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How to Have a Profitable Business in Any Economy


How to Have a Profitable Business in Any Economy

People start and buy businesses for many different reasons. Some people do it as an extension of their passion for a certain thing such as flowers, woodworking, machinery or serving people. Some people do it for the thrill of winning, but ultimately everyone who goes into business does it to make money.

There are thousands of books that have been written about business telling you what to do and what not to do, but ultimately making money in business is not that difficult. Listed below are five fundamentals of what it takes to have a profitable business.

Income – expenses = profit. Income is determined by how much money is generated by the business. Expenses are what is needed to operate the business. Profit is what is left over after deducting the expenses from the income. You can always increase your income, but you can only reduce your expenses so far before you don’t have enough of the basics to keep the business operating.

Sales. A lot of people don’t like to hear the word sales, because they don’t want to be in sales or affiliated with sales, but without sales there is no business. Sales is the business. The major goal of every business is to increase sales, because without sales there is no income.

Sales combined with income and expenses applies to all industries. It doesn’t matter if you are operating an exercise/yoga clinic or a computer chip manufacturer, the formula is the same. Even churches have a sales department to entice their congregation to give more. Sales is what makes the world go around.

The formula shapes your business model. Over time, with the practicing and perfecting of the sales aspect along with the income – expenses = profit formula, you will develop a business model that works. This is called a profitable business.

Make the model scalable. To add more profits, hopefully the business model you have created is scalable and you can duplicate the business model either through franchising, dealers representing your business, or the opening of additional facilities using the same model you created and perfected.

What I have explained in five steps is very simplistic on how to have a profitable business anywhere. This formula is applicable in any geographic area and to any business. Anything else beyond the sales and income – expenses = profit model is called an excuse. I was taught early on in my business career that “You can make money or you can make excuses, but you can’t make both.”


Terry Monroe ( is the president and founder of American Business Brokers & Advisors. The author of four books, he most recently published Hidden Wealth: The Secret to Getting Top Dollar for Your Business, with ForbesBooks. Monroe is a professional intermediary, consultant, and market maker for privately-held companies and has been involved in the sale of more than 800 businesses. In his 35-plus years of service, he has owned and operated more than 40 different businesses. At American Business Brokers & Advisors, he serves as a consultant for business buyers and sellers throughout the nation. As an expert source he has been written about and featured in The Wall Street Journal, Entrepreneur magazine, CNN Money, USA Today, CEOWORLD, and Forbes.

Dunkin’ Donuts Unveils Ambitious China ‘Roll-Out’

Canton, MA – Global donut giant Dunkin’ Donuts has signed the largest joint venture agreement in the company’s history with the goal of expanding its presence in China from the current 16 donut shops to a network of 1,400 franchises over the next 20 years.

The joint venture has exclusive rights to expand Dunkin’ Donuts in new Chinese locales including Beijing, Chongqing, Fujian, Guangdong, Guangxi, Hainan,  Hong Kong, Hunan, Jiangxi, Macau, Shanxi, Sichuan, Tianjin, and Yunan.

The opening of the first restaurant is expected by the end of this year.

Dunkin’ Donuts restaurants in China feature the brand’s standard fare including regional items catering to local taste  including such favorites as “Dry Pork and Seaweed” donuts and “Mochi Rings.”

In 2013, Dunkin’ Donuts signed a master franchise agreement with Fast Gourmet Group to develop the brand in Eastern China to open more than 100 restaurants in the Shanghai, Jiangsu and Zhejiang regions.

Dunkin’ Donuts currently has more than 11,000 restaurants in 36 countries around the world, including 16 in China and more than 2,200 across the Asia Pacific region.

The company has entered into a long-term master franchise agreement in which Golden Cup Pte. Ltd., a joint venture between Jollibee Worldwide Pte. Ltd. and Jasmine Asset Holding Ltd., a wholly owned subsidiary of RRJ Capital Master Fund II, L.P.

Jollibee Worldwide Pte Ltd., a wholly owned subsidiary of Jollibee Foods Corporation, which operates the largest food service network in the Philippines.

Jasmine Asset Holding Ltd is a wholly owned subsidiary of RRJ Capital Master Fund II, L.P., which was established by RRJ Capital, an Asian-based investment firm with offices in Hong Kong and Singapore.

The master China franchise agreement is the latest step in Dunkin’ Donuts’ plan to accelerate its international growth.

Last year, the Massachusetts-based company signed franchise joint venture agreements to expand operations in key global markets including Brazil, Sweden, and Austria.


