Entrepreneur - December 2010

THE 2011 TRENDS ISSUE

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DECEMBER 2010 | ENTREPRENEUR.COM

START STRONG 10 business tips for the new year SOCIAL MEDIA How it’s changing everything

WHAT’S GONE FOREVER coffee carts, mailroom dudes & personal assistants By Seth Godin

NEW RULES of ENGAGEMENT

LESSONS ON WHAT’S NEXT FROM FOURSQUARE, TWITTER AND ZAPPOS

DENNIS CROWLEY OF FOURSQUARE

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I

IF YOU DON’T HAVE A DEDICATED OFFICE SPACE.

The dining room may be your best bet, says Jennifer Coleman, principal at JKC Designs, a design firm in Rye, N.Y., with a practice in urban home office design. She suggests lining a wall with attractive, low lateral file drawers and topping them with a beautiful marble or stone. Don’t neglect finishing touches, she says, like decorative lamps from a better design shop such as Clifff Young Ltd. (cliffyoungltd.com). 80 Entrepreneur

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December 2010

GET OUT OF THE HOUSE

If your home office just isn’t right for clients, consider using an out-of-home office rental for meetings. Regus (regus.com), which boasts 1,100 locations across 500 cities in 85 countries, rents offices from $199 a month and meeting rooms from $14 an hour. For more local flair, consider regional office rentals like Citizen Space in San Francisco (citizenspace.us) and Metro Offices in Washington, D.C. (metroffice .com). Also check whether innovation centers or business incubators in your area rent space on an occasional or hourly basis.

Also, there are many designers whose work can pull double duty. Check out Indiana Furniture (indianafurniture.com) and its line of Inspiration chairs and case goods that fit the two-for-one bill. On the high end, Halcon (halconcorp.com), which specializes in architecturally inspired office furnishings, recently unveiled Proximus, a new line that offers a legit working desk and cabinets that can pass in-home design muster. Finally, create—and use—a prep list for transforming your space to officeready when a client is on the way. IF YOU HAVE A DEDICATED SPACE.

Iff you’ve sett aside a room that’s all business, it’s bestt to avoid leading clients through the messyy family y room to get there. Iff possible, sett up shop in a room thatt has an outside entrance, even iff it means surrendering the formal living room or moving the family y room into the spare bedroom. Iff you can’tt do that, create a “business path” through your home to your home office. Once you have the right space and a feel for what you are trying to convey, fill the room with furniture that means business but still works in your home. Don’t be shy about economizing. Look for places like Rieke Office Interiors

(rieke.com) in the Chicago area, which carry a nice inventory off refurbished office furnishings. Whatever your budget, choose pieces that are serious but not boring and match the style off the rest of your house. Consider using so-called contract-grade fabrics and construction that look good but stand up to business traffic and abuse. Good options for commercial office furniture are the Jofco Merge line (jofco .com) and Paoli Furniture’s Ignite line (paoli.com) off modular desks, which can be small and have good veneer options. Also, Herman Miller (hermanmiller .com) is now w making chairs other than the ubiquitous Aeron; the Eames Soft Pad multipurpose chair is perfectt for half-home, half-business use. The goal is to find what fits your preferences, your industry and your sense of what will make your clients comfortable. “You know w your client,” says Mark Dutka, interior architectt att the San Francisco-based InHouse Design Studio. “Justt presentt yourselff in your home and putt your appropriate foott forward.” JONATHAN BLUM IS PRINCIPAL OF BLUMSDAY, A WEB-BASED DIGITAL CONTENT COMPANY THAT SPECIALIZES IN TECHNOLOGY NEWS AND REVIEWS.

PHOTO© VEER INC/ PABLO SCAPINACH IS ARMSTRONG

nviting your business into your home is one thing. But inviting your business clients into your home? That’s something else altogether. “It’s an intensely personal choice whether to open your home to the stresses of business life,” says Claire Tamburro, a designer in Arlington, Va., who has a background in residential home offices. “There are design challenges, issues with friends and neighbors. It can be done, but it is a big step.” Are you comfortable letting those who pay you see where—and how— you live? Do you need a physical barrier between your professional and personal lives? An accountant who specializes in single-person operations might be perfectly comfortable sitting down with clients at her dining room table. A therapist might want to maintain a professional distance that precludes clients from feeling as if they’re friends being invited inside. There are veryy few w rights and wrongs here, butt there is one hard rule: No children within earshott or eyeshott when clients are around. The sounds off a sibling throwdown or a too-loud cartoon kills the professional atmosphere, as does pushing awayy family y clutter to make room for a client. Iff you don’tt have a dedicated home office space, withoutt question the children mustt vacate the premises before clients arrive. Iff you do have a separate office, either make sure it’s far from the familyy living spaces or add soundproofing to drown outt noises off domesticity. Here’s what our panel suggests about bringing your business into your home while still maintaining some boundaries between the two:

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WHO’S GOT

SOCIAL HEALTH: BRAD WEINBERG, LEFT, AND RAJIV KUMAR.

Prevention for the people A social network k thatt p promotes healthierr livingg through gh ggroup supportt and d motivation n attracts a $5 million n VC investment

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s classmates att Brown Universityy Medical School in 2006, Rajivv Kumar and Brad Weinberg were bothered byy the emphasis on treating disease vs. promoting wellness. As doctors, they routinely encountered patients who struggled with lifestyle modifications like losing weight, quitting smoking and boosting physical activity.

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December 2010

But the patients who were successful typically used their social networks—both interpersonal and virtual—for motivation and moral support. The duo saw an opportunity. “There really was no initiative that was taking a broad focus on wellness and trying to scale a social approach to behavior change across a very large population,” Kumar says.

Their business plan won competitions thatt gave them enough seed moneyy to launch Shape Up the Nation in Providence, R.I. The site sells its services to insurance companies and large firms— typically those that self-insure—to motivate their employees to be healthier. Within the community, employees can challenge one another in areas such as weight loss and smoking cessation. Since the launch off the platform in 2007, more than 100 employer groups and health plan customers have signed up, including Cleveland Clinic, CVS Caremark and National Grid. Shape Up the Nation popped up on the radar off Cue Ball Capital, a Boston venture capital firm. The Cue Ball team liked that the company was at the intersection off two powerful trends: social networking and wellness. “Those twin macro dynamics off a digital nation that is almost consumed by social networking, combined with the need off business to find ways to improve the health and wellness of their employees in an effort to reduce overall healthcare costs, felt like two compelling drivers,” says Anthony Tjan, managing partner at Cue Ball. The fact that Kumar and Weinberg were physicians with backgrounds in economics made the deal more attractive. The firm teamed up with Excel Venture Management, another Boston VC firm, to provide $5 million in Series A funding that closed in August. Shape Up the Nation will use the money to expand the company and its technology infrastructure. Kumar says they will add to their 40-person team, expand the number off languages in which the platform is available and develop strategic partnerships with content entities to bring more tools and information to site users. “Our vision is that we can use this innovative approach to healthcare to unite the entire healthcare ecosystem,” Weinberg says. “It can become the central point where health plans, hospitals, pharmacies, other wellness companies, disease management companies, even consumer products companies are all coming together to reach the end user.” —GWEN MORAN

PHOTO© DAVID LANG

VC

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With The Hartford behind you, achieve what’s ahead of you.® © 2010 The Hartford Financial Services Group, Inc., Hartford, CT 06155. All rights reserved.

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Scams,, fakes and cheats

The National Retail Federation estimates that retail fraud cost the industryy $ $9.6 billion in 2009. Here’s how to keep your business from getting duped.

ABUSE OF PROMOTIONS

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s the “new frugality” becomes a consumer trait, coupon fraud is getting worse. “The competitive landscape where retailers are offering deals to distinguish themselves has led to an increase in coupon usage, while any kid with 84 Entrepreneur

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December 2010

a scanner and color printer can create a replica with relative ease,” says Joe LaRocca, senior asset protection advisor at the National Retail Federation off Washington, D.C. Butt there are practices to keep fraudulentt coupons att bay:

Be unique. Incorporate special papers and embedding codes, use particular watermarks, or create other hard-to-replicate markings or features into your coupon, LaRocca says. Work with the agency, medium or printer producing your coupons to ensure you’re taking all security precautions. Be clear. Coupons should have clear expiration dates and disclaimers limiting their validity y with other offers or promotions. This prevents too deep a cutt into your margins. Develop a standard disclaimer thatt protects you and be sure to include itt on all off your price promotions. Changing or creating new disclaimers opens up an opportunity y for a provision to slip through the cracks. Be wary. Your stafff should be trained to spott coupon expiration dates and signs off duplication—such as fuzzyy print quality, smeared printing—or tampering. Iff coupons were printed in a specific medium, keep a copyy att the register and check the back off the version presented to be sure both sides match. Encourage stafff members to involve a manager, owner or supervisor iff there is anyy question aboutt a coupon’s validity. Be open (to a degree). For some, counterfeitt coupons are the price promotion equivalentt off the more, the merrier. Iff you don’tt care who uses your coupons, as long as a sale is made, you may y nott need to worryy aboutt preventing duplication, LaRocca says. Butt it’s still a good idea to limitt anyy coupon’s validity y to specific time periods in case you change your mind, he says. Coupon fraud mayy nott resultt in the deep losses thatt shoplifting and return fraud create, he says, butt itt can significantly y cutt into a small retailer’s profits. Be warned.

PHOTO© ISTOCKPHOTO.COM/ RICHVINTAGE

FROM COUNTERFEIT COUPONS TO BOGUS RETURNS, ATTEMPTS AT FRAUD CAN PUT A MAJOR DENT INTO A SMALL RETAILER’S PROFITS.

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ABUSE OF POLICIES

J

PHOTO© ISTOCKPHOTO.COM/RICHVINTAGE

ennifer Saunders considers her store “the end off the line” for merchandise. The Bargain Bin, an overstock retail store in Norwalk, Ohio, has a clear return policy: Iff the item is broken, return it within 14 days for a refund. Iff you just don’t like it, return it within two weeks for store credit. Still, she finds that some people try to game the system. “We have people who say a microwave is broken when it isn’t just to get their money ba ck,” she says. That’s mild compared with some off the things Read Hayes, director of the Loss Prevention Research Council in Gainesville, Fla., describes— such as big-screen televisions purchased in time for the Super Bowl, then returned after the game, or fraudsters brazenly shoplifting items and then trying to return them. But retailers, aside from posting clear return policies, can take other steps to prevent return fraud: Check for proof. Saunders requires a receipt for returns. But fraudsters are clever. Hayes advises retailers to avoid throwing receipts in the trash, where they can be snatched and used to try to return stolen goods. This also prevents someone from buying an item on the cheap elsewhere and then trying to return it for the full price at your location, he says. Check for tampering. People making fraudulent returns may have switched tags on an item, trying to return it for a higher price, he says. The National Retail Federation found that in 2009, more than threequarters off retailers surveyed had returns that were originally purchased with fraudulent or stolen tender, like credit cards. Use your point-of-sale program to ensure that there were no issues with the item’s payment. Check for lying. When a customer claims an item is broken, Saunders checks it on the spot. Iff it’s not bro-

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ken, she’ll give store credit only iff the item is returned within the two-week return period. Hayes says retailers also should confirm the customer’s information by checking identification and filling out a return form. And while it may seem obvious, staff members should check that the store actually carries the merchandise. “A customer may try to return a four-pack off razors to a store that only carries six-packs,” he says. “It’s a small difference, but you may be accepting merchandise you don’t even carry iff you’re not careful.” Also, employee collusion in return fraud is common, says Hayes, who advises that a manager or store owner approve all returns. —G.M.

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CHECK YOUR MATH. A couple of mistakes in n calculating g deductions won’t automatically y catapultt yourr return n to the top off the IRS pile, butt too many y mistakes in n yourr favorr mayy triggerr an n audit. Iff you u receive a 1099 from m a companyy for freelance work k thatt you u performed d as an independentt contractor, be sure to enter the exactt amountt on n yourr tax x return. Because the companyy thatt hired d you u also sends a copyy off the 1099 to the IRS, the slightestt discrepancyy between n the two numbers could d sett offf alarm m bells.

Proper p p preparation p and documentation can help you stay below the radar off IRS auditors veryy year, the Internal Revenue Service audits approximately 1 percentt off U.S. taxpayers. Though the odds are slim that your return will be singled out, they increase dramaticallyy iff you run a cash business like a bar or restaurant, take a home-office deduction, make large charitable contributions or work for yourself. Like to splurge on fancy y cars, boats or home improvements? Living large withoutt documenting your income can raise red flags, too. Deductions and expenses thatt are disproportionate to the taxpayer’s income catch the IRS’ attention, says Mitchell Eichen, a tax x partner att Perelson Weiner, a New w York City y accounting firm. No matter what kind off business you run or how many deductions you take, you can lower your chances of being audited by following these steps: KEEP ACCURATE BOOKS. The IRS is on the lookout for businesses that deal heavily with cash. No law says your business must accept checks or 86 Entrepreneur

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December 2010

credit cards, but don’t assume that you can put the money in your pocket and the IRS will never know. The same goes for businesses that do a lot of barter, and for contractors who take side jobs, helping friends and neighbors. The IRS can quickly compare your business income to your living expenses and figure out iff you’re living beyond your documented means. DEDUCT WITHIN REASON. Writing offf too many business-related expenses can put you in the IRS’ line off fire, especially iff the income you report is relatively modest. An IRS computer program compares your deductions to others in the same income bracket (the so-called DIF Score) and selects the returns with the highest probability of generating additional audit revenue. “A decision to forgo a legitimate deduction may be based on the taxpayer’s particular audit tolerance or iff there are other areas off the return that the taxpayer does not wish to call attention to,” Eichen says.

