Schooley Mitchell Telecom Consultants

Franchise Broker Symposium - 2008

Mon, 12 May 2008 17:05:44 EDT

This past week Schooley Mitchell Telecom Consultants hosted two Franchise Broker Symposiums. One was in Philadelphia, PA and the other in Costa Mesa, CA. The Symposiums were two days long and featured seminars geared towards providing Franchise Brokers with more information and knowledge to better serve their clients.
Speakers included:

Michael Vickers - Michael redefines the possible for sales professionals, leaders and managers. Whatever result you are striving for, if it involves influencing others, or achieving success through others, Michael will build your confidence and accelerate your performance. Michael's sessions discussed Becoming Preferred - how to be the number one choice in your profession.

Adam J. Siegelheim, Starks and Starks Attorneys At Law - Adam J. Siegelheim is a member of the Business & Corporate and Franchise Law Group. His franchise practice includes the representation of franchisors and master franchisees in various matters, including the preparation of disclosure documents and franchise agreements, state registrations, and compliance with applicable federal and state regulations. Mr. Siegelheim is a member of the International Franchise Association, the American Bar Association Forum on Franchising and the New Jersey Bar Association Franchise Law Committee. Mr. Siegelheim presented only in Philadelphia on the topics of New Disclosure Legislation and Earnings Claims - What Can and Can't Be Said.

Peter Casey, Owner of Capital Franchise Group - Peter has been advising franchisors and franchisees since 2003. He has worked with hundreds of franchise seekers and franchise companies to help determine compatibility. Peter's sessions discussed Internet Leads and the Best Practices for Turning Leads into Cash.

Eric Reiss, Greensfelder Attorneys At Law - Mr. Reiss is an Officer and the Manager of the Corporate Pratice Group. He plans, drafts and negotiates franchise disclosure documents, franchise, subfranchisor and area development agreements, distribution and supply agreements, as well as a wide variety of other commercial agreements. Mr. Reiss is a Certified Public Accountant and has extensive Big 8 accounting and Fortune 500 finance and Management Experience. He founded The Franchise Affiliates and serves as a legal advisor to numerous franchise consultants and brokers. Eric Reiss presented the topics, How To Protect The Parties and Still Make The Deal and How To Protect Yourself in a Litigious World.

Matthew J. Kreutzer, Hale Lane Peek Dennison and Howard, Attorneys At Law - Matt has over 9 years experience in franchise law and franchising. He has represented clients in all aspects of the franchise relationship, both in and out of court. Matt presented only in Costa Mesa on the topics of New Disclosure Legislation and Earnings Claims - What Can and Can't Be Said.

Dennis Schooley - Dennis is the Founder of Schooley Mitchell Telecom Consultants with responsibilities encompassing all facets of the business with particular focus on Franchise Development in Canada and the United States. Responsibilities also include the development of legal documentation and agreements for Franchisees, Territory Sales Agents, and Clients in close consultation with legal counsel. Dennis gave seminars outlining Sales and Marketing Best Practices, Presenting at Seminars, Developing Accountability with Candidates and Qualification Systems.

On top of the formal seminars, there was ample time given to have roundtable discussions in order to learn from others in the industry. The tools, knowledge and networking that was shared at these symposiums should prove invaluable for the Franchise Brokers in the future.

If you would like information on the Next Broker Symposium, Contact Pam Duskocy.

Influence with Ease... Casual elegance or casual sloppy?

Thu, 08 May 2008 17:12:21 EDT

You've no doubt noticed the workplace trend towards the ambiguous dress code of 'business casual'. I'm all for managers getting rid of uncomfortable ties and girdles. (I stopped wearing girdles years ago). As for frontline attire, I'm a fan of tasteful uniforms that enable customers to easily recognize service personnel. My concern is when casual becomes an excuse for sloppy. Some people appear to assume that how they present themselves at work is their business. Actually, since everyone else is subjected to that employee's attire and hygiene, how employees dress impacts everyone. Good grooming therefore, doesn't just reflect on how you feel about yourself... it demonstrates how you feel about others. If we want our coworkers and customers to show respect to us, perhaps we should begin with grooming habits that show respect for others.

Today's chuckle:
Clothes make the man. Naked people have little or no influence on society. - Mark Twain

How to unseat your competition

Wed, 07 May 2008 18:49:29 EDT

In a highly competitive marketplace, sometimes you will have to dislodge a competitor that is in the preferred position. Often these competitors are well established and have established relationships. Here are some strategies and tactics to help you break those barriers.

1. Don't badmouth or speak negatively about your competition - This is a direct insult to your prospect and reflects poorly on you. Your prospect chose this supplier for a reason and you don't want to infer that they made a bad decision.

2. Don't discount your way in - This is a terrible way to start a profitable business relationship. You simply create an expectation and climate of additional concessions and price-cutting in the future. If price is your only differentiator, then you will lose the account in the future to a competitor that undercuts you.

3. Don't encourage multiple source supplier relationships - Make sure you don't try and convince the customer that having a single supplier is bad business. If you follow the logic, your customer shouldn't choose you as a sole supplier either.

4. Understand why your prospect is buying from your competitor - Is it an issue of price, service, solution, relationship, etc? Once you understand the reasons, you simply do it better.

5. Establish a presence - Create opportunities to have a physical and psychological presence in the account. Make sure any communication is meaningful and relevant.

6. Establish your reliability - Do whatever you say you are going to do and demonstrate to the prospect that you can implement solutions quickly. Make yourself a valuable resource.

7. Know your competitor - Just as a coach studies film on the opposing team, you must fully understand how your competitor sells and retains their accounts. Then do what they do better.

8. Determine points of vulnerability - The thing to remember here is no one does everything perfectly. Look for points of weakness. It could be their service, technical support, relationships, billing, pricing, etc.

Remember, the art and science of dislodging a current supplier is long-term, strategic work that requires creativity, patience and lots of persistence.

Easy Networking Tips

Tue, 06 May 2008 17:57:25 EDT

Dennis Schooley recently presented at a seminar I was lucky enough to attend. One of the topics he spoke about was good networking strategies. He pointed out that while it is good to meet as many people as possible, and get as many business cards as you can - it would be better to meet less people but make a good/lasting impression. If you aim to REALLY talk to 3-5 people at an event, you can go home afterwards and find out what information you can send them to help them out. This will keep you fresh in that contact's mind if they ever require your services.

He gave four simple tips to get someone talking to you. In a conversational setting ask someone:

1) How did you get into that business? Anyone interested in networking at all should be willing to talk about their own business. If not, you should probably move on to someone else.

2) How have changes affected your business? There are so many changes in the world. How have oil price changes, traffic, the internet, rising costs, etc, etc changed their business?

3) What do you see in the future? Do they see their business adapting and changing? Are they going to grow, reduce size or stay the same? What do think the market will do?

4) What do you do better than your competitors? This is their chance to really sell their business and talk it up.

Remember, you want to ask these questions casually. Fit them into conversation naturally and don't just fire them out at random. Otherwise, you might be the person no one wants to network with.

Finally, remember it is better to GET a business card than to give one. This way YOU are in control and can make the phone call.

How Many Franchises?

Mon, 05 May 2008 18:36:13 EDT

Recently I was privy to a discussion about how many franchise opportunities there actually are. The presenter (a franchise lawyer) was quoting 3000 as his number, but an audience member felt that was just members of the IFA. The audience member felt there were closer to 5000 franchises available.

Askjim.com says 'There are over 3,000 different franchises to choose from, in about 75 different industries, and more being created every year.' Although, Jim then referred me to the IFA website, which left me suspicious that the 3000 encompassed only their members. I had to investigate further. Interestingly, the IFA only noted 1250 franchise opportunities. The CFA (Canadian Franchising Association) only lists 400 members in good standing. Those two numbers do not add to 3000.

What do you think? If I was asked I would answer with 3000, but validate it with the lawyer and askjim.com as my sources.

Which is the Best Franchise Opporunity?

Thu, 01 May 2008 18:23:19 EDT

There are many franchise businesses in the market and the most common question I get asked is "which is the best franchise opportunity?" My answer usually is "It depends on your personal skills and lifestyle."

Before deciding on which franchise to buy it is important to evaluate your character. Do not use your own judgement but rather ask family and friends. Ask them to be absolutely brutal in describing your key personality traits. Get them to highlight both your strengths and weaknesses.

Based on the self assessment choose a franchise business that suits your character and abilities. You are unlikely to succeed in a fast food franchise if you like to get out and about and meet new people. On the other hand if you are an introvert you are less likely to succeed as a life coach!

Are you an early morning person or do you prefer working later on in the day? Choose the business that fits in with your lifestyle. Do not purchase a franchise business solely on how much it costs and the profit potential.

Are you good at managing people or do you prefer to work alone? Some franchise opportunities involve employing many staff whist others can be operated single handed. Again choose the business that is right for you.

If you end up buying a franchise that does not suit your temperament, lifestyle or character you are unlikely to work hard in the business for long term. This could lead to the business not performing as well as it should primarily because you made the wrong choice and not because of the franchise model.

Discuss the franchise business and the demands it will make to your lifestyle with family and friends. It is important that they are aware of what commitments you are about to make and how it will impact their lifestyles. If you have a regular golf game on Sunday and the business requires you to work on that day it is a good idea to see if they would be happy to reschedule for another day when you are likely to be free.

If you have children and are married debate openly the issues with them. You might not be able to pick up and drop of your children say to football like you used to do.

Getting your family and friends behind you and your new goals is essential for long term success. If they can work around your new commitments it is going to be far easier for you to be committed to your new business.

Finally before you buy into the business take the advice of your accountant and lawyer. They will research the franchise for you and look at the bread and butter issues like how is the market segment faring and how strong is the franchisor?

The franchise industry is booming as more and more people are thinking about running their own business. It is the safest way to get started in business for the first time if you choose a business that is right for you.

Naz Daud is the founder of CityLocal. This Business Franchise Opportunity is for people who would like to work from home and be their own boss.

Prior to Buying a Franchise - Questions and More Questions

Wed, 30 Apr 2008 18:18:53 EDT

Before you buy a franchise, even before you start looking for a business you should first understand the type of person you are. Ask yourself some revealing questions. They will help you determine the right franchise opportunity for you.

What are your strengths and weaknesses? Do you have an outgoing personality? Are you good with people? Do you like a desk job or would you prefer being out and about? How do people react to you? Do you make friends easily? Do you get angry easily? What is your boredom threshold?

Once you have answered these questions then it is time to evaluate your finances. How much money do you have? How much money can you raise from family and friends? What is your credit score like? How much money are you prepared to risk on a new business? How much money can you raise through lending institutions?

Now you are ready to proceed to the next step. How many years are you ready to commit to the new business? What do you hope to achieve? Do you have any family members who will be prepared to help out?

The final step is to analyse your living expenses. How much money do you need to live? Are there any further predictable expenses on the horizon? Will you be able to manage with your current vehicle? What amount of risk are you willing to take?

If you are working from home, will you need a new office? What further equipment is required? How would you react without daily human interaction?

Are you looking for an established franchise where you will have to pay more for the franchise model? Or would you prefer a less established brand where the initial franchise fee is often lower but the risks are higher?

If you have answered all these questions then you are now ready to start looking at franchises that fit in with your requirements. The best place to start is by buying the latest franchise magazines. They have a lot of information on the latest as well as the more established franchises.

Another really good avenue for finding franchise opportunities and learning more about the franchise business is the internet. There is a wealth of information on the web. Just search for "franchise", "franchise opportunity" or "business franchise".

Once you have done the basic searches and know what you are looking for then it is time to refine your searches. As an example you might search for "internet franchise" or "work from home franchise" opportunity.

Finally the best avenue for finding a great franchise business is by attending franchise exhibitions. Here you can meet hundreds of franchisors face to face and ask them grilling questions. They will also be in ultra competitive mode knowing that you have so much choice under one roof! You can also get free advice from lenders, franchise lawyers, accountants and other experts.

Buying the right franchise for your personality means that you are much more likely to work harder and enjoy the business you are in. If you enjoy your work you are much more likely to successful!

Naz Daud is the founder of CityLocal Business Franchise Opportunity

How to Turn a Franchise Agreement to Your Advantage

Tue, 29 Apr 2008 18:11:52 EDT

Deciding to buy a Franchise is a huge decision. Once you have convinced yourself that franchising suits your character and business aspirations, have identified the right franchise, done your sums, attended the initial training and perhaps paid an initial deposit you will be presented with a Franchise Agreement to sign.
Typically this agreement could run to 40 or 50 pages and can be a daunting read to those unfamiliar with commercial contracts. The very nature of a franchise business structure means that the agreement will be fairly complex. Remember that this document provides the framework for your business life over the next seven years or so.