Johnny Rocket’s Open’s New Singapore Restaurant

Alsio Viejo, CA – After successful development in Southeast Asian markets, including the Philippines, Malaysia and Indonesia, Johnny Rockets is now partnering with new partners to open a new restaurant in Singapore.

“With 13 restaurants currently operating in Southeast Asia, Singapore is a natural next step in furthering our expansion in the region,” said Scott Chorna, SVP of International Development for Johnny Rockets.  “With the demand for better burger concepts booming, now is the ideal time for Singapore residents and visitors to experience our signature American dishes.”

A destination for both residents and travelers, Johnny Rockets’ entry into Singapore paves the way for future growth in Asia, particularly Vietnam, Thailand and China, markets “that historically have embraced Americana cuisine and culture,” the company said.

Johnny Rockets’ franchise partners currently operate more than 100 restaurants outside the US, with plans to double that number by 2017 as part of its global strategy.

Purchased by Sun Capital Partners in June 2013, Johnny Rockets operates more than 320 franchise and corporate locations in 26 countries around the world.



BLT Steak to Open Restaurant in Tokyo

New York, NY – Global restaurant and hospitality group ESquared Hospitality is partnering with Tokyo-based Jinterji Co. Ltd. to bring BLT Steak to Japan.

The first BLT Steak Tokyo will open at Roppongi-Itchome Izumi Garden later this month.

BLT Steak and ESquared Hospitality opened their first restaurant in New York City in 2004 and have grown their network to more than 10 brands and 28 restaurants worldwide, including 14 BLT Steak and BLT Prime locations.

The new Tokyo restaurant will be ESquared Hospitality’s sixth outpost in Asia, joining BLT Steak restaurants in Hong Kong and Seoul, and BLT Burger locations in Hong Kong and Taiwan.

ESquared Hospitality will also open BLT Steak in Bahrain later this year, marking the company’s first entrance into the Middle East.

The new BLT Steak Tokyo is a bi-level restaurant featuring high ceilings on the main floor with a spacious bar and dining room, which can accommodate 111 guests.

At the back are four private dining rooms that can seat six to eight guests in each, or be combined to host up to 20 guests.

Guests may smoke on the mezzanine level, which boasts a unique design and seating for 40, while an outdoor terrace “is adorned with greenery and colorful artwork to create an elegant resort atmosphere,” the company said.


Cold Stone Creamery to Open First Store in Central America

Scottsdale, AZ – Cold Stone Creamery will enter the Central American market with the opening of its first store in El Salvador later this year.

Kahala Brands, the parent company of Cold Stone Creamery has signed a master franchise agreement with CMR Global S.A., a subsidiary of GP Restaurants, to open the new store in the capital city of San Salvador’s Multiplaza Mall.

GP Restaurants is well known as a leader in the food and beverage industry in Central America, representing over 15 brands with over 160 restaurants across El Salvador, Panama, Guatemala and Costa Rica.

Cold Stone Creamery has made strong moves into the international market in recent years.

The company’s international growth began in November 2005 when the company opened its first international store in Tokyo, Japan.

Today, Cold Stone Creamery stores are operating in nearly 300 international locations and over 25 different countries, including the Philippines, Cyprus, Kuwait, Qatar, Trinidad, Nigeria, Egypt, and Indonesia.

Headquartered in Scottsdale, Arizona, Cold Stone Creamery is a subsidiary of Kahala Brands, which maintains a portfolio of 15 quick-service restaurant brands.


Moscow Says ‘Nyet!’ to McDonalds; Cites ‘Food Safety’

Los Angeles, CA – Russia has ordered the closure of four McDonalds fast-food restaurants in Moscow because of what the government says are possible “breaches of sanitary rules.”

The four restaurants include the first ever McDonald’s in Russia, which the Oak Brook, Illinois-headquartered global mega-giant says is the busiest in its entire 35,000 outlet global network.

Raising an eyebrow at the move by Russia’s food safety watchdog, many in the business community dismiss Moscow’s assertion saying the move is a another reaction to the sanctions imposed by the US and the European Union over the country’s seizure of the Crimea and its incursion into Ukraine.

“Obviously, it’s driven by the political issues surrounding Ukraine,” said Alexis Rodzianko, president and CEO of the American Chamber of Commerce in Russia at a press conference held after the move was made public. “The question on my mind is: Is this going to be a knock on the door, or is this going to be the beginning of a campaign?”

The day after the decision, a sign on the door of the largest McDonalds that was shuttered said the restaurant had been closed “for technical reasons.”

