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More people are starting businesses now than ever before — and the reason could be that the opportunity cost, or what they have to give up in exchange for entrepreneurship, is lower than ever.

Data that the U.S. Census Bureau released earlier this month shows that the total number of applications to start businesses hit a record 5.5 million last year.

That’s half a million more applications than what was filed in 2022.

Related: Here’s What Millions of Small Businesses Have in Common, According to a New Survey

Census Bureau data from the first four months of this year show that the startup boom is still going strong, too — from January through April, the number of new business applications totaled over 1.7 million.

Why are more people filing to start new businesses?

Columbia Business School professor Angela Lee told Entrepreneur that the reason could be the “unprecedented number of layoffs from big tech companies in the last several years, resulting in a large pool of talent freed up to pursue entrepreneurship.”

^{Columbia Business School professor Angela Lee (left) and Co-Founder of Plum Alley Investments Andrea Turner Moffitt (right). Photo by Monica Schipper/Getty Images)}

Lee, the director of the Eugene Lang Entrepreneurship Center, also noted that “entrepreneurship has historically been counter-cyclical because the opportunity cost to start a company goes down during a recession.”

Related: Want to Start a Billion-Dollar Business? Look to These Two Industries, Which Have the Most Unicorn Growth

Big tech companies have been laying off employees in record numbers in recent years.

Tech layoffs last year affected 263,180 employees globally according to tracker Layoffs.fyi.

Amazon laid off the most people (27,410) last year, but Meta (21,000), Google (12,115) and Microsoft (11,158) also contributed to record numbers.

The unemployment rate has remained stable, in the 3.7% to 3.9% range in the U.S. over the past nine months, according to the latest U.S. Bureau of Labor Statistics jobs report.

Related: ‘The Employment Situation’ Report for April Shows Employers Are Taking Hiring Down a Notch, Employee Wage Growth Slowing

I was talking to a friend recently who serves as the CTO at a mid-sized company and was struck by his sudden change in perspective on AI. Despite initial skepticism, he now believes artificial intelligence (AI) will revolutionize his industry. Yet, his main challenge has been convincing the rest of his executive team to adopt an AI roadmap. This scenario isn’t isolated.

In the last year, we’ve seen a contracted hype cycle around AI, which has caused many leaders to question if an investment in AI can truly yield proportional returns. These concerns aren’t without merit. VC firm Sequoia Capital recently estimated the AI industry spent $50 billion on Nvidia chips to train AI models last year, yet only yielded $3 billion in revenue.

Despite that disparity in investment, Sequoia went on to hypothesize AI is likely “the single greatest value creation opportunity” mankind has ever known, comparing its impact on business to that of the cloud transition. Unlike the cloud, however, which replaced software, AI has the potential to replace services, which the VC firm estimated has a total addressable market in the trillions. It’s the reason tech giants like Microsoft and Amazon continue to double down on AI investment.

Related: What Is Artificial Intelligence (AI)? Here Are Its Benefits, Uses and More

With so many competing narratives around the future of AI, it’s no wonder companies are misaligned on the best approach for integrating it into their organizations. The problem is most leaders are still looking at AI in its limited capacity as a software or tool rather than its ability to operate in a human-like capacity. Here are three common mistakes I see companies make when it comes to implementing an AI roadmap.

Underestimating and limiting AI’s potential

AI is widely viewed as a tool or software, but because it can create and reason, it has the ability to interact in a human-like capacity. Much like a junior employee who gets better at their job with experience, AI has the ability to learn from its interactions and refine its methods to improve its output and take on more work overtime.

For this reason, leaders who think of leveraging AI as “smart people” rather than software are better positioned to harness its full potential. Think about a company’s organization chart. If you were to write down the skills and tasks associated with each employee, then you can start to visualize where AI can be trained to augment or automate these tasks.

AI already outperforms humans in areas such as image classification, visual reasoning, and even English understanding, according to Stanford University’s recently published AI Index report. As of 2023, the report showed AI has surpassed human-level performance on several benchmark tasks, succeeding in helping workers become more productive and produce better-quality work. Another study out of the University of Arkansas showed AI outperformed humans in standardized tests of creative potential.

Unlike humans, however, AI scales up effortlessly as business demands increase, handling workloads without the physical and mental limits of humans. Adopting AI in this way means rethinking our team structures and workflows. It involves training teams to work alongside AI to enhance their roles and drive innovation.

This perspective shift is crucial because it allows leaders, who may not be accustomed to deploying technology themselves, to innately understand how to best leverage AI across their entire organization.

2. Trying to mimic another company’s AI use case

The more you start thinking of AI as smart people, the more you realize how individual every organization’s approach to building an AI roadmap should be. I like to think of AI implementation as the onboarding of new team members who need to fit within the specific dynamics of your company.

Take human resources for example — one company might have 10 people there; another only three, even if they’re the same size. This difference isn’t just about company size or revenue. It’s about how these companies have evolved.

Each business has its own unique structure, culture and needs. In order to realize generative AI’s full potential, PwC reported, businesses must take advantage of its capacity to be customized to a company’s specific needs and avoid the use-case trap.