GET PROFESSIONAL HELP. Iff you alreadyy have an n accountantt orr tax x professional who prepares yourr business return, it’s a good d idea to lett the same practitionerr prepare yourr personal return n as well. Nott only y will you u avoid d some off the common n tax x preparation n mistakes, but you’ll also have an n advocate to go to bat forr you u iff you u do gett thatt dreaded d letter from m the IRS. Iff yourr tax x preparerr did da competent, professional job off reporting yourr income and d deductions, you u should have nothing g more to fearr than n the inconvenience off respondingg to the letter and d possiblyy meeting g with h an n IRS agent. “Competent, professional tax x advisors will warn n you u when n taking g a certain position n can n heighten n the possibilityy off an auditt and d when n a tax x return n looks fishy,” Eichen says. —ROSALIND RESNICK ROSALIND RESNICK IS FOUNDER AND CEO OF AXXESS BUSINESS CONSULTING (ABCBIZHELP.COM), A NEW YORK CONSULTING FIRM THAT ADVISES STARTUPS AND SMALL BUSINESSES.

PHOTO© ISTOCKPHOTO.COM/ RB FRIED

Audit avoidance

BACK IT UP. It’s importantt to keep good d records in n case the IRS does come knocking. Business owners are required to keep receipts forr all expenditures of $75 orr more forr meals orr entertainment, and d to keep those receipts forr att least three years. Good d record-keepingg is also importantt iff you’re planning g to take large personal deductions. Forr example, if you’re claiming g a large medical orr charitable deduction n thatt you u think k mightt increase yourr odds off beingg audited, make sure to attach h copies off yourr medical bills and d charitable receipts to yourr return.

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ROCKY MOUNTAIN HIGH: BEN PARSONS AND HIS INFINITE MONKEY THEOREM WINERY IN DENVER.

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Forget about bellying up to the hotel bar. Wine country may be just outside your door. Cheers! BY BRUCE SCHOENFELD | PHOTOGRAPHY BY JOHN JOHNSTON Entrepreneur

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he main entrance off The Infinite Monkey on Theorem winery overlooks a rutted te alley in a semi-industrial area off downtown do Denver. A maid service’s fleet cars are parked next door. Don’t strain too hard to see the vineyards; they’re more than 200 miles away. What’s nearby instead is an entire metropolitan area, which means that iff you’re on a working layover in Denver and have a free afternoon, you can visit a winery almost as easily as you’d stop into a Starbucks. Step into the Quonset hut that Australian-trained enologist Ben Parsons has filled with fermentation tanks and oak barrels and, instantly, you’re in wine country. He’ll take you through the vinification process, offer samples and sell you bottles (ranging from $15.98 to $49.98) iff you’re inclined to buy. All that’s missing are the vines. Most off Infinite Monkey Theorem’s wines are made from fruit that’s grown on the far side off the Rocky Mountains and trucked in after harvest. That’s a laborious process, but because Parsons is based in the heart off the city, he can cultivate relationships with the people most likely to buy—and sell—his wine. “Sommeliers come in and help us bottle,” he says. “Some off the city’s best chefs have come by and seen what we do. They help rack the wines. They taste from the barrels. And when someone sees Infinite Monkey Theorem on the wine list and asks them about it, they can tell the story because they’ve been here.” You’ll find similar wineries (and even a few distilleries) across the country, some with restaurants, formal tasting rooms and even galleries attached, others mere storefronts with an open door and an enologist waiting to lead a tour. All are accessible for the business traveler with a few hours to kill before a flight or with downtime during a week on the road. At New York’s City Winery, in lower Manhattan, customers can dine on pomegranate-glazed chicken, sip wine that was made just a few feet away and watch top-flight performers such as Duncan Sheik or Suzanne Vega on stage in front off them. At Periscope Cellars in Emeryville, Calif., near Oakland, visitors typically stop in at the refurbished World War II submarine re90 Entrepreneur

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VINES NOT INCLUDED: FERMENTATION TANKS AND OAK BARRELS LEND A WINE COUNTRY FLAVOR, PARSONS SAYS.

pair facility on weekends. They’ll catch the latest art installation while enjoying a glass sourced from one off California’s most famous appellations. It’s a differentt feel from the vinecovered hillsides off mostt wine regions and a differentt business model. “You lose the romance off the vineyard,” acknowledges Marco Montez, who runs Travessia Urban Wineryy in New w Bedford, Mass. “Butt the idea still amazes a lott off people. And then, when the wine is good, they y gett blown away.” A decade ago, onlyy a handful of wineries could be found in major metropolitan areas (and mostt off those in the San Francisco Bay y Area or Seattle), butt they’ve proliferated from coastt to coastt since. Here are seven off the most enticing for the thirsty y entrepreneur on the move: CINCINNATI: Henke Winery. Ohio isn’t exactly Napa Valley, but visitors are often surprised to learn that it has 130 wineries. Joe Henke founded his—in the leafy Cincinnati neighborhood off Westwood, 6 miles from downtown—in 1996, “before the term urban winery was even coined,” he says. The cheese trays and other snacks long ago evolved into a full menu that now offers everything from crab cakes ($10.95) to filet mignon ($29.95.) What to do: About 25,000 visitors pass through annually, Henke says, and most end up eating, too. Try the Ziza Pizza ($8.95), hand-pressed garlic folded

inside pizza dough, baked in olive oil and covered with Romano cheese, or a strip steak smothered in peppers and onions. What to drink: The seven-wine tasting ($5) includes an Ohio-grown Vidal Blanc, a French hybrid grape common in the East and Midwest that makes a wine similar to off-dry Riesling, as well as a barrel-fermented Seyval, the closest that Ohio gets to white burgundy. Open evenings, Friday afternoons and all day on Saturdays. 3077 Harrison Ave., Cincinnati. (513) 6629463. henkewine.com. DENVER: The Infinite Monkey Theorem. Ben Parsons’ winery makes Colorado’s best wines. An expanded facility that will include food, a rooftop bar with a mountain view and a larger retail area is coming in 2011. What to do: Catch the party atmosphere off the First Friday Art Walk Wine Bar, which features freeflowing wine, catered deli food and a DJ punching up tunes once a month. What to drink: Parsons’ all-Colorado Cabernet Franc and Petit Verdot (both $29.98) are not only delicious, they also raise the bar for how good wines made from Colorado fruit can be. The Riesling ($19.98), made mostly from grapes shipped in from Oregon, has a touch off sweetness and tastes like ripe peaches. Open by appointment. 931 W. 5th Ave., Denver. (970) 260-0710. theinfinitemonkeytheorem.com.

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FIRST SIP: TOURS INCLUDE A VIEW OF THE VINIFICATION PROCESS, WHERE YOU CAN SAMPLE THE WINE.

EMERYVILLE, CALIF.: Periscope Cellars. over the Bay Bridge from San Francisco, midway between Berkeley and Oakland, a submarine repair facility has been transformed into a winery and art gallery. What to do: The exhibit space showcases a different artist monthly, from the cut-paper works off Chris West to J.B. Lowe’s science fiction illustrations. On the third Wednesday off each month, Periscope’s reds are paired with a yoga session ($20 in advance, $25 at the door.) What to drink: Brendan Eliason makes an array off California reds, from pinot noir ($24) to zinfandel ($20). His Deep 6 ($44), a blend off the six grape varieties he deems most interesting each year, takes on a different character with every vintage. Open afternoons Friday through Sunday, and by appointment, or sometimes not. “I’m a one-man show, so it can be open as much as I’m around,” Eliason says. “If you show up and I’m not here, my cell phone number is on the door.” 1410 62nd St., Suite B, Emeryville, Calif. (510) 655-7827. periscopecellars.com. NEW BEDFORD, MASS.: Travessia Urban Winery. y For two years, software engineer Marco Montez, a native off Portugal, has been buying fruit from both nearby vineyards and far-offf California. He uses the local grapes to make three white wines and an off-dry rose and has started bringing in the West Coast varieties for a range off reds, all off which are vinified and sold at this compact facility off the brick sidewalks off New Bedford, an hour outside Boston. What to do: Montez is available for tours and $5 92 Entrepreneur

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tastings. No food. What to drink: A rainy 2008 made the UnOaked Chardonnay ($14)—produced from grapes grown in Westport and Dartmouth, Mass.—even sharper and steelier, the perfect antidote to the flabby California bottlings that sell for the same price. Open afternoons Wednesday through Sunday. 760 Purchase St., New Bedford, Mass. (774) 929-6534. travessiawine.com. NEW YORK: City Winery. From winemaker dinners and a Klezmer brunch to a custom-crush program thatt lets members make their own wine from Napa Valleyy grapes in downtown Manhattan, City y Winery y has putt itself squarelyy att the center off New w York’s sophisticated wine scene. Itt also mayy be the only y establishmentt around thatt employs both a lead enologistt and a music programmer. John Hiatt, Mavis Staples, Shawn Colvin and other national acts have played the cozyy concertt space, and entertainmentt and other special events are booked for several days each week. Whatt to do: Sitt att the bar and pair the charcuterie plate with City’s own Riesling ($10 a glass, $29 a carafe) or a bottle offf the extensive—and well-chosen—wine list. Whatt to drink: The fruity Grenache/Syrah rose ($9 byy the glass) is served att the bar from a keg, so itt stays fresh. Open dailyy to midnight, except when closed for special occasions. 155 Varick St., New w York. (212) 608-0555. citywinery.com. PARK CITY, UTAH: High West Distillery and Saloon. High West, set at the base off a ski run in this resort community outside Salt Lake City,

is Utah’s first working distillery since the 1870s. David Perkins’ small-batch whiskeys (and the world’s only oat vodka) have gained a cultish following since he set up his still in 2007. Hearty mountain food like elk with chanterelles ($29) and bison rib-eye ($26) attracts a steady après-ski and mountain bike crowd. “People are interested in craft spirits all off a sudden, which is very exciting,” Perkins says. And because off a recent law change, you can actually leave with a bottle off his finished product. What to do: Come for one off the scheduled distillery tours, then head to the saloon for the scene, the small plates and the sipping. What to drink: The Rendezvous Rye ($7 a glass) is an unorthodox blend of 6-year-old and 16-year-old Kentucky whiskey (High West’s own whiskey is still too young to be released as an aged product) that competes with premium Bourbons. Open until 10 nightly. 703 Park Ave., Park City, Utah. (435) 649-8300. highwest.com. PORTLAND, ORE.: Portland Wine Project. The Willamette Valley, home off some off America’s bestt pinott noir, is justt an n hourr down n thee road, so it’s no surprisee thatt thee urban n wineryy trend d is bigg in n Portland. This 10,000-square-foot facility y mayy bee thee bestt off them. It’s home to Grochau u Cellars and d Boedeckerr Cellars, which h sharee barrell spacee and d a tasting room m and d each h producee theirr own n wine usingg Willamettee Valley y grapes. Grochau’s aree biggerr and d brassier, whilee Boedeckerr makes understated d pinott noirs from Burgundy’s model, with h nuancee as a goal. Whatt to o do: Tourr thee winery y with—if you’ree lucky—onee off thee owners, John Grochau u orr Stewartt Boedecker, as your guide. Whatt to o drink: Tryy Grochau’s Temd red d that pranillo ($25.95), a structured approximates thee flavors off Spain, and d Boedecker’s earthy y Stewartt pinott noirr ($34), thee winemaker’s favoritee cuvee. Open weekend d afternoons and d byy appointment. 2621 NW W 30th h Ave., Portland, Ore. (503) 522-2455. gcwinescom; (503) 866-0095. boedeckercellars.com. BRUCE SCHOENFELD IS THE WINE AND SPIRITS EDITOR OF TRAVEL + LEISURE AS WELL AS AN AWARD-WINNING AUTHOR AND TELEVISION WRITER. HIS WINE-, FOOD- AND TRAVEL-WRITING HAS APPEARED IN PUBLICATIONS SUCH AS GOURMET AND FOOD & WINE.

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start it up

WACKY

IDEA

The PedalPub It sounds like the wackiest idea ever: A bar on wheels powered by brew-pounding pedalers. But now there are 12 PedalPubs, and a franchise on the way. ENTREPRENEURS: Eric Olson and Al Boyce, dedicated home brewers with day jobs—Olson teaches business at Normandale Community College in Bloomington, Minn., and Boyce is a computer programmer for U.S. Bank in St. Paul, Minn.