Franchisors, particularly established ones, will rarely change or negotiate the terms of their standard Franchise Agreement as they will want to maintain uniformity across all the franchises. However, it is essential that you understand what you are being asked to sign. Once you have signed an agreement as a business person (without the cotton wool treatment given to consumers) you will struggle to persuade a court later that the terms were unfair or sufficiently unreasonable to be void. You will be stuck with it! I strongly recommend that you seek legal advice from a commercial solicitor familiar with franchising.

Key areas include establishing the true cost of the franchise including ongoing royalties, advertising costs, minimum stock purchases. What location and territorial rights have been granted? Are these exclusive to you? What property and equipment is required? What obligations are there on you and the Franchisor relating to the ongoing operation of the franchise?

Often the most complex area relates to renewal and termination of the franchise. Are you granted an automatic renewal right beyond the franchise term of 5 or 7 years? What renewal fee is payable? Can you sell the franchise on? Usually you will need to give the franchisor first option and/or a right of veto over the acceptability of any proposed transferee, often coupled with a % fee. What are the consequences of an early termination by you if you want or need to get out prematurely? There will usually be a minimum period with forfeiture of the franchise fee, stock and possibly other financial penalties and compensation. What if you are in breach? What circumstances would lead to an automatic termination? Are you given a period in which to remedy your breach?

Ask yourself some "What if?" scenarios. What if you died or were seriously ill? What if you failed to meet your sales targets? What if you wanted to sell product out of your territory? What if a customer sued you for faulty products? If you cannot answer all your What ifs, do seek more advice. Don't be afraid to ask the Franchisor these questions. But don't expect an impartial response. The Franchise Agreement will usually have an express term preventing any reliance upon representations or claims made by the Franchisor in the initial presentations or documentation. Much to the disappointment of many clients who come to us for advice having run an unsuccessful franchise, this applies particularly to any claims as to how much money can be earnt... Buyer beware!

Andrew Adams writes for http://www.magfranchise.org where you can find out more about franchising and other topics.

How to Turn a Franchise Agreement to Your Advantage

Tue, 29 Apr 2008 18:11:52 EDT

Andrew Adams writes for http://www.magfranchise.org where you can find out more about franchising and other topics.

Canadian Franchise Association Presents 2008 Recognition Awards

Mon, 28 Apr 2008 02:12:47 EDT

April 28, 2008 - TORONTO - On Tuesday, May 6, 2008, The Canadian Franchise Association (CFA) will honour this year's winners of the CFA Recognition Awards at the 2008 Recognition Awards Luncheon during its 2008 National Convention held at Deerhurst Resort in Huntsville, Ontario. CFA is pleased to announce that Louie Mele, past President of McDonald's Restaurants Canada, will be the first recipient of the inaugural Lifetime Achievement Award. Other Recognition Award recipients will be announced at the awards ceremony.

CFA Recognition Awards pay tribute to individuals and franchise systems for their outstanding achievements and contributions to the Canadian franchise community and for their extraordinary commitment and contributions to philanthropic endeavours. Nominations are solicited from CFA members across Canada and selected based on merit by committee.

LIFETIME ACHIEVEMENT AWARD

The Lifetime Achievement Award recognizes exceptional achievement and contribution to Canadian franchising and the community-at-large through demonstrated excellence throughout one's franchising career. The first recipient of this inaugural award is Louie Mele, past President of McDonald's Restaurants Canada.

'Louie Mele, throughout his illustrious career with McDonald's both internationally and in Canada, exemplified all the personal and professional qualifications associated with a true industry leader,' says Ken Pattenden, Chair of the CFA Board of Directors and President of Taco Time Canada. 'From an entry level position to leadership of one of the real icons of Canadian franchising; Louie has lead by example and shown that with personal desire and commitment and the support of a quality franchise system the potential for success in the franchise community is limitless.'

Mele began his career at McDonald's Canada in January 1973 in his hometown of Windsor, Ontario and advanced through various managerial positions. Mr. Mele took his Canadian McDonald's experience overseas in 1987 when he became Director of Operations for McDonald's Italy. In 1990, he was appointed President of McDonald's Italy.

Mele moved to the U.S. in 1995 as Vice President & Regional Manager in Norfolk, Virginia. He became Vice President & Regional Manager in Tampa, Florida in 1998 and returned to Canada as Chief Operating Officer in 2001 before his appointment to President in April 2005. Mele recently retired from McDonald's Restaurants Canada in February of this year.

HALL OF FAME AWARD

The Hall of Fame Award is presented in recognition of outstanding performance by a franchise company. Hall of Fame Award recipients are instrumental in the achievement of the goals of the CFA through ongoing support of CFA initiatives, volunteer leadership, commitment to the community and franchising excellence.

CORPORATE CITIZENSHIP AWARD

The Corporate Citizenship Award is granted to a franchise system that has demonstrated genuine concern and support for a community or social service group. Award recipients are selected based on their philanthropic innovation, support and impact to the community.

VINCE NICHOLS MEMORIAL AWARD

Vince Nichols was the Director of Franchising for Maple Leaf Mills. His entrepreneurial spirit and dedication as a volunteer opened new opportunities for the CFA to better service the franchise community. In the spirit of his unique approach, the Vince Nichols Memorial Award is awarded to an individual who exemplifies the qualities that Nichols stood for.

For more information about CFA Recognition Awards including a list of past winners and CFA National Convention, visit www.cfa.ca.

About the Canadian Franchise Association

With more than 430 corporate members nation-wide, representing many of Canada's best-known brands, the Canadian Franchise Association is the National Voice for Canadian Franchising and works with all levels of government to ensure the development of industry-made solutions. CFA promotes ethical franchising and educates Canadians about franchising, specific franchise opportunities and proper due diligence. For more information, visit www.cfa.ca.

California Franchise Laws and the Importance of Having Franchise Insurance

Fri, 25 Apr 2008 19:33:35 EDT

When franchising was first introduced in America, it was decried by many as a scam. Why would anyone pay a monthly franchise fee and agree to purchase supplies from the franchisor without the ability to shop around for better pricing? Why not just open up your own shop where you have the freedom to run your business as you please?

Fortunately for franchise owners everywhere the FTC, rather than making franchising illegal, simply setup important franchising laws to regulate it. In addition to these federal laws, franchise laws (and franchise insurance types and rates) vary state to state. Today, a new business startup with one of the highest rates of success is the purchase of a fast-food restaurant franchise.

Today, franchises in America employee over 8 million people and account for about $1 trillion in annual income.

However, not all things are rosy in the franchising business. For example, some franchisors have a habit of heavily weighing franchise agreements in their favor, often making it very difficult for the franchisee to become successful. Another major issue that arises is the liability that comes with owning a business.

In and Outs of Franchise Insurance

Once you purchase a franchise, you become a business owner. You are now responsible for the well being of your customers who visit your business. Whether it's a laundromat, dry cleaners, or fast food restaurant, insurance to cover you against any mishaps is an important part of protecting yourself as well as your investment in your new business.

A trendy California beauty salon should consider insurance to prevent against upset customers who may decide to sue for what they consider to be bad work on their hair. History is full of consumers suing beauty salons for "ruining" the hair of a model or causing rashes to break out on the skin of a struggling actress.

And you undoubtedly remember the story of the judge that attempted to sue a dry cleaner for millions of dollars after accusing the business of losing a pair of his pants. Florida's dry cleaners insurance undoubtedly went up after that, while California's insurance industry was sure to have been watching very closely.

Like Florida, California's coast is home to many wealthy people, which has attracted "extreme" service businesses that cater to the healthy lifestyle and service expectations of those who can afford it. Along with it are customers that displease much easier and have both the money and the power to file what might normally be considered a frivolous lawsuit.

In addition, being home to many struggling actors and models waiting for their big break, California business insurance rates are going to cost a bit more due to the higher risk that a business will be sued.

If you are considering purchasing a California franchise, insurance for that business is going to vary widely based on both the coverage and level of service. When it comes to California, insurance for a franchise business is not something you want to skimp on. Play it safe by going with a well established insurance company and getting an appropriate level of coverage.
Author Resource:- All Franchise Insurance (http://www.allfranchiseinsurance.com) is a repository of companies offering insurance for franchise businesses in all states across the U.S. The author, Art Gib, is a freelance writer.

Article From echievements

Dissatisfied customers - what's really at stake

Thu, 24 Apr 2008 19:34:26 EDT

As a customer receiving poor service, you've no doubt wondered what the people in that organization were thinking. You inform an employee about a problem, and rather than apologize, they make excuses or act like they're doing you a favour fixing their mistake. One reason why this is so common is employees focus on the value of the transaction rather than the value of the relationship. In other words, what's at stake is not the $50 transaction - it's the customer's thousands of dollars worth of that lifetime business. Not to mention the word-of-mouth publicity. The lesson - for greater long term profits, managers should waste less on expensive ads and price discounts trying to buy new business, and instead invest more on training employees on how to delight and retain customers they already have.

Why Franchising Needs Women

Wed, 23 Apr 2008 19:38:06 EDT

That there are differences between men and women should not come as a surprise to anyone. That those differences would be a consideration and even a key method in determining whether or not a person would have greater success in the franchise world seems to be more than shocking it's downright politically incorrect. That is until understanding that the determination is that the franchising world needs more women franchise owners. According to recent studies, and also to age old observances of the many differences in the way men and women think and operate, women tend to have a different style and approach to business thinking that allows them a significant edge in the franchising market.

Women and men are both capable workers in the business world, but studies have shown that women are the gender with a tendency to multi-task several different operations, while at the same time not allowing minor hindrances and details to bog them down and detract from a long term overall picture. The more simple and direct approach of focusing on one task or job until it is accomplished, studies have shown, is a natural approach for the male brain, but the female brain is more naturally adept at processing many different tasks before any one particular job or task has been completed. This type of multiple task approach is the exact type of mindset that a successful small business franchise owner needs in order to get their new business off the ground and making profits.

The different types of franchise opportunities are virtually limitless, and the "shotgun" thought pattern naturally prevalent in the female brain allows women an easier path to initial success in the franchise business world. An encouragement for the many women out there that are looking for a business opportunity but have felt that the small business franchise world is more suited for the corporate male mind. Don't believe either that the only successful female franchises are those that employ only females or provide "womanly" products and services.

While there are a variety of franchises that seem to cater to the operation and sales of a female population such as LittleAngels Children's photography, which is a fast growing franchise that prefers their all female ownership for the simple reason that their main business is photographing children in pre-school groups and nurseries who have shown a preference to women photographers.

Other options also include Rosemary Conley Diet & fitness Clubs. These fitness clubs are all women clubs that allow women the opportunity to enjoy exercise and fitness activities in a much less self conscious environment than a typical bi-gender health club. Rosemary Conley Franchises are the first and only franchises in the UK to offer both health and fitness programs along with diet advice in the same class.

Also looking for women franchisers in the UK is Auntie Anne's Pretzel. This franchise is a basic, simple to understand business plan that provides a great treat whose smell serves as one of it's best advertising components. Auntie Anne's pretzel franchises are typically places in areas with high pedestrian traffic and are a great business to watch flourish quickly.

There are many other franchises that are specifically seeking women owners and investors that may surprise you such as: MatchPoint Professional Consultants, Expense Reduction Analysts Franchise Consultancy Group, and Busby Web Solutions franchise.

If you are a woman seeking a business opportunity, then take a look at the world of franchising, because franchise providers are looking for you.
Author Resource:- Learn more about UK franchises and find the best business opportunity for you at Franchise Gator UK.

Article From echievements

Starting a Business Franchise

Tue, 22 Apr 2008 19:42:55 EDT

by Groshan Fabiola

Starting a business may represent one of the greatest decisions and largest risks of a person or organization's life. Whether to go franchise or not is actually a great decision which has to be taken with care and consideration, by learning all there can be learned about what it takes to have a business franchise and how can it practically advantage you. There has to be kept in mind that a business franchise is one that duplicates a previous active one, as in this case, the business owner rents the franchise logo and way of running the business. McDonald's, Pizza Hut, and Taco Bell are some of the most popular examples of business franchise. An important aspect which has to be taken into consideration is being represented by the fact that to open a business franchise can have many advantages. Also, there has to be kept in mind that there is a lower risk of failure, first of all, as this if often due to name recognition and the standard that is set by previous businesses. Buying power is another pro of starting a business franchise. Creating an easy way for business owners to save money, the collective buying power of franchise businesses is often enormous. Pay attention to the fact that you need to be sure that the franchise is legitimate when you start searching for the right franchise for you. if the franchise is a small franchise, a new franchise or one that you have never heard of before, you have got to definitely check it out. The business franchise that you choose to run depends mostly on the state laws regarding a franchise. It is important as well to be considered that to locate an attorney that can help you sort through the issues is one of the best pieces of advice for any new business owner.

