The ever-expanding blogosphere still qualifies as the Wild West of the Internet. But at least one weblog-savvy operator has used the online medium to get his new restaurant off to a flying start, attracting everything from a crowd of paying customers on day one to extensive coverage by mainstream media outlets soon thereafter. The total dollar outlay for the publicity blitz that made a hit of blogger Jim Reams' new Mothership BBQ in Nashville? Zero.
Remember when rapid growth in the fast casual segment was thought to come primarily at the expense of quick-service restaurants? No more. In the current economic environment, a value proposition that combines casual-restaurant-quality food with near-QSR pricing points seems to be convincing many patrons to forego the full-blown casual dining experience and opt for a fast-casual meal instead. Need evidence? Check out the numbers the leading casual dining chains have put up so far this year.
In the workplace, trust is essential to day-to-day business, whether it's one colleague trusting that another will do her share of a project, an employee trusting that his boss will reward him for working long hours to meet a deadline, or a customer trusting that a company will fill an order correctly and deliver it on time. The intertwining issues of trust, deception, apologies and promises are explored in a new research paper titled, "Promises and Lies: Restoring Violated Trust," by three Wharton professors who came up with a unique laboratory experiment to see what happens when trust breaks down. "While deception may be tempting because it can be used to increase short-term profits for the deceiver," the researchers note, "we find that the long-term costs of deception are very high."
Read article here! http://knowledge.wharton.upenn.edu/article/1532.cfm
By RANDY CRAIG
When Tom Casaburo searched for financing for his first restaurant, he talked to practically every bank in town. Even having one of the bank presidents as a neighbor didn't help.
“He later said it was the best loan he never got to make,” said Casaburo, owner of the five Casa Restaurants in Fort Wayne
Finally, Casaburo and his partner, neither of whom had restaurant experience, found a sympathetic ear at the now-defunct Indiana Bank. They convinced the loan officer of the need for an Italian restaurant in town and displayed the success of their past business endeavors and determination to succeed.
“(It was) a real good sales job, I guess,” Casaburo said.
Not much has changed since Casaburo's struggle to finance his restaurant decades ago. Banks still shy away from lending money for restaurant ventures. Their high failure rate coupled with intense competition makes some banks skittish.
That's why perseverance like Casaburo's pays off. The bank submitted an application for a Small Business Administration loan, with Casaburo putting up equity in his home and car and his partner's life-insurance policy as collateral.
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Linda Smith, vice president of National City Bank in
Read More Here! http://www.fwdailynews.com/articles/2006/07/25/greater_fort_wayne/news/business12.txt
Borrowing money can be good for your business—really
1. Debt is dangerous. When used smartly, debt is a vital building block for a fast-growing business. Before taking on debt, be sure you can predict the future cash flow available to pay it off. Further protect yourself by balancing debt with equity. And finally, manage your personal and business risk by looking at the big picture—what would happen if the business could not provide enough cash to pay the loan back?
2. All loans have to be paid back in cash. “Convertible” loans actually allow a successful business to convert the borrowed amount to an equal value of stock in the company.
3. Banks are my only option. Wealthy individuals, called angel investors, are probably the most prolific lenders for small businesses. Corporate finance companies, private investment funds, even credit card processing companies are also making the kinds of loans that banks can’t or won’t. But make sure the terms are at least as good as the best traditional loan.
4. I can’t afford the payments. Loans that require interest-only payments and “negative amortization loans” are two examples of low-payment loans. They will be more expensive in the long run, but the smaller payments may be a good fit for a rapidly growing business. Traditional loans can be made more affordable by negotiating a longer payback period or an adjustable rate that starts low and then “floats” as rates change.
5. As long as I make my payments, I’m ok. Larger loans from institutional lenders (like banks or corporate finance companies) will include specific loan terms, like keeping a certain amount of cash on hand or meeting strict profitability targets. Breaking just one “covenant” can force immediate repayment of the entire loan amount.
6. Debt is expensive. Actually, interest rates are low, and when the tax deduction for interest expense is factored in, debt is pretty cheap. Borrow only when the rate of interest is lower than the rate of return.
7. One size fits all. Just as a house is best financed with a 30-year mortgage, most business purchases should be matched with a loan of a size and term that roughly matches the size and term of what is being purchased.
8. All loans require collateral. Credit cards are the obvious exception, but there are others. Often called “cash flow loans,” these rely simply on a business’s ability to make payments. Lenders want to see a solid business plan. These loans carry higher interest rates.
9. I don’t have any collateral. Many lenders are able to use certificates of deposit, stock accounts, cars, boats and other personal assets (including your home, of course). And don’t forget that the business assets you most need to purchase often make their own collateral. Most equipment vendors, for example, will be able to recommend leasing companies for their products.
10. Banks only make loans when I don’t really need the money. Getting a loan is only difficult for the unprepared. So do your homework before talking to a banker. A great business plan, clean financial statements and detailed financial forecasts will carry a lot of weight.
Source: http://www.restaurantnewsresource.com/article23233.html
With the summer heat hovering around triple digits, or just below in every state across the country, this will be the week your coolers, your ice machines, and your prepared food cases take their last breath and fade out into the sunset. Oh, and let's not forget about the air conditioning. Remember when that was supposed to be serviced but you had to pay the rent instead? Well, you never did call the service company back, did you? It was bound to happen. We usually wait until the last moment to service the work horses that get us through the
From Dan Pink's Whole New Mind to CNNMoney.com's The Imagination Economy to MarketingProfs.com's left brain/right brain business model -- the consensus is that if you wish to expand your wallet, you need to start by expanding your mind.
The only thing that can't be outsourced is an individual's outrageous imagination.
Source: http://innovation.ducttapemarketing.com/2006/07/want_momoney_be.html
Corporations are afforded a series of tax benefits and advantages by the IRS, such as:
Leasing Assets to your corporation:
Source: http://finance.ducttapemarketing.com/2006/07/tax_a_tax_break.html
Usually, I like to write my own headlines, but this one from the original story is too perfect to touch — that or I’m too tired. . . .
A good detailed article from In-House Counsel on why the arbitration fad’s been a disappointment to companies that had hoped it would be a magic bullet for [...]
What works great in the kitchen doesn't always work so well in your body. In the culinary arts, fats make food taste good. In the medical arts, it isn’t so simple. Some fats, namely mono- and polyunsaturated fats, are good for long-term health. Other fats, namely saturated and trans fats, aren’t so good and, in fact, can be downright unhealthy. The collision between what’s good in the kitchen and what’s good in the body poses problems for restaurants across the country.
One of the top two questions I am constantly asked is, "why don't you charge an hourly rate?" Well after fielding it so many times, I knew I had to blog the reasons. I don't like talking about my job in these pages too much, which is why you don't see a lot about the fact that I'm booked almost every week from now till doomsday! But there are occasions when it is important to address crucial ideas that I am at the center of. So here are my top 10 resons for not charging an hourly rate. If you have comments or question, feel free to email them to me.
