if we really wanted to invest another
$15,000 to $20,000 in hardware.” Also at issue: the $70,000 a year DV&A was
paying for IT services
NE
Cloud-based services were just gaining
traction at that time, and DV&A took
a look “Between 2007 and 2009, we
moved more and more of our application-
based software to the cloud,” Manecchia
says “Now we have no servers, and no
critical data is stored in the building.” The company’s first move was to turn its ERP systems over to NetSuite, a full inventory, general ledger, customer-
relationship management (CRM) and e- commerce package “We'd actually looked
at NetSuite in 1998,” she says, “but it
just wasn’t there yet Nine years later,
they were where we needed them to be.”
‘The relatively seamless transition to NetSuite gave the DV&A team the confidence to move other operations to
the cloud Now it uses Box (formerly Box
net) asa file server, an outside Microsoft
Exchange provider for e-mail and Yammer
social networking software for employee collaboration All told, implementing
the switch cost about $30,000—more,
perhaps, than new hardware would have
cost—but annual licensing fees are less
than $50,000, about half what DV&A
Trang 26SHOUT OUT
What’s your story?
Content marketing draws a crowd
increasingly popular online—because it works According to the Content Marketing Institute, 91 percent
of B2B marketers and 86 percent of B2C marketers are employing the technique, and more than half of both groups plan to increase their efforts in 2013 “Those who produce keyword-rich online content, including YouTube videos, blog posts, articles and so on, consistently show up on the first page of search results for their
targeted keywords,” writes marketing expert Ann Handley The biggest appeal to this approach is cost In lieu of shelling out thousands of dollars to buy advertising or keywords, marketers employ creativity as currency >>
C ontent marketing, the creation of original written and visual materials used to generate leads, is becoming
Trang 27It's not all boxes and moving
trucks in the moving industry It’s really about
moving people forward, to the next step in life You can be a part of that momentum by opening your own franchise Contact a Franchise Development team member: 888.884.1114 franchiseinfo@twomen.com twomenandatruckfranchising.com
FL: “After years of working
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Trang 28Building success stories entrepreneur at a time 2 Entrepreneurs Wanted
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26 Startups [Spring 2013]
SHOUT OUT
Here are five tips for doing it right:
UNDERSTAND 1 YOUR AUDIENCE
Study your prospective audience to
determine their needs and interests so
you can appeal to them in an entertaining
manner Do it by monitoring keywords
and topics (including names of competi-
tors) on your social media platforms to see which drive the most Facebook Likes, Twitter shares, blog comments, etc Once you have attracted a small audience, use
their feedback to create content that will
pull in even more followers
MAKE A PLAN
2 Content marketing requires you
to sustain whatever momentum
you build through regular postings (daily
is best) To keep it going, you'll want to develop a communications strategy that supports—not distracts from—your
overall business goals by laying out a
detailed editorial calendar of topics for
the next few months Then make sure to
Trang 29
ANDARDS
Apply the same standards to your online content as you do to the rest of your business While effective
content generates and nurtures leads,
poorly executed content can have the reverse effect and actually damage your
brand, causing you to lose readers and
business Play to your strengths: For
example, if you're a skilled photographer, focus your content on teaching people how to get the best shot
Bear in mind that the tone you use
in a company blog or white paper (more
formal) should be different from how
you write for social media (casual and
conversational) If you don’t consider
yourself a skilled writer, you can hire
freelancers to do the job But be sure to provide your writers with detailed edito-
rial standards to follow
Don’t limit your online content
© to routine blog postings or case
studies Consider offering product com-
parisons, a resource gallery or a direc-
tory of helpful information about your industry Rethink common elements of
your website For example, perhaps you can use your FAQ page to address dif-
ficult questions related to your industry, not just your company
§@™ SHARE WIS
MW You've devoted so
' much time to creating
meaningful content—now it’s important that you know how to share it across appropriate
social media channels To build
your brand’s presence, set aside a chunk of time each day and
use it to connect with others
on various networks (LinkedIn,
Facebook, Twitter, Instagram)
And avoid being too promo-
tional; instead, share your best
content when you believe it
can provide obvious benefits to your followers —K.I Top Rated Franchise by Entrepreneur Magazine THE ©ft(Gi8(Ai LEAK SPECIALISTS”
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Trang 31MONTH ONE onnecting t fast pro ts ¥ im) 60 new spin on a tech necessity propels a startup to quick success
Ạ: í \ Toe Matt Benedetto
: An xà has been selling things since
; he was 13, when his mother
taught him to crochet and he started
making winter beanie hats for skiers in the Northeast But when he graduat-
ed from college last year, the young entre-
preneur decided it was time to think bigger
His idea? A line of fabric-covered iPhone cables
and a new business called Eastern Collective
Trang 32MONTH ONE
“One day I was listening to music through a pair of headphones that had a black shoelace-like cord rather than plastic,” Benedetto recalls “My iPhone was sitting on my desk and plugged into my computer with the stock white cable I wondered to myself why there weren’t
more unique cables for iPhones the way
there are for headphones.”