What We Look for in a Franchisee - A View from the Franchisor's Side

Mon, 21 Apr 2008 19:44:26 EDT

The franchise sales process is kind of a paradox: both sides want the other to like them, to show that they are perfect for each other. At the same time, both the franchisor and the prospect want to make it clear that they're looking for the perfect match.

In other words, franchise prospects want to put their best foot forward but make it clear that this is only one of several possible choices and the franchisor wants to impress the candidate, but make it clear that they are very selective in whom they choose to allow into their system.

So what is it that franchisors look for in candidates? Most franchisors talk of "awarding" franchises, rather than selling them. The difference is that they won't sell to just any Tom, Dick, or Harry. You must be a Tom, Dick, or Harry who values the same things and is financially qualified. The franchisor is taking a risk by letting you into their system - here are some of the things they look for, either through explicit questions or by watching your non-verbal "answers" to situations.

Are you financially qualified?
You don't have to have a six-figure bank account but you do need to a) show some resources of your own and b) show that you understand how to obtain money to cover franchise fees, start-up costs, and operating capital. You can do this through loans, friends, and partnerships. The last thing a franchisor wants to do is put someone in who doesn't have enough capital to get over the initial customer ramp-up period. You make the cut if you show you understand how to obtain capital.

Are you self-motivated?
This seems obvious, and most candidates would say that they are successful people who have always been self-motivated. Your house is on the line, after all, so of course you're motivated to succeed. But this goes more to what happens when things are hectic or there are challenges unique to your area. Franchisors want to know that you're motivated to seek help within the system (franchisees, business consultants, and other resources) - that you recognize this is your business. The franchisor has many tools and resources for you to use. But it's up to you to ask for them and to implement them.

Do you have a passion for the product or brand?
Passion overcomes many obstacles. Franchisors want to know that you can be an evangelist of their brand, to promote the products and uphold the trade dress in your market. A passion for the brand indicates a franchisees willingness to overcome challenges, while still keeping the brand's best interests in mind. Passionate franchisees are generally more successful than others who just "want to be their own boss."

Do you just want to be your own boss?
Very often, candidates will sit in interviews and expound on how they would do things or offer tips as to how to make the system better. These tips are appreciated when they come from existing franchise owners, but most often are red flags during the interview process. A franchise system is just that - a system. Franchisors need to know that you are willing to work within the system and that you're not just buying a franchise because you can get open faster and then do whatever you want (it's your business right? You can sell magazines and tourist items in your sandwich shop if you want to right?).

Good matches are like good marriages and take just about as much work. If you do your research, and are honest during the application and interview processes, your new relationship will have a firm foundation.

If you're out to impress the franchisor and you oversell yourself, there's a good chance neither of you will be happy with the partnership. Find what you love to do, then do it with passion.

2008 CFA Convention

Fri, 18 Apr 2008 16:41:14 EDT

The 2008 Canadian Franchise Association's Annual Convention is being held May 4-6 at the Deerhurst Resort in Huntsville, Ontario.

This year features keynote speakers, Mac Voisin (chairman and founder of M&M Meat Shops), Mike Cordoba (Chief Executive Officer - Boston Pizza International Inc) and Steven J. Greenbaum, CFE (Chief Executive Officer - PostNet International Franchise Corporation).

There are numerous sessions and roundtables offering topics from Exit Strategies to International Franchising. The prestigious Frankie Awards will be presented at the Gala Awards Dinner from 6:30 PM - 9:30 PM on Monday, May 5. There are more than 25 exhibitors lined up for the marketplace this year.

For more information, or to register visit the CFA website.

Employ the lost art of saying

Thu, 17 Apr 2008 01:32:58 EDT

As I speak to audiences throughout North America, I routinely ask the audience (usually to sales professionals), how many of you send out thank you notes? A few hands go up but the vast majority of hands stay folded on their laps. Sending 'thank you notes' frankly, is a lost art and it is a tremendous opportunity to set yourself apart from the competition, let alone show your appreciation to your client.

At a recent workshop a woman in the audience raised her hand and asked, "What can we put on the thank you note?" I responded with, "What comes to mind?" She replied with, "How about thanks for the business?" I said, "I like that one, go with it!" The point of all this is simply, make sure you send out thank you notes! To help you with this I have outlined some simple guidelines that should prove useful.

Be prompt - Make sure you send out your thank you note within about three days of the event (transaction, meeting, lunch, referral, etc.) Sending the note can often be the tipping point for you getting the business. (especially if they are still deciding)
Be professional - Write your note on a quality card (lots of selection on the internet) using your best handwriting. Some sales professionals have note cards or mini stationary professionally printed with personal or corporate branding.
Be specific - Identify the reason you are thanking the person (Thank you for arranging the meeting with your Vice President.) Let them know how the event or gesture is meaningful to you. (Your referral helped us gain a new customer and grow our business, etc.)
Be authentic - You may want to suggest an informal lunch, a business meeting, etc. (Why don't we grab lunch at the ABC event next month?) If you have a well-established relationship then you may want to offer a round of golf, attendance to a sporting event, etc. Some companies have policies against gifts of any kind in which the acknowledgement will be sufficient.

Next time I ask the question at your workshop, make sure your hand is one that goes up!

McDonald's U.S. sales

Wed, 16 Apr 2008 01:46:11 EDT

According to this article McDonald's has shown the smallest gain in same-store sales in the last three year, showing only a 0.9% increase. Same- store sales are a good indicator of performance at restaurants and retail stores.

You can read the whole article here.

Running a franchise from home

Tue, 15 Apr 2008 23:31:00 EDT

In recent years, home-based franchising has become more popular as a range of companies have discovered that working from home can be just as effective as having an established office elsewhere.

Franchisers in sectors such as consulting, children's services, financial services, computer training and repair, cleaning, pet care, photography and travel, are now actively offering potential franchisees opportunities to have their headquarters where they live.

However, some towns do not allow businesses to be run from home, or have restrictions on it. For instance, customer parking could cause a problem should special permits be required for spaces used commercially.

Therefore, potential franchisees must check with their local authority to see if there are any rules restricting the commercial use of a property and then decide if it is still worth working from home.

If approved, this arrangement can save costs for both franchiser and franchisee, although specialist training will be needed to ensure that franchisees will be ready and able to run a successful franchise from home, as they will have to adapt to a unique working style.

It is important that franchisees working from home have in place the right equipment. To make sure things are run efficiently, a desk, stationery, posting equipment, notebooks and other items should be in a set place.

It is advisable to have a separate business phone line to keep work and home life apart and if using a computer, it should operate at a fast speed so that more work can be done during a day. The same applies for an internet connection and email software.

Franchisees at home must have their office or workspace in an area away from distractions such as children, pets and television.

Establishing distinct boundaries between the office and living space will help to make the franchise more professional. Therefore, franchisees with family members or room mates living with them must ensure they understand that they should not come into the office unless it is for something urgent.

Having a schedule and sticking to it as closely as possible will also help, including regulated breaks, although franchisees should not fall into the trap of working too long because they do not have to travel to work. This will be counter productive and have a negative impact on the business, as well as family and friends.

Those who are self-motivated and can work to these conditions should do well as long as the franchise they choose is right for them and gives them sufficient training and support.

However, it can be lonely at times so franchisees wanting to work at home are advised to develop a network with the company's other home working franchisees and business owners in their area. These groups can provide each other with useful ideas and vital support.

Self evaluation - the key to improved performance

Mon, 14 Apr 2008 00:12:57 EDT

Just as professional athletes pay strict attention to game stats to measure their performance and to determine areas for improvement or where they may require coaching, sales professionals would also improve sales performance if they looked at their stats on a regular basis. Objective monthly or at least quarterly reviews of performance metrics will make a difference. Take the time to check on your value and progress as a sales professional from your managers' perspective. The key is to reinforce the positive behaviors and remove the negative ones.

If your organization doesn't have a formalized evaluation process, use the following guidelines for your evaluation.

Revenue Contribution

Sales revenue - What revenue did you generate during the last sales cycle, month, quarter, etc.?
Units sold - How many units were sold or committed to during the last sales cycle, month, quarter, etc.?
What were the number of new customers acquired during this time period?
What was the growth percentage of each of the above during the time period as compared to the last time period?

Sales Activity

How many outbound prospecting calls (telephone or face-to face) during the time period?
How many outbound sales calls to existing customers (telephone or face-to face) during the time period?
How many initial sales interviews conducted (telephone or face-to face) during the time period?
How many sales presentations given (telephone or face-to face) during the time period?
How many proposals or sales solutions provided (telephone or face-to face) during the time period?
How many industry events or trade shows attended during the time period?
What was the growth percentage of each of the above during the time period as compared to the last time period?

Starting to get the picture here? When you pay attention to your performance stats, it will be very clear to you what areas need improvement. Your job will be to seek out the coaching necessary to take you to the next level.

Franchising 101 - FAQ

Mon, 07 Apr 2008 16:52:59 EDT

By: Naz Daud

In this article I cover the most frequently asked question about the franchise industry, the opportunity costs, and my responses to the question posed.

Question: What is franchising?

Answer: Franchising is where you buy the rights to a business concept, trademarks & know how. In return you pay a franchise fee and a percentage of your profits.

Question: What is a franchise?

Answer: A franchise is, in its simplest terms, an agreement between the franchisor and the franchisee, whereby the franchisee has the rights to use the logos and trademarks of the franchisor and the ability to market the franchisors products. Both parties commit to a legal agreement which protects both their interests. The franchisee usually pays an initial franchise fee and ongoing royalty payments.

Question: Is it better to buy a franchise opportunity or start my own business?

Answer: Based on the surveys carried out by the US Department of Commerce & NatWest/BFA, the majority of franchisees are still trading profitably after five years. Everyone knows that the majority of people who start out in business on their own, I am sad to say, end up failing within the first three years. When you buy a franchise business, in return for a franchise fee, you receive training and ongoing support. You also benefit from the knowledge that the franchisor has picked up over many years.

Question: How much does a franchise business cost?

Answer: There are no fixed prices for a franchise opportunity. Depending on your budget there are franchises to suit most people ranging from only a few thousand, to over a million.

Question: What's the first step to buying a franchise?

Answer: Do a search on the internet for the following: "franchise", "business franchise" & "franchise opportunity". You will find a wealth of material on the internet. You can also buy magazines that specialise in franchises and of course, you should attend franchise exhibitions where you can meet the franchisors or their agents and ask questions. At the exhibitions, in some cases you will also be able to touch and feel the products that form the cornerstone of the franchise!

Question: How do I raise the funds required to buy the franchise?

Answer: Most banks have special units set up to help potential franchisees. In many cases the franchisor has done the hard work for you and arranged special terms with lending institutions.

Question: Which franchise is right for me?

Answer: The best franchise for you is not necessarily the business that makes the most money! Buy a franchise which suits your lifestyle and is interesting to you. If you like the products that you are marketing, then you are much more likely to enjoy your work!

Question: Can I sell my business when I want to move on?

Answer: If your franchise business is trading profitably, then you should be able to sell it like any other business. Your franchise agreement will go into detail the processes that are involved in selling the business. Unfortunately, if your business is not making a profit, then it will be difficult to find a buyer.

Finally, always take legal advice before signing any franchise agreement. Your lawyer has to ensure that the agreement is fair for both parties. Your accountant will help in evaluating the profit potential of the franchise opportunity.

Naz Daud is the founder of CityLocal. This Business Franchise Opportunity is for people who would like to work from home and be their own boss.

MLM - What it is, and Can it work for your business?

Fri, 04 Apr 2008 16:24:46 EDT

By: Rob Parker

If you are one of the people who has seized on the many possibilities as far as careers when it comes to the Internet, you have almost certainly come across the term MLM. In this article we will outline what exactly MLM is, and give some pointers so that you can decide whether the MLM business model is right for you.

MLM Defined

MLM is an acronym which stands for multi level marketing. In strict terms it is actually a business model, which uses the principles of both direct marketing and franchising.