Of course, general use cases for AI exist, particularly when it comes to enhancing customer service or sales. But, when you’re looking at a deeper integration of AI into a company’s operations, the approach needs to be custom-built, not copied and pasted from outside case studies.

Related: I Tested AI Tools So You Don’t Have To. Here’s What Worked — and What Didn’t.

3. Buying off-the-shelf products — not tailoring AI solutions to your needs

There are some great off-the-shelf AI products like ChatGPT, Dalle, and translation tools that solve specific problems within a company. The challenge with investing in a boxed solution for AI is that many leaders fail to see how AI can enhance operations at a systemic level.

The true power of AI lies in its ability to fundamentally transform your operations, not just perform isolated tasks. PwC’s 2024 AI predictions report states that many companies will find attractive ROI from generative AI. Still, few will succeed in achieving transformative value from it — the biggest barrier being the inability of leaders to think beyond boxed solutions and reimagine the way they work with AI.

When building an AI roadmap, leaders must first conduct a thorough assessment of their company’s processes. This means identifying areas with redundancies, recognizing outsourced tasks that could be automated, and pinpointing where the company invests heavily in human capital. By understanding these dynamics, leaders can tailor AI solutions to their company’s needs and transform how they work.

The more I talk to company leaders about integrating AI into their businesses, the more apparent it becomes that we leaders need to shift our perspective. When we view AI not just as a technological upgrade but as the onboarding of smart people, we’re better able to integrate it into our internal operations, enhancing performance and human ingenuity along the way.

The pandemic made global supply chain issues a common dinner table conversation. Now, with escalating geopolitical tensions and competing manufacturing hubs in China, India and Mexico, it can be hard for businesses to understand what the best strategy is for moving goods internationally.

Yet, despite the complexities affecting our global supply chains, the opportunity for businesses to engage in international trade has never been better. Advances in technology continue to make it easier to automate logistics. In fact, according to Acumen Research and Consulting, the global logistics automation market is predicted to reach $133 billion USD by 2030.

Not only is technology making supply chain logistics easier for businesses to manage, but in a down market, there can be opportunities to negotiate better deals with overseas suppliers, find new customers and create business models that adapt to future market conditions.

Regardless of your motivation, if you’re a business looking to expand abroad, here are three tips that can give you a competitive edge:

1. Understand regulatory requirements in advance

Paperwork may seem tedious, but in the world of global logistics, an incorrect or incomplete form can determine whether or not your shipment gets across the border. As the leader of a customs brokerage and freight forwarding business, I can tell you brokers spend a disproportionate amount of time following up with clients to complete the appropriate paperwork to clear customs.

Understanding simple but important details like what determines your product’s country of origin is instrumental for budgeting and planning. For example, if a business purchases materials from China and further develops them in the U.S. before resale, many leaders assume they qualify for reduced duty through North America’s free trade agreement (now known as the Canada, U.S., Mexico Agreement) — but this isn’t always the case. Products must meet a specific set of criteria to leverage the lower duty rates. Missed details like this can cost businesses a significant amount of money unexpectedly.

It’s also important to understand how exchange rates are calculated. Many businesses are surprised when they have to pay more for duty on a shipment when it arrives than they originally estimated. That’s because duty is calculated based on the exchange rate at the time the goods arrive at their destination. Exchange rates fluctuate, so it’s important for businesses to bear this in mind when creating budgets.

Related: Your Customers Don’t Care Where Your Ecommerce Business Is Based, So Be Ready to Ship Anywhere in the World

Factor In geopolitical tensions and changing market conditions

From China’s recently passed “retaliation tariff” to attacks on merchant ships in the Red Sea, growing geopolitical tensions are causing businesses to rethink their trade routes.

How a business navigates geopolitical disruptions largely depends on whether it is looking for a short-term or long-term strategy. If a company is looking for a short-term strategy, for example, it can likely adapt more swiftly to trade route disruptions. Businesses focused on long-term logistical planning, however, need to factor in the big-picture implications of geopolitical stability.

Take, for example, the current tensions between the U.S. and China, which have caused more manufacturers to set up operations in Mexico. If the U.S. decides to permanently shift its purchasing from China to Mexico, this change would have significant implications on the trade route’s pricing and capacity in the long term.

Businesses entering into international markets should factor in what parts of the supply chain are likely to be disrupted within the time frame they are targeting and consider whether or not they are well positioned to pivot, as necessary.

Related: How to Find International Customers and Partners as You Expand Your Market

Build strong relationships with international partners

One of the most overlooked factors in navigating global logistics is the importance of building strong relationships with partners abroad. Businesses seeking strong international partnerships must learn and adapt to the customs and cultures of the regions they operate within.

In my work, I do business with partners in multiple countries. Every year, when I attend their annual conferences, I notice the difference between leaders who respect the local customs and those who operate as though they were on home soil. Often, this attitudinal difference determines who establishes long-lasting, cooperative partnerships that lead to better pricing and referrals and who loses business altogether.