Benedetto embarked on his market
research in earnest “I looked both online and in-store at major electronics retailers with no luck I honestly couldn’t find any- one producing a similar product,” he says
So he decided to make something
himself Relying on his design experience
from knitting hats, plus his familiarity with sailing-rope weaves and color pair- ings (he’s an avid sailor), he drew up a
line of four distinctive cable covers: three
in bright color combinations and a sleek black-and-green cord
At the same time, Benedetto had to
find a manufacturer who could turn his
sketches into an actual product He talked
to 10 overseas manufacturers about
creating samples and gradually winnowed them down by eliminating the ones that couldn’t handle the job or just didn’t get the concept Once he found his manu- facturer, he had several samples made up and gave them to friends to field-test After seeing that his designs could stand up to daily use (and abuse), he gave the go-ahead for initial production
Next came the question of pricing
Apple sells its 30-pin dock-to-USB
connector for $19, but it’s easy to find
cheaper third-party alternatives Bene-
detto wanted to attract customers
who saw the value in his product, but he also wanted his price point to be low enough that they would consider buying more than one He settled on an introductory price of $14.95, available only on the Eastern Collective website
(easterncollective.com)
By August 2012 Benedetto was ready
to market his first batch of 1,200 cables
After he promoted the product to gadget and lifestyle publications to generate
buzz, Benedetto’s entire first run sold out within two weeks To his surprise,
some people bought all four colors 30 Startups [Spring 2013] “| honestly couldn’t find anyone producing a similar product.” —Matt Benedetto, Eastern Collective
Over the next several months he ex-
perienced rapid growth By September a
second batch of 7,200 Eastern Collective
cables hit the market, this time priced at
$17.95 for the standard size and $22.95
for a new 6-foot version By January Benedetto had placed a third, larger
order for nearly 10,000 units
Benedetto credits much of his initial
success to the early press buzz that
resulted from his own hard work “Dur-
ing the week of the launch, I spent late
nights reaching out to major blogs and
publications,” he says “The next morning
a few websites would feature the prod-
ucts, and I could watch the domino effect
as the story was slowly being picked up
across the internet.” The cables have
been featured by the Gizmodo tech blog
and on the websites for Wired and Lucky
magazines, among other outlets
Success brings its own challenges for
a one-man operation, and chief among them for Benedetto is ensuring he has enough product to sell “I formed a great relationship in a very short amount of
time with our manufacturer,” he says
“They have been amazing keeping up with demand as we expand into more
units as well as new products in 2013.”