WHAT POSSESSED THEM: A fellow home brewer e-mailed Olson a photo of a crazy-looking pub on wheels in Europe. “I said, ‘Damn, this is one of the coolest things I’ve ever seen in my life.’ ” He tracked down the creators—brothers Henk and Zwier van Laar in (where else?) Amsterdam—and asked how to make one. They sold him one instead.

STARTUP: Savings and home-eq-

CUSTOMERS: Birthday parties,

PEDALMANIA: Olson and Boyce have six PedalPubs in the Twin Cities, one in Houston, plus licensees in Austin, Texas; Nashville, Tenn.; Lawrence, Kan., and Milwaukee; plus, one sold to Amstel Light.

STATS: PedalP ubs weigh 2,340 pounds em or drinkers) an pty (without beer d have a top speed of 5 mph. They seat 10 pedale rs, a bartender and a driv to $190 per ho er and rent for $160 ur, BYOB.

uity loans covered the $40,000 to buy their first PedalPub, plus $20,000 to buy a van, a trailer, insurance, storage and marketing materials.

corporate events, even a wedding. Most are women—68 percent.

VITAL

ENT: “AHA” MOgoMt the first

In 2007, they ng and sent PedalPub rolli friends and e-mails out to g a mild in ct family, expe r e-mail list ou ut “B reaction. e, od ” Olson started to expl when I at’s says. “And th kling that this in had the first successful.” might be really

EYOND: 2011 AND B anchise the

PHOTO© J EFF CLARK

fr They plan to year. Says xt ne t ep nc co of ve to see 500 lo Olson, “I’d un co e th er l ov these things al BRENNER try.” —LESLIE

94 Entrepreneur

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start it up

COLLEGE

START

UP

no-exit strategy Sure, Duke Chungg was tempted p by a buyout y offer. But he knew that he was worth much more. (He was right.)

96 Entrepreneur

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day, Parature has about 900 customers, including Rosetta Stone, NASCAR and Travelodge, passing more than 1 million support tickets through its system each month. The company expects revenue off $20 million for 2010. Chung says part off his success in attracting venture capital is timing: raising money before it’s badly needed (VCs can sense desperation) and raising as much as possible, so you also can afford to experiment. “Invest it into a new market op-

portunity, invest it into a new product or find other expansion distribution models,” he says. “These experiments can really pay offf in the long run.” Indeed, the latest experiment was building a product to help companies turn their Facebook pages into customer support centers. It launched in the summer, and 30 of Parature’s larger customers have already started using the app to monitor and engage comments and questions. —JOEL HOLLAND

JOEL HOLLAND, 25, IS THE FOUNDER AND CEO OF FOOTAGE FIRM IN RESTON, VA. HE CAN BE REACHED AT [email protected].

HOW TO RAISE

VC

SIX LESSONS FROM DUKE CHUNG:

1

Don’t even try until you fully understand your product or proposition. You’ll end up using a lot of the money to figure it out instead of focusing on growth. Wait until you can show some results. Bootstrap your business until you can prove you have traction. Go after money before you really need it. When you need it, VCs can sense it and you won’t have as much leverage. Build relationships with VCs before you need them. Then, when you are ready to raise capital, you won’t be cold calling—which almost never works. Raise as much as you can. You want to have a little money left over to experiment. Be prepared to give up equity. Most venture firms aim for about 20 percent in each round of funding.

2 3

4 5

6

PHOTO© DAVID LANG

D

uke Chung was facing a defining decision: Accept a lucrative buyout offer for Parature, the customersupport software company he started as a student at Cornell University, or stay the course and continue to grow Parature with his four co-founders. Plenty off college entrepreneurs would jump at a big payout. But Chung and his co-founders decided the offer amounted to a huge pat on the back—and they turned it down. “When a potential buyer comes to you and shares your same vision for the business, it suddenly gives you a lot more confidence about your plan,” says Chung, now 32. “Plus, we figured there would be more offers like this one down the road iff we continued building a great business.” Att the time—2006—Parature was 5 years old. Boosted byy the purchase offer, Chung and his team reevaluated their plan for the future: essentially, growth and expansion. Att thatt point, Parature had aboutt 300 customers using its software-as-a-service customer support portal, which provides hosted tools that can be integrated into corporate websites, such as live chat, an online community, surveys, self-service knowledge base and trouble ticketing system. Chungg knew w his productt was solid, butt he also realized d thatt growth h would bottleneck k withoutt moneyy to build d a sales team. So he turned d to the venture capital community, raisingg $13.5 million n from Valhalla Partners and d Sierra Ventures. In addition n to sales growth, the moneyy also gave Parature a new w level off credibility. While it took the Vienna, Va., company five years to get its first 300 customers, it took only 18 months to get its next 300. In fact, by 2008, growth was bottlenecking again. So Chung looked anew for VC, this time raising $16 million from Accel Partners. To-

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start it up

START

UP FINANCE

thatt ProFounder’s advisors include the chairman off LinkedIn, the former CTO off Linden Lab (creator off Second Life) and the CEO off Prosper.com. An amateur powerlifter with an MBA from Stanford, Mauriello “didn’t see why it had to be so hard to raise investment capital in a straightforward and legally compliant way.” Jackley sowed the seeds off her entrepreneurship as co-founder off San Francisco-based Kiva.org. Started in 2005, Kiva was the world’s first online micro lending platform. With an average loan size off only $209 and a phenomenal repayment rate off nearly 99 percent, Kiva has transformed the lives off more than 400,00 loan recipients.

High-stakes game

THRUST FUND

Launched this year, Thrust Fund has taken an entirely different approach to raising capital. Instead off selling equity in your company, you sell a piece of Sidestepping the traps off equity fund-raising you—or at least your future earnings. For example, Appfrica Labs foundhe Facebook post reads: “Startup medical device company looking for er Jon Gosier will sell for $300,000 a investors.” An eBay ad offers “double-digit growth potential for early 3 percent share in his cash-flow-posiinvestors.” And with loans in short supply, you might be tempted to tive tech incubator, which offers jobs, hang an “investors wanted” sign off your own. But be warned: Selling mentoring and seed capital to East equity is very different from borrowing from Aunt Sally. And it’s easy to run African tech entrepreneurs. afoul off state and federal securities laws, no matter how small the investment. Saul Garlick, a Thrust Fund founder, When Aunt Sally loans you money, she expects to get it back. But when you is offering the same deal. At just 17, he sell equity, your investors have no recourse iff you don’t succeed. Their money is founded ThinkImpact, an international just plain gone. That’s why the Securities and Exchange Commission and equiva- nonprofit organization that connects lent state agencies want to weigh in. Their prime concern is that investors under- American students to rural villages in stand the risks and can afford the hit iff the venture doesn’t perform as hoped. Africa to help alleviate poverty through While securities regulations offer a number off exemptions that allow small leadership and entrepreneurship. companies to raise equity, you should always seek the advice off a qualified attor- Former President Nelson Mandela has ney to keep you out off hot water. According to Tonio DeSorrento, an attorney endorsed his work and a former U.S. in the Washington, D.C., office off Orrick, Herrington & Sutcliffe LLP, missteps presidential Cabinet member serves put you at risk off fines, shareholder lawsuits, repayment demands and charges of on his board. “To me, it’s like selling a fraud, and they even undermine your ability to raise money in the future. share off my future earnings, or a piece Legal cautions notwithstanding, some creative entrepreneurs are bringing 21st off my time,” Garlick says, “but nothing technology y to the game. Using differentt approaches, ProFounder and Thrustt Fund more.” —KATE LISTER have sett their sights on taking some off the pain outt off the process off raising money. KATE LISTER IS A FORMER BANKER, Here are their deals.

PROFOUNDER

Dana Mauriello and Jessica Jackley, co-founders off ProFounder in Los Angeles, offer a simple web platform to help you structure, documentt and markett your offer. But unlike traditional equity, their deals are more like debtt butt with an upside potential. You share a percentage off quarterlyy revenue, either with your investor or by donating itt to a nonprofitt organization. This mayy sound weird, butt it’s worth noting 98 Entrepreneur

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SMALL-BUSINESS INVESTOR AND VETERAN ENTREPRENEUR. HER BOOKS AND WEBSITES INCLUDE FINDING MONEY: THE SMALL BUSINESS GUIDE TO FINANCING AND UNDRESS FOR SUCCESS: THE NAKED TRUTH ABOUT MAKING MONEY AT HOME.

PHOTO© VEER INC./ CORBIS PHOTOGRAPHY

T

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start it up Strokes off genius g ICHILL [ICHILL.COM]

Three cheers for stress relief in a bottle. Take half the bottle (an ounce) of iChill—a liquid blend of melatonin, valerian root, rose hips and B vitamins—for “moderate” relaxation, or the whole thing to knock yourself out after a bad day. Pro: At $37.50 for a case of 12, it’s far cheaper than a shrink. Con: The taste limits the ability to spike drinks of co-workers who really need it.

SQUIDFACE PILLOWS [COMFORTAN.COM]

In our humble opinion, this is a top 5 productt in the nap time paraphernalia market. SquidFace pillows have a head ring and two appendage-length “rabbitt ears” thatt supportt a ton of unusual—butt fantastic—resting positions (see “cuddling” and “under-the-covers-over-yourface” options). For entrepreneurs, No. 9 (off 12) is money: face-down desktop snoozing. Only y $28.95! The Snuggie’s gott nothing on this. —JENNIFER WANG

ENTREPRENEUR R MAGAZINE’S GROWTH CONFERENCE

Get your hands on real-world tactics, ideas and solutions designed to keep your business growing. Jan. 20, 2011 in Atlanta. Presented by The UPS Store. entrepreneur.com/growthconference

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TOOLKIT

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BY ROSALIND RESNICK

Don’t wait for the economy to heat up. Make the right moves today. worldmags

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TOOLKIT

E

conomists say the Great Recession—the longest and deepest since World War II—ended 18 months ago and that the U.S. economy is, in fact, growing again. But growth is relative. Even the rosiest economic forecasts for 2011 come in well under3 percent growth. Unemployment is still high, and consumer spending

WHAT’S IN IT FOR ME? Getting the most out of the Small Business Jobs Act of 2010 BY JULIE BENNETT

“T

he most significant step on behalf of our small businesses in more than a decade.” That’s how President Obama characterized the Small Business Jobs Act when he signed it into law in September. Its broad package of tax cuts and loan opportunities to entrepreneurs—all aimed at growing the economy—gives muscle to his rhetoric. But because of the deadlines in the bill, you’ll have to act quickly to take advantage of many of the options outlined here. LOAN PROGRAMS The jobs act permanently raises the limit on Small Business Administration loan guarantees to $5 million from $2 million, and it increases limits on its Express Loans for working capital to $1 million from $350,000 through September. But an increase in SBA loan guarantees to 90 percent from 75 percent and a waiver of SBA application fees expire this year. The higher guarantee and fee waiver were offered earlier, as part of the Economic Stimulus Plan, but had

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is still sluggish. “However optimistic you may be about your business, you need to let the overall economy temper your expectations,” says Scott Shane, an economics professor at Case Western Reserve University and author of The Illusions off Entrepreneurship: The Costly Myths that Entrepre-

expired in May. Jennifer Hrncir, a San Antonio, Texas, franchisee of Richmond, Va-based Rainbow Station, a daycare and after-school care provider, hopes to secure an SBA loan to build a second franchise before they expire. She opened her operation in 2003, borrowed money to buy 2.3 acres for a second school in early 2008 and had a loan commitment letter for construction funding when the credit markets collapsed. Unless you, too, have an application pending, it’s unlikely you can take advantage of the loan guarantee. However, a second program makes available $30 billion in federal money to community banks (with assets less than $10 billion) that make loans to small businesses. The interest the banks pay for these loans starts at 5 percent but drops to zero as they increase their smallbusiness lending. To snag financing: Find out which community banks in your area are participating. Franchisees should ask their franchisor to do this research, says Darrell Johnson, president of FRANdata, a franchise research firm in Arlington, Va. Independent business owners can check the SBA’s database for their state, at sba.gov, to see what banks are lending to small business. Once you’ve targeted a bank or two, introduce

neurs, Investors and Policy Makers Live By. “You need to assume that the recovery is going to be tepid and plan accordingly.” That doesn’t mean sit and wait for things to improve. Rather, retool for the economy that exists today, and will be lingering for many tomorrows. Here are 10 places to start.

yourself to a loan officer, tell her about your business and invite her for a tour. Before filing a loan application, “get your financial statements in order, to show you are trending up,” says Marilyn Landis, CEO of Basic Business Concepts Inc., in Pittsburgh, Pa. TAX BREAKS The Small Business Jobs Act contains several tax deductions designed to reduce your taxes if you expand your business and, the federal government hopes, hire more workers. Again, some of these tax breaks expire quickly and all are fairly complicated. To take advantage of them, meet with your accountant or a tax consultant before year’s end. For 2010 only, selfemployed individuals can deduct the cost of health insurance for themselves and their families from their selfemployment taxes, cutting their tax bills by 15 percent. Before the end of the year, you can amend your 401(k) plan and roll the funds into a Roth IRA. You’ll have to declare the value of the plan as taxable income, but the act lets you pay the taxes over two years instead of one. After that, gains in the plan are tax free. For their 2010 tax filings, eligible small businesses can carry back their business losses for five years. This means that if your busi-

ness lost money in 2010 but made money in 2005 through 2009, you could pay less taxes next April, or even get a refund. Individuals who invest in a small business before Jan. 1 and hold their stock for five years won’t have to pay capital gains taxes. If you started a business in 2010, you can deduct $10,000 of the money spent prior to your first sale, for expenses. Small businesses that purchase capital equipment during the 2010 and 2011 tax years can deduct as much as $500,000 of it from their taxes. The temporary deductions also include leasehold improvements made to restaurant and retail property, as much as $250,000. Lisa Whiting, founder of Imagination Trends, a company in Deforest, Wis., that designs and manufactures interactive wall graphics, is also in line for a 90 percent guaranteed SBA loan this year, for $1.3 million. Because she started her business in April and spent $75,000 on leasehold improvements and $425,000 on equipment, she’ll also take advantage of at least three of the act’s tax breaks. Whiting has already expanded from three to 11 employees and plans, by using more tax credits, to reach 30. JULIE BENNETT IS A FREELANCE WRITER.