According to the International Labour Union, a staggering 70% of international ventures collapse due to cultural disparities. Every culture has its own etiquette. Doing a little research on the communication rules and accepted behaviors in the countries you’re operating in can go a long way toward establishing a cooperative partnership.

As a seasoned leader in international logistics, I’ve seen firsthand the transformative power of adapting to global market dynamics. For businesses venturing into international terrain, understanding regulatory landscapes, geopolitical shifts and cultural nuances not only mitigates the risk of expansion but can help maximize the opportunity.

The best commencement speeches are often motivational and thought-provoking, leaving new graduates optimistic as they head into the “real world.”

But for the Class of 2024 at the University of Massachusetts Dartmouth, new grads walked away with more than just a wealth of knowledge — they left their ceremony with an extra $1,000 in their pockets.

Related: ‘There Is More To Life Than Work’: Bill Gates Delivers Emotional Message To Graduates About Learning To Take A Break

Last week, the founder and CEO of Granite Telecommunications, Robert Hale Jr., spoke to grads at the University of Massachusetts Dartmouth about their futures and shared a story about a time when his business suffered a $1 billion loss in just one day to explain the importance of perseverance through failure.

“It’s okay to fail,” Hale told graduates. “Life will give you challenges and if you take those challenges you’ll fail from time to time — don’t worry about it … don’t fear failure, understand that it’s just part of the process, and if you use that fear of failure to motivate yourself, you’ll be better for it.”

Then, as he wrapped up, he shocked the audience by announcing he was giving each graduate graduate $1,000 — but there was a catch.

“These trying times have heightened the need for sharing, caring, and giving,” Hale told students. “Our community needs you and your generosity more than ever.”

The students were given two envelopes with $500 each — one was intended for the students to keep for themselves while the other was for them to give to someone else in need.

Related: Sheryl Sandberg’s Advice to Grads: Banish Self-Doubt, Dream Bigger and Lean In, Always

“As the degree conferral was about to begin, Hale came forward and let the graduates know he had one more bit of advice for them. He told the eager crowd that for him and his wife Karen, ‘the greatest joys we’ve had in our life have been the gift of giving,'” UMass Dartmouth said in a release. “Hale let the Class of 2024 know that the two large duffle bags being brought up on stage by security were packed with envelopes full of cash.”

There were roughly 1,200 students in UMass Dartmouth’s 2024 graduating class.

Hale’s current net worth is an estimated $5.4 billion.

Many entrepreneurs value being able to choose where and when they work. However, you must maintain maximum connectivity to optimize your remote workflow, and the 8-in-1 Tablet Docking Stand was designed to do exactly that. It’s on sale for just $54.99, which is lower than Amazon pricing.

This docking stand is compatible with laptops and tablets and has all the ports you need. With 5Gbps data transfer speeds, working remotely won’t slow you down. Plus, high-powered devices up to 100W can be fast-charged with a Power Delivery port. A regular SD and microSD slot also make storing and accessing your media on memory cards easy.

The stand has three USB 3.0 ports, so you can connect a variety of peripherals, including a mouse, keyboard, external hard drives, and more. You’ll also be able to expand your visuals by connecting to the stand’s HDMI port. There’s even a 3.5mm audio jack, so you can listen to your favorite music, podcasts, and audiobooks with wired speakers or headphones.

This docking stand also makes working with tablets and extra monitors much more comfortable. Its height can be adjusted to help you maintain a healthy posture, up to 70°. The tablet holder is also adjustable and can be tilted up to 180°. This can all benefit your daily ergonomics, which can help you be more productive (according to Forbes).

The docking station easily folds up for packing or storage. It has a tiny footprint and weighs less than a pound, yet its aluminum alloy construction is sturdy and durable. There are non-slip silicone strips on the bottom of the stand to hold it steady and keep it from sliding around.

Get the 8-in-1 Tablet Docking Stand today while it’s available at a price lower than you’ll find on Amazon, just $54.99 (reg. $69).

StackSocial prices subject to change.

No matter how gifted or driven you are, starting a business is hard, taxing work. In 2021, I left my 21-year career in finance and became a success coach, leadership consultant and author. I’d heard the statistic that 90% of all small businesses fail, but I thought starting my business would somehow be miraculously easy — it wasn’t. Here are four things I’ve since learned.

1. Self-discipline is harder than you think

Owning a business means you’re the boss. There are no assignments to turn in and no deadlines to meet. No one writes a performance review for you. However, this can be very difficult for some — and I had to learn this unexpected lesson the hard way.

I’ve always been highly organized and structured. For the last decade of my professional career, everything I did was scheduled and calendared in advance. Things were different when I struck out on my own. Conference calls and meetings weren’t on a recurring cadence, and that caused big gaps in my calendar. At first, it was hard to get in a rhythm. I began noticing I wasn’t leveraging my time well. I was sleeping in. If I said I’d check email for 10 minutes, it often turned into an hour. I realized I was allowing myself to become distracted throughout the day because my day wasn’t full of all the same hard stops that had previously existed.