A statement released by the government stated that “documents” had been presented to McDonalds’ management and that the shops had been closed for “numerous sanitary violations dealing with product quality,” without giving any details.

McDonald’s head office released a statement to the press saying that the company “is closely studying the subject of the documents to define what should be done to re-open the restaurants as soon as possible.”

Russia’s first McDonald’s opened on Moscow’s Pushkin Square in 1990.

The company currently operates 438 restaurants in Russia and considers the country, which currently generates about 10 percent of the company’s European operating profit,  as one of its top seven major markets outside the US and Canada.

Other US companies with operations in Russia are closely monitoring the situation, curious as to whether Moscow will expand the regulatory scope of its sudden, intense concern over “product quality” issues.

That list of vulnerables includes such icons as Coca Cola, Starbucks, KFC, Pizza Hut, Jack Daniels, and McDonalds’ arch-rival Burger King.


Wendy’s: ‘Aye’ to Canada, ‘Nyet’ to Russia

Dublin, OH – Fast food giant Wendy’s has announced a major overhaul of its international operations with almost simultaneous moves to increase its Canadian footprint and reduce its presence in Russia.

On the Canadian front, Wendy’s currently operates 367 restaurants across the country, 230 of which are franchises. By early next year, the company said, the remaining stores that are company owned will also be franchise operations.

According to sources, the company is betting on Canadian franchisors having a better understanding of the Canadian fast food market with the goal of opening at least 100 additional franchises in Canada over the next six years.

Wendy’s is the third-largest burger chain in Canada, behind global mega-giant McDonald’s and A&W. The company has a joint real estate venture with Canadian donut king Tim Hortons called ‘TimWen’, that has Wendy’s leasing 42 facilities across the country for Wendy’s/Tim Hortons combo restaurants.

At the same time it announced its expansion in Canada, Wendy’s said it will close the eight burger restaurants it’s opened in Russia since 2010.

Wendy’s, which had originally planned to open 180 locations in Russia, has cited disagreements with its local partner, Wenrus, for the decision.

The Russian franchiser, the Ohio-based company said, “has not expressed interest in growing Wendy’s business in Russia, nor have they shown the resources to successfully operate the existing restaurants on a long-term basis.”

Currently, Wendy’s operates more than 6,500 Wendy’s restaurants in the US and 27 countries including Singapore, Azerbaijan, Georgia, Costa Rica, the Bahamas, Singapore, Guatemala, Japan, Argentina, Venezuela, the United Arab Emirates, the Dominican Republic, New Zealand, Malaysia, and the Philippines.



Coldstone Creamery Signs Pakistan Franchise Deal

Scottsdale, AZ – The Cold Stone Creamery has expanded its global footprint with the signing of a franchise agreement to open its first shop in Lahore, Pakistan.  

Cold Stone’s parent, Kahala Brands, signed the Master Franchise Agreement (MFA) with Venus Pakistan (Pvt.) Limited to open the shop’s doors by the end of next month. A second Cold Stone Creamery Cafe is slated to open by the end of 2014 in Karachi.

Cold Stone Creamery has continued to make strong key moves into the international market in recent years.

The international growth of Cold Stone Creamery began in November 2005 when the company opened its first international store in Tokyo, Japan.

Today, Cold Stone Creamery stores are operating in nearly 300 international locations and over 25 different countries, including the Philippines, Cyprus, Kuwait, Qatar, Trinidad, Nigeria, Egypt and Indonesia.

Headquartered in Scottsdale, Arizona, Cold Stone Creamery is a subsidiary of Kahala Brands, which holds a portfolio of 15 quick-service restaurant brands.


Fuddruckers Opens Second Italian Location Northwest Of Milan

Houston, TX – Hamburger restauranteur Fuddruckers has debuted its second Italian location today in partnership with new franchisee Vinum et Alia.

According to parent Luby’s Inc., the 3,490-square-foot fast casual restaurant is located approximately 20 miles northwest of Milan between Castellanza, home of the University of Economics Carlo Cattaneo, and Legnano, a city that traces its history back to medieval times and now boasts one of the area’s most popular parks.

The new site is one of ten planned with Vinum et Alia with proposed targets in Italy, as well as in Poland and Switzerland.

The 138-seat venue is the first free-standing restaurant for the partnership and benefits from immediate access to a high traffic state road.

Texas-based Luby’s Inc. operates restaurants under the brands Luby’s Cafeteria, Fuddruckers and Cheeseburger in Paradise and provides food service management through its Culinary Services division.

The company is the franchisor for 112 Fuddruckers franchise locations across the US, Canada, Mexico, Italy, and the Dominican Republic.