Why open source the client? Well, with 2.4mil residents, 800,000 who have logged in during the past 60 days, the value of Second Life is in the community, not necessarily the code. Today’s move helps drive community growth.

I found 2 very interesting points when reading the Linden blog post about the client open sourcing.

“A lot of the Second Life development work currently in progress is focused on building the Second Life Grid – a vision of a globally interconnected grid with clients and servers published and managed by different groups.”

This seems like a great play by Linden. Let other groups publish and manage Second Life servers in different geographic regions, (as long as you’re approved to do so by Linden I would imagine). Borrowing from a recent discussion with Roberto Galoppini, Linden appears like they’re becoming a open source franchisor.

After reading this CNet article on Linden’s architecture, I think it makes a lot of sense for Linden to enable other (approved?) groups to publish and mange Second Life servers. According to the article, Second Life servers handle a maximum of 3 users per server at peak load. This is compared to 116 users per server over at EverQuest 2. Linden’s server architecture uses cheap servers that can be thrown into the server pool, just like Google’s approach. But with a growing user base and increasing electricity and real estate (to host the servers) costs, could Linden have realized that franchising the publishing and managing of Second Life servers may be a more profitable venture? Linden is already spending $$ on developing the software and has a large community, the latter of which is a strong control point. So why keep spending on the low-value aspect of managing servers (i.e. weak control point)?

The second interesting point in the post:

“At Linden, we have always been strong advocates of the use of open standards and the advantages of using open source products. Though Second Life makes abundant use of non-standard technologies, our basic UDP protocol message system for example, we rely on open standards and open source implementations when appropriate and available.”

Takes us back to the question of whether the use of open-standards is a necessary requirement to be classified an “open source” product.

PS: As with everyone, I’m hearing more about Second Life every day. And as with those of us that hear about it, but haven’t tried it, I have a difficult time doing everything I need to do in my First Life. Which is why I don’t know when I’ll get around to trying Second Life.

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I am taking a semi-break from IBM life as I return to finish a PhD in Industrial Engineering. I’ve held roles in market intelligence, strategy and product management. I’m ex-product manager of IBM WAS Community Edition, and blog about enterprise open source topics.

The owner of the business brand(The Franchisor) grants a licence for a company or individual to operate using their proven system or method and name to market goods or services. The process creates, what is known as a “Business Format Franchise” and is the most prominent form of franchising in the UK, in fact, so common that most high street shops operate under a UK franchise license, without you even knowing it! Here are a few names you may recognise;

Domino’s Pizza Toni & Guy Post Office(Ltd) Cash Converters Vision Express Clarks Shoes What to you get when you buy a franchise?

When you purchase a franchise you pay a franchise or initial fee in exchange for a franchise pack. Every franchise pack will vary from franchisor to franchisor but generally the franchise pack will include;

Use of the brand name & any logo Franchise operating manual detailing the method used to set-up and run the business Induction training Tools/equipment/stock if applicable Initial stationery & literature Ongoing training & support National marketing Exclusive territory

For the above & ongoing support the purchaser of the franchise(the franchisee) will pay an ongoing management fee to the franchisor, which is often based on a percentage of the franchise turnover.

Why would someone consider franchising?

Business Skills & Experience

Whilst there are some huge national and multi national brands in franchising individual franchisee operations effectively run as a small business with the ongoing support of the franchisor. In our opinion this lends itself perfectly to many provided they have the knowledge and determination required to make a new venture a success.

Change of direction

Because all franchises generally have extensive training and support packages for franchisee’s it is a great way to start a new career direction whilst still being your own boss.

Becoming part of something bigger

Another major benefit of being part of a franchise network is that you should receive support from both your franchisor and your fellow franchisee’s. Many franchisor’s will for example arrange staff cover in the event of illness or unplanned leave for franchisee’s so the business can remain trading.

Creating an asset

Often the problem with setting up and running your own business is that effectively YOU are the business. This means that when you come to sell the business unless you have tangible assets or contracts that will guarantee the new owner revenue the value of the business will be seriously effected and can lead to poor sale values. The advantage of having your own business within a franchise network is that the support via the franchisor will continue after you have left the business giving more comfort to a buyer and a better return on your investment. The sale of an existing franchise is known as a “franchise resale” and all good franchisors have very well defined strategies to deal with this to maximise your return and allowing a far smoother and faster sale.