What this means is that businesses using the multi level marketing approach make their money in a couple of different ways. The first is by selling a certain product or line of products endorsed by the originating business. The second is by earning fees off of the sales of the products, by people who the business has recruited who also sell the products.

One of the main downfalls of multi level marketing businesses is that they are often confused in the public eye with traditional pyramid and Ponzi schemes. However, unlike those two approaches, MLM is fully legal in most jurisdictions. This is due to the fact that businesses using the MLM model do not simply gain money from recruiting new businesses, but only from the inventory actually sold by those businesses.

Will the MLM approach work for your business?

In order to determine whether or not adopting the multi level marketing approach will be effective in your business, it is important to consider a few different criteria. We have listed some of them below.

Do you have sufficient contacts? Using the MLM approach can mean a lot of additional sales due to an advanced market through contacts, but in order to make those sales you have to have a network in place. Fortunately, there are several businesses today that cater to MLM models by providing vast numbers of contacts.

Are you well organized? In order to ensure that you are gaining the most out of your MLM endeavours, it will be very important to maintain accurate records of your inventory and sales. Good organization is one of the basic fundamentals of MLM success!

If you own a business with products to sell then the MLM business approach is a great way to get the word out there. Not only will you sell your inventory, but also you have the chance to recruit dozens of sales staff without incurring major expenses (such as wages) yourself.

Article Source: http://www.explorearticle.com

A great way for an MLM business to connect with new prospects is by inviting local network marketing leads to a business presentation.

Is your public behavior remarkable?

Thu, 03 Apr 2008 02:13:37 EDT

My long time friend, Gerald, recently told me of a minor incident in human interaction that left a major impression. Enduring the cattle-drive like practice of boarding a crowded airplane, Gerald, while making his way to seat 12C, noticed an oasis of civility. An older Sikh gentleman and his wife had settled into to their places. As the senior made eye contact with a passenger who was about to sit next to them, the older gentleman rose from his seat and out of some bygone sense of decorum, introduced himself and his wife to the new passenger. Gerald said he could tell the new arrival felt somehow... honoured. It seems that in the midst of the rat race, behavior that's remark-able, comes down choosing to act just a little more humane.

Today's chuckle:
If things get better with age, I'm approaching magnificent!

After the sale follow-up is the key to word-of-mouth referrals

Wed, 02 Apr 2008 02:15:20 EDT

In today's competitive marketplace it takes a lot of time and energy developing a prospect into a customer. Once you get them on board, you want to keep them and sell them more.

This has always been true for Rainmakers - those who regard themselves as hunters. After the sale, service and follow-up are often the most overlooked and neglected part of the sales process. Many sales professionals spend countless hours prospecting for new business, while failing to understand that implementing a proactive 'after the sale service and follow-up process' increases your word-of-mouth opportunities.

Implementing a deliberate follow-up process is about taking the time to think about what should happen after a sale is made and then creating a checklist of the tasks or actions that need to take place every time.

Remember, the ultimate goals of your 'after the sale process' are to affirm the buyer's decision, show gratitude, identify future opportunities, build relationships of trust and obtain referrals.

Here are some guidelines to help you develop your "after the sale process".

Identify and map out what currently occurs when a sale is made. What happens once the agreement is signed? What are the time intervals between each action item? When do you send out the thank you note, etc?
Ask yourself what you would appreciate or expect if you were the buyer of your product or service? Try and identify actions that are not currently done, such as: thank you notes, thank you phone calls, thank you gifts (when appropriate), follow-up's from other departments, etc.
Ask yourself what after the sale or follow-up activities could you add to your process that would drive additional business from your customer?

Starting to get the picture here? Take the time to develop an "after the sale process" that helps you achieve your objectives and watch your word-of-mouth business grow. Your customer

Why eBay Drop Store Franchises Failed

Tue, 01 Apr 2008 17:13:44 EDT

eBay drop store franchises entered the market to much excitement. A former official eBay Trading Assistant, Trading Post owner and master franchise representative for an eBay drop store franchise chain, Scott Pooler, discusses what went wrong.

First, anyone willing to front the franchise fee could own an eBay drop store. The franchisee then went on to attend a 7 day training course.

"The course is designed to teach the standard methods and practices of the franchise methodology of drop store operations. The class will also include many details about eBay rules, eBay practices and eBay listing procedures. Intake, Description, Software Operation, Photography, Storage & Inventory, Shipping, Customer Service (both store front and online) and numerous other topics are covered in this 7 day course. It really is a lot to absorb, especially if the new store owner has never sold an item on eBay before."

After the training, the franchisees were set loose to see the construction of their store and begin business.

The second problem now becomes apparent. eBay has become TOO user friendly.

"Initially the pool of prospective customers was much larger than it is today because more people now have internet access, more people are familiar with eBay and eBay has made it much easier for people to list a single item on their own. eBay classes are taught by certified eBay education specialists at retirement centers nationwide and these classes are sometimes free. People would rather realize 100% of net profit from a sale than 60 or even 50%."

To offset the problem of selling common items, the franchisee looks to help sell larger items such as boats, cars and RV's. The third problem is that many states require special licenses to sell such items. "The franchise failed to mention that a store owner may need a car dealer's license and a boat broker's license or an auctioneer's license to operate a eBay drop off store and sell these types of items."

The fourth major problem is everyone likes to buy low and sell high. No one likes to buy high and sell low.

"eBay has a way of bringing reality to the equation. The store owner must now attempt to coerce the customer into selling a high value item with a low starting price and no reserve. Why no reserve? Because the store owner soon learns that items placed on eBay with a reserve price rarely reach the minimum bid and the number of bids on items with undisclosed reserves are less than on items with no reserve at all. On eBay the game is to start low and hope to sell high."

Overall, Pooler says that eBay drop stores can be fun and rewarding as a hobby or side job, but probably can't be the sole income provider in a house hold.

Franchising is like Pancakes!

Mon, 31 Mar 2008 17:32:53 EDT

This article by Eric Stites from the Franchise Business Review, has an interesting analogy - comparing franchising to pancakes!

"Business and pancakes have a lot in common. And franchising has done for business, what Bisquik® did for pancakes: took a proven recipe, packaged it with easy-to-follow instructions, left a little room for imagination and manual labor and voila - successful, delicious, expected results!"

Comparing franchising to Bisquik® is a bit of an over simplification, but there are definite similarities. Like Bisquik®, when you buy a franchise you are buying a "recipe for success" based on proven results (or at least that's the idea behind franchising). Just follow the simple instructions step-by-step and reap the rewards! This isn't to say you are guaranteed success but your potential as a franchisee is greatly enhanced by a strong franchise system."

Stites goes on to describe what to look for in a good franchise. He explains why some negative feedback is not necessarily a bad thing and gives a few other pieces of solid advice. Check out the entire article: http://www.franchisebusinessreview.com/content/content.aspx?id=1

Why Franchising?

Mon, 31 Mar 2008 16:36:43 EDT

According to The Franchise News Center, the main reason you should consider franchising is the ability to go operate your own business with a higher rate of success. Studies conclude that over 90% of new businesses fail within 3 to 5 years compared to over 92% of franchised businesses are still in operation after 5 years. (U.S. Dept of Commerce)

Other Benefits Listed by Franchise News Center:

Established products or services: A franchisor offers a product or service that has been successfully developed, tested, refined and sold.

Marketing Assistance: This includes assistance in developing effective marketing plans for a local market. In addition the franchisor has resources and experience to develop regional and National marketing programs that benefit all franchise owners.

Proven System: An established franchise is able to transfer a proven and refined system of operations. This includes operating and management efficiencies developed by the franchisor. Uniform operational standards such as quality control benefit all franchise owners

You can see the whole list here:

http://www.franchisenewscenter.com/why_franchising_works.php

So you want to be an Entrepreneur

Fri, 28 Mar 2008 18:08:18 EDT

So you want to be an entrepreneur? The New York Times has published an article with questions you need to ask yourself and rules you should follow. The article is written by Brent Bowers, but chronicles the advice of Terry Corbell. Mr. Corbell's suggestions are joined by funny anecdotes which make for a pleasant easy read.

Corbell is the founder of CMS Associates LLC in Federal Way, Wash., and author of a column called 'The Biz Coach' that appears on the Web sites of an all-news radio and television station in Seattle, is happy to advise people whether they should become entrepreneurs and, if they do, what the basic rules are for success.

Check out the article:

http://www.nytimes.com/2008/02/26/business/smallbusiness/26hunt.html?_r=1&ei=5070&en=3b6cf563da3fecf3&ex=1204779600&adxnnl=1&emc=eta1&adxnnlx=1204732951-ZrtBf5xcKBsSw6BfyQr/sQ&oref=slogin

What are you like to work with?

Thu, 27 Mar 2008 16:03:15 EDT

Let's admit that your company's products and services can be obtained from a competitor somewhere in the world more cheaply. Chances are, the quality of these low priced competitors has improved to the degree that it's also very good. So, what makes your brand worth paying a premium for? I believe it often comes down to the question of, what are you like to do business with? When responding to needs of your internal and external customers, are you focusing on the request and inadvertently ignoring the person? If you already know your job technically, remember to focus less on your service itself (if you're a pro you can do this on autopilot) and focus more on the feelings you create.

Today's chuckle:
Of course I have good people skills. What kind of an idiot question is that?
- Cartoon by Randy Glasbergen

Online Business and Common Sense

Wed, 26 Mar 2008 21:31:27 EDT

Online Business and Common Sense, by Alan Johnson, is an article I found on the Business Opportunities Weblog. His main point is that eager entrepreneurs often get so caught up in details that they lose their grasp on common sense.

A few of his key points:

-'common sense should tell you that providing value to the Web should be your main focus if you are interested in long-term success and that, while there may be loopholes which could bring some short-term profits, thinking long-term is the way to go.'

-'if you want [users] to return [to your site] on a regular basis, you have to provide quality content on a regular basis, the concept is really as simple as that.'

-'You need to try as many different methods on for size as possible and, based on the results you are experiencing, sticking with what works best and dropping everything else is the name of the game.'

-'...take things one step at a time and start with learning how to walk...'

Obviously, these comments are all very common sense driven - that's the point of the article. However, It never hurts to be reminded of a little common sense.

Determine your Return on Investment for greater sales success

Tue, 25 Mar 2008 20:57:43 EDT

When a prospect or customer is considering your product or service, one of the determining factors that helps them justify the purchase (at least to the finance department) is how much value the purchase or investment will create?

The skill of accurately presenting ROI to the customer will help get you off the price issue and help make your solution more attractive. They are either buying it to generate income or to decrease expenses.

Your main objective is to position the value of your product or service in the context of your prospect. By breaking down the costs associated with your solution and demonstrating how the investment provides a positive rate of return for the company, you show the customer how your solution economically makes sense.

Here are some tips to get you started.

On the initial sales call, use open-ended questions with the goal of understanding your prospect's business. What are their challenges, stresses, goals and plans? Additionally, you might want to know the planned usage of your product or service, the life-time value, the number of users, average margin on sales revenue, etc.
Calculate the total investment amount required to purchase your product or service. Include the direct costs and the indirect costs. This also should include the cost to implement as well as the cost not to implement the solution.
Determine the monthly economic benefit your prospect or customer will receive as a direct result of investing in your solution. This could include the actual expense savings per month as well as the increased revenue and margins.
Annualize the monthly benefit to the prospect or customer by multiplying the monthly benefit by twelve months, subtract the original investment, then divide that amount by the initial investment and multiply by 100 to determine the ROI percentage.

Remember to keep your analysis clean and simple, clearly state your assumptions and include all direct and indirect costs in your analysis. You can also add credibility to your approach if you avoid making unrealistic assumptions, over-estimating the value of intangibles, and staying away from excessive time-frames which exaggerate positive returns. The underlying question the prospect or customer is always trying to determine is "what's in it for me?" Quantify your benefits and watch your sales grow.

Top Restaurants Receive Franchisee Satisfaction Award

Mon, 24 Mar 2008 00:36:30 EDT

According to the Franchise Wire, 21 of the United States top Restaurant Franchises were awarded the 2008 Franchisee Satisfaction Award by the Franchise Business Review.

"To measure franchisee satisfaction, Franchise Business Review surveyed franchisees from 325 franchise companies from all types of industries, representing 45,000 franchisees. Franchises were evaluated in five areas: Training & Support, Franchise System, Franchisor/Franchisee Relations, Financial Opportunity and Overall Satisfaction. Franchisees were asked a series of questions in these areas and then rated their franchisor on a scale of 1 (poor) to 5 (excellent). All franchisees from each participating franchise company were invited to take the survey. The average rate of participation was 50%, with some franchise companies achieving as high as 100% participation from their franchise owners."