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TOOLKIT

(1)

Administration’s guide at sba.gov /smallbusinessplanner.

OVERHAUL YOUR BUSINESS PLAN. In a climate as unforgiv-

ing as this, stasis is death. So dustt off your business plan and scrub itt off any assumptions you mayy have made three years ago. Roll up your sleeves, do the math and zero in on the bestt strategy to grab markett share and win new business. Then startt treating your business plan as iff it’s a work in progress. Create hard benchmarks and measure results often. That’s how w you improve performance, says Tim Berry, president and founder off Palo Alto Software Inc., developer off Business Plan Pro, a smallbusiness software tool thatt creates plans and financial projections. “Planning means tracking how assumptions change and reviewing progress and plan versus actual results,” he says. Rethinking your business plan also can help you spot new opportunities and point your company in the right direction. For step-by-step advice, check out the U.S. Small Business

(2)

DOUBLE DOWN ON WHAT WORKS. Whatever paid offf in

2010 is worth investing more time, moneyy and resources nextt year. Ask yourself: Whatt was your top-selling productt or service, and how w can you gett your customers to buyy more? What money-saving strategies wentt straightt to the bottom line? Whatt incentives or promotions gott your customers’ attention? Elyissia Wassung, CEO off 2 Chicks With Chocolate, a South River, N.J., chocolate maker, is doubling down on in-store demos, which have boosted sales. When she learned a chain retailer was planning to order exclusively from 2 Chicks for Christmas, she says, “We decided to double our demos with them this holiday season and blitz all off their stores on the same day. We are also giving away prizes to the top performing stores.”

((3))

EXPERIMENT. The e best timee to tryy somethingg new? When n thee old isn’tt working. Itt may y feell saferr to stayy in yourr comfortt zone, butt sticking g with h the samee old d product, servicee orr marketing strategyy mightt actually y bee riskier. The best new ideas often come from conversations with your customers, suppliers and, most off all, employees. “The unexpected can often be the obvious,” says New York business and personal coach Carol Vinelli. Talk less, listen more and really tune in to ideas that could lead to breakthrough products and services. Need some inspiration? Check out Seth Godin’s bestselling book Purple Cow about how to make your company remarkable.

(4)

FIRE YOUR D-GRADE CUSTOMERS. “High-maintenance,

low-margin customers are an impedi-

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ment to deploying time and resources more profitably,” says Joseph Fulvio, a consultant in Doylestown, Penn., who specializes in growing small businesses. “Get rid off them.” Make a list off your customers and give each off them a grade. Then dump everyone below a C—or a B, iff you can afford it. Once you’ve separated the winners from the losers, put a plan in place to turn those laggards into A-listers. Going forward, use those criteria to size up new business. Though mostt businesses worry whether they’ll meett clients’ expectations, “it’s actually y a two-way y street,” Fulvio says. A better vendor-customer fit should produce a healthier bottom line.

(5))

BECOME AN ‘A’ CUSTOMER. When prices are low, as they

are now, it’s generally a good time to lock in long-term contracts with your regular vendors, contractors and suppliers. Indeed, you might be able

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to negotiate a lower price in return for the promise off your business. Smallbusiness management expert Tim Sciarrillo off The New England Group in Milford, Conn., suggests asking your supplier for a volume discount and to hold the goods until you need them. Instead off ordering 10,000 custom labels five times a year, for example, order 50,000 at once but have them delivered in batches. This lowers the supplier’s manufacturing costs, reduces your unit price and speeds delivery on future orders because the labels are already printed. Exclusivity is the key to a sweetheart deal like this. “At one client company, we reduced corrugated suppliers from five to one,” Sciarrillo says. “The client received better service, reduced pricing and every time there was a price increase, the salesman usually kept our increase a percent or two below the standard.” Make sure your contract covers all the details, such as delivery cost, timing and quality guarantees.

(6))

EXPAND YOUR NETWORK. Facebook and LinkedIn have

their uses, but they’ll never replace face-to-face meetings, especially to win new business and get referrals. “Some folks aren’t ready to go out there and mingle, but in today’s economy, it is imperative,” says Bryan R. Adams, owner off FAB Communications in Teaneck, N.J. Think about it: A single coffee, meeting or lunch with a lawyer, financial planner or supplier could bring in dozens off new customers next year. If you’re afraid to jump in right away, Adams suggests starting by searching Meetup.com for a group that matches your interests and attending local chamber off commerce events. Once you find your groove (and refine your elevator pitch), consider joining a dedicated networking group such as BNI International, LeTip International or National Association off Women Business

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TOOLKIT Owners. “Getting out there keeps you sane and you get to hear what’s working and not working for other businesses,” Adams says.

(7))

LEVERAGE YOUR BRAND. In this economy, it’s more

important than ever to avoid becoming a “me, too” brand. Low prices and quality service are no longer enough. Whether it’s a YouTube video, an iPad app or a free tasting event, offer something to make customers take notice. “What do you bring to the table that no one else is serving up to clients and potential clients?” asks Debra Condren, a New York business psychologist. “You must first understand what sets you apart and then become completely fluent in communicating to your target audience what separates you from the herd.” For more tips and tools on leveraging your brand, check out Entrepreneur’s free online marketing guides at entrepreneur.com/marketing.

(8))

GET SOME CREDIT. The mortgage market is starting to thaw, and that’s good news for small-business owners who can tap their home equity for working capital. Iff you have good credit and some equity in your house, now may be the time to refinance before interest rates rise. Be sure your credit score is solid and that your business shows positive cash flow before you start shopping

for deals. You won’t get the loan unless your bank is convinced you can cover the monthly payments. “Banks are willing to provide credit but are still very selective,” says Case Western’s Shane. “Financials help a lot right now.”

((9))

FIRE UP YOUR EMPLOYEES.

Think aboutt creating a bonus plan to motivate employees to hitt your 2011 goals. Bonuses, while nott always successful, says Rich Armstrong, president off The Greatt Game off Business Inc., can help focus your staff’s attention on key metrics such as sales, profits, productivity y and customer satisfaction. Armstrong’s Springfield, Mo., firm provides training in the open-book managementt philosophy, which advocates sharing financial and operational information with employees so thatt they y can make better decisions, and itt gives them a stake in the company’s success. “Your people must clearly understand the goal, the improvements that are needed, how they can make a difference and what they stand to gain,” he says. “Bonus-plan success will have everything to do with how well you communicate, educate and encourage your people to stay in the game and reach for the goal.” A bonus plan can work in all types off businesses, including manufacturing, sales, even restaurants. Goals can be tied to easy-to-measure numbers such as revenues, new business volume or gross margin. There’s more about open-book management practices on

The Great Game off Business website, greatgame.com.

((10))

TEAM UP. Working with “channel partners”—companies that target the same market but with products or services different from yours—can be an ultra-efficient marketing strategy. They’ve already spent the time and money to attract the customers you want, and you can piggyback on those efforts. Naturally, your partners are going to want reciprocal benefits. Vinelli, the business coach, says, “Set aside time each week to brainstorm new ways to create added value to your relationships, fostering more referrals and new partnerships.” Anne Maxfield, chieff visionary officer and founder off Accidental Locavore, a new-media venture in New York that demystifies farmers markets for shoppers, is partnering with companies that appeal to foodand health-conscious consumers. She’s pitching a show to the Food Network and forging alliances with NYCH2O, a New York bottled-water company, and EcoPlum, a website selling green products. “Our success in 2011 will come from partnerships [with companies] that consumers believe in and trust,” she says. ROSALIND RESNICK IS THE FOUNDER AND CEO OF AXXESS BUSINESS CONSULTING, A NEW YORK CONSULTING FIRM THAT ADVISES STARTUPS AND SMALL BUSINESSES.

Vol. 38, No. 12. Entrepreneur (ISSN 0163-3341) is published monthly by Entrepreneur Media Inc., 2445 McCabe Way, #400, Irvine, CA 92614. Periodical postage paid at Irvine, CA, and at additional mailing offices. POSTMASTER: Send address changes to Entrepreneur, P.O. Box 6136, Harlan, IA 51593-1636. One year subscription rates in U.S.: $19.97; in Canada: $39.97; all other countries: $39.97; payable in U.S. funds only. Please mail all subscription orders and changes to Entrepreneur, Subscription Department, P.O. Box 6136, Harlan, IA 51593-1636, or call (800) 274-6229 or (515) 362-7461, or log on to entrepreneur.com. For change of address, please give both old and new addresses and include most recent mailing label. 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 it is suggested that the prospective investors consult their attorneys and/or financial professionals. Entrepreneur is sold 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 Media Inc., nor any of its employees accept any responsibility whatsoever for their activities. Advertising Sales (949) 261-2325. Entrepreneur is printed in the USA and all rights are reserved. ©2010 by Entrepreneur Media Inc. 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. 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Editor-in-Chief: Amy Cosper, 2445 McCabe Way, #400, Irvine, CA 92614. Managing Editor: Michalene Busico, 2445 McCabe Way, #400, Irvine, CA 92614. 10) Owner: Entrepreneur Media Inc., 2445 McCabe Way, Irvine, CA 92614. Peter J. Shea, 2445 McCabe Way, Irvine, CA 92614. 11) Known Bondholders, Mortgagees, and Other Security Holders Owning or Holding 1 Percent or More of Total T Amount of Bonds, Mortgages or Other Securities: None. 12) Tax T Status: The purpose, function, and nonprofit status of this organization and the exempt status for federal income tax purposes: Has not changed during preceding 12 months. 13) Publication Title: Entrepreneur. 14) Issue Date for Circulation Data: July 2010. 15) Extent and Nature of Circulation (Average No. Copies Each Issue During Preceding 12 Months). A. Total T Number of Copies (Net Press Run): 723,226; B. Paid Circulation: 1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541: 531,234; 3) Paid Distribution Outside the Mails Including Sales Through Dealers and Carriers, Street Vendors, Counter Sales, and other Paid Distribution Outside USPS: 35,254; C. Total T Paid Distribution (Sum of 15B-1 and 15B-3): 566,488; D. Free or Nominal Rate Distribution: 1) Free or Nominal Rate Outside-County Copies Included on PS Form 3541: 33,494; 4) Free or Nominal Rate Distribution Outside the Mail: 10,587; E. Total T Free or Nominal Rate Distribution (Sum of 15D-1 and 15D-4): 44,081; F. Total T Distribution (Sum of 15C and 15E): 610,569; G. Copies Not Distributed: 112,567; H. Total T (Sum of 15F and 15G): 723,226; Percent Paid (15C/15F x 100): 92.78%. (No. Copies of Single Issue Published Nearest to Filing Date): A. T Total No. Copies (Net Press Run): 713,615; B. Paid Circulation: 1) Mailed Outside-County Paid Subscriptions Stated on PS Form 3541: 527,336; 3) Paid Distribution Outside the Mails Including Sales Through Dealers and Carriers, Street Vendors, Counter Sales and Other Paid Distribution Outside USPS: 33,634; C. Total T Paid Distribution (Sum of 15B-1 and 15B-3): 560,970; D. Free or Nominal Rate Distribution: 1) Free or Nominal Rate Outside-County Copies Included on PS Form 3541: 34,345; 4) Free or Nominal Rate Distribution Outside the Mail: 18,787; E. Total T Free or Nominal Rate Distribution (Sum of 15D-1 T Distribution (Sum of 15C and 15E): 614,102; G. Copies Not Distributed: 99,513; H. Total T (Sum of 15F and 15G): 713,615. I. Percent Paid (15C/15F x 100): 91.35%. 16) Publication of and 15D-4): 53,132; F. Total Statement of Ownership: Publication required. Will be printed in the December 2010 issue of this publication. 17) I certify that all information furnished on this form is true and complete. I understand that anyone who furnishes false or misleading information on this form or who omits material or information requested on the form may be subject to criminal sanctions (including fines and imprisonment) and/or civil sanctions (including civil penalties). Ryan Shea, Publisher

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includes the book, Kids d in Business Around the Worldd, as well as the popular kid business stand. The book offers fun content, and step by step instructions for starting a variety of kid businesses. (Voted #1 business book for kids, tweens and teens!) The business stand is a place to operate their business and includes dry erase/magnetic banner areas, lockable money drawer, built-in calculator, and wheels for mobility. No tools needed for assembly. Kids can choose a business blueprint in the book, design their own business stand and launch their first company!