Some of those new products include cables for the iPhone 5’s new Lightning
connector, as well as Mini USB, Micro
USB and standard headphone jack cables
“My plan is to make sure you'll be able to find an Eastern Collective cable for your device whether you’re an Apple user,
have an Android phone, read on a Kindle, watch video from a GoPro camera or
Trang 33UICK TO PROFITA A successful launch is months i T-MINUS 5 MONTHS RESEARCH THE COMPETITION Find out who, if anyone, is already doing what you plan to do, how they do it and how you'll do it better
In addition to
discovering that
there was no com-
petition for Eastern Collective's vibrant smartphone cables, Matt Benedetto discovered a less expensive source
for iPhone cables
than Apple, one
that allowed him to undercut the
company and
make value a part of his sales pitch T-MINUS 3 MONTHS TEST YOUR PRODUCT The best way to know if what you're of- fering will meet your customers’
standards is to find
people who rep-
resent your target
market and let them
test your product Benedetto’s young,
active friends re-
ported back to him on how his samples held up across a variety of uses The bonus: Finding people who utilize your product in a completely differ- ent environment or manner than you expected T-MINUS 6 WEEKS DEVELOP A LAUNCH PLAN
Figure out how,
when and where to
sell your product,
and stick with it A
trade show may be the quickest way to grab retail-store buyers, while the e-commerce route requires a website and the building of product awareness through blogs and
media outlets Quick
tip: Add two weeks to your expected product delivery
date from a manu- facturer “You don’t
want to guarantee a product to your first
customers and not be able to deliver,” Benedetto says ATH ILITY the making T-PLUS 2 WEEKS KEEP THE MOMENTUM
GOING If the initial
product launch was
successful, turn it into a successful
monthlong launch, even if you’re out of stock The products
are still fresh and desirable at this
point, and people will be willing to
wait for their order
“There are always untapped avenues to explore to keep the buzz going,” Benedetto says
And those first cus- tomers? Give them
a reason to come back with the prom- ise of new product
releases in the
coming months
Trang 34Thinking about franchising?
Think Franchise.org
Franchise.org— %1) Franchising
the most comprehensive IFA Building tocal businesses,
INTERNATIDNAL FRANOHISE ASS0PITIDN one Opportunity ata time
Web site on franchising
Visit www.franchise.org today
Whether you are considering buying a franchise or franchising
your existing business, Franchise.org is your one-stop
information source You'll find:
e — Detailed information for over 1,100 franchises —
all members of the International Franchise Association (IFA), representing most of the world’s best-known brands
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e The most comprehensive library of franchising
information available, ranging from basic “how-to's” to
advanced regulatory and legal aspects
Trang 35CONTENTS Automotive 34 Business Servi BY TRACY STAPP
imited funds don’t have to trans- late to limited options when it comes to franchising Franchisors have responded to the tight credit market by coming up with creative busi- ness models and technological advances that have increasingly put business owner- ship within easy reach for just about any budget On the following pages, you'll find
franchise opportunities in almost every
industry imaginable, from automotive
services to food to senior care—and all
of them can be started for less $50,000
Trang 36FRANCHISES
THE FRANCHISE
LISTINGS
he following pages detail the basic startup informa-
tion for various franchises
with costs that start under $50,000