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Copyright Franchise UK Franchise UK

http://www.franchise-uk.co.uk Franchise UK 5 High Street Seaford East Sussex BN25 1PE Tel: 0800 019 9661 Franchise UK

There are many questions that must be answered before you consider owning a franchise or starting any business at all.

The first question to ask yourself is: “Do I really have the right mindset that is required to work for myself”? The reason this question is first is because without the attitude, drive, and ability to focus on long term goals, you will not be happy owning your own business whether it be a franchise or anything else.

This is not a “get rid of the boss” and live happily ever after situation. It will require many hours of hard work, much dedication, always tough decisions and, most likely, many times where you must put the business first over your own needs.

If you do not have the stomach or the drive to do this, then continue getting a regular paycheck and forget a business of your own. You will find your customers to be much more demanding than any boss could ever be! Along with this introspection, is the question: “How have I worked on my own in previous situations?” Is this a new or untried product or service, do I enjoy the experience of working for myself, can I survive pressure and can I actually keep myself going when tough decisions have to be made? These are all questions that must be answered before attempting any franchise business.

The second question to ask yourself is: “Have I researched the market or field regarding the area I plan to purchase a franchise in”? This must be very extensive as you want to have a good mix of the business fit being right or correct for you and a market that will support your decision. In other words, you want to be able to enjoy your business and it must have a market that desires to purchase from your business as well. You will need to research the type of personality you have, what your likes and needs are, and if your fellow consumer feels the same way about a product or service franchise you may purchase. You want to give yourself the absolute best scenario to succeed in something that you will truly enjoy working and marketing or else just stay in the job you have at present and keep your security.

After you have researched your desires and needs and attitudes, the next step is to address your financing issues. What amount can you comfortably afford to put down on a franchise? What will the operating expenses be? Within this thought process there are many pitfalls. For instance, do not forget to allow for employee salary, benefits, replacement training, recruiting ads, possible temporary help, government regulations for employment, accounting fees, local licensing fees, permits, remodeling or leasing costs, and many more costs that will need to be addressed within a start-up package plan. Many times a franchise licensor will be able to help with several of these questions. However, please do allow their word to be considered as final. Go out and do research yourself and find out if the figures they present seem logical.

You will want to check the Internet for lists and types of franchise licensors that are willing to take on new franchisees. Check the business publications such as Inc. magazine, Franchise Today or Entrepreneur to see what franchises are up and coming or those that are solid and gaining ground. You want a franchise that is growing and not stagnant and also one that has no litigation in courts or other legal issues.

Once you have narrowed down the field you want to be in, what you will bring to the table in regards to your personality and goals, the type of financing that you have available, and have done some research on the market for your product or service, it is time to talk to the franchisor that grants the license.

The first thing to remember with a franchisor is that they are there to sell you a franchise. Even the best franchisor out there will attempt to market their product and downplay other franchises. What you want to realize here is that their goal and game is to have successful franchisees but that does not prevent them from possibly making a wrong fit with you. You are your best advocate. Keep your head and do not let their enthusiasm become overwhelming to you with thoughts of riches and independence. The nature of a franchise is to share a good branded name and to spread the advertising and marketing costs over all the franchisees. Therefore, you will have rules, regulations, and contributions that you will be required to make and you will have a headquarters to oversee your operation.

This may be good for some people and for others, it may just not sit right. This is where your personality evaluation comes in. Judge for yourself if what the franchisor is providing matches up in your mind with the control they operate over your business.

The best thing you can do for yourself after you have selected a franchisor, is to have a business attorney of your choice go over all the papers, suggest items that might need some changing to benefit you more, and general advice on whether this licensing agreement is standard in the industry. You want to avoid being locked into a franchise that offers their licensees little resources should a problem occur. You may also want to contact several other franchisees and ask how satisfied they are with the service they receive.

The conclusion is that franchising can be a wonderful method of jumping into being into business for yourself but not by yourself. The licensor can offer many resources it might be hard to afford by yourself. They are a good source of encouragement and hand-holding when you are starting out and things seem overwhelming. Other franchisees will probably be helpful as well if you are not in their immediate area. Being in business for yourself can be exhilarating and franchising can be your ticket if researched thoroughly and properly.