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Here’s the

Expensive day spas are being pummeled by the recession—but FRANCHISED SPAS AND

MASSAGE CENTERS ARE GROWING FAST

by offering a full range off services and styles at a much better price BY JASON DALEY

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D

uck k into anyy downtown dayy spaa orr destination resortt and d thee Enya mightt seem m to echo a littlee moree loudlyy than usual. That’s because, according g to thee Internationall Spaa Association, America’s appetitee forr blueberry pore-refiningg facials, seaweed d bodyy wraps, reflexology y and d hott stonee massages has been n a casualty y off thee recession. Afterr a decadee off unprecedented d growth, and da couplee off stellarr years—spaa visits jumped byy nearlyy 16 percentt in n 2008 alone—the industry y was hitt hard, losingg 10 percentt of its business in n 2009 and d 5 million n square feett off reall estatee between n mid d 2009 and 2010. “We’ree thee industryy that’s firstt to feell a recession n and d thee lastt to recover,” says Hanneloree Leavy, chairwoman n off the Dayy Spaa Association n advisoryy board. “Spa services aree stilll a luxuryy and d nott absolutelyy necessary. Peoplee tend d to hold d back.” But a closer look shows that Americans haven’t quite suppressed their penchant for pampering. While destination and upscale day spas have taken a brutal waxing, the relatively new franchised massage and dayspa sector has been busy keeping the nation rubbed down and exfoliated. Franchised spas, which include more than a dozen concepts, with more being launched each month, have refined their business model over the last few years and picked up a huge base off cost-conscious consumers. Most

Massage is now considered a routine part of wellness. companies are reporting double-digit growth in sales, huge increases in new franchises and big upticks in repeat visits. Most off the franchise concepts have positioned themselves for exponential growth when credit markets finally loosen up. It’s tempting to think that these lower-cost services are doing well at the expense off pricier spas, but the truth is a little more complicated. Spa culture has seeped into mainstream America in the past 20 years. What was almost a taboo service, massage today is considered a routine part of sports and wellness. In fact, a September study sponsored by the National

Institutes off Health found that even a single massage has positive biological effects, which include lower levels off stress hormones, boosts to the immune system and increases in a hormone associated with contentment. Meanwhile, beauty treatments, once the domain off elites, now are standard at day spas and midpriced resorts, which perform body wraps by the millions. The new spa franchises, Leavy notes, haven’t cannibalized day and resort spas; they’re acting as spa service evangelists. “We’ve always wanted to bring spa services to the common person and tell them they’re not for the rich and famous like in the ’70s and ’80s,” she says. “And we’ve succeeded—awareness off spa services for health and well-being has grown tremendously. Franchises like Massage Envy make it affordable, and eventually clients will want to go to a real day spa or destination spa. These franchises are breeding a spa lifestyle.” And the franchised day spas give consumers a wide choice off services and styles, including full-service day spas, massage-focused chains, even a youth-oriented fully automated spa that does away with aestheticians and massage therapists altogether. The reigning queen off spa franchises—the one that direct competitors call the market pioneer—is Massage Envy, which has 634 locations and

to spa franchises WOODHOUSE DAY SPA Number of units: 26 Location: Texas, Colorado, Florida and Midwest Profile: A downtown day spa in your neighborhood— well, at least somewhere with free parking Signature service: The Four-Handed Massage. Two therapists spend 80 minutes on this intense rubdown that includes reflexology and a scalp massage ($200)

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MASSAGE ENVY Number of units: 634 Location: Nationwide Profile: The McDonald’s of massage—the biggest and first, setting a high standard for the industry Signature service: The 50-minute “Customized Massage”; walk-ins welcomed ($49 to $59) HAND AND STONE MASSAGE AND FACIAL SPA Number of units: 34 Location: East and West

coasts, plus Wisconsin, Arizona and Colorado Profile: Like a high-end spa, but with a 40 percentoff coupon—if that spa was in a strip mall Signature service: The e 50-minute e hott stone e massage e ($59) ELEMENTS THERAPEUTIC MASSAGE Number of units: 80 Location: Nationwide Profile: Nothing but massage, with you and yourr therapist determining its pressure,

length and intensity Signature service: The 55-minute full-body rubdown ($60 to $80) PLANET BEACH CONTEMPO SPA Number of units: 300-plus Location: Worldwide Profile: A spa to the future— a bevy off (slightly scary) high-tech machines take care off your pampering Signature service: Mystic Tan spray booth ($99 monthly unlimited use)

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more than 800,000 monthly members. When it opened in 2002, the Scottsdale, Ariz.-based franchise focused solely on massage therapy, but during the last year, Massage Envy, and most other spa franchises, have added services like Murad Rapid Exfoliator Anti-Aging Facial ($59 to $69) and the Clarifying Enzyme Acne Facial ($59 to $69). The facilities aren’t as opulent as a destination spa, but cost and convenience are the attractions. “Customers feell we’ree delivering g service comparablee in n quality y to otherr dayy spas forr halff orr a third d off thee price,” says David Humphrey, CEO off Massagee Envy. “They lovee thee convenience. Iff you u havee a chron114 E Entrepreneur ntrepreneur trepreneu

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icc back k problem m orr overdid d itt exercising orr havee a tremendous tension n headache, you u don’tt wantt to calll a dayy spaa and d make an n appointmentt forr 4 in n thee afternoon nextt Wednesday. You u wantt to go now w or tonight. That’s whatt wee offer.” Mark Siebert, CEO off the iFranchise Group, says Massage Envy’s influence on the industryy can’tt be understated. “The success off Massage Envy y has had a halo effectt on other competitors—a rising tide lifts all boats,” he says. “For example, we’re seeing some companies getting into this with more high-end offerings. It’s like the earlyy days off fast food. Later we saw w the spinofff off fastcasual. Massage Envy y was a product

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Customers “love e the convenience” off franchised spas.. Walkins OK. for the masses. Now w we’re seeing more upscale full-service spas.” The main player on the high end is Woodhouse Day Spa, a full-service day spa franchise in Victoria, Texas, with 26 locations. “We like to call ourselves a destination spa in your back yard,” says Jeni Garrett, CEO and founder off Woodhouse, which opened in 2001 and will move into Mexico and India in the next year. The spas, an average 4,500 square feet in size, offer deep tissue massages ($70 to $110), seaweed wraps ($90 to $170) and facials ($70 to $100), all based on Ayurvedic medicine. It seems like a gamble in a sector dominated by discount services, but so far the franchise has a customer retention rate off 80 percent and client visits jumped 29 percent in 2009. Despite the upscale offerings, Garrett insists that Woodhouse is not a substitute for the destination spas that built the industry. “Those guests who go to destination spas go to Woodhouse spas. We’re the only comparable offering they can go to on a regular basis,” she says. “We complement and reinforce what destination spas do for our clients.” Woodhouse is the only high-end day spa franchise, though there are a few nascent competitors in the offing. But spas in the middle ground are proliferating—and fighting to distinguish themselves. Elements Therapeutic Massage, based in Highlands Ranch, Colo. and offered by the group that created Fitness Together, is differen-

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tiating its 80 locations by focusing on massage. “Iff you think about our competitors, they have become a more reasonable version off going to day spa. Massage Envy is now focusing on putting plumbing and sinks and aestheticians in their studios to do facial-type services,” says Elements CEO Jeff Jervik. “I think that’s good that they’re trying to find other sources off revenue, but what it does do is take your eye offf your core competencies. What we focus on is true therapeutic massage. We specialize in providing massage that is tailored to individual clients and their needs.” Hand and Stone Massage and Facial Spa—off Hamilton, N.J., with 34 spas and 14 more slated to open by February—is taking the opposite tack. “We very consciously fall above the massage clinic concept,” says CEO Todd Leff, former president and CEO off AAMCO Transmission. He plans to open 30 to 40 units per year until Hand and Stone reaches 250 to 300 stores. “Our goal is to ri-

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val the look and feel off the high-end day spa at a price 30 to 40 percent less in a retail shopping environment. Our goal is to create a demand in the middle market, attracting folks with no spa experience or people who have done it at a resort.”

Planet Beach was one off the largest tanning franchises in the country, but noticing the increasing drumbeat against UV tanning five years ago, the 300-plus-location concept began slowly converting its tanning operations into fully automated Contempo

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Spas. For a $99 monthly membership fee, Planet Beach clients have unlimited use off services such as a Mystic Tan spray tan booth and a gallery off futuristic gadgets like a hydromassage bed, luminous facial machine, teeth-whitening light and a sauna capsule. Now two-thirds of their units are fully automated. Steve Smith, CEO and founder of Planet Beach, says his Marrero, La., company has found a sweet spot. “A little over a year ago, a Massage Envy moved in right next to the store I own,” he says. “Our concepts are so different, it was like they never moved in. The price we charge for complete access is cheap compared to even lower-priced franchises like Massage Envy, and way less than traditional day spas.” Indeed, when n his firstt 20 stores changed overr to thee Contempo Spaa model, quarterlyy revenues jumped d 47 7 percent. Of course, everyone is wondering what the future of this sector looks like. With so many concepts grow-

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ing so rapidly, it’s hard to imagine that they won’t reach saturation relatively quickly. Hand and Stone’s Lefff says there will be an inevitable shakeout. “This industry didn’t exist five years ago in franchising and I think two or three winners will emerge. The rest will fall away,” he says. Naturally, he predicts his concept will survive. “I think we will be a second, very clear alternative brand to Massage Envy.” Edith Wiseman, vice president of client solutions for industry analyst FranData, doesn’t see the concepts going bust soon. “All indications show there is continued growth, not as quick as in 2007-2008, off course, but the concepts are experiencing growth. They’re discontinuing 3 percent to 5 percent off units, which is less than some other industries are experiencing,” she says. “Consumers are still excited about these concepts.” Siebert off iFranchise expects the sector to diverge into even more

niches. “What we typically see is that franchising follows a pattern. Someone comes out with a unique idea that they popularize, then we see other people putting their own spin on them or specializing,” he says. “It’s harder to be a knockoff than doing something unique.” Whatever companies come out on top, it’s likely that the low-cost spa and franchise model in general is going to be a long-term winner. “That groundwork has been laid,” says Humphrey off Massage Envy. “In the past, health meant the absence of disease. Now people recognize health has an emotional component, and the two go hand and hand. Until people developed that awareness, massage was viewed as a fluffy luxury. We didn’t understand the genuine wellness benefits and real physiological health issues. Now we’re definitely in the mainstream.” JASON DALEY IS A FREELANCE WRITER IN MADISON, WIS.

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10 TOP

TRENDS FOR 2011

CHILD CARE

Parents are busier than ever—and drawn to child care that combines education and enrichment programs.

PHOTO© ISTOCKPHOTO.COM/STANDH ARTINGER

A+ Nannies Inc. Nanny/baby-sitter placement services aplusnanniesinc.com (480)699-7558 Total cost: $40.3K-55.6K Total franchises: 2 Company-owned: 3 Adventure Kids Playcare Child-care & entertainment center adventurekidsplaycare.com (214)277-9948 Total cost: $228.5K-453.8K Total franchises: 8 Company-owned: 1 Childrens Lighthouse Franchising Co. Child-care services

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childrenslighthouse.com (888)338-4466 Total cost: $1.9M-3.1M Total franchises: 19 Company-owned: 9 Discovery Point Franchising Inc. Child-care center discoverypoint.com (770)622-2112 Total cost: $365.2K-419.6K Total franchises: 58 Company-owned: 0 Goddard Systems Inc. Preschool/educational child care goddardschool.com (800)272-4901 Total cost: $632.3K-679.6K Total franchises: 364 Company-owned: 0 The Growing Room Franchising System Child-development center growingroomusa.com (706)596-1510

T

he future of franchising is looking bright: In September, the U.S. Census Bureau reported that 10.5 percent of all businesses with paid employees were franchises in 2007, the latest data year, and that they generated a staggering $1.3 trillion in annual sales. Where is franchising headed next? We’ve identified 10 categories as the industries to watch in 2011. Whether they’re services that people can’t afford to live without, such as child care and healthcare, or luxuries made more affordable through franchising, like fitness and spa services, these are the businesses that kept growing strong right through the recession and, now that it’s over, show no signs of slowing. This list is not a ranking and is not intended to endorse any specific franchise. Look at it instead as just a first step toward your own careful research, which should include reading the company’s literature and legal documents, consulting with an attorney and an accountant, and talking to current and former franchisees to find out if an opportunity is right for you. —TRACY STAPP

Total cost: $490.7K-2.2M Total franchises: 5 Company-owned: 5 Kiddie Academy Child-care learning center kiddieacademy.com (410)515-6079 Total cost: $345K-627K Total franchises: 103 Company-owned: 4 KLA Schools Preschool/child-care center klaschoolsfranchise.com (305)377-0391 Total cost: $466.5K-1.5M Total franchises: 0 Company-owned: 2 The Learning Experience Child-care services thelearningexperience.com (561)886-6400 Total cost: $462.8K-3.5M Total franchises: 79 Company-owned: 16

Primrose School Franchising Co. Educational child-care facility primroseschools.com (800)774-6767 Total cost: $607.1K-3.9M Total franchises: 212 Company-owned: 1 Rainbow Station Inc. Preschool, after-school recreation, care for mildly ill children rainbowstation.org (888)716-1717 Total cost: $1.4M-3.3M Total franchises: 5 Company-owned: 4 SeekingSitters Franchise System Inc. Baby-sitting referral service seekingsitters.com (918)749-3588 Total cost: $44.2K-70K Total franchises: 45 Company-owned: 5

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franchise FITNESS

Spending on fitness is up. And fitness franchises offer a full range off options—big or small gyms, programs for women, boxing classes, dance fitness, personal training and more.