but may exceed that amount We've listed a range of startup costs where one was provided Use this informa- tion as a first step if you’re consider- ing investing in a franchise or other business opportunity
This directory is not intended to
endorse, advertise or recommend
any particular company All informa-
tion was obtained from the compa-
nies themselves and has not been
verified for accuracy We simply present this information as a service to our readers
We strongly recommend that you
perform a thorough investigation and
analysis of any franchise or business
opportunity you are considering in- vesting in before signing any papers or putting up any money A good
first move: Contact the Better Busi-
ness Bureau Also, ask the franchisor you're interested in for the names
and contact information of franchi-
sees, licensees or dealers who are already in business with them, and
speak to as many as you can for their
input The message bears repeating: Never invest without doing due dili-
gence; always proceed with caution
For more information on
buying a franchise, visit
Entrepreneur's Franchise page at Entrepreneur.com/franchise 34 Startups [Spring 2013] AUTOMOTIVE WINDSHIELD REPAIR Novus Glass Auto glass repair & replacement Startup cost: $40.8K-222K Total franchises/co.-owned: 1,711/10 novusfranchising.com (952) 946-0463 SuperGlass Windshield Repair Windshield repair Startup cost: $9.9K-31K Total franchises/co.-owned: 285/0 superglass.com (407) 240-1920
Techna Glass International
Windshield repair & replacement Startup cost: $34.8K-550.9K Total franchises/co.-owned: 29/19 technaglass.com (801) 676-3390 MISCELLANEOUS AUTO PRODUCTS & SERVICES AutoQual Auto-interior restoration & reconditioning Startup cost: $47.5K-64.6K Total franchises/co.-owned: 44/1 autoqual.com (800) 275-5200 Green Shine Waterless car-wash services Startup cost: $22.7K-49.1K Total franchises/co.-owned: 3/1 gogreenshine.com (305) 592-9229
Interior Magic International
Auto appearance reconditioning
Startup cost: $33.1K-100.1K
Total franchises/co.-owned: 40/0 myinteriormagic.com
Trang 37BUSINESS SERVICES ADVERTISING SERVICES AArrow Advertising Advertising, sign spinning, guerrilla marketing Startup cost: $36.9K-80K Total franchises/co.-owned: 43/0 aarrowads.com (323) 944-2002
Attractions Dining and Value Guide
Fundraising coupon books Startup cost: $35.6K-123.6K Total franchises/co.-owned: 0/22 attractionsbook.com (336) 632-1400 Bingo Bugle Newspaper Specialty newspaper Startup cost: $9.1K-I5K Total franchises/co.-owned: 46/0 bingobugle.com (800) 327-6437 City Publications Publication for affluent homeowners Startup cost: $45K-150K Total franchises/co.-owned: 95/0 citypublication.com (770) 951-0048 City Saver Coupon-book fundraising Startup cost: $34.97K-48.1K Total franchises/co.-owned: 0/4 citysaver.com/franchising (877) 450-7283 Coffee News Weekly newspaper distributed at restaurants Startup cost: $9.4K-10.4K Total franchises/co.-owned: 945/0 coffeenewsusa.com (207) 941-0860
Izon Global Media & Billboard Connection
Ad agency specializing in outdoor media Startup cost: $42K-64.3K Total franchises/co.-owned: 121/0 discoverbillboardconnection.com (S61) 640-5570 Moneysaver Coupons Direct-mail & online advertising Startup cost: $29.9K-74.2K Total franchises/co.-owned: 1/1 moneysavercouponsonline.com (888) 333-4966 MyLoopCard Advertising on golf scorecards Startup cost: $31K-42K Total franchises/co.-owned: 10/1 myloopcard.com (888) 569-5667 Sports Image Sports marketing for high schools & organizations Startup cost: $12K-42.7K Total franchises/co.-owned: 18/1 sportsimageinc.com (937) 704-9670 SuperCoups Co-op direct-mail advertising Startup cost: $26.8K-44.5K Total franchises/co.-owned: 31/0 supercoups.com (800) 626-2620 Ticketcomm Advertising on cash-register receipts Startup cost: $35.6K-53.7K Total franchises/co.-owned: 1/1 ticketcomm.com (305) 749-2513 Town Money Saver Direct-mail advertising Startup cost: $35.6K-44.4K Total franchises/co.-owned: 38/0 townmoneysaver.com (800) 481-8696