A complete list of recipients can be found here: http://www.fbr50.com/category/Food

This information is useful to franchises to help establish better procedures in their organizations, measure potential growth and share information with potential franchisee candidates.

Franchising IQ Test

Fri, 21 Mar 2008 00:58:49 EDT

Here's a fun quiz designed by Patricia Schaefer of Franchise Trade. Scroll to the bottom to see the answers and explanations.

True or False?

Franchising is a business system whereby a franchisor sells trademarks and other methods of doing business to a franchisee in exchange for franchise fees.
When people think of franchising, they often think of McDonalds. This restaurant chain was the first franchised restaurant in the U.S. to become a big franchising success.
Franchise operations today account for nearly 30 percent of U.S. retail sales.
Certain items in a franchise agreement may be negotiable.
According to the FTC (Federal Trade Commission) Franchise Rule, franchisors at contract renewal must honor and continue the terms and conditions of the original franchise agreement.
When assessing franchisors in the same industry, you may find greater success with the franchisor that has fewer franchises in its chain.
In franchising, the two primary legal documents are the disclosure document -- typically in the form of the Uniform Franchise Offering Circular (UFOC) - and the franchise agreement.
The purpose of the UFOC is to provide prospective franchisees with enough information about the franchisor, its system and agreements so they can analyze the merits of a potential franchisor and make an informed decision.
Overcapitalization is one of the top reasons new franchisees fail.
Franchisors are generally looking for franchise candidates who have specific skills and experience in their industry.
The Small Business Administration (SBA) lends money to small business owners, including franchisees.
Every franchise system is basically set up the same.
In order to purchase a franchise, a franchisee will most likely need to come up with about 30 percent of the total investment needed to start the business.
The truth about franchising is that most franchisees do not "get rich" and usually work long hours, especially the first year.
There are hundreds of franchises that costs $50,000 or less.

Answers

1. False

Franchising is a business system whereby a franchisor licenses, not "sells" trademarks and other methods of doing business to a franchisee in exchange for franchise fees. As a franchisee, you are not "buying" the franchise; you are "licensed" to use the brand name and operating methods.

2. False

Almost 20 years before McDonald's started franchising their restaurants, Howard Johnson's in 1935 in Orleans, Massachusetts opened its first franchised restaurant. By 1954, there were 400 Howard Johnson's restaurants across the U.S. It wasn't until 1955 that McDonald's CEO Ray Kroc opened their first franchised restaurant.

3. False

About 50 percent of our U.S. retail sales today are from franchised operations. The number of franchises in the United States has been steadily increasing since the 1950's. Annual franchise sales now total more than $1 trillion.

4. True

Certain items in a franchise agreement may be negotiable. Franchisees should seek the help of a qualified franchise attorney to evaluate and discuss potential changes to franchise agreements with franchisors.

5. False

Franchise contract renewals need not provide the original terms and conditions. The franchisor may, among other things, raise the royalty payments, reduce the franchisee's territory or impose new sales restrictions.

6. True

Bigger is not always better. A franchise system that is growing in leaps and bounds may, for example, be lacking in the support they provide to their many franchisees. Check with their franchisees, and franchisees in other systems, for satisfaction levels.

7. True

8. True

9. False

On the contrary, too many franchisees find they do not have enough money to start and survive the early stage of their franchised business. They often underestimate the money they will need and the time it will take until the business becomes profitable. It is usually best to keep in mind the old adage: "It takes twice as long and costs twice as much."

10. False

Most franchisors are looking for people with no experience in their industry. They find teaching an individual "from scratch" easier than getting an individual to unlearn specific skills that don't match their operating system.

11. False

The SBA itself does not lend money. It has programs where it serves as a third party guarantor on loans made to small business owners by a number of "preferred" banks throughout the country.

12. False

All franchises are not the same. Each franchise will be set up differently, even within the same industry. Some differences include: services provided, support level for franchisees, amount of training, and degree of control.

13. True

Lenders like to be sure you personally have a vested interest in your new business. The more money owners have invested in their business, the easier it is to attract financing.

14. True

Many franchisees complain they earned less than they expected. You'll want to find out before you make your investment how much money you can expect to make with a particular franchise. Find out what the "typical," not "average," income of franchisees is. Average figures are misleading, as a few very successful franchisees can inflate the average. And like any other business owner, most franchisees work fairly long hours.

15. True

Lower investment franchising has become white-hot with perfectly reputable and successful businesses available at less than $50,000. They include pet services, home and carpet cleaning, fitness centers and supplemental education. Prospective franchisees still need to thoroughly research these opportunities in order to make confident and sound investments.

Politeness that's considered rude

Thu, 20 Mar 2008 20:56:42 EDT

"Sir", "Miss", Or "Ma'me" are terms that are often used by employees to address customers. While the employee is only trying to be polite, the customer often feels that rather being honoured they feel old. Ideal customer relationships are more like friendships. We wouldn't call our best friend "Sir"or "Ma'me" because it creates a distance rather than a bond. In other words, when talking to customers, you can never be too polite, but you can be too formal.

Today's chuckle:
A computer beat me at chess once. But it was no match for me at kick boxing.

Essentials List For Franchise Success

Wed, 19 Mar 2008 01:10:22 EDT

By: Chaitanya Patel

This list is based on my experience in the franchise industry, where I saw many franchisees fail because they didn't have these very important attributes. If you have all these things, congratulations, you're destined for franchise success!

1. Passion

If you're not passionate about the business you're entering into, then you are wasting your time and money. You have to absolutely love the business and everything involved in it, otherwise you simply won't want to put in the effort required to make it a success. So before you start looking at franchise opportunities, think about yourself and the things you enjoy doing, then base your decisions on that.

2. An open mind

In my experience, someone that already thinks they know everything there is to know will not be a successful franchisee. You need to enter into business with an open mind and a willingness to learn from the experts around you. Also, as simple and cliched as it sounds, you need to have a positive attitude - rather than seeing challenges as a solid brick wall, view them as a door that can be opened to lead you to new opportunities.

3. Strong financial position

We're talking about business, so of course money is a factor. If you can only just scrape together enough money to buy the business, then you're putting yourself in a dangerous position - once you're behind, it's hard to catch up. As well as the initial purchase price, you also need to consider running capital to fund your ongoing business operations, because it will be a while before you start making money. There are numerous options for financing a franchise, so make sure you get expert advice before you commit to anything.

4. Basic business skills

There are some basic skills that anyone running a business needs to have, such as day-to-day finance skills, the ability to manage customers and staff and an understanding of business strategy and planning. If you can't do these basics, you should get help from someone that can teach you or reconsider your decision to buy your own business. Without these skills, you simply won't be able to run your franchise business, no matter how much support you get from your franchisor.

5. Family support

Buying and running a business is not a solitary thing - it will affect everyone else in your family too. So it's important that you have their support before you invest in a franchise. Even if you don't need them to actually help in the running of your business, you will need their moral support and their encouragement to help you succeed, so make sure you involve them in your decision-making and listen to their opinions.

6. Expert advice

When buying a franchise, there are lots of complex financial and legal issues that you will be confronted with during the purchase process and while you're running your franchise. I strongly recommend that you seek independent professional advice from your accountant and lawyer before you sign any agreements with the franchisor, and then continue to work with these experts when you are running your franchise. If you don't have a good lawyer and accountant, find one before you start negotiations with a franchisor because you will definitely need their help.

7. Work ethic

This may seem obvious, but if you are lazy and unmotivated then franchising (or running any business for that matter) is not for you! To make your business a success, you will need to work hard and be 100% committed. To really get the most out of your franchise, maximize every opportunity - do extra training, build a strong relationship with your franchisor and do lots of marketing, and you will reap the rewards.

So do you have all of these 7 essentials? If yes, then you're the ideal candidate for franchise success!

Domain Name Selection

Tue, 18 Mar 2008 21:17:06 EDT

Blog Net News is a new website devoted to aggregating franchise related blogs. You can go there are read about anything and everything related to franchising.

Today, I was reading on purchasing web domain names for your business. The article discusses the importance of the internet in business today, and therefore the importance of business websites. The first step in developing your site is acquiring the domain name you want. For help in finding the perfect name, Pool.com, Sedo.co.uk, Snapnames.com and Dotpound.com are recommended.

Each of the above sites has different features on top of buying and selling domains. Many of them have lists of the most popular and most desired names. Any way you look at it, if you are searching for a new online identity, one of those sites can help you out.

The Essential Steps to Researching a Franchise Opportunity - Book

Mon, 17 Mar 2008 16:39:11 EDT

Sean Kelly from Franchise Pick has a blog and occasionally reviews franchise related books as well. In this case he has reviewed an E-Book by The Franchise King, Joel Libava.

Kelly reviews The Essential Steps to Researching a Franchise Opportunity - Which includes:

Franchise Pros and Cons
How to work with the franchise salesperson
7 must-do research steps to take
Financial considerations-Working with lenders
Legalities you must know
Kelly's only complain is that Libava uses the word "Frantastic" to describe his own book.

Deliver Powerful Opening Statements for Maximum Impact

Mon, 17 Mar 2008 13:43:58 EDT

When the economy slows down and you have to resort to actually prospecting for new business, nothing can be more critical than your opening positioning statement.

Today's customers are bombarded with thousands of messages each day and you only have a few critical seconds to gain their attention if you have any chance to sell them your products or services.

Every word, syllable and pause in your opening statement must be carefully crafted and delivered for maximum impact.

Your opening statement should be compelling, thought provoking and relevant if you are to create a positive first impression. A mediocre or poorly delivered opening statement can set the stage for failure.

Here are some questions and guidelines that will help you create and deliver an opening statement that will help you engage the prospect or customer and create immediate interest for further conversations. Ask and answer the following questions.

What do I sell? Keep it short and simple.
What is the benefit to my customers when they purchase my product or service? Remember they are not buying what you sell; they are buying the benefit of what you sell. Your product or service is just the catalyst to the intrinsic benefit. Stay away from features and focus on the benefits.
Construct opening positioning statements for every sales scenario you may encounter. "Catching someone on their way out the door", "Just popping buy", "Running into them in the elevator", "Catching a decision maker without a gatekeeper", "Speaking with a gatekeeper" or running into the "Voice mail monster".
The following items should be addressed in your opening statement.
- Who you are?
- Where you are from? (company, etc.)
- How your prospect will benefit from your product or service?
- A question that determines the interest level of your prospect.
Practice and refine your opening statements with your managers, peers and internal gatekeepers and enjoy improved sales performance.

How to Facilitate the Sale

Wed, 12 Mar 2008 16:14:59 EDT

Selling is a two-way proposition; not between you and your customer but between your product or service and your customer. You are simply the facilitator. Eliminate the buyer and there is no transaction. Eliminate the salesperson and a sale could still occur. This might scare you, but many sales people are non-essential to the typical sales transaction.

There are countless transactions that occur everyday without the assistance of a salesperson. Cashiers do not count as sales people. A sale does not occur until the customer is ready to buy the product or service at the price offered. So what is the sales person's primary role?

When your customer is ready to make a purchase, they could easily place the order without any sales conversation. So what barriers on their end are preventing them from doing just that? My guess is that the barriers have nothing to do with you and everything to do with your product or service.

Some of these barriers could include everything from internal politics, fear over making a bad decision, budgetary considerations, etc. Your role is not to sell them anything but rather to help them identify those barriers that they may or may not be consciously aware of and guide them through the process of eliminating them. (facilitation)

That is why selling is not about giving the usual feature dump but asking intelligent and relevant questions that will help them fully identify barriers to moving ahead and identify possible solutions to help them overcome the barriers.

Some examples of the types of questions you might ask are:

How are you taking care of this problem internally with your current resources?
What has prevented you from having success from this internal fix up to now?
Have you determined at what point you may require an external solution?
Have you determined the criteria for assessing an external solution? Who formulated that criteria? Is there a baseline criteria from which all solutions will be judged?
Are there any political issues that are of concern? How will you build solution consensus from the rest of the team?
How will you evaluate proposed solutions?
Starting to get the picture here? Rather than ask them the old worn out questions like, 'Is there a budget for this project?' 'Who are you currently using?' 'When do you plan on making a decision?', you can ask meaningful questions that will remove barriers and allow them to buy.

In your next selling situation, try asking some well thought out questions and think of yourself as a facilitator rather than a sales person.

What Neatness Really Says...