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Terry Frerker is an entrepreneur who has a one step system to success. If you would like to contact Terry for his one step sytem you may do so at hawk07@cox.net or http://Iwilltellyouhow.com

Some folks offered helpful insights and suggestions on how to pick a franchise and a few things to watch out for, while other emails came from current franchise owners asking me to help them sell their operations to Anthony R.

Hmm, sounds like it’s time to update the old business card once again. Tim Knox: Franchise Broker At Large… Who knows, maybe I can franchise the concept.

Last week I promised we’d take a closer look at a few of the things you should look for when considering a franchise opportunity. Keep in mind that there are thousands of franchise opportunities that range from the low end opportunities available for a few thousand dollars to the high end franchises that cost hundreds of thousands of dollars.

The difference in price is reflected in many ways: the viability of the opportunity, the level of training and support offered to the franchisee, the track record and financial stability of the franchisor, the success rate of the franchisees, and a dozen other factors.

All a lower end franchisor might offer is a training manual and the right to use their company name. Many also have very little interest in weeding out potential franchisees. The truth is many are in business just to collect franchise fees. They have little interest in whether or not a franchisee actually succeeds. If you have a pulse and a checkbook, you can become their franchisee. And your pulse does not have to be that strong.

The higher end franchisors have very strict franchisee requirements and will not allow just anyone to become a part of their franchise system. They also go to much greater lengths to ensure the success of their franchisees. They offer complete hand holding from start to finish and remain heavily involved in the business even after the doors open. Yes, you do pay dearly for their assistance, but as the old saying goes, you get what you pay for.

Here are a few things to look for in a franchise opportunity:

Turnkey operation This is the most appealing feature of many franchise systems. Many of the top franchisors will scout the best location for the business, build and equip the facility, hire and train employees, put you through an extensive management training system, then toss you the keys. Furthermore, they will work closely with you for the first few months to help make certain that you know what to do with the keys once they’ve been tossed to you.

The majority of franchises don’t offer such complete turnkey packages, so be prepared to do much of the upfront work yourself. Often it is up to you to find a location, negotiate the lease, build out the space or erect a building, install the equipment, hire and train a staff etc.

Proven track record and management system As mentioned earlier, many of the lesser-known franchise systems offer you a training manual, maybe a training video, and a few hours of telephone support. Not the best way to learn how to run a business. A good franchisor will provide you with thorough management training, either at their facility or onsite at yours. Since one of the reasons for buying into a franchise system is to tap into their expertise and know-how, thorough training should be a foremost consideration.

Customers waiting for the door to open I don’t have the statistics in my pocket to back this up, of course, but I’d bet the farm that every time a new McDonald’s opens its door, it’s a mere matter of minutes before the first Happy Meal is sold. Many franchisors spend hundreds of millions of dollars on national ad campaigns to promote brand awareness. This works great for the franchisee who can literally have customers waiting for the doors to open on the first day of business.

Always consider the downsides There are downsides to franchising. Foremost is the high cost of entry. The top franchise opportunities require considerable investment on the front end, usually more of an investment than if the entrepreneur started a similar venture on his own. You could open an independent hamburger fast food restaurant for a fraction of the McDonald’s franchise fee, but you probably won’t sell as many hamburgers. What you’re buying from McDonald’s is not just a fast food restaurant that sells hamburgers. What you’re buying is a brand, a reputation, and a proven business system with ready to eat customers. Be prepared to pay a premium for it.

Another downside is that when you buy into a franchise system you often have to pay a percentage of your revenues back to the franchisor. You might also be required to buy supplies from the franchisor, including inventory, paperwork, software, computer systems, and anything else the franchisor decides that they should supply to you.

And there in lies the biggest downside of all. When you buy into a franchise system you don’t control your business, the franchisor does. You have very little say-so in running the business. You must follow their processes and procedures without variation. And should you decide to get out of the business you may not even be allowed to sell the franchise to just anyone. The new owner would have to be approved by the franchisor before a deal could be made final.

The bottomline, Anthony, is to do your homework and make sure the franchise you choose fits your personality, your lifestyle, and your pocket book.

Tim Knox is a nationally-known small business
expert who writes and speaks frequently on the topic. For more
information or to contact Tim please visit one of his sites
below.

http://www.dropshipwholesale.net

http://www.smallbusinessqa.com