The Waiting Game
Trang 38FRANCHISES
BUSINESS BROKERAGES
Murphy Business & Financial
Business & franchise brokerage/ commercial real estate Startup cost: $45.8K-113.6K Total franchises/co.-owned: 146/1 murphyfranchise.com (727) 725-7090 Sunbelt Business brokerage Startup cost: $49.95K-112.3K Total franchises/co.-owned: 223/1 sunbeltnetwork.com (877) 392-6278 VR Business Brokers/ Mergers & Acquisitions
Business brokerage; mergers & acquisitions intermediation Startup cost: $45.9K-108.3K Total franchises/co.-owned: 130/0 vrbb.com (800) 377-8722 BUSINESS CONSULTING (CEO Focus
Peer consulting groups for small-business owners
Startup cost: $41.5K-63K
Total franchises/co.-owned: 24/6 ceofocus.com
(317) 805-4924
International Franchise Solutions Franchise consulting & sales Startup cost: $31.4K-47.8K Total franchises/co.-owned: 46/1 intlfranchisesolutions.com (480) 223-1500 PROPERTY-MANAGEMENT SERVICES Property Management Commercial & residential property management Startup cost: $29.2K-47.7K Total franchises/co.-owned: 42/2 propertymanagementinc.com (801) 407-1301 36 Startups [Spring 2013] Real Property Management Property-management services Startup cost: $35.6K-74.4K Total franchises/co.-owned: 198/1 realpropertymgt.com (801) 546-4200 Renters Warehouse Property-management services Startup cost: $43.4K-83.5K Total franchises/co.-owned: 5/1 franchisepropertymanagement.com (952) 470-8888 MISCELLANEOUS BUSINESS SERVICES Bevintel Liquor inventory-control services Startup cost: $36.9K-50.6K Total franchises/co.-owned: 307/2 bevintel.com (888) 238-4626
Dale Carnegie Training
Workplace training & development Startup cost: $40K-164.95K Total franchises/co.-owned: 202/2 dalecarnegie.com (631) 415-9300 Hello Eco Eco-friendly business products & services Startup cost: $28.8K-37.6K Total franchises/co.-owned: 28/0 helloeco.com (760) 579-7352 Mom Corps Staffing services Startup cost: $39.2K-63.7K Total franchises/co.-owned: 17/0 momcorps.com (888) 438-8122 Proforma Printing & promotional products Startup cost: $4.7K-44.7K Total franchises/co.-owned: 709/0 onlyproforma.com (800) 825-1525 Rapid Refill Inkjet & toner cartridge replacements Startup cost: $23.2K-142.4K Total franchises/co.-owned: 92/2 rapidrefill.com (877) 880-4465
TEAM Referral Network Franchise
Trang 39Baby Sensory USA
Baby sensory-development program Startup cost: $33.3K-43.4K Total franchises/co.-owned: 60/6 babysensory.com/us (480) 789-0045 Bricks 4 Kidz Lego-engineering classes, camps & birthday parties Startup cost: $33.8K-51.IK Total franchises/co.-owned: 231/2 bricks4kidz.com (904) 825-0873 CompuChild Technology education for children Startup cost: $18.5K-33.6K Total franchises/co.-owned: 58/1 compuchild.com (800) 619-5437
Drama Kids International After-school drama classes
& summer camps
Startup cost: $33.6K-38.95K
Total franchises/co.-owned: 196/0 dramakids.com
(866) 809-1055
Ho Math Chess Learning Center After-school math, chess
& puzzle learning program Startup cost: $25.2K Total franchises/co.-owned: 13/1 mathandchess.com (604) 263-4321 KidzArt Art-education programs, products & services Startup cost: $16.9K-38.3K Total franchises/co.-owned: 70/1 kidzart.com (S17) 784-5000
The Mad Science Group Children's science education & entertainment Startup cost: $49.4K-80.2K Total franchises/co.-owned: 159/0 madscience.org (800) 586-5231
Young Rembrandts Franchise
Art classes for children ages 3 to 12 Startup cost: $40.4K-48.6K Total franchises/co.-owned: 96/0 youngrembrandts.com (847) 742-6966 Amazing Athletes