Anytime Fitness Fitness center anytimefitness.com (800)704-5004 Total cost: $44K-300K Total franchises: 1,358 Company-owned: 13 CKO Kickboxing Kickboxing fitness classes ckokickboxing.com (201)963-7774 Total cost: $97.9K-306.9K Total franchises: 13 Company-owned: 7 Crunch Franchising LLC Fitness center crunchfranchise.com (800)669-7162 Total cost: $304.5K-1.3M Total franchises: 6 Company-owned: 0 Curves Women’s fitness & weightloss center buycurves.com (800)848-1096 Total cost: $24.99K-39.6K Total franchises: 8,119 Company-owned: 0 Elements Diet & Fitness Fitness, diet & lifestyle club for women joinelements.com (305)535-1525 Total cost: $75K-784.4K Total franchises: 9 Company-owned: 14 Fitness Together Personal fitness training

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fitnesstogether.com (877)663-0880 Total cost: $140.5K-253.9K Total franchises: 336 Company-owned: 0 Get In Shape For Women Small-group personal training for women getinshapeforwomen.com (781)444-1913 Total cost: $26.96K-178.9K Total franchises: 44 Company-owned: 2 Gold's Gym Gym & fitness center goldsgym.com (214)574-4653 Total cost: $531.1K-3.9M Total franchises: 655 Company-owned: 63 Jazzercise Inc. Dance fitness classes jazzercise.com (760)476-1750 Total cost: $2.98K-75.5K Total franchises: 8,009 Company-owned: 2 Koko FitClub LLC Health club/fitness studio kokofitclub.com (877)565-6348 Total cost: $97.5K-208.4K Total franchises: 17 Company-owned: 1 LA Boxing Franchise Corp. Fitness, boxing & kickboxing classes laboxing.com (866)522-6946 Total cost: $174.95K-196.2K Total franchises: 120 Company-owned: 0 My Personal Trainer Fitness mypersonaltrainerinc.com (888)733-0032 Total cost: $68.2K-146.3K Total franchises: 0 Company-owned: 4

Personal Training Institute Nutritional counseling & personal training ptifranchise.com (516)342-9064 Total cost: $112.1K-221.5K Total franchises: 24 Company-owned: 0 Planet Fitness Fitness club planetfitness.com (603)750-0001 Total cost: $530.1K-1.4M Total franchises: 336 Company-owned: 17 Prime Time Boxing Boxing fitness programs primetimeboxing.com (916)927-2697 Total cost: $119.6K-149.3K Total franchises: 1 Company-owned: 2 Retro Fitness LLC Health club retrofitness.net (732)431-0062 Total cost: $641.8K-1.5M Total franchises: 60 Company-owned: 0 Slim & Fit Franchise LLC Weight-loss & fitness programs slimandfit.com (440)352-4300 Total cost: $56.1K-132.5K Total franchises: 7 Company-owned: 2 Snap Fitness Inc. 24-hour fitness center snapfitness.com (877)474-5422 Total cost: $79.4K-195.8K Total franchises: 1,056 Company-owned: 25 Thrive Community Fitness Fitness center/health club thrivecf.com (425)947-0990 Total cost: $140K-750K Total franchises: 4 Company-owned: 4

GREEN

Companies doing their part to save the planet—and often saving money as well—are gaining ground with the eco-conscious and cashstrapped alike.

Clean Air Lawn Care Eco-friendly lawn care cleanairlawncare.com (888)969-3669 Total cost: $60.9K-117.8K Total franchises: 25 Company-owned: 6 EcoMaids Eco-friendly residential cleaning ecomaids.com (888)989-6243 Total cost: $39.9K-101.7K Total franchises: 21 Company-owned: 1 The Green Mop Franchise Co. Eco-friendly residential & commercial cleaning greenmopfranchise.com (703)508-8082 Total cost: $52.6K-84.9K Total franchises: 1 Company-owned: 1 Oxi Fresh Franchising Co. Eco-friendly carpet cleaning oxifresh.com (877)694-3737 Total cost: $33.5K-55.95K Total franchises: 197 Company-owned: 4 Pizza Fusion All-natural pizza, sandwiches, salads pizzafusion.com (954)202-1919 Total cost: $325K-584K Total franchises: 28 Company-owned: 3 Pro Energy Consultants Home performance & energy audits

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CPR R® RESUSCITATES S YOUR BROKEN GADGETS By: Bradley y Broom “I was tired of working for the man” says 39 year old Bob Guess. “I needed a change from the everyday repetition at my desk job, I wanted to become an entrepreneur. Even when I returned home from work at 7:30pm, I couldn’t spend time with my family because I always had more work on my plate to bring home with me.” Bob, a father of two young children, was looking for a change of pace in the workforce. He was seeking a job that would allow him more control, more flexibility and a better paycheck. “Don’t get me wrong, I still spend my y fairr share off time at work k these days, but the difference is that I can actually y enjoy y what I do ratherr than just going through the motions to earn a paycheck,” stated Guess. Two years ago, Bob entered the franchise system of CPR®-Cell Phone Repair, a company started in 1994 in Orlando which has now grown into the largest and most trusted name in the cellular repair world. With more than 60 locations operating throughout North America, CPR® offers comprehensive repair services on all forms of personal electronic devices including: • Cell Phones • iPods, iPads, iPhones • Game Systems like Xbox 360 and PS3 • GPS units • Laptops • Digital Cameras

“It feels great to be able to run a successful business and oversee the operations from start to finish. When my customers walk through the door they are usually distraught because they can’t make phone calls, can’t retrieve important phone numbers and basically can’t go on with their everyday life because their cell phone is broken. I can always see the relief and happiness in their eyes when we have repaired their phone back to working condition in a mere 30 minutes and they can resume their technology-reliant lives.” Having added 24 new locations in 2010, the CPR® franchise system is growing by more than 200% year-over-year. CPR® operates with a while-youwait service philosophy; CPR® has the on-site expertise to repair nearly all problems on all makes and models of cell phones, and usually in under an hour. Founded by wireless industry veteran Jeremy Kwaterski, and offering franchises since 2008, CPR® offers a turn-key franchise model including: a low cost of entry; real estate site selection and lease negotiations service; a 30-day onsite training program, that covers all aspects of operating a CPR® location; on-going support via telephone, webinars and private systemwide portal; a purchasing cooperative designed to leverage the scale of the system; and a comprehensive parts and merchandise supply chain accessible through a private and secure online store. While primarily a repair service business, CPR® franchisees are also able to employ a buy/sell/ trade retailing model, oftentimes acquiring used phones and reselling refurbished devices along with accessories for all categories of personal electronic devices dramatically enhancing the operating margins for the stores.

For information on joining j g this exciting g franchise call CPR® @ 1-877-856-5101 and ask k for francise information. O visit Or i it their th i web b site it att www.CPR-Franchise.com.

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franchise proenergyconsultants.com (888)977-6363 Total cost: $45K Total franchises: 60 Company-owned: 1 Solar Universe Solar panel sales & installation solaruniverse.com (925)455-4700 Total cost: $93K-196.3K Total franchises: 17 Company-owned: 0 Splish Franchise Systems LLC Eco-friendly hair salon mysplish.com (970)389-5473 Total cost: $265.5K-496.5K Total franchises: 0 Company-owned: 1

HEALTH SERVICES

It may be a subject of much debate in the political world, but in the franchise world healthcare is just good business. Take note: A number off opportunities aimed at physician franchisees have sprung up in recent years.

Doctors Express Urgent-care services doctorsexpressfranchise.com (410)296-7515 Total cost: $508.5K-693K Total franchises: 10 Company-owned: 1

HealthSource Chiropractic and Progressive Rehab Chiropractic, nutrition & weight-loss services healthsourcechiro.com (440)967-5458 Total cost: $52.95K-249.8K Total franchises: 269 Company-owned: 0 Hungry Heart Franchise LLC Nutritional counseling & hypnotherapy hungryheart.org (877)486-4797 Total cost: $43K-57K Total franchises: 10 Company-owned: 0 Medi-Weightloss Franchising USA LLC Physician-supervised weight-loss program mediweightlossclinics.com

(813)228-6334 Total cost: $224.5K-468.5K Total franchises: 78 Company-owned: 0 Miracle-Ear Inc. Hearing instruments miracle-ear.com (763)268-4000 Total cost: $122.5K-570K Total franchises: 1,301 Company-owned: 27 Passport Health Inc. Immunization/vaccination service for international travelers passporthealthusa.com (410)727-0556 Total cost: $63.6K-166.5K Total franchises: 70 Company-owned: 0

NOW IS TH E TIME TO ® CONSI D ER KID D IE AC A D EM Y The Kiddie Academy opportunity offers our franchisees the ability to support their total lifestyle. • Balance – Hours of operation allow you balance between work and family • Fulfillment – Achieve personal and professional goals while providing a valuable service to families in your community • Independence – Maintain control over your career and future • Confidence – A franchisor who has pioneered and led an industry for decades

To discover more about Kiddie Academy® and determine if our franchise is right for you, call 800.554.3343 or visit kiddieacademy.com.

WIT H K I D D I E A C A D E M Y, Y O U D O N’ T H AV E TO C O M P R O M I S E . 122 E Entrepreneur ntrepreneur trepreneu

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Pearle Vision Eyecare center pearlevisionfranchise.com (800)732-7531 Total cost: $42.2K-628.6K Total franchises: 362 Company-owned: 378 Pounds and Inches Away Weight-loss program poundsandinchesaway.com (636)922-2282 Total cost: $39.6K-97K Total franchises: 4 Company-owned: 2 Spinal Aid Centers of America Spinal decompression therapy spinalaid.com (877)456-9222 Total cost: $111.5K-178.4K Total franchises: 165 Company-owned: 0

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MOVING & STORAGE SERVICES

Americans move, on average, every y five e years, and with the e economy y starting to recover, moving and storage e businesses can expect theirr services to be in even more e demand.

Box Galaxy Moving & shipping supplies & services boxgalaxy.com (619)287-4090 Total cost: $64K-84.5K Total franchises: 2 Company-owned: 1

Move It Now Moving services & storage moveitnowusa.com (866)466-8348 Total cost: $83.1K-324.4K Total franchises: 6 Company-owned: 0 Two Men and a Truck Int'l. Inc. Moving services twomenandatruck.com (800)345-1070 Total cost: $158K-430.9K Total franchises: 200 Company-owned: 1 Units Franchise Group Inc. Mobile self-storage units unitsstorage.com (843)884-5221 Total cost: $154K-442.8K Total franchises: 21 Company-owned: 3

Zippy Shell Mobile Self Storage Mobile selff storage zippyshell.com (240)790-0290 Total cost: $734.7K-1.1M Total franchises: 4 Company-owned: 0

PETS

Spending on pets in the U.S. has increased year after year—to an estimated $47.7 billion in 2010—and that trend shows no sign off ending. No surprise: Pet franchises continue to grow.

Adventure Pet Pet care adventurepet.com (775)742-7295

Caf Cafe C afe af f U N C O M M O N LY G O O D F O O D

A FRESH

FRANCHISE OPPORTUNITY! Spicyy Pickle ha has earned a reputati tion for se erving g delicio ouss culina ary r inspired food for co onssumerss looking g for f someth ething fresh and unique. Operating g in n the g gro rowing fastt casual cat ateegory, we prrovide a “tw two in on ne” business opportunityy suppo portting g rettail and d cateri ring. g. We are looking for franc nch hisees who havee earned d a similarr reputation forr succ ccess in their homet etowns an nd are are looking g forr a gre greatt o opportun nity. With incr creased cons nsumerr d deman nd fforr healthie hierr foods a and prem mium ingred dien ients ts, th the fast-casu ual dining g in ndustry y is on fire with more than 300 bra brands fuelin ng a new restaura rant explosion.