I begin setting a schedule for myself. The only way I was able to write two books in my first two years was by scheduling time to write. At the start of each week, I write down the week’s most important priorities and set goals for myself. I list what actions I’ll need to take to achieve those goals. I schedule them on my calendar. Then, I stick to it. This takes willpower, but if you don’t do it, you’ll find yourself wasting time.

What gets measured gets done, so I also set goals and KPIs for myself. It’s easy to lose motivation when you’re not graded against a scoreboard — so I created my own. I set goals for how many hours, pages or words I’d write each week. I set goals for how many people I’d respond to and how many prospective calls I’d make. When my books hit the market, I tracked sales, revenue and income. On social media platforms, I set some KPIs for my engagement rates. Figuring out what metrics you’re going to watch is critical for success.

Related: 10 Things I’ve Learned In 10 Years of Running My Own Business

2. Pick the right clients and partners

Not everyone is going to be a fit for your services and products, and you’re not going to be a fit for everyone else’s needs, either. One mistake I made in my first year was taking on anyone who would have me as a client or a partner. I’ve since parted ways with my business coach, two vendors and two clients. People who suck your energy or drain your time with nonsense shouldn’t be on your calendar.

In the case of my “fired” clients, they resisted all my suggestions and were hesitant to take my advice. I eventually realized neither of us was getting much from the relationship. It feels good to hold space on my calendar for only those who are aligned in their thinking and want to achieve great things. Initially, because I was just starting out, I was afraid to let go of the income. If someone was willing to pay me, I was willing to take their money. That isn’t the case anymore. Great businesses only work with great clients.

When it comes to vendors, I now shop around. Early on, I hired the first coach, web designer and publishing team I found. Some of those decisions were mistakes. I’ve since decided to broaden my search process when hunting for the right vendor. I do my homework and ask for referrals. In other cases, I like to see examples of prior work. When vendors can’t produce that (or seem annoyed that I’m even asking), I know I’m not dealing with the right partner.

3. It can get lonely sometimes; find ways to add human interaction into your day

Before going solo, I was always part of a team. During most of my career, I interacted with a few hundred people at work. That all changed when I became a private coach and consultant — suddenly, it was just me. When you’re an employee, you’re often constantly involved in conversations with others. When I went independent, there were several hours a day I wasn’t. Right away, I felt a twinge of loneliness. I didn’t have an endless reserve of people with whom I could share ideas.

I now make a point to schedule lunch with clients, prospective clients or colleagues a couple of times a week. I also have found great joy in sharing what I call “Transformation Tuesday” videos with my network and regularly engaging on a few social media platforms with like-minded people. When I’m sharing videos and articles on leadership or mindset, it puts me into conversations with others about things that are important to me. That helps me overcome these solitary feelings. If your job is primarily done solo and you’re feeling a bit lonely, find ways to connect with others regularly.

Related: I Started My Business In My Mom’s Basement at the Age of 17. Here are 5 Rules I Wish I Had Known, But Had to Learn the Hard Way

4. Building a network of your peers is imperative

Initially, I was hesitant to meet other authors and coaches. To some degree, I saw them as competition. I’ve since had a complete change of heart. Last year, I was introduced to another coach who does exactly what I do. When we met, we’d both published our first books. Since then, we’ve written the forewords for each other’s second books! It’s been an honor and a joy to support each other like that. For my third book, I want to work with a publisher. I recently joined a group of authors, agents and publishers and went to one of their events. I couldn’t believe the camaraderie and value I found there. I met other authors who are facing (but overcoming) the same challenges I face. I also met a plethora of agents and publishers who might help me. There’s power in numbers. We are stronger together. Networking with others who are doing exactly what you’re doing (and doing it well) can only help you, not hinder you.

I wish I’d known these four things on my first day as an entrepreneur, but I’m also grateful I know them now. Implementing them will only make you and your business stronger; I guarantee it.

Two years ago, while putting together a strategic plan for the launch of my venture studio, Evernomic, I began searching for ways to differentiate and build a competitive edge. This formed the strategies we rely on today, setting our operations apart from similar firms.

One thing in particular that we stuck to was initially focusing on media-based startups. To put it simply, I identified what I suspected we would be competing on in the future — skills, experience, network, capital and so on. The fact is, most of the above are prerequisites that every firm must possess. However, if we had a strong portfolio of audience-based offerings, we could leverage that in numerous ways to propel us forward.

Effortless networking

In the media industry, almost every demographic can benefit from your work in some way, from businesses seeking promotions to consumers seeking information. This sets a unique stage for networking. The broad appeal and reach of media can open doors to valuable circles and opportunities that might otherwise remain inaccessible.

For instance, with a local digital newspaper, we manage in the Netherlands, we pursue strategic partnerships with other local organizations and associations by offering them free coverage of their initiatives. Naturally, we must maintain the quality of our content, so we are rather selective with the organizations we approach. Nonetheless, this local network has strengthened our community ties and connected us with invaluable contacts for our international projects.