Sports-based fitness & enrichment classes for children Startup cost: $48.6K-120.9K Total franchises/co.-owned: 73/0 amazingathletes.com (949) 291-3147 Athletic Revolution Youth fitness & athletic training Startup cost: $19.9K-116.95K Total franchises/co.-owned: 61/0 myathleticrevolution.com (888) 335-6297
HappyFeet Legends International Soccer programs for children ages 2 to 18 Startup cost: $18.3K-23.2K Total franchises/co.-owned: 98/5 happysoccerfeet.com (800) 877-3790 i9 Sports Youth sports leagues, camps & clinics Startup cost: $44.9K-72.9K Total franchises/co.-owned: 115/1 i9sportsfranchise.com (800) 975-2937 Kidokinetics Mobile sports-fitness program for children Startup cost: $42.9K-57K Total franchises/co.-owned: 5/1 kidokinetics.com (954) 385-8511 Kinderdance international Children’s movement/ educational program Startup cost: $14.95K-46.1k Total franchises/co.-owned: 130/2 kinderdance.com (800) 554-2334
My Gym Children’s Fitness Center
Trang 40FRANCHISES
NZone Sports of America
Sports leagues & camps for ages 3 to 18
Startup cost: $33.2K-46.6K
Total franchises/co.-owned: 10/0
nzonesports.com
(888) 557-2459
Soccer Shots Franchising
Soccer programs for children ages 2 to 8 Startup cost: $17.9K-22.6K Total franchises/co.-owned: 110/9 soccershots.org (717) 616-8587 Stretch-N-Grow International On-site children’s fitness program Startup cost: $29.6K Total franchises/co.-owned: 276/0 stretch-n-grow.com (800) 548-0166
TGA Premier Junior Golf
Youth golf programs
Startup cost: $13.2K-62.2K
Total franchises/co.-owned: 48/2 playtga.com
(510) 555-0622
TGA Premier Youth Tennis
Youth tennis programs Startup cost: $13.2K-62.2K Total franchises/co.-owned: 17/2 playtga.com (310) 333-0622 IDENTIFICATION PROGRAMS Digikids Children’s identification program Startup cost: $32.3K-40.2K Total franchises/co.-owned: 6/0 digikids-id.com (203) 405-2142 Guard-A-Kid Children's identification & safety products Startup cost: $21.4K-38.7K Total franchises/co.-owned: 176/1 guardakid.com (866) 202-3866 38 Startups [Spring 2013] Ident-A-Kid Franchise Children’s safety products & services Startup cost: $34.1K-44.3K Total franchises/co.-owned: 167/0 identakid.com (727) 577-4646 TUTORING Above Grade Level In-Home Tutoring Tutoring Startup cost: $49K-74.1K Total franchises/co.-owned: 23/0 abovegradelevel.com (732) 851-4445
Club Z! In-Home Tutoring Services
In-home tutoring services Startup cost: $27.7K-56.6K Total franchises/co.-owned: 404/0 clubztutoring.com (800) 434-2582 JE! Learning Centers Individualized supplemental- education program Startup cost: $40.5K-68.5K Total franchises/co.-owned: 124/330 jeilearning.com (323) 936-3300 Summit Learning Services Tutoring/learning services Startup cost: $32.99K-46.99K Total franchises/co.-owned: 20/13 summitlearning.net (866) 570-6801 Tutoring Club Individualized instruction for K-12 students Startup cost: $26.3K-127.3K Total franchises/co.-owned: 120/1 tutoringclub.com (888) 674-6425 FINANCIAL SERVICES BUSINESS FINANCIAL SERVICES Alliance Cost Containment Expense-reduction consulting Startup cost: $47.6K-64.6K Total franchises/co.-owned: 28/2 costcontain.com (502) 805-0978 BookKeeping Express Bookkeeping services Startup cost: $39.4K-55.1K Total franchises/co.-owned: 39/2 bookkeepingexpress.com (703) 766-5757 Business Incentive Solutions Business cash-management, tax-credit & incentive consulting Startup cost: $34.9K-70.3K Total franchises/co.-owned: 0/1 businessincentivesolutions.com (800) 868-0922 INSURANCE SERVICES Estrella Insurance Auto, home & business insurance Startup cost: $49.95K-84K Total franchises/co.-owned: 51/0 estrellainsurance.com a (888) 511-7722
Fiesta Auto Insurance and Tax
Insurance & tax-preparation services
Startup cost: $49.1K-104.9K ñ
Total franchises/co.-owned: 90/0 fiestafranchise.com