Tue, 11 Mar 2008 16:13:45 EDT

After speaking for a client in Cancun, I spent the late afternoon at the resort's beach where noticed something odd. As guests left the beach for the evening events, the resort's staff would realign the vacated beach chairs, going so far as to crouch to chair level and eyeball the chair backs to ensure they were precisely in-line. First, I wondered why the need for being so neat, then it occurred to me... When the chairs are lined-up exactly, it tells guests those chairs are available. When your operations are neat - shelves faced-off, landscape and entrance manicured, uniforms tidy - it doesn't just show you're clean. It tells customers you think details matter, you have self respect, and most of all - you're ready to do business.

Today's chuckle:
Hospitality is making your guests feel at home -- even when you wish they were.

Bring on the Objections

Mon, 10 Mar 2008 16:11:53 EDT

Many in the profession of selling don't like to hear a customer or prospect say no, so they don't ask the tough questions. For example, questions that further qualify the prospect or determine if they have the budget to purchase their product or service in the first place. Salespeople don't like to face rejection, but what they don't realize is that objections are really an opportunity to move the sale beyond what the customer sees as a barrier.

Keep these points in mind the next time you run into some objections.

Objections are buying signals. When your customer or prospect raises an objection, what they are essentially saying is, 'I want to purchase your product or service, but I have a problem that must be solved before I move ahead'.
Objections help us understand our customers and help us form better relationships. When a prospect or customer voices an objection it gives us a glimpse into their thought process, how they communicate, what their priorities are, what concerns they have, etc. All of this feedback is essential to forming a good relationship. At the end of the day your relationship with the client will help get you past the barriers and objections.
Objections can wear many hats. When you get an objection, your job is to determine what the real underlying cause of it is. For example, it could be the customer's way of saying, 'I don't like you'. Or it could be a negotiating tactic or a test to determine what you know or don't know about their business. Often it is a request for additional information or to cover up the customer's fear of making a mistake.
Objections can help you take the next step. Once you receive an objection and fully explore it and handle it, it is time to move on in the selling process. It is important to realize that objections are a natural part of the sales process. You should be more concerned if you don't get any. Having said that, in our next issue I will show you how to anticipate them and address them before they gather any steam.

10 Sure Fire Ways to Spot a Killer Franchise

Wed, 13 Feb 2008 18:01:08 EST

By: Chris Delacey - Founder & CEO RedHotFranchises.com

If you're keen to start your own business but worry about your lack of experience, a franchise is the way to go. When you sign up with a quality franchisor, you get the clout of an established name and all the backup and resources you need to get started. But franchising can be a murky world. And while most franchisors are straight and above board, there are a few sharks in the water. The fact is, not all franchise opportunities or agreements are made equal. Here are ten signs of a killer franchise to help you choose a quality franchise.

The first thing to look for is a franchise with a proven concept. This will be a franchise with a proven track record of success. An example of a proven franchise is The Little Gym, the world's leading children's motor-skill development franchise. This franchise has a record of success dating back to 1992.
The next factor that marks a killer franchise is that it offers a quality product. At the end of the day, a franchise is only as good as the product it sells or the service it provides. That's what keeps the customers coming back. So check customer feedback online and look at the product and ask yourself if it's something you'd buy yourself.
Another good sign is if the product is a well-known brand. This is especially so if the brand name becomes synonymous with the product or service in the mind of consumers. So if your friends talk of calling 'Mr Handyman' rather than just a repair man, you can be sure this home repair franchise is a winner.
A quality product is essential but it's no much use if no one wants to buy it. That's why you need a franchise with a vibrant market. A great example here is coffee. If you get a franchise from Palm Beach Specialty Coffee, for example, you're guaranteed customers for the foreseeable future.
The market should also have growth prospects. For example, baby boomers make up an important consumer segment, so a franchise such as Senior Helpers, a leader in the companion service and personal care industry, looks like a keeper. So keep an eye open for future trends in your industry of choice.
Next, your franchisor should provide great training. This should include both operational training in the mechanics of the franchise and general business training covering vital skills such as book keeping and marketing.
A quality franchise provides excellent support. Asking other franchisees and checking forums is the best way to gauge this.
One clear sign that a franchise is a killer is the franchisor has a lot of happy customers. The best way to find out is by talking to other franchisees. You can contact them via the phone book or on online forums.
A killer franchise comes with real estate and construction assistance. Location is the key to franchise success so finding a site and negotiating a favorable lease are of crucial importance. A quality franchisee will offer a total assistance package for finding the right site for your franchise and also assistance in the construction procedure.
Finally a killer franchise company is one that's financially healthy. You can investigate this by examining the audited financial statements in the Uniform Franchise Offering Circular (UFOC) which franchisors must legally provide to potential franchisees.

Chris Delacey is the founder of RedHotFranchises.com He has over 15 years experience in franchising both as a franchisor and as a franchisee. Currently he serves as the CEO and driving force behind RedHotFranchises.com. Visit RedHotFranchises.com to find all the hottest franchises including the best and latest deals for coffee shop franchises.

Veterans buy Franchises

Tue, 12 Feb 2008 17:21:15 EST

According to International Franchise Association, returning veterans are jumping onto the franchise bandwagon.

More than 700 veterans own franchised small businesses in the United States today because of the Veterans Transition Franchise Initiative, an International Franchise Association program known as VetFran, which offers discounted franchise fees to veterans seeking to purchase a franchise.

More than 160 IFA member companies take part in the program. A few of the participating companies are Dunkin' Donuts, Maaco, Meineke, Carlson Wagonlit Travel, Cardsmart, Lawn Doctor, UPS Store, Midas, and Ace Hardware.

More information on the program can be found on the IFA Web site.

International Franchise Association Convention - Now Online

Mon, 11 Feb 2008 16:56:19 EST

The International Franchise Association's 48th annual convention was this past weekend (Feb 9). If you were unable to attend you can watch it ONLINE. For the first time ever the convention is being broadcast on the internet. According to the press release:

"Listeners can access the program from franchise.org - the IFA's official Web site - franchisebusinessnow.com, valpak.com and a network of other franchise industry Web sites from 4:30 p.m. to 8 p.m. EST on February 10th and from noon to 2:30 p.m. and from5 to 7 p.m. on February 11th. Programs will be archived and available on the Web site network through the convention and later on franchisebusinessnow.com. The program can also be heard live from Valpak's exhibit at the convention."

To clarify, you can watch Monday Feb 11 between 5pm-7pm at:

http://www.franchise.org
http://www.franchisebusinessnow.com
http://www.valpak.com

Or, you can watch the archived version anytime at:

http://www.franchisebusinessnow.com

Franchise Facts and Stats

Fri, 08 Feb 2008 12:47:34 EST

Franchisenewscenter.com is a website dedicated to everything franchise. They have franchise opportunities, press releases, news and articles. Here is a list of a few franchising facts they have contributed:

There are an estimated 1,500 different franchisors (franchise companies) operating in the U.S.
There are more than 320,000 franchise retail outlets in the U.S.
The franchising industry employs over 8 million people in the U.S.
Annual U.S. retail franchise sales in 2000- 1 trillion
The franchise industry accounts for 40% of all retail sales in the US
The average initial franchise investment is $250,000- excluding real estate.

You can see the complete list, and everything else franchisenewscenter.com has to offer at their site.

How Stuff Works

Thu, 07 Feb 2008 14:09:49 EST

How Stuff Works is an educational website that... well... it tells you How Stuff Works. They have a section dedicated to Franchising which includes lots of information. Topics covered are: what is franchising, benefits of franchising, selecting a franchise, rules of franchising and much more.

Franchise Interviews

Tue, 29 Jan 2008 19:34:45 EST

The people over at Franchise Interviews have developed a site that, according to them, "is an up close and behind the scenes look at franchising". This is a radio show that is dedicated to "educating and motivating aspiring entrepreneurs on franchising". Their site features free interviews in text and sound, newsletters and tips all pertaining to franchising.

A World Without Franchising...

Mon, 21 Jan 2008 13:11:01 EST

The writers over at Roni Deutch Tax Center Franchise (RDTC) have written a list of 10 ways the world would be different if there were no franchises. While some of it seems a little bit silly, they do cover pluses and negatives of franchises in today's society.

People would eat healthier - Fast food is not healthy. Fast food locations make up a large part of franchised businesses in North America.
People might be less physically healthy - This seems to directly contradict point 1, fitness franchises have become one of the most popular franchises in the last ten years.
More Starbucks and In-N-Out - These two successful businesses are NOT franchises. Imagine how well they would do if they did not have to compete against all the other franchised coffee and burger joints.
Higher unemployment rates world wide- The franchise system employs millions of people. McDonalds has 31,000 locations worldwide.
Missing beloved catch phrases - RDTC suggests phrases such as "Where's the beef" and "I'm lovin' it" are part of our culture.
Lower income tax returns - Many consumers go to tax franchises to have their returns prepared properly.
Pop Might not be as popular - "Coca-Cola not only uses the franchise concept but they were one of the major players in the development and history of franchising in the United States"
Less people would own businesses - Franchising allows millions to open and operate their own businesses.
People would be paler - Tanning salons are still a lucrative and popular franchises option.
Travelling would be difficult - Hotels, car rentals and travel agencies are all major players in the franchise world.
To see the full article, follow the link at the top of the page.

Is Franchising Right for You?

Wed, 16 Jan 2008 10:19:59 EST

Joel over at The Franchise King Blog says, "not everybody is right for small business ownership. Not everybody is right for the franchise type of business ownership. That, is actually a good thing...." Conveniently, he has linked to a test that will help gauge whether you are a good fit for franchising. To find out if Franchising is for you, take the test.

You can also read the rest of Joel's post at The Franchise King.

Signs of a Great Franchise

Fri, 11 Jan 2008 16:12:03 EST

Entrepreneur Magazine has written an article listing signs of a great Franchise. Their list includes:

Responsiveness during investigation period
Direct operational training
Marketing Programs
Financial Strength
Attitude of the Existing Franchisees

To read the complete list, see 10 Signs of a Great Franchise.

Franchise Opportunities

Mon, 07 Jan 2008 13:16:56 EST

In the article Franchise Opportunities, Israel discusses the various plusses of owning a franchise. Israel points out that it is important to choose a franchise in a field you are interested in. Israel points out that it is important to choose a franchise in a field you are interested in. Schooley Mitchell offers franchises for people interested in Telecom Consulting. For more information on Schooley Mitchell, see http://www.schooleymitchell.com. See the rest of Israel's article below:

Franchise Opportunities

Have you ever been one of those people who dreamed of owning and managing their own business? Does it seem exciting to jump into that field? Why not go for it? There are some people who do not start their own business simply because they do not know how to or where to start. There is an options for such individuals: franchise opportunities. There are several advantages to franchising:

To start, you will need to pick a franchise opportunity that interests you. If you find it interesting to open a coffee shop, look for a coffee shop that allows you to franchise them. Next, you will need to pay for the fees to franchise their business. Although it may seem costly at first, in reality you are saving a lot of money through using the business's name because the business has been established already. Establishing your own business from start takes a lot of marketing (which costs a lot of money), effort and time. When using franchises, the names have already been branded into a good reputation. This also helps you with sales because people will be able to identify that reputation or have already experienced great service from the business at a different location.

When starting off your Franchise, the logo and business image is already set, so construction of your business's location is simple. Since the business plan and image was already completed, that saves you a lot of time and money when it comes to forming a business's image. You will also be benefiting as time goes on because the main business will be marketing the whole business while you do not need to do it. Most franchisers offer guides to which you can follow when starting off your franchise. These guides facilitates the whole process, even if you are not familiar with owning a business, everything is easy to comprehend since they are all explained in guides.

Another advantage to taking a franchise opportunity is that all of the products are set for you. Going back to the coffee shop example, there will be coffee products, different flavors and a complete menu completed for you. This saves you time from creating your own and then testing it out with customers if you were to start a business from scratch. It is also very easy to obtain the products for your franchise store because the main business provides you with a catalog where you can just order whichever product you are in short supply of.

Israel has recently undergone a new diet and fitness routine and is chronicling the weight loss journey on the Fat Man Unleashed weight loss blog.

Offline Business can Benefit from Online Advertising

Wed, 02 Jan 2008 13:51:20 EST

Even businesses that are based offline can greatly benefit by the wonders of the online world.

By Deborah Ford

Offline Businesses Can Benefit From Online Advertising. I am sure very few people will disagree with me when I say the internet is a very important part of our daily lives. The whole world is right at your fingertips. More and more people have come to rely on the internet for most of their wants, needs and information.