Related: 8 Reasons to Make Networking Part of Your Everyday Life

Promoting your own initiatives

Media platforms offer an exceptional channel for marketing projects and initiatives directly to your audience. This direct line of communication allows you to shape the narrative and control the messaging around your products or services, ensuring that your promotional efforts align perfectly with your brand’s voice and goals.

You should never exploit your audience’s trust and spam promotional materials. However, you understand the preferences of an audience you manage better than anyone, enabling you to engage effectively with such campaigns.

By consistently communicating with your audience through these platforms, you can build a loyal customer base more receptive to your new and existing offerings. This strategy enhances brand visibility and drives engagement and sales more effectively than traditional advertising channels.

Recycling your audience

One of the most strategic moves in media is the ability to recycle an existing audience to benefit other projects or brands within your portfolio. A prime example of this is our approach with one of our prominent media brands with a highly engaged audience. Instead of continuously promoting our other ventures to the same audience, we arranged cross-promotions with other creators and media brands. However, rather than promoting our media brand reciprocally, they would encourage a different venture of ours. This tactic allows us to introduce our projects to several audiences by utilizing a single audience without additional acquisition costs.

Related: If You Want Funding, These Are the Financial Reports VCs Need to See

Access to market insights

Operating a media entity provides more than just an outlet for content; it offers invaluable market insights derived from audience data and content interactions. This continuous data stream includes consumer preferences, behavioral trends and engagement metrics, which are critical for tailoring content and marketing strategies.

Such insights also enable media companies to anticipate market trends, adapt to consumer needs more swiftly, and make informed decisions that align with current and future market dynamics. The ability to analyze these insights gives media investors a significant advantage in staying ahead of the curve.

Influence in strategic partnerships

The influence gathered through successful media projects is valuable in forming strategic partnerships and negotiating deals. Media companies can leverage their reach and visibility to attract and secure beneficial partnerships with other brands, sponsors and influencers. This influence acts as a currency that provides media owners with the leverage needed to negotiate favorable terms and collaborate on projects that can amplify mutual success.

Whether on a local scale or an international one, when we seek partnerships with new startups, the most common obstacles they face are exposure and ineffective marketing. Our media portfolio has been an invaluable asset in solving such obstacles with minimal inconveniences on our end.

Related: What’s Up With the Global Media Industry?

High-profit margins

Media projects offer attractive profit margins, particularly once an established audience is in place. Media companies can significantly increase profitability with various revenue streams such as advertising, subscriptions and sponsored content.

After the initial phases of setup and audience building, the costs of content production often decrease, while revenue potential scales with audience size and engagement. This scalability and the ability to leverage content across multiple platforms enhance the profit margins, making media investments particularly lucrative.

I urge you to look around the global business landscape, the most innovative organizations have been building or acquiring media assets rapidly for some time now. Especially given the more efficient pathways to creating content, setting up media subsidiaries should be a strategy all businesses should consider undertaking.

If buying an existing business doesn’t sound right for you, but starting from scratch sounds a bit intimidating, you could be suited for franchise ownership. What is a franchise–and how do you know if you’re right for one? Essentially, a franchisee pays an initial fee and ongoing royalties to a franchisor. In return, the franchisee gains the use of a trademark, ongoing support from the franchisor, and the right to use the franchisor’s system of doing business and sell its products or services.

In addition to a well-known brand name, buying a franchise offers many other advantages that aren’t available to the entrepreneur starting a business from scratch. Perhaps the most significant is that you get a proven system of operation and training in how to use it. New franchisees can avoid a lot of the mistakes start-up entrepreneurs typically make because the franchisor has already perfected daily operations through trial and error.

Related: Considering franchise ownership? Get started now and take this quiz to find your personalized list of franchises that match your lifestyle, interests and budget.

Reputable franchisors conduct market research before selling a new outlet, so you’ll feel greater confidence that there is a demand for the product or service. Failing to do adequate market research is one of the biggest mistakes independent entrepreneurs typically make; as a franchisee, it’s done for you. The franchisor also provides you a clear picture of the competition and how to differentiate yourself from them.

Finally, franchisees enjoy the benefit of strength in numbers. You’ll gain from economics of scale in buying materials, supplies and services, such as advertising, as well as in negotiating for locations and lease terms. By comparison, independent operators have to negotiate on their own, usually getting less favorable terms. Some suppliers won’t deal with new businesses or will reject your business because your account isn’t big enough.

Franchise or Business Opportunity?

Business opportunities are less structured than franchises, so the definition of what constitutes a business opportunity isn’t easy to pin down. In essence, a business opportunity is any package of goods or services that enables the purchaser to begin a business and in which the seller represents that it will provide a marketing or sales plan, that a market exists for the product or service, and that the venture will be profitable.

Here are other key factors:

• A business opportunity doesn’t generally feature the seller’s trademark; buyers operate under his or her own name.
• Business opportunities tend to be less expensive than franchises and generally don’t charge ongoing royalty fees.
• Business opportunities allow buyers to proceed with no restrictions as to geographic market and operations.
• Most business opportunity ventures have no continuing supportive relationship between the seller and the buyer; after the initial package is sold, buyers are on their own.

