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Eligibility Size Standards

Written by: Start Your Business

Article Overview: SBA defines a small business as one that is independently owned and operated and not dominant in its field. A small business must also meet the employment or sales standards developed by the SmallBusiness Administration and based on the North American Industry Classification System (NAICS). In general, the following criteria are used by SBA to determine if a concern qualifies as a small business and is eligible for SBA loan assistance:

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Eligibility Size Standards

Eligibility Size Standards

SBA defines a small business as one that is independently owned and operated and not dominant in its field. A small business must also meet the employment or sales standards developed by the SmallBusiness Administration and based on the North American Industry Classification System (NAICS). In general, the following criteria are used by SBA to determine if a concern qualifies as a small business and is eligible for SBA loan assistance:

* Wholesale - not more than 100 employees;
* Retail or Service - Average (3 year) annual sales or receipts of not more than $6.0 million to $29.0 million, depending on business type;
* Manufacturing - Generally not more than 500 employees, but in some cases up to 1,500 employees;
* Construction - Average (3 year) annual sales or receipts of not more than $12.0 millionto $28.5 million, depending on the specific business type.

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Starting a business requires you to complete a number of steps and make some key decisions. Though part of your overall plan, you’ll need to select a location, decide on a business structure, and obtain the necessary licenses and permits. In addition, determining which financing options will meet your short-term needs and long-term goals is crucial. Within this section, we’ll provide information on these topics along with guidance on buying an existing business, copyright and trademark issues, and getting support from an outside expert.

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Choose 'stability' in a franchise Choose 'stability' in a franchise - Tapping into current 'trendy' franchises can be risky business - You may find yourself stuck with a longer term 10yr contract. What happens when the trend fizzles? Your investment disappears... There are a whole host of factors to consider when entering into the arena of franchising. A few items on the check list that should steer you into safer waters... away from the predators... are listed here. 1. Age (stability): 10+ years 2. Satisfied franchisees: 85% + satisfaction 3. Size (stability again): 250 units 4. Strong profits 5. Great management There are other measurements that need to be considered like - identifying accurate store profits. There are short-lists of franchises that meet these criteria. That's for another thread...
Re: Choose 'stability' in a franchise Re: Choose 'stability' in a franchise - [quote="RussellWebb":2gm9ygof]Tapping into current 'trendy' franchises can be risky business - You may find yourself stuck with a longer term 10yr contract. What happens when the trend fizzles? Your investment disappears... There are a whole host of factors to consider when entering into the arena of franchising. A few items on the check list that should steer you into safer waters... away from the predators... are listed here. 1. Age (stability): 10+ years 2. Satisfied franchisees: 85% + satisfaction 3. Size (stability again): 250 units 4. Strong profits 5. Great management There are other measurements that need to be considered like - identifying accurate store profits. There are short-lists of franchises that meet these criteria. That's for another thread...[/quote:2gm9ygof] Hi Russell, Looking forward to seeing this short-list!
Think like an Association Think like an Association - Hey Sebastian, Maybe you could try thinking like an Association... I would study the structure or formats used by other Associations. What are they doing to add value for their members? The BBB plays a monitoring role for consumers by gathering data about business' that are behaving badly. And they're pretty successful at it too. Maybe you can offer a 'Platinum Program' that franchisors buy into. Accredited members only. Criteria could be strict: 1. Age (stability): 10+ years 2. Satisfied franchisees: 85% + satisfaction 3. Size (stability again): 250 units 4. Strong profits 5. Great management -Maybe a 'Gold Program' for those Franchisors that aren't quite at that level, but can strive to reach it... -Top 100, 500, 1000 Listing for qualified members... maybe a slap at Entrepreneur.com and their biased top 10 lists... -Maybe act as a monitor like BBB? -Maybe team up with FranSurvey OR do something similar for each member (not sure about Fransurvey's rep, but I like the concept) There's so much discontent within the franchising arena that I think if you were part of the solution, then you could create a win/win with your Association. The only downside is that this power can get abused if there aren't good checks and balances within the association.


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