The new check cashing instant clearing will take some time to get use to. If checks clear immediately and deposits take a few days then franchise outlets may find more bounced checks in their establishment.
We might also see a major shift in Thursdays Advertising inserts in the Newspapers, also a shift in Thursday junk mail coupons. Retail outlets will not wish to run sales items on Thursdays because they will get too many bounced checks.
When ATM cards became more widely used we saw a slow trend away from Thursday ads and it became more spread out over Fridays. Also many mailer coupon packs that are run by franchises may need to switch their delivery dates to coincide more with weekends as the paychecks people get may not have cleared their accounts, while every check they write will.
There will of course be more bounced checks in the short term, meaning that this will cost franchise retail outlets and effect their cash flow, while the banks will increase profits within the next two to three quarters due to increased banking fees for those bounced checks during this Christmas Shopping season. If you will recall a couple of years back banks made additional dollars by allowing electronic debits to run over and then collecting the fees for over charges per transaction, increasing profits by nearly 30%. During this same time Christmas sales were able to remain strong since the consumers were buying on money they did not have, thus the whole process mimicked super high interest short-term loans.
We in franchising need to understand that every single thing that is changed anywhere in the economy will effect our businesses, some good, some bad, some just different, never the less we are effected. I have talked to few franchise outlets who believe this trend is significant, yet as consumers become more indebted we will see more and more of them running redline, paying credit card payments with other credit cards.
As the float is taken from consumers who are use to it in their habitual shopping habits and given back to the banks, we will see more bounced checks in our franchised outlets, this will also effect franchisors in late royalty payments of those franchisees who are in economically depressed or job-recovery areas of our country.
The consumer's cash flow becomes the franchised outlets cash flow, which affects the franchisor's cash flow. Bank profits will increase significantly in the interim on the backs of these consumers and we will feel a slight pinch and changing of shopping day peak trends as these new banking policies come into play.
We are always interested in what effects your bottom line as a small business, franchise outlet or even a large Corporate Box Store as retail sales in our economy effect jobs, factory orders, consumer confidence, stock market, money flows and the future of the business cycles, you should be too.
"Lance Winslow" - If you have innovative thoughts and unique perspectives, come think with Lance; www.WorldThinkTank.net/wttbbs
"I don't need a business plan."Neither did Alice in Wonderland."Would... Read More
No "meme" isn't a typo and Got Milk, the more... Read More
In 1989, Sony founded its Institute of Wisdom at the... Read More
ACTION PLANNING: Action Planning is a process to develop strategies... Read More
Fun From The StartFor those with the will to start... Read More
Experts estimate that 90 percent of Australian businesses are overspending... Read More
A significant advantage of some business ideas is that the... Read More
Microsoft Great Plains does wonderful ERP job for horizontal markets... Read More
I'm not talking about posting the HBO schedule on your... Read More
After 128 years of business, a household word, Montgomery Wards,... Read More
Have you been in a "brainstorming" session where each person... Read More
You have invested a lot of time and energy on... Read More
Does your overall business strategy include the recruitment of college... Read More
As a franchisor it is imperative that you seek, find... Read More
When developing the competition section of your business plan, companies... Read More
Writing a business plan to help you direct and manage... Read More
To stop a computer virus you must understand how it... Read More
Running a business, whether it be an offline multi-billion dollar... Read More
There's nothing automatic about corporate growth, particularly in the information... Read More
The time when a website was just a simple set... Read More
Writing a business plan is not an easy endeavor, nor... Read More
If you're a solo professional like I am, you know... Read More
Where would your business be without a proper plan? A... Read More
No matter what business you plan to start in your... Read More
"Bozo" ? A clown with a forlorn look, always finding... Read More
Succession planning requires the owner of a small or medium-sized... Read More
Business seems to drop, slow or even stop during the... Read More
To Grow (Catapult) Your Business That's Why.When it's in your... Read More
Strategic planning is vital while starting a new business or... Read More
The boom of the dot-com era in 1999 brought the... Read More
Every new business owner knows that a business plan is... Read More
These may sound like no brainers, but you'd be surprised.... Read More
Many very successful business owners may never have had a... Read More
Fun From The StartFor those with the will to start... Read More
Strategic planning is vital while starting a new business or... Read More
Before becoming a netpreneaur, I was an entrepreneur. First, I... Read More
I love the excitement of starting up a new home... Read More
Why do so many companies languish and watch as their... Read More
With the help of balanced scorecard strategy map, it is... Read More
Experts estimate that 90 percent of Australian businesses are overspending... Read More
The format of a Business Plan is something that has... Read More
The decision to sell, or not to sell your business... Read More
I've either been involved with or held a process-related role... Read More
One Research Scientist at the Hewlett-Packard (HP) Imaging Systems laboratory... Read More
In Ohio: besides the 3-Cs you should look at Akron,... Read More
I read once that something like 30 percent of all... Read More
We have been spending many hours surveying the market for... Read More
I am surprised how few sales professionals, independent consultants, and... Read More
Obviously, there will never be an actual water shortage since... Read More
Does your overall business strategy include the recruitment of college... Read More
Succession planning, like any business acumen, is both an art... Read More
Writing a business plan is no easy task, sure you... Read More
No "meme" isn't a typo and Got Milk, the more... Read More
If you've ever listened to Warren Buffett talk about investing,... Read More
Entrepreneurs often give little if any consideration to their computer... Read More
The Accountability/Alignment Process: Three Steps to an Accountable Organization Generating... Read More
More than $117 billion passed hands from Internet shoppers to... Read More
Although North Americans were the dominant population on the Internet,... Read More
Possibly THE most frequently asked question of me is "What... Read More
You know you need a business plan. You probably realize... Read More
Storytelling and writing a business plan actually go hand in... Read More
As a franchisor it is imperative that you seek, find... Read More
Making money doesn't make your reputation... your reputation makes you... Read More
Why cut costs now? Efforts are multiplying to cut costs... Read More
When looking at Akron carefully one cannot help but notice... Read More
I. INTRODUCTIONThe term resilience, which is of frequent use in... Read More
Strategic Planning |