Call today: 1-800-711-1902 www.spicypickle.com

© 201 2010 Spicy 2010 S y Pickle Franchising Inc..

Entrepreneur E ntrepreneur trepreneu

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December 2010

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franchise Total cost: $10.7K-$14.3K Total franchises: 2 Company-owned: 1 Aussie Pet Mobile Mobile pet grooming aussiepetmobile.com (949)234-0680 Total cost: $97.5K-114.2K Total franchises: 263 Company-owned: 0 Bark Busters Home Dog Training In-home dog training barkbusters.com (877)300-2275 Total cost: $69.1K-97.1K Total franchises: 364 Company-owned: 4 Camp Bow Wow/Home Buddies Dog day care & in-home pet-care services campbowwow.com (877)700-2275 Total cost: $30K-831K Total franchises: 134 Company-owned: 1 Central Bark Doggy Day Care Dog day care centralbarkusa.com (866)799-2275 Total cost: $213K-395K Total franchises: 25 Company-owned: 3 Dogtopia Dogg day y care,, boarding,, spa a services dogdaycare.com (888)364-8674 Total cost: $242.8K-458.3K Total franchises: 20 Company-owned: 3 DoodyCalls Pet-waste removal doodycalls.com (800)366-3922 Total cost: $44.7K-71.9K Total franchises: 46 Company-owned: 9 Fetch! Pet Care Inc. Pet-sitting g & dog-walking g services fetchpetcare.com (866)338-2463 Total cost: $25.9K-39.5K 124 Entrepreneur

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December 2010

Total franchises: 200 Company-owned: 5

Total franchises: 19 Company-owned: 0

In Home Pet Services Inc. Pet-sitting g & dog-walking g services inhomepetservices.com/franchise (718)347-7387 Total cost: $7.2K-31.1K Total franchises: 3 Company-owned: 1

Preppy Pet Pet boarding, day care & grooming preppypet.com (407)420-1060 Total cost: $127.8K-251K Total franchises: 13 Company-owned: 1

Palm Beach Puppies Puppies & pet supplies palmbeachpuppies.com (561)488-5757 Total cost: $178.4K-236.1K Total franchises: 2 Company-owned: 4 PawSpa Resort Pet boarding, day care, grooming, training & products pawsparesort.com (970)262-9373 Total cost: $123.5K-3.6M Total franchises: 0 Company-owned: 2 Pet Butler Pet-waste cleanup & removal petbutler.com (800)738-2885 Total cost: $38K-65.9K Total franchises: 41 Company-owned: 0 Pet Supplies Plus Pet supplies & services petsuppliesplus.com (866)477-7748 Total cost: $500K-600K Total franchises: 239 Company-owned: 0 Petland Full-service pet store petland.com (800)221-5935 Total cost: $299K-1M Total franchises: 159 Company-owned: 4 Pets Are Inn Pet-lodging service in private homes petsareinn.com (866)343-0086 Total cost: $49.95K-75.2K

Wag-A-Lot Dog day care, boarding, grooming & products wagalot.com (678)777-4801 Total cost: $554K-850K Total franchises: 0 Company-owned: 2 Whiskers & Paws Catering Pet-food delivery service whiskersandpawscatering.com (877)644-5322 Total cost: $25.5K-95K Total franchises: 0 Company-owned: 2 Wild Birds Unlimited Bird-feeding supplies & nature gift items wbu.com (888)730-7108 Total cost: $92.2K-140.7K Total franchises: 272 Company-owned: 0 Zoom Room Dog Agility Dog training, canine event center, indoor dog park zoomroomonline.com (877)966-6766 Total cost: $95.2K-171.2K Total franchises: 4 Company-owned: 1

SANDWICHES

From $5 Footlongs to gourmet grinders, sandwiches are giving burgers some serious competition for America’s favorite fast food.

Arby’s Roastt beef, chicken, sandwiches, salads, fries, shakes arbys.com (800)487-2729 Total cost: $365K-2.4M Total franchises: 2,529 Company-owned: 1,150 Blimpie Subs & Salads Submarine sandwiches & salads kahalamgmt.com (480)362-4800 Total cost: $145.9K-397.8K Total franchises: 919 Company-owned: 0 Capriotti’s Sandwich Shop Inc. Submarine sandwiches capriottis.com (702)736-3878 Total cost: $201K-431.5K Total franchises: 61 Company-owned: 2 Charley’s Grilled Subs Philly cheesesteaks, grilled subs, fries, salads charleys.com (800)437-8325 Total cost: $103K-432.8K Total franchises: 379 Company-owned: 30 Cheba Hut Toasted Subs Toasted sandwiches, salads & munchies chebahut.com (970)484-2007 Total cost: $149.5K-299.5K Total franchises: 13 Company-owned: 0 Cousins Subs Hot/cold subs, salads, soups, desserts cousinssubs.com (800)238-9736 Total cost: $101.7K-295.8K Total franchises: 134 Company-owned: 16 Extreme Pita Pita wrap sandwiches, pizzas, salads, smoothies extremepita.com (888)729-7482 Total cost: $156.5K-371.96K

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Pump up your portfolio with a partner who helps you with the heavy lifting. Take control of your financial future and partner with Snap Fitness, the world’s fastest-growing fitness franchise! s4URNKEYBUSINESSMODELALLOWSFORSEMI ABSENTEEOWNERSHIP s/VER LOCATIONSWORLDWIDE s,OWINITIALINVESTMENT s&INANCINGAVAILABLE

Request our free, no-obligation Introductory Kit today!

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franchise Total franchises: 224 Company-owned: 2 Firehouse Subs Submarine sandwiches firehousesubs.com (904)886-8300 Total cost: $188.3K-412K Total franchises: 363 Company-owned: 28 Frullati Cafe & Bakery Sandwiches, salads, soups, fresh baked goods kahalamgmt.com (480)362-4800 Total cost: $150.9K-511.3K Total franchises: 43 Company-owned: 0 The Great Steak & Potato Co. Philly cheesesteak sandwiches, fries, baked potatoes kahalamgmt.com (480)362-4800 Total cost: $153.1K-456K Total franchises: 169 Company-owned: 1 Great Wraps Hot wrapped sandwiches, grilled subs, salads, smoothies greatwraps.com (404)248-9900 Total cost: $145.5K-352.95K Total franchises: 68 Company-owned: 1 Groucho's Deli Subs & salads grouchos.com (803)799-9867 Total cost: $72.7K-310K Total franchises: 22 Company-owned: 1 Jersey Mike’s Subs Submarine sandwiches jerseymikes.com (732)223-4044 Total cost: $150.1K-519.97K Total franchises: 392 Company-owned: 17 Jimmy John’s Gourmet Sandwich Shops Gourmet sandwiches jimmyjohns.com 126 Entrepreneur

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December 2010

(800)546-6904 Total cost: $305.5K-460.5K Total franchises: 1,020 Company-owned: 23 Kolache Factory Bakery cafe selling kolaches kolachefactory.com (281)829-6188 Total cost: $337.3K-464K Total franchises: 17 Company-owned: 21 Larry’s Giant Subs New York-style subs, sandwiches, salads larryssubs.com (800)358-6870 Total cost: $197.5K-305K Total franchises: 65 Company-owned: 5 Lenny’s Sub Shop Philly cheesesteaks & sub sandwiches lennys.com (901)753-4002 Total cost: $216.5K-369K Total franchises: 154 Company-owned: 8 Mr. Goodcents Franchise Systems Inc. Submarine sandwiches, pasta, flatbread pizza mrgoodcents.com (800)648-2368 Total cost: $163.2K-265.5K Total franchises: 100 Company-owned: 1 My Friend’s Place Sandwiches,, salads,, desserts,, catering myfriendsplacedeli.com (770)973-3300 Total cost: $158.5K-262.7K Total franchises: 20 Company-owned: 2 Nature’s Table Cafe Wraps, sandwiches, salads, soups, smoothies, frozen treats naturestable.com (407)481-2544 Total cost: $53.2K-316.1K Total franchises: 76 Company-owned: 2

Penn Station East Coast Subs Specialty sandwiches penn-station.com (513)474-5957 Total cost: $255.9K-451.7K Total franchises: 213 Company-owned: 2

Spicy Pickle Panini, salads, subs, soups, pizzetti spicypickle.com (303)297-1902 Total cost: $328.7K-457.9K Total franchises: 28 Company-owned: 6

Pita Pit Inc. Pita sandwiches pitapitusa.com (208)765-3326 Total cost: $192.6K-318.6K Total franchises: 295 Company-owned: 7

The Steak Escape Grilled sandwiches, baked potatoes, salads steakescape.com (614)224-0300 Total cost: $105K-501.2K Total franchises: 75 Company-owned: 5

Port Of Subs Submarine sandwiches & salads portofsubs.com (800)245-0245 Total cost: $118.3K-310.3K Total franchises: 114 Company-owned: 25 Rollerz Rolled sandwiches, salads, soups, baked goods kahalamgmt.com (480)362-4800 Total cost: $143.4K-441.3K Total franchises: 7 Company-owned: 0 San Francisco Sourdough Eatery Inc. Sourdough sandwiches, salads, soups sfsourdougheatery.com (208)640-3066 Total cost: $139.3K-276K Total franchises: 10 Company-owned: 0 Schlotzsky’s Sandwiches & pizza schlotzskys.com (512)236-3600 Total cost: $473.6K-715.3K Total franchises: 330 Company-owned: 27 Smiling Moose Deli Sandwiches, wraps, soups, salads, breakfast smilingmoosedeli.com (303)530-2700 Total cost: $273K-435K Total franchises: 5 Company-owned: 10

Subway Submarine sandwiches & salads subway.com (800)888-4848 Total cost: $84.3K-258.3K Total franchises: 33,188 Company-owned: 0 Togo’s Franchisor LLC Specialty sandwiches, soups, salads & catering togosfranchise.com (408)280-6569 Total cost: $256.7K-417.3K Total franchises: 238 Company-owned: 2 Which Wich Superior Sandwiches Sandwiches whichwich.com (214)747-9424 Total cost: $185.9K-423.3K Total franchises: 110 Company-owned: 1

SENIOR SERVICES are the world’s fastest-growing population, making services aimed at them—in-home care, financial planning, reading material and so on—a strong bet for success.

Accessible Home Health Care Medical & nonmedical home care & staffing accessiblehhc.com (954)341-5600

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franchise Total cost: $108K-125K Total franchises: 92 Company-owned: 1 Always Best Care Senior Services In-home care & assisted living placement alwaysbestcare.com (888)430-2273 Total cost: $45.2K-71.2K Total franchises: 110 Company-owned: 0 American Prosperity Group (APG) Retirement & estate planning products/services apgfranchise.com (877)885-1274 Total cost: $76K-118.3K Total franchises: 14 Company-owned: 1 Assisting Hands Home Care LLC Nonmedical in-home care assistinghands.com (208)442-7426 Total cost: $66.5K-135K Total franchises: 29 Company-owned: 0

(866)708-9420 Total cost: $38.3K-66.6K Total franchises: 82 Company-owned: 0 ComForcare Senior Services Inc. Nonmedical home-care services comforcarefranchise.com (800)886-4044 Total cost: $80K-115K Total franchises: 150 Company-owned: 1 Comfort Keepers Nonmedical in-home care comfortkeepersfranchise.com (888)329-1368 Total cost: $57K-79.3K Total franchises: 680 Company-owned: 0 Companion Connection Senior Care Medicall & nonmedicall seniorr care companionconnectionseniorcare. com (800)270-6949 Total cost: $21.8K-45.8K Total franchises: 0 Company-owned: 2

BrightStar Care Medical/nonmedical home care & medical staffing brightstarfranchise.com (877)689-6898 Total cost: $90.9K-155.7K Total franchises: 163 Company-owned: 1

FirstLight HomeCare Nonmedical in-home care services firstlightfranchise.com (877)570-0002 Total cost: $49.9K-69.6K Total franchises: 4 Company-owned: 0

CareMinders Home Care Inc. Nonmedical & medical care careminders.com (877)264-6337 Total cost: $75.5K-123.9K Total franchises: 28 Company-owned: 1

Griswold Special Care Nonmedical home-care services griswoldspecialcare.com (215)402-0200 Total cost: $60K-85K Total franchises: 112 Company-owned: 9

Caring Senior Service In-home senior care caringfranchise.com (210)226-6393 Total cost: $58.5K-74.3K Total franchises: 9 Company-owned: 18

Guava Healthcare Inc. Medical/nonmedical home-care services, staffing, transportation guavahomecare.com (888)482-8224 Total cost: $61.95K-127.9K Total franchises: 2 Company-owned: 1

Caring Transitions Saless off estatess & household d goods caringtransitions.net 128 Entrepreneur