A staggering 57 % of people use the internet, as over the traditional five-pound book, that is right! It is a whole lot easier to type in a keyword than to thumb through some thick phone book. This is why more businesses are promoting their products and services online.

Local businesses can certainly benefit from online advertising. For starters, online advertising is more cost effective than traditional form of advertising such as radio, television, and various types of publications such as newspapers and magazines. For example, advertising in the local newspaper usually cost about $100-150 to advertise for a few days. Online advertising cost less than that to advertise for a month and it reaches a wider audience. It allows businesses to share more information about their products and services to their current and potential customers. A business can inform customers or potential customers of special promotions by posting online coupons on their website.

Online advertising allows businesses to interact with their customer through newsletters, surveys and online chat.

Through online advertising, a business could reach customers they would not have reached otherwise. Offline business could certainly increase customer volume with online advertisement.

Deborah Ford Publisher/Editor Home Business Series Ezine

http://www.homebuzseriez.com

The Benefits And Demands Of Master Franchises

Thu, 20 Dec 2007 23:29:14 EST

By Diarmuid Kieran

Master franchises have an enormous profit potential, but you need to have the financial resources required to take advantage of one.

Franchise companies tend to be very discriminating about which locations they sell their master licences to, because failure of the franchise in some significant location can bring them bad publicity negatively affecting their ability to sell franchises elsewhere. There have been a number of high profile cases of failure of master franchises in countries or regions without adequate demand or infrastructure for the franchise to succeed.

Master franchises give people with significant funds to start a business a degree of power, as they will be in charge of the other franchises that are established in a specified country or region. Sometimes, they are established in groups of countries or regions.

This middle stage can be an excellent grounding into business management and can be very successful if the processes are done in the right way, but there is more to lose if things go wrong.

Master franchisees will not only be given the company's structure and access to its training and support system, they will have the authority to appoint, train and receive a proportion of fees from regular franchisees.

The responsibility for a large area offers a great earning potential, as a model is already in place for marketing the business and distributing the product and so if there is enough interest from franchisees, company outlets can quickly spread and provides the franchise with a better chance of making a strong impression in the market sector.

However, to purchase a master franchise requires a significant investment and so it is essential to ensure that everything is in place before commencing in the role.

Substantial market research needs to be carried out across the whole country or region, as the product or service on offer needs to appeal to consumers in a number of places.

It is important that the contract with the franchiser is agreed in a straightforward, uncomplicated way so that the master franchisee knows exactly what is covered and expected of them.

Issues in it include how much power is given, when the renewal process starts and how to go about it and the exact territory area controlled, particularly for regional master franchisees.

It is advisable to consult a lawyer with some experience in licensing agreements to check the contract.

In addition, master franchisees will in effect be running two separate businesses and so they must be prepared to handle the pressures of ensuring that franchised outlets are up-and-running successfully across a country or region.

This position is certainly very demanding, but with an excellent management structure in place and good support from the international franchiser, big returns can be made on investments which are usually above 100,000.

A certain amount of patience is required though and master franchisees must concentrate on the long-term, as there is a fair chance that a few local franchisees will fail to make an impact and have to close.

Improve your visibility

Thu, 13 Dec 2007 14:21:15 EST

In a marketplace that is highly competitive, sales professionals must develop marketing strategies that will give them greater visibility. Greater visibility will add to your credibility within your market segment and potential clients will perceive you as an expert in their industry.

Research says over and over again that your market would rather do business with an expert than a generalist. If you were going to purchase a product (or service) and the money was the same, from whom would you buy? Here are some visibility strategies that will help you grow your business.

Send valuable information. Become an expert resource for your clients and potential clients by sending them valuable information related to their business, not yours.
Create an impending event. A great way to get your name out in the business community and set yourself apart from the competition is to create or sponsor a valuable event.
Present seminars. Presenting education-based seminars to your clients and potential clients will give you and your ideas greater exposure to many people at once. This can be a very effective use of your business development time.
Write articles. If you want to be perceived as the industry expert in your field, take the time to write articles. By doing so, your credibility and exposure will increase dramatically. Remember that your customers will prefer to do business with a specialist rather than a generalist. If you are not confident with your writing, hire a ghost-writer. There are plenty available. Submit your article to trade magazines. They are always looking for material.
Create your own breakfast club. Create your own business network club with professionals in related industries that may have contacts or influence in your target markets. Remember, "many hands make light work".

Recognizing buying signals

Thu, 13 Dec 2007 14:20:18 EST

Often throughout the sales process there are many buying signals offered by the prospect or customer and to their detriment, many sales people fail to recognize them. The missing link between your world-class sales presentation and confirming the business are the buying signals offered by your prospect.

Your role as a sales professional is to recognize a buying signal when you see or hear one. It could be a gesture, a question, body language, or an eagerness to try your product or service. Whatever the signal, it's always good to try and close on it.

Any question asked by the prospect must be considered a buying signal and the grand daddy of them all is when your prospect asks, "How much does it cost?" or "How much is it?" This is a sign that they are considering ownership and that's always a good thing.

Here are five other areas to pay attention to:

Availability or time. Questions surrounding timing look like this. "How many do you have in stock or inventory?" or "How much lead time do you require?" People don't ask these types of questions just to make small talk.
Delivery options. With regard to delivery you are looking for questions like, "Do you deliver?" or "How many days does it take to get it?" Your simple response should be, "Would you like it delivered?" or "How soon do you need it?"
Features and benefits. Any time you get a question about available options or features such as, "Does this come in red?" or "What about the warranty?", it is an opportunity for you to confirm the sale.
Repeat performance. When the prospect asks you to repeat the product demo or review the presentation it is a sure sign they are considering a purchase.
References. When a prospect asks you for references or testimonials, this demonstrates that they are getting ready to buy.

When it comes to buying signals, keep your eyes and ears open and you may be surprised just how many there are. Most buyers come to the edge of the buying cliff and they are just looking for a little nudge. Your job is to oblige them.

Qualities of high performance sales professionals

Thu, 13 Dec 2007 14:19:27 EST

Becoming a high performance sales professional in today's competitive marketplace can be a challenge. Those who achieve the high performance level have, at one point, acquired traits that keep them consistently focused, productive and working towards continuous improvement.

Some of these qualities include being:

Focused on results. They know what they want, where they are going, and how they are going to get there. They set yearly, monthly, weekly and daily goals and remain focused on them.
Creative. They understand that to be successful, they need to be unique in today's competitive marketplace. They must use creativity to differentiate themselves and their products and services.
Strategists. To be effective they understand the importance of how to use strategies to break down barriers. They consistently search for different selling tactics that will have appeal to their customers.
Excellent communicators. They have refined their communications skills to such a point that they know exactly how to influence the different types of customers to purchase their products or services and how to make them feel comfortable in the process.
Customer focused. They understand how to turn customer satisfaction into long-term customer enthusiasm.
Trustworthy. They have created a set of ethical skills that help them build foundations of trust with their potential and current clients. Their clients know they can rely on them and see the benefit(s) of working with them.

Five ways to keep their interest

Thu, 13 Dec 2007 14:18:43 EST

Dear Dennis,

As long as you keep your prospect's interest, you stand a good chance of closing the sale. Here are five strategies to help you engage your prospect's attention throughout your sales presentation.

Use stories. Become a great storyteller. Stories easily capture the mind of the prospect. Create vivid mental pictures for the prospect. The formula is simple. Tell them the point. Then tell them a story to back up the point. Then show them how it relates to them.
Bring them inside. People like to be in the know. Let them know about a new product or service innovation that is coming out several days or weeks before it is officially released or announced.
Stroke their ego. Everyone likes to feel good about their decisions. Let your prospect know how impressed everyone will be when they enjoy the benefits of your product or service: "In a few months, your office staff will be more productive and happier about their work. I know they will appreciate your concern for them."
Personally relate. Demonstrate to your buyer that you understand their needs by mentioning your own or another experience with the product or service. "We recently picked up one ourselves and our kids love it."
Show that you care. Show concern for your client's reputation: "Our goal is to make sure that our product or service does everything we say it does. In the event that there is a component failure our service team will respond immediately and our warranty program will cover all the costs."

Networking and putting people at ease

Thu, 13 Dec 2007 14:18:01 EST

Activities where members of a networking group introduce prospective clients to other members of the group present many opportunities for introductions and exchange of information. Successful sales professionals skillfully use special conversing techniques to help people feel more at ease and willing to share valuable information. Included in this tip are several suggestions on how to put people at ease while conversing with them.

Compliment them. One or two compliments go a long way. Too many compliments make people wonder as to the purpose of your conversation. Remember that insincerity is often detected instantaneously.
Talk about them. How they met their spouse or partner, where they grew up, what college or university they attended, what diploma(s) or degree(s) they have, hobbies, family, etc. Avoid delving into topics they hesitate or appear uncomfortable talking about.
Talk about their career. Inquiring about their current and past career(s), position(s) can open up many avenues from which to determine your level of interest in them as a client and/or as a referral to other clients. Remember that networking includes the interconnecting of all the different people you know. Referring a valuable person to a current client or potential client shows them that you can bring them distinctive value.
Ask for their opinion/help/advice. Asking them for their opinion about an issue of concern can build trust as long as the opinion is willingly accepted and not strongly disputed. Carelessly contradicting an opinion or adamantly disputing advice defeats the purpose of putting them at ease.
Talk about a current popular event. Popular events provide good opportunities to change the subject or even to initiate a departure from a conversation. Avoid political incorrect opinions, statements, or remarks until you clearly understand where people stand. You just might undo all you have worked toward.

Selling to your buyer's perspective

Thu, 13 Dec 2007 14:17:25 EST

In today's marketplace, decision makers are only a few mouse clicks away from checking out your competition. They are looking for good value and they are willing to pay more for your product or service if you can effectively demonstrate that the value exists. Here are four strategies to help you.

Develop a relationship of trust. At the end of the day, if your buyers don't like you they may not buy from you. It all goes to the confidence that they have in you. When everything is equal, buyers will buy from their friends. When everything is unequal, buyers will buy from their friends.
Product or Service differentiation. Your job is to find the differences that set your products or services apart from the competition. If the customer can't tell the difference then the product is commoditized and price becomes the distinguishing factor.
Demonstrate better value. This is not about a better price, it's about better value. Your customer or prospect will pay a higher price if they feel the value is there. What value-added services could be bundled with your product that would help you differentiate your products or services from your competitors?
Reduce the down-side. Your customers and prospects are always looking to protect their investment. Identify all the benefits that come from purchasing and ownership and reduce their risk from making a bad decision.

Remember: Price is never the issue, unless it is the issue, and when it's the issue, it's the only issue. - Michael Vickers

Grow your business through networking (the right way)

Thu, 13 Dec 2007 14:16:47 EST

No doubt about it....a referral is the best quality lead you can get. This kind of third party endorsement enhances the trust factor exponentially. So how do we get more of them? We often hear these responses when we ask that question: "Join a lead exchange club", "Ask new or past customers for referrals" or "Attend network events". Sound familiar? At the end of the day networking is an effective strategy for acquiring new leads, but only if it's done properly. Here are some strategies to help you become a better networker.

Don't ask. Give. The best way to get a referral is to give one. When you meet someone at an event don't use it to give them a sales pitch about your product or service. Offer them something.
Don't be an amateur. At most events you can spot the amateurs because they are busy collecting as many business cards as they can. Remember the key is to make them the focus, not you.
Learn about their business. Take the time to learn as much as you can about their business. Ask them for a profile of their ideal customer or prospect and what their target markets are. This demonstrates your sincere desire to help them with their business.
Don't give too much information. This might sound counter-intuitive at this point but you don't want to give too much information about you. Only enough to get them interested. The point is to demonstrate your interest in them.
Follow up. This is the magic part of the process, or at least it works like magic. Call your new contact and tell them what a pleasure it was meeting them and learning about their business. Tell them that you would like to pass on any information to them that might be related to their business as well as people that can benefit from their product or service.
Work the relationship. Referrals come from trust. Let's face it. People are not going to refer you unless they trust you. By staying in touch on a regular basis you can build a relationship and then the referrals will start to flow. If you think about it, isn't that how you really operate? The result is that you will develop some long-term meaningful relationships of trust.

Positioning

Thu, 13 Dec 2007 14:16:09 EST

Your ability as a sales professional to effectively position your solution in the mind of your buyer as the value-added solution, differentiates you from the competition and presents a compelling argument for the buyer to choose your product or service. By positioning your product or service you create expectations in the mind of your customer. Your prospect will use those expectations as the standard. In essence, your product or service becomes the baseline by which the buyer measures everyone else.