Find more information on the differences between franchises, business opportunities, MLM programs and licensing agreements in the following articles:

The Pros

The greatest strength of franchising is its ability to bring independent retailers together using a single trademark and business concept. The benefits of this affiliation are many: brand awareness, uniformity in meeting customer expectations, the power of pooled advertising and the efficiencies of group purchasing.

For the individual owner, there are several advantages to franchising. The ever-present risk of business failure is reduced when the business program has already proved to be successful in the marketplace; the use of an established trademark saves the business owner the cost of creating and advertising a name that customers will recognize; and the advantages of group advertising and purchasing make operations more profitable. In addition, ongoing training creates an instant operational expertise that would otherwise need to be acquired through trial and error. Also, with franchising, expansion seems to come more naturally. Operating a successful franchise may quickly lead to building a second and then a third business, and so on. Fortunes have been built this way.

The Benefits

• Reduction of risk
• Turnkey operation
• Standardized products and systems
• Standardized financial and accounting systems
• Collective buying power
• Supervision and consulting readily available
• National and local advertising programs
• Point-of-sale advertising
• Uniform packaging
• Ongoing research and development
• Financial assistance
• Site selection guidance
• Operations manual provided
• Sales and marketing assistance

The Cons

Franchising, however, is not for everyone. Fiercely independent entrepreneurial types (you know who you are) may chafe under the strict operational requirements and specifications of a franchised business. If things have to be done your way, you may want to head in another direction.

Also know that some franchise systems are better than others. A weak franchise program will not train you well to handle the challenges of the business, will not do a good job of assisting you when problems arise, and will not make the best use of your advertising dollars.

The Downside

• Loss of control
• A binding contract
• The franchisor’s problems are also your problems

If you’re considering buying a franchise, don’t let wild expectations influence your decision. While franchising is designed to put people into business who have never owned a business before, the excitement of ownership can create an impulse to move forward without proper planning. If you rush headlong into buying a franchise expecting to boost your current working salary, but the earnings don’t allow you to pull out more than half your former salary, you will be one unhappy camper. Work with a good CPA to prepare a cash-flow projection for the business before you take the plunge. Know how long it will take to break even and turn a profit, as well as the amount of salary you’ll realistically be able to pay yourself.

Associated Costs

In terms of capital investment, your franchise fee will be determined by the profitability of the business. Most companies have a scale when it comes to franchise fees. They can have varying ranges, anywhere from $2,000 to $100,000+, depending on the size of the system. In addition to this front-end franchise fee–the one-time charge that a franchisor assesses you for the privilege of using the business concept, attending their training program, and learning the entire business-there will also be an ongoing royalty fee, typically ranging from 2 to 10 percent, or a monthly figure.

Some of the other costs associated with a franchise include:

Facility/Location
In some cases, you may also have to buy land or a building, or you may have to rent a building. If you rent a building, you’ll be responsible for not only the monthly lease but for the one-time security deposit as well. In addition, you’ll have to pay for leasehold improvements. In some cases, the owner of the building will put these in and factor them into your rental, probably charging you a small additional fee. The franchisor might provide you with an allowance for leasehold improvements that runs in the neighborhood of $10,000 to $35,000 for your average franchise. Most franchisors will tell you what their estimated leasehold improvements will be.

Equipment
Different types of businesses will need various pieces of equipment. There are generally long-term payments available for most equipment purchases. Fortunately, most banks will provide loans for equipment because it also serves as collateral.

Signs
Outside signage can be very expensive for the small-business owner. Most franchisors have developed a sign package that the franchisee is obligated to purchase.

Opening Inventory
This will usually consist of at least a two-week supply, unless you’re in a business that requires a much more complicated inventory. Most franchisors will tell you what their opening inventory requirements are.

Working Capital
For rent, you may be required to deposit first and last months’ payments as well as a security fee. You’ll also have to pay a deposit to the electric, gas and telephone companies (who will want deposits prior to giving you service). You’ll need some working capital and money in the cash drawer to make change. You’ll need money to pay your employees. You’ll need money just to operate until there’s a cash flow. If you’re buying a franchise that relies on charge accounts, you’re going to have to allow yourself some additional capital before the bills are paid by the customers and returned to you.

Advertising Fees
There is usually a fee for advertising on a regional or national basis. Most larger franchisors require their franchisees to pay a certain amount into a national fund used to advance the concept. The upside is the benefits are quite substantial in terms of the visibility you get with the type of advertising that most franchisors do.

Franchise Law

An important protection for the person planning to buy a franchise is the FTC’s Franchise Rule, put into effect October 21, 1979. The rule requires covered franchisors to supply a full disclosure of the information a prospective franchisee needs in order to make a rational decision about whether or not to invest. This disclosure must take place at the first personal contact where the subject of buying a franchise is discussed and at least 10 business days prior to signing any contract with the franchisee or accepting any money. This is a “cooling-off’ period intended to prevent franchisees from jumping in without carefully reviewing and considering what they’re doing.

