Archive for the 'Franchise Attitude' Category

Franchise Businesses Protect Yourself from Fraud

June 21st, 2011

(Buy A Franchise Unlimited, Buy A Franchise Seattle, Buy A Franchise Bellevue)

The Fraud Triangle :

Pressure
Pressure in this case means financial pressure. This can be caused by any number of things including medical bills, drug addiction or excessive lifestyle costs. Often the person committing the fraud feels they must solve their problem on their own and cannot turn to legitimate solutions for help.

Opportunity
Opportunity is when there is the ability to commit fraud. This is created by weak internal controls, poor oversight by management, failure to establish procedures to detect fraud or other factors. Of the three factors in The Fraud Triangle, this is the one that businesses have the most control over.

Rationalization
Most of us have a strong sense of right and wrong and fraud (stealing) is wrong. How does someone committing fraud justify stealing? They rationalize it through various ways. The perpetrator may believe they are justified to save a family member, especially a child. The fraudster may think they will lose everything if they don’t get the money. Often, the stolen money is thought of as loan and the person committing the fraud has every intention to pay it back. Often a dissatisfied employee believes they are owed something because they perceive they have been treated unjustly. And occasionally, a person has just lost all sense of right and wrong.

The Trust Factor
Owners of closely held businesses often don’t set up proper internal controls. Frequently, real segregation of duties is impossible–there just aren’t that many employees. Business owners console themselves with people they think they can trust in key positions. Let me say it clearly: Trust is not an effective fraud prevention strategy. Business owners think “It can’t happen here.” They are wrong. Internal frauds are always perpetrated by trusted employees. And business owners always think “I’d spot it” if fraud occurred. The truth is, they wouldn’t. Fraud is fairly easy to hide and people are amazingly creative in their schemes.

Consequences
The consequences of fraud on a business include losses, of course. But there are also creditor and vendor impacts, HR issues, legal issues, insurance repercussions, and negative public relations. In the end, it can mean the failure of the business.

The information in this article was provided by David Lightfoot of B2BCFO.

 

(Buy A Franchise Unlimited, Buy A Franchise Seattle, Buy A Franchise Bellevue)

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Fears That Drown Dreams

November 30th, 2010

 

(Buy A Franchise Unlimited, Seattle Franchise, Bellevue Franchise)

This is a reprint of an excellent article posted by Pam Duskocy of Schooley Mitchell Franchise.  Enjoy:

While there are certainly legitimate reasons why a person may not become an entrepreneur, I will focus on a few of the main reasons cited by people that would like to begin a business but haven’t made that leap. I will also offer some thoughts on how to defeat the fear, and progress towards the dream.

It’s Not the Right Time

‘As soon as the mortgage is paid; as soon as the kids are done college; as soon as I get my buyout at work; as soon as I learn everything there is to know about it, as soon as 2 plus 2 plus 2 is 4. As soon as I am absolutely sure that this venture will have zero risk and my astounding success is guaranteed.’ Again, these thoughts are absolutely paralyzing. They are very real thoughts, and most are perfectly legitimate thoughts, but only thoughts and not reality. However, as I said, they are paralyzing.

There is a quote by Goethe that has always intrigued me and it seems to strike at the very heart of this issue.

“There is one elementary truth the ignorance of which kills countless splendid plans: that the moment one definitely commits oneself, then providence moves too. All sorts of things occur to help one that would never otherwise have occurred. A whole stream of events issue from the decision, raising in one’s favor all manner of unforeseen incidents and meetings and material assistance which no man could have dreamed would come his way. Whatever you can do, or dream you can, begin it. Boldness has genius and magic in it. Begin it now.”

We had a saying at Schooley Mitchell, and it was long before Nike made it famous as their advertising slogan. Whenever, anyone hesitated to tackle a project, or to take a risk, or to take that next step to get the job done, we would simply say, ‘Just Do It!’

That attitude doesn’t suit everyone, but then perhaps it should. My guess is that it does suit those successful people we dream to be. The point is that the time to act is very likely now, when the opportunity is present, as opposed to some ill-defined ‘when ..then I will…’

Stated another way by Marsha Sinetar, “Intentions count as nothing if we do not translate them into action.”

(Buy A Franchise Unlimited, Seattle Franchise, Bellevue Franchise)

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