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
Barrington South Lincoln Stretch rentals .. Lockport Chicago limo O’HareNo matter what product or service you provide you will... Read More
One Research Scientist at the Hewlett-Packard (HP) Imaging Systems laboratory... Read More
A recent conversation started with a typical question, "How's business?"... Read More
The format of a Business Plan is something that has... Read More
These may sound like no brainers, but you'd be surprised.... Read More
ACTION PLANNING: Action Planning is a process to develop strategies... Read More
Growth through acquisition should not be considered an option reserved... Read More
If you are in the parking business and own or... Read More
The foundation of any business transaction is the promise of... Read More
Ask Yourself three simple questions that affect your strategy planning...... Read More
Most companies that are worthy of raising venture capital have... Read More
Succession planning, like any business acumen, is both an art... Read More
Cassy was an employee of a nonprofit who had been... Read More
What gets measured gets done.How do you keep your business... Read More
I'm not talking about posting the HBO schedule on your... Read More
Writing a business plan is not an easy endeavor, nor... Read More
Note to Rite Aid and CVS: It's not about the... Read More
Private equity firms have raised so much capital over the... Read More
Want to become more strategic? Add these traits to your... Read More
Strategic planning is vital while starting a new business or... Read More
( * - the word 'product' can be substituted to... Read More
Do you work in or own a business that's affected... Read More
When in doubt, cut that out! Yeah, yea, doubting Thomas... Read More
How often does your company make a quantum leap forward?... Read More
A strategic alliance is when two or more businesses join... Read More
Downers Grove limo Chicago ..Is your business growing as fast and effectively as it... Read More
There is so much small business information available today that... Read More
GETTING STARTED WITH SUCCESSION PLANNING: PART IA survey of 4,300... Read More
Growing your own small business can be one of the... Read More
The first step in starting a restaurant is proper planning.... Read More
The trick is to determine what uniquely identifies your best... Read More
Every business experiences slower periods. For some, they sell more... Read More
With a heightened awareness of opportunity, ideas can often be... Read More
Business owners and entrepreneurs are, by nature, risk takers and... Read More
American Eagle Outfitters and Wet Seal Stores have issued statements... Read More
The new check cashing instant clearing will take some time... Read More
If you own a pressure washing business one of the... Read More
From time to time there seems to be a flurry... Read More
No "meme" isn't a typo and Got Milk, the more... Read More
If you are in the parking business and own or... Read More
Part 1A few weeks ago I attended a seminar sponsored... Read More
Where would your business be without a proper plan? A... Read More
I am not a big fisherman, but I do enjoy... Read More
Want to become more strategic? Add these traits to your... Read More
How important is a vision statement to your company or... Read More
Is there really anything as a problem? Does chaos or... Read More
Succession planning, like any business acumen, is both an art... Read More
Fun From The StartFor those with the will to start... Read More
This week I coached a wonderfully lovely woman I'll call... Read More
These may sound like no brainers, but you'd be surprised.... Read More
Strategic Planning |