This means a franchisor, franchise broker or anyone else representing franchises for sale has to present a disclosure document-the Franchise Disclosure Document (FDD)-containing extensive information about the franchise. Furthermore, you must be provided with completed contracts covering all material points at least five days prior to the actual date of execution of the documents. Again, this provides another cooling-off period and the chance to have an attorney review the contracts prior to execution.

Visit the FTC’s Franchise and Business website to find out more about the Franchise Rule.

State Laws

The FTC doesn’t require franchisors or business opportunity sellers to register with it or any other government agency. However, several states do have registration rules requiring franchise sellers to register. Some of these states laws are tougher than others, but most have adopted the FDD guidelines for their disclosure requirements.

It would be a mistake, however, to assume that simply because a franchise is registered with a state or provides some type of full disclosure document, you as a consumer are going to be protected from the possibility of failure or rip-off. The only thing that a state reviewing agency can do is ensure that the franchisor has responded and filed the necessary documents.

Source: The Small Business Encyclopedia, Start Your Own Business, Entrepreneur magazine and Entrepreneur‘s StartUps magazine.

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Let’s face it: it can be discouraging to hear “no” throughout your career, especially when you want the chance to prove yourself. But that’s where resilience, hard work, grit and determination come in. When I applied for a role at a small marketing firm as a new college graduate, my eyes were set on the position of Marketing Coordinator. I was full of enthusiasm, ready to roll up my sleeves and dive into the hustle of a dynamic team when, instead of landing the marketing gig, I was hired as a front desk receptionist.

This role wasn’t exactly what I had in mind, and it felt like one of my first inevitable career “no’s” to be placed in a position I didn’t apply for, but I quickly shifted perspective because I had my foot in the door. Taking the receptionist job oriented me to my vision and sense of purpose — and truly showed me the importance of taking initiative, being a self-starter and letting my work speak for itself, all while navigating a firm’s complex dynamics from the ground up.

This early experience helped shape how I now guide CEOs back to their own personal mission and purpose when they face obstacles by staying adaptable, maintaining conviction and keeping an end goal in mind. Here are four lessons I’ve taken from turning a “no” into a “yes” along the way.

Related: What is Resilience and Why is it Vital to Your Success?

1. Think about the full journey

Navigating the corporate world requires a holistic approach — thinking about the full journey of different initiatives from inception to execution. But it also requires thinking of yourself holistically. You will not always be in your present role, but stay open to wearing many hats beyond your job description to contribute to the customer journey in different ways.

I started as a receptionist, but when the designer at that company quit, I seized the opportunity by offering to help design ads for an imminent client meeting. My graphic design minor in college and designing side hustle equipped me to handle it. Soon, I did everything: From answering phones, making coffee, and setting up conference rooms to pitching design ideas to CEOs of successful corporations and executing those designs. I was a receptionist fresh out of college creating million-dollar ads — all because I kept an open mind. Research and staying alert to new opportunities should always be folded into the larger journey.

Related: 5 Ways to Get Ahead of Your Competition by Making a Lasting Impression on Your Clients

2. Experiment and package your ideas well

Fast forward to today, and I am now the head of my own marketing team. The journey has moved on from navigating “no’s” to putting in the hard work and demonstrated performance to guarantee the “yes.” A byproduct of getting to this point includes experimenting — which is not just something to do when you have extra time or budget to burn. It is crucial to prove what ideas work best and stay ahead of the competition. Even if an experiment doesn’t go as planned, it can be used to adapt your approach.

For instance, despite extensive research and strategic planning behind your proposals, sometimes the initial packaging doesn’t reflect the depth of your work. A surface-level judgment can make or break an idea before proving its worth. This is where the “eye test” comes in, asking you to marry statistics with intuitions and observations. With the right delivery, you give your best strategies the platform they deserve and prove your expertise in doing so.

3. Listen, learn and adapt

If you do receive an initial “no,'” stay humble, but don’t let it defeat you. Even the most well-researched person in the room still has things they don’t know. Make it a habit to listen to the experts around you and absorb knowledge from those with more experience in certain areas than you. Collaborating with other teams takes you out of your department bubble and allows you to understand the bigger picture better.

Every interaction is an opportunity to learn and strengthen your case. When proposals are still in the theory stage, take your testing and your research and go out there to get small pieces of buy-in. By building relationships with those with different expertise, you are circulating your ideas and gaining crucial information about how to refine them. Then, by the time you get to pitch, you will already have people on your side.

4. Figure out how to get the “yes”

New initiatives won’t succeed unless they are aligned with a company’s overarching vision, so everyone can see how they contribute to achieving organizational goals. Often after a “no,” I’ll dig deeper. Instead of taking it as a sign of the team’s failure, I ask: “What do we need to do, show or prove to hear ‘yes’?” This is when knowing how to listen becomes so important.

Incorporating initial testing feedback into your proposals strengthens the argument for each idea and provides tangible proof of their efficacy through experiments and customer insights. This ensures that each proposal is well-supported and clearly tied to the company’s strategic direction.

