Franchise & Business Opportunities - The First Golden Rule

All franchises & business opportunities can be analysed for both growth and profit potential using very simple rules. These rules apply whether you are starting a business on your own or considering buying a franchise opportunity.

The first golden rule in business is to analyse the market place that you are contemplating to enter. Is it a declining market or is it growing? Is it becoming more competitive or less? Is it forecast to grow or decline? The same rules apply when you are considering buying a franchise opportunity. What forces are at play in this segment?

Let us assume that you are thinking of entering the retail trade and specifically men's clothing.

By analysing the market or commissioning market research you will quickly discover that the segment is very tough indeed. Average retail prices when taking inflation into account have actually fallen in real terms. Average cost prices have not fallen so quickly. Margins are being squeezed. Average spending power has actually increased so certain highly specific segments within this segment could still hold their own.

The growth in mail order and internet shopping for these products has risen over the same time. Supermarkets have entered the field and now hold a significant market share. The quality of imported goods has now reached the standards of some inferior brand names.

All the above should sound alarm signals for anybody considering entering this business segment. So the first golden rule in business is to enter a growing market segment where profit margins haven't been already squeezed. In reality the opportunity has already been exploited. Again if you are contemplating buying a business franchise in this segment I would advice you to think twice.

A rapidly growing market segment is to supply health care, holidays, specifically designed products and other services to the elderly. In the last 50 years the rate of growth of the over 60s has exceeded any other age group. Their disposable incomes have risen at the same time. This is forecast to grow even further as better understanding of health risks, improved medication and exercise facilities enable the population to live longer.

The need for help with every day activities also increases with age. Most elderly people need help with one or another area of life that we all take for granted.

Another very important feature that has been widely seen is that the elderly now seem to be a lot different from the same age group only 50 years ago. They are much more likely to travel on their own, exercise in the gym & demand greater services from both the business community and the government.

So in this case the first golden rule has been overcome. Profit margins are healthy and the market segment is expanding and forecasted to continue expanding. Spending power is on the rise and forecast to grow further in years to come.

There are many market segments that are forecast to grow so the above example is just one of them. Again there are other segments that have already started declining.

The First Golden Rule states that if you find a niche in a market place that is growing rapidly even a hard working fool can make money. Your accountant can help you analyse any market segment very quickly and easily. Why enter the wrong segment when you are likely to be in that field for at least the next 5 years? Look out for my next golden rule out soon.

The Golden Age of Hollywood

According to many experts and people the golden era of Hollywood was during 1930's and 1940's when the industry was thriving. But many experts agree that although 30's brought in the commercial success but the actual golden age from artistic point of view began in 1920s itself when it drew talent from all over the world. Before this period Hollywood was just like any other film making locations but it was after First World War that it created a niche for itself in the world. The obvious reason was the magnitude of damage the European countries suffered in the World War and subsequent economic hardships faced by them thus affecting the film industry. Before the advent of Hollywood as a top destination Germany was the most popular destination known for its artistic excellence. America benefited from the fact that it suffered relatively less casualties and loss of property compared to European Nations.

The popular names during the Golden Era were Clark Cable, Bette Davis, Charlie Chaplin, Bing Crosby, Spencer Tracy, Bob Hope, Ingrid, Judy Garland, Bergman, James Cagney, Jennifer Jones, Ronald Reagan, Elizabeth Taylor and Cary Gran, the list is endless. These actors became the house hold names throughout the country in 1930's and 1940's. The film industry during this era was so wealthy and powerful that studios like Paramount, MGM, Universal, 20th Century Fox and RKO kept adding more buildings to their studios. More than 7,000 films were released by these studios during the period of 1930's and 1940's. More than 75 million people flocked to see at least one film in a week during the peak years of Hollywood.

Also during this era the nation saw threats due to Second World War. When soon this threat turned into reality the presidents of these studios took this as an opportunity to make films that would bond countrymen together during these tough and dreadful years. They made many patriotic movies involving actors like Betty Grable and Van Johnson. These movies in a way also helped the war efforts. Apart from the movies there were numerous short films and documentaries made.

Some of the famous movies of the golden era include Memphis Belle: A Story of a Flying Fortress directed by William Wyler, Howard Hawks directed movies Sergeant York, To Have and Have Not. The commonality among all the movies of golden era was that almost all the movies ended on a happy note and patriotic ardor, which was liked by the people also. The movies made during the 1940's are referred to as "film noir" which in the literary context means "dark films". The movies were mostly pessimistic with tough male protagonist who was also a cynic and female protagonist would be attractive woman leading the males to a disastrous situation. Few examples of the Film Noir are Stranger on the Third Floor directed by Boris Ingster, High Sierra directed by Raoul Walsh, Shadow of a Doubt directed by Alfred Hitchcock and The Maltese Falcon directed by John Huston.

The comedies were also popular during that era, the main feature of the comedies were duos forming during this period. Some of the famous duos of actors were Bob Hope and Bing Crosby famous for their movie Road to Singapore, Abbott and Costello, Spencer Tracy and Katharine Hepburn, and Dean Martin and Jerry Lewis. The movies that portrayed the lives of the westerns during the era were also popular with the people some of the examples being Fort Apache and She wore a Yellow Ribbon. But by the time these movies were released the downfall of the Hollywood has already begun due to the effects of the war, depression and arrival of television only to be not able to recover again.