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Home Care Assistance Nonmedical in-home

senior-care services franchise.homecareassistance.com (650)462-9501 Total cost: $85K-152.95K Total franchises: 62 Company-owned: 3 Home Health Mates In-home medical & senior care homehealthmates.com (888)278-4645 Total cost: $89.9K-134.4K Total franchises: 5 Company-owned: 0 Home Helpers/Direct Link Nonmedical-care services homehelpers.cc (866)708-8921 Total cost: $47.2K-86.4K Total franchises: 658 Company-owned: 0 Home Instead Senior Care Nonmedical senior-care services homeinstead.com (888)484-5759 Total cost: $89.6K-102.6K Total franchises: 892 Company-owned: 1 Homewatch CareGivers Medical & nonmedical home care, temporary medical staffing, transportation homewatchcaregivers.com/franchise (800)472-2290 Total cost: $58.5K-90K Total franchises: 178 Company-owned: 3 HomeWell Senior Care In-home senior care homewellseniorcare.com (800)354-7553 Total cost: $48.5K-67.5K Total franchises: 33 Company-owned: 1 Preferred Care at Home Senior home care preferhome.com (866)690-7733 Total cost: $57.5K-79.5K Total franchises: 51 Company-owned: 1

Right at Home Inc. Senior home care & medical staffing rightathome.net (877)697-7537 Total cost: $63.6K-99.7K Total franchises: 188 Company-owned: 0 The Senior Financial Center Financial planning services for seniors seniorfinancialcenter.com (516)763-5103 Total cost: $46K-67K Total franchises: 4 Company-owned: 4 Senior Helpers In-home care for seniors seniorhelpers.com (800)760-6389 Total cost: $74.8K-98.8K Total franchises: 285 Company-owned: 1 Senior Magazine Inc. Magazine for seniors yourseniormagazine.com (877)785-4815 Total cost: $44.2K-56K Total franchises: 11 Company-owned: 1 The Senior’s Choice Inc. Nonmedical in-home senior care theseniorschoice.com (888)725-3655 Total cost: $54K-72K Total franchises: 187 Company-owned: 0 Stay at Home Nonmedical in-home care services stayhomeweb.com (865)692-1101 Total cost: $49.9K-69.9K Total franchises: 10 Company-owned: 0 Synergy HomeCare Nonmedical home-care services synergyhomecare.com (480)659-7771 Total cost: $53.3K-115.3K Total franchises: 111 Company-owned: 0

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Keep your job for now, while building a business for your future.

•

Sport Clips is a business opportunity that will not only give you confidence in your future, it’ll also be fun to run, right from the beginning! How many other businesses can say that?

Still more reasons why Sport Clips is a proven winner:

Another reason it’s fun to run is that you don’t even have to be there every day. Our business model calls for you to hire a day to day manager, giving you the freedom to keep your current job for a steady income as the business grows. This is a big plus for obtaining financing as well.

•°Recession resistant and can’t be phased out by advances in technology

• The #1 men’s and boys’ haircutter (a huge under served market) • Fastest-growing concept in the entire $60 billion hair care industry • Stable, all cash business - clients return every 3-4 weeks all year long

•°No prior hair care experience needed - you’re running a business, not cutting hair • Consistently ranked in Entrepreneur's Top 100 and 50 fastest growing •°Proven franchise support system, from site selection through hiring your day to dayy manager •°Now with over 725 locations ocations with prime real estate still ava available Official Haircutter of the VFW

Call Gayle Longmore at 1-800-872-4247, ext 240 or email [email protected] for a virtual brochure Text “OWN” to 77039 now to receive ourr franchi h se infor o ma ation on to yyou ourr pho hon ne ne

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SportClips.com

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franchise Touching Hearts At Home Nonmedical home care for seniors & disabled people touchinghearts.com (877)870-8750 Total cost: $41.8K-62.4K Total franchises: 31 Company-owned: 0

Michelle Lea Massage Therapy Inc. Holistic wellness & healthcare services leamassagetherapy.com (301)475-2200 Total cost: $62.5K-107.6K Total franchises: 0 Company-owned: 1

Visiting Angels Nonmedical in-home senior care livingassistance.com (800)365-4189 Total cost: $52.3K-84K Total franchises: 394 Company-owned: 0

My Massage People Massage services mymassagepeople.com (770)886-3813 Total cost: $46.1K-68.98K Total franchises: 0 Company-owned: 0

SPA SERVICES

Franchises offering luxury on a budget are growing by leaps and bounds as people in need of some pampering seek out deals.

Elements Therapeutic Massage Inc. Therapeutic massage studio touchofelements.com (877)663-0880 Total cost: $159.1K-288K Total franchises: 73 Company-owned: 0 Hand and Stone Massage and Facial Spa Massage & spa services handandstone.com (609)587-9800 Total cost: $292.6K-469.6K Total franchises: 29 Company-owned: 2 Massage Envy Therapeutic massage services massageenvy.com (480)366-4100 Total cost: $300.9K-512.2K Total franchises: 626 Company-owned: 0 Massage Heights Therapeutic massage services & products massageheights.com (210)402-0777 Total cost: $199.3K-433.4K Total franchises: 61 Company-owned: 3 worldmags

On the Go Spa/On the Go Zen Mobile wellness services onthegospainc.com (619)334-3906 Total cost: $92.5K-248.5K Total franchises: 0 Company-owned: 1 Planet Beach Franchising Corp. Spa & UV-treatment services planetbeach.com (888)290-8266 Total cost: $118.5K-410K Total franchises: 325 Company-owned: 1 The Woodhouse Day Spa Day spa services/bath & body retail products woodhousespas.com (877)570-7772 Total cost: $392.8K-510K Total franchises: 22 Company-owned: 1

TUTORING

As the work world gets more competitive, parents put a higher premium on education— and the tutoring business continues to grow.

Chyten Educational Services Tutoring & test preparation chyten.com (781)541-6279 Total cost: $116.6K-219.9K

Total franchises: 23 Company-owned: 4

Total franchises: 33 Company-owned: 1

Club Z! In-Home Tutoring Services In-home tutoring services clubztutoring.com (800)434-2582 Total cost: $27.7K-56.6K Total franchises: 427 Company-owned: 0

Kumon Math & Reading Centers Supplemental education kumon.com (866)633-0740 Total cost: $36.5K-145.3K Total franchises: 25,169 Company-owned: 30

College Nannies & Tutors Nanny & tutoring services collegenannies.com (952)476-0262 Total cost: $60K-154K Total franchises: 68 Company-owned: 0 Creative Tutors In-home tutoring creativetutors.com (214)282-6268 Total cost: $43K-77.96K Total franchises: 10 Company-owned: 0 E.nopi Supplemental education enopi.com (888)835-1212 Total cost: $59K-99K Total franchises: 373 Company-owned: 487 The Honors Learning Center Supplemental educational services & academic testing honorslearningcenter.com (423)280-1813 Total cost: $66.2K-107.9K Total franchises: 1 Company-owned: 0 Huntington Learning Centers Children’s educational services huntingtonfranchise.com (800)653-8400 Total cost: $197.5K-382.5K Total franchises: 318 Company-owned: 33 Huntington School Services Contracted supplemental education services huntingtonfranchise.com (800)653-8400 Total cost: $137.2K-297.9K

Summit Learning Services Inc. Tutoring summitlearning.net (954)583-9288 Total cost: $32.99K-46.99K Total franchises: 16 Company-owned: 12 Sylvan Learning Supplemental education sylvanfranchise.com (800)284-8214 Total cost: $179.1K-305.1K Total franchises: 913 Company-owned: 79 Tutor Doctor Tutoring services tutordoctor.com (416)646-0364 Total cost: $55.1K-161.3K Total franchises: 173 Company-owned: 1 The Tutoring Center After-school tutoring tutoringcenter.com (562)310-3632 Total cost: $67.5K-103.8K Total franchises: 25 Company-owned: 2 Tutoring Club LLC Individualized instruction for K-12 students tutoringclub.com (888)674-6425 Total cost: $83.2K-125.8K Total franchises: 153 Company-owned: 1

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One of these opportunities could mark the turning point to owning a business of your own, realizing your personal dreams and securing true financial independence. So go ahead, make your first move by considering all that they have to offer in this Opportunity Spotlight. Then make your first call.

top learning center franch ise

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(877) 531-MATH (6284) | www.mathnasium.com Mathnasium is the #1 supplemental education franchise on Franchise Business Review’s 2010 franchisee satisfaction list and consistently receives high rankings. Why? Mathnasium is financially and personally rewarding - just ask our franchisees. You will discover they’re high achievers and passionate about improving the lives of children. Sound like you?

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Onee off thee bestt subs you’lll everr have! • Authentic Philly Cheesesteaks Served hot off the grill • Deli Fresh Experience Sliced fresh to order • Generous Portions Our large sub has about 1 lb. of meat & cheese! • • • •

Single or Multi-Unit Franchises Exclusive Territories Available Top Notch Support Low Royalty & Marketing Rates

WHY DID THE INVESTOR CROSS THE ROAD? To get to the original, made-from-scratch biscuits; the fresh, never-frozen chicken and the unparalleled opportunity.

FOR THREE YEARS RUNNING, BOJANGLES’ HAS BEEN ONE OF THE FASTEST GROWING RESTAURANT CHAINS IN THE COUNTRY. WE’RE NOT SLOWING DOWN. COME SEE WHY- Bojangles’ was named by The Wall Street Journal among only eight restaurants in its “25 Franchise High Performers” across all industries  ranked #1 in the chicken category by Entrepreneur  listed in the top six growth foodservice groups by Nation’s Restaurant News for 2009  listed in QSR’s top eight growth concepts for 2009  listed in Inc. magazine's fastest growing private companies

This is what our subs really look like!

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Learn more by calling 1-800-366-9921 or visit bojangles-franchise.com This is not an offering to purchase a franchise. Offerings are made by Franchise Disclosure Document only.

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TO ADVERTISE IN THIS SECTION, PLEASE CALL 800-864-6864.TO ADVERTISE IN THIS SECTION, PLEASE CALL 800-864-6864.

franchise ink How one wine lover turned his p passion into a chain of storefronts where anyone can play vintner

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or many men, hobbies are fleeting fascinations—millions off garages full off abandoned fly-tying vises, half-built cane chairs and cobweb-matted golff bags attest to that. But when the wine bug hit David Schmeltzle, he went for broke, reorganizing his life and business around do-it-yourself vino. After tasting a homemade bottle off red at a dinner party, he began fermenting his own. “I brought home an oak barrel and 60 gallons off grape juice. It stunk up the house and blew up the kitchen,” he remembers. “Finally, my wife asked, ‘Isn’t there a place you could go to do this?’ ” That turned out to be the Schmeltzle family’s future. Just one month and one bottling later, in November 2005, Schmeltzle, a technology consultant, had written up a business plan for Vintner’s Circle, a storefront franchise where customers could make their own wine. By December, he’d set up a prototype in his basement and invited friends over to experiment. It was a holiday hit, and by May the locals in Hackettstown, N.J., were churning out their first batches of barolo, pinot and zin at the first Vintner’s Circle. Four years in, Vintner’s Circle is aging nicely, with six locations in Pennsylvania and New Jersey and four expected in New York, North Carolina and South Carolina by the end off this year. In 2011, Schmeltzle hopes to open 15 more shops on the East Coast. We took a break from clinking glasses to ask how the top note off success tastes. —JASON DALEY TEAM VINO: JENNIFER ALVIANI, LEFT, DAVID SCHMELTZLE, AND ROBIN RAIBLE OF VINTNER’S CIRCLE.

Why make your own wine? It’s about spending time together —80 percent off the store is a social winemaking area. Our typical customers are 35 to 60, like to entertain and love wine. We usually get groups of three to five couples, or church groups or community groups. We even have a local band coming in for a “make wine with the band” event. So it’s mostly friends coming in to hang out, not collectors with 500 bottles in the cellar. How does it work? Theyy come in n forr fourr visits. Fermentation n takes one orr two steps. We sett up one off ourr 80 juices forr fermentation and d add d oak k chips and d yeastt to it. Some wines are fermented d in n heavilyy oaked barrels. Then n they y clearr and d stabilize the wine, and d on n the lastt visitt they y bottle it and d design n a label. We do small 6-gallon batches—thatt 28 bottles is manageable and d averages $10 to $13 each. Still, wine made in a strip mall? The craftsmanship is fantastic. We have juices from m Argentina, Germany, Italy, anywhere you u find d wine. I can n gett merlot juice from m Stag’s Leap; we have Sonoma Valleyy pinot; we can n make the exactt same wines you u find d att the store. We’ve had customers win n awards att competitions. What are the favorites? Mostt startt with a cabernett or merlot, wines they y feel safe with. Once they make their firstt batch, they y love expanding their palates and startt making malbec or barolo. Did your tech background help? I founded d an n IT T and d marketing g infrastructure company y with h Vintner’s Circle called d bizbudding g Inc. I’ve tried d to create a system m thatt makes itt easyy forr franchisees—theyy don’tt have to worryy about how w to orderr productt and d where to gett it. Theyy justt click k a button n and d create a purchase orderr from m an n approved d supplier. It manages inventory, customers, the supply chain. They y can n see what’s sellingg orr press a button n to generate royalties. We have more infrastructure att justt six x stores than some large franchise systems.

134 Entrepreneur

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December 2010

PHOTO© NATALIE BRASINGTON

An n insouciant littlee franchise

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