Dive into the data and put yourself in the shoes of the relevant target market. Do whatever it takes to prove why you deserve a “yes” based on your research, knowledge and expertise. It’ll take a bit more footwork and perhaps even a reimagining of your approach, but if it helps you get past that “no,” it will solidify your credibility and experience track record.

Related: 4 Steps to Help You Turn a ‘No’ Into a ‘Yes’

Shift your mindset

In the unpredictable journey of building a career, facing rejection can feel like hitting a wall. But here’s the truth: those “no’s” aren’t roadblocks; they are detours pointing us toward new opportunities. So, don’t let something crush your spirit when it doesn’t go as planned. Embrace it. Learn from it. Those setbacks can be stepping stones to something better if you change your mindset. It’s about resilience — using those “no’s” as fuel to keep pushing forward, stronger and smarter.

It’s no secret that every successful company needs a solid, identifiable corporate culture. Statistics show that 88% of job seekers believe a healthy work culture is essential for success, and the younger generations now prioritize “culture fit” above all else when job hunting. Unsurprisingly, a strong corporate culture that keeps employees engaged directly translates to as much as a 202% performance increase.

With such compelling data, it’s shocking how often startups fail in this regard. As a successful CEO and cofounder, here are four common mistakes I’ve seen and how to avoid them in your startup journey.

Related: Lack of Trust — What Does It Do to Your Company?

1. Not knowing when to transition from the “tribe” stage and into more structured processes

My company, Flowwow, is currently in that awkward “preteen” phase where we’re no longer a startup “tribe” but not yet a large corporation. This creates tension because those who have been around since the beginning often romanticize “the good old days” and resist implementing more structured processes.

Because this is often a challenging phase for brands, many cling to the “startup family” model of everyone doing everything for too long. This can hurt morale, motivation and long-term growth and heighten the risk of a brand stalling out at a critical stage. We tried to avoid this mistake by ensuring our overall mission was tightly aligned with the values shared by every person we hire.

We ensure everyone feels supported and heard, confirming that everyone understands our flexible and adaptable processes. We also help place each person into a team that best suits their skills and personality so they feel useful, fulfilled and engaged. Remember that the data shows 85% of employees feel disengaged, yet 69% say all they need to feel happier and engaged is acknowledgment and recognition.

2. Not allowing your culture to evolve with the brand

Some camps believe brands should stay consistent over time, but we think that evolution according to the market and trends is far better for overall longevity.

Remember: as your brand grows and matures, so should your corporate culture. As a founder, it’s your job to shift internal and external perceptions about your brand during these transitional times. Your core values should remain the same, but how you act on them makes the difference.

For instance, when Flowwow shifted from a flower service to a gifting marketplace model, the founder’s job was to not only reframe public messaging but ensure we were highlighting the things most important to us as a brand: openness, transparency and quality.

By making this our focus, we didn’t need to do anything specific to steer our culture; it naturally evolved from authentically shared values. These principles have remained steady over time, but our “value-driven” actions are more tangible: We provide resources like language learning, mental health assistance and medical insurance to show the team that our values are more than words.

Related: How to Lead With Transparency In Times of Uncertainty

3. Neglecting to establish top-down communication

I’ve heard of many startups that have failed or floundered because the founding team felt they needed to hide hardships or only tell employees what they felt was “necessary.” Often, this is done with good intentions. They mistakenly think it will demotivate or alarm employees to hear about a crisis or difficult road ahead. Don’t fall into this trap! You hired these people because you trust and believe in them, so prove it by being transparent and allowing them to support you and each other.

When management offers open communication lines, employees feel empowered to take responsibility, bring fresh ideas and make decisions in the brand’s best interests. HBR notes that good communication from senior leadership is a top driver for employee engagement.

4. Forgetting that the founder is the heart and soul of the brand

Founders often fall into the trap of playing Superman (or woman): They feel like they need to be involved in everything all the time, usually at the expense of their well-being. Initially, this might be necessary, but a founder’s top goal should be to find and cultivate a core team that can be trusted to take over most of the daily tasks.

A strong, compelling corporate culture needs an axis on which to turn, and that axis should be the founder. Instill your values into every person you hire, and then let all the things that made you want to hire them shine through. Use your influence and passion to improve, amplify and direct the company. By acting as your team’s safe, trusted harbor, you allow your corporate culture to blossom organically, resonating with both employees and customers.

It’s vital to avoid letting yourself burn out. You are an example for everyone, so it’s your job to pay attention to your mental well-being and continually work on understanding and managing your emotional impulses. Acknowledge your limits, act within them and let your team see that you’re human. This sets the foundation for a healthy, honest atmosphere.

Related: How Being Transparent Helps Scale Your Company

The future of work is now, so don’t let your culture lag behind

Corporate culture is essential to present and future organizational health and longevity. Watch factors like absenteeism, participation and even body language to get a complete picture of whether your brand’s atmosphere needs work. Remember, a healthy organization balances stability and growth, and lasting improvements must always be top-down.