Here are four things you need to know about effectively positioning your product or service.

Positioning is a campaign, not an event. This is a carefully planned and executed strategy that involves every member of the organization. Essentially, the customer hears the message or has the message you are trying to convey, reinforced at every touch point.
Positioning happens in face-to-face interactions with your customers, (your professionalism, etc.) as well as with your traditional marketing materials.
Your company owns a position in the mind of your customer. What image comes to mind when someone mentions you or your company? Do they perceive you as a value-added supplier or are you a me-too provider? How could your competition out-position you?
Everything your customer experiences with you affects the perceived position in their mind. You can spend a small fortune creating an image in the mind of your customer, but the actual customer experience speaks volumes to the buyer.

Remember, positioning occurs in real time. You can either be proactive and determine the message that is being sent or you can spend your time defending your position against the competition.

Differentiate your product or service with value

Thu, 13 Dec 2007 14:15:35 EST

We have all heard the term "value added" but in my experience as a speaker, trainer and coach I rarely meet a sales professional that has an in-depth or applicable understanding of it. To effectively sell 'value added' you have to move it from a concept to a mindset that is entrenched in your sales process.

Here are some key reminders for you.

There are three components to the sale - the product, the company and the sales professional. When effectively balanced and utilized it negates commodity-like comparisons. It's impossible to compare your product with that of another competitor. Because no two clients are the same it's impossible to have a generic solution.
Don't make sales calls -- go on job interviews. If you are having trouble selling your products in a commodity marketplace, try selling yourself instead. (in other words, you become the point of differentiation) Ask your prospect or customer to hire you as their personal representative with the supplier's company.
Use value to retain your customer. When you sell all three components of value, you enhance the customer experience and effectively insulate them from competitive erosion. The key here is to continually remind them how the value you provide adds value to them.
Sell value strategically. Today's sales professionals must also be good business people. Their customers realize whether they are getting value from each interaction or conversation or not. This means that we have to keep educating ourselves so that we have more value to give. It's critical to the process that we think strategically and sell tactically. We must see the impact of our product or service on the big picture (strategic) and customize a solution that makes sense to our customer (tactical).
Seek to add value proactively. Become an order maker not an order taker. Our hectic marketplace often creates an environment where we are reactive to our customers rather than proactive. This "wait and see" approach creates the perception in the mind of the customer that makes them feel neglected. By taking a proactive approach in our process we send the message that we are paying attention to them and have them top of mind.

Remember! This value added approach is about contributing maximum value to the customer for market differentiation.

Storytelling as a sales tool - Part Three

Thu, 13 Dec 2007 14:14:55 EST

In part one we talked about the benefits of storytelling as a sales tool and how a good story engages the emotions and imagination of your prospect or customer. In part two, I gave you some guidelines to help you frame your story. (example: keeping your story short and sweet, in context to your conversation, using descriptive words whenever possible and making it come to life in the mind of your prospect). In part three, we are going to explore how you can personalize your story for greater impact.

Always use your prospects or customers name when you tell your story. It connects them to it.
Name drop if possible, particularly if you are telling a story about a client's experience with your product or service. Make sure if the information is confidential that you have your client's permission to use them as a reference, otherwise just tell the story without naming the client.
Whenever you are speaking about you or your company, use the word "we" in your story to imply company depth. "We" also makes the story about your company rather than just you.
Use as many adjectives as possible. Adjectives will help paint a picture in the mind of your prospect and give your story visual depth.
Always emphasize the fact that your company "specializes" in your subject matter or solution, rather than use the word 'expert'. Specialization creates the perception of greater focus.
Add action verbs to your story in order to plant the seed that your customer needs to take action. Example "One of our clients, the ABC company, recently did an in-depth feasibility study comparing most market solutions. They chose our solution because..."

Remember, storytelling is an essential skill that must be mastered if you want to take your performance to the next level. One of our goals as sales professionals is to develop a wide range of stories that emphasize the points we are trying to make at every step of the sales process.

Storytelling as a sales tool - Part Two

Thu, 13 Dec 2007 14:14:24 EST

Last week we talked about the benefits of storytelling as a sales tool and how it engages the emotions and imagination of your prospect or customer and creates an emotional connection to your product or service. Here are some guidelines to help you frame your stories.

Make sure you have identified the message you want to communicate to your prospect or customer. Select four or five specific points you wish to get across and develop a unique story for each. An example might be a "how they made their decision" story, or "how they determined their price" story, or "a value" story, etc.
Keep your story short and sweet, and most importantly, interesting.
Seed your story with third party references when possible and name any statistical or market resources you quote.
Don't tell a story to tell the story. Make sure it specifically relates to your current point or is in context to your current conversation with your prospect.
As often as possible, use distinctive words or descriptions that will stand out for your customer and make it easy for them to remember.
Make your stories come to life, particularly with inanimate objects. (example: the white ear-buds story, the server that blew up story, etc.)
Put your story in context. Whenever possible, name the person, name the place, the day of the week and where it happened.

In part three, I'm going to show you how to personalize your story for greater impact!

Problem solving - When your customer is not happy!

Thu, 13 Dec 2007 14:13:51 EST

You can't be a consummate sales professional and not run into problems from time to time with the delivery of your products or services. Here is a good rule of thumb to adhere to: "If the customer perceives there is a problem, then there is one." Strategically, be delighted that the customer gave you a chance to solve it. Here are some steps you can take.

Listen. When your customer is upset they want to tell someone about it. Don't interrupt them, just listen and let them vent. They will not be able to listen to you until they have fully vocalized their issue and feel heard.
Show empathy. Most customers expect to do battle when they call with an issue. Try saying things like, "No wonder you are ticked off" or, "How frustrating". Showing empathy gets you aligned with your customer on the issue.
Apologize. Two of the most effective words you can ever say are, "I apologize". These words have an immediate calmative effect on your customer (most of the time). This works well because the customer doesn't often hear it from other reps. Most sales reps spend their time defending their company's behavior. The customer never wants to hear, "That's not my responsibility" or "That's not my job". You find the problem, you own it!
Reassure your customer. This is the point where you tell your customer that you will work on their behalf to solve the problem. They need to know that you are their ally in the fight against the system.
Solve the problem. The customer isn't always right. However, if they perceive a problem, then one exists. After you fully understand the issues, pull out all the stops to make them happy. If you are not sure what solution will work best, simply ask your customer, "If you could wave a magic wand and create the perfect outcome in this situation, what would it be?" Or, "What do you think would be a reasonable and fair solution to this problem?"
Say thank you. This is another opportunity to thank your customer for caring enough to call in rather than going elsewhere. Thank them for their loyalty and patience and let them know they are appreciated.

Working your way out of a slump

Thu, 13 Dec 2007 14:13:10 EST

Everyone encounters a slump from time to time. Whether you are a professional athlete or a professional salesperson, occasionally you will encounter a low point. Here are some ideas and strategies to avoid slumps and help you get out of one if you're in one.

Get real. Take a hard look at your habits and ask yourself this question. "Why did I lose the last three sales?" (you can't use price as your excuse either!) Honesty is the key here and it will help you focus on what the real issue is.
Examine your work ethic. Whenever an athlete joins a new team (especially after a prolonged slump) performance always seems to increase. Ask yourself, "Am I putting in 110% effort?" or "Am I working as hard as when I first started?" Most of the time you can work yourself out of the slump.
Marketplace change. Examine the conditions in the marketplace over the last six months. Has the competitive environment changed? Are there external factors affecting your market? If the market pie is getting smaller, then you need to take pie from someone else. (ie: work harder)
Focus on continuous improvement. When professional athletes find themselves in a slump they get additional coaching and they practice even harder. If you find yourself in a slump try learning some new skills and devote a little extra personal time to getting better.

Remember: Awareness and hard work are the key to getting your sales career back on track.

Become a learning based professional

Thu, 13 Dec 2007 14:12:32 EST

In my seminars across the country I routinely ask my audience attendees, "How many of you had college as an experience?" At each session a number of hands go up. I then ask, "Would you agree with me that a college degree guarantees you financial success?" No hands go up. Now that's interesting!

The most valuable thing I learned from University was how to learn and that is something that has helped me to create value for my clients and my family beyond my greatest expectations.

When you learn something new it's important for you to share the information with your colleagues and your customers.

Magazine Articles: There are a number of informative magazines that have some really great articles that could be of value to your customers. Consider buying an online subscription of a magazine. They usually cost less online and you are able to email or print out copies of the article to share with whomever you choose. A couple of magazines I like to use are Fast Company and Business 2.0, but there are many others.

Audio Books: One thing I enjoy doing is going on ebay and bidding on audio business books that someone may have listened to once, if ever. I can usually purchase current best sellers for only a few dollars compared to the original prices. I have boxes of CD's waiting to be listened to and often turn my car into a university on wheels. When you are done with the audio book you can pass it along to someone else who might find value in it.

Podcasts: One of the great advantages of the internet is that there is a never-ending supply of information. There is a podcast available for just about any topic you can think of. I subscribe to a number of them and every Saturday morning, I sync my iPod with iTunes and get the latest episodes. Even if you don't own an iPod, you can still get the podcast into iTunes on your computer. I listen on airplanes, in waiting rooms and when I'm working out. When you come across a great podcast, email the link to your customer base with your recommendation.

Hardcover: This one I reserve for my really good customers. I try and find a book that has some relevant value for a wide range of clients. If you go online to Amazon or talk to your local chain store you can order the books in bulk and receive a 30-40% discount. Personalize the books and give them to your customers. Even if they don't take the time read them, they will thank you for thinking of them and that book will be in front of them for years to come.

Remember: "Empty the coins of your purse into your mind and your mind will fill your purse with coins" - Ben Franklin (If you want to earn more....learn more!)

Risk - Identify and remove for greater sales success

Thu, 13 Dec 2007 14:11:41 EST

Our job as sales professionals is to identify risk factors in the sales process and strategically remove them. Many sales professionals run into these mental and sometimes physical barriers and lose the sale because of them.

Here are some you should pay attention to:

Financial risk. This risk is inevitable and should always be considered. The buyer wonders, "Is the product or service affordable?" or "Are we getting our money's worth?" or "Am I overpaying for this product or service?"
Due diligence risk. Some buyers hesitate to make the purchasing decision because they are concerned about doing their homework. They wonder, "Do we really need it?" or "What if I pay too much?" or "What if I rush this decision and make the wrong call?"
Product quality risk. Most buyers consider this risk before they make the purchase. They wonder, "What if it doesn't perform as promised?" or "Will it last?" or "Am I getting what I think I'm getting?"
Product obsolescence. This risk is common particularly if you sell a technology. The prospect wonders, "What if I buy this and a better one shows up on the market?" or "How long will this product stay relevant?" or "Would I be better off waiting?"
Reputation risks. This risk is always present. Buyers don't want to make bad decisions and look foolish in front of their peers. The risk of internal ridicule can cause buyer paralysis.

Remember, your job is to anticipate these risks and mitigate them in the mind of your prospect.

Ask What if...?

Thu, 13 Dec 2007 14:10:44 EST

Imagine that after studying your customer's problem, you've come up with an innovative solution. The challenge is the more we think of our solution as being brilliant, the more likely we are to oversell it. Next time you have an idea, product, service that's out of the ordinary, ask: What if...? For example, "What if we had a way to...?" Then wait for the customer to verbalize the possibilities. Further ask: "What would be the value of that?" Again the other person continues to sell themselves. Asking what if shifts the ownership of the idea to the customer. When that happens, you've literally created buy-in.

Today's chuckle:
Don't learn the tricks of the trade, learn the trade.

Top Franchise Trends For 2008!

Wed, 12 Dec 2007 18:01:56 EST

By Joel Libava

The year 2008 will be "Frantastic" for the franchise industry, which is an industry that typically does well when little things such as our economy, slow down.

The number of people inquiring about franchise ownership will increase dramatically in 2008, as the US economy continues to show signs of weakening. Case in point:

When the economy slumped after 9/11, millions of workers were downsized, and it became difficult for many of them to find decent replacement jobs. A sizable number of them (after a period of intense self-reflection, and some unpleasant spousal vibes) started looking into career alternatives. Investing in a franchise was one such alternative, and one that many people decided to do.

Fast forward a tad, and look at the current situation. The mortgage crisis, and increasing consumer debt, combined with the euphoric feeling that all of us will be experiencing when pumping $3.50 a gallon gasoline into our vehicles, are all contributing to a cautious economic growth forecast.

Although 2008 won't be as severe in terms of job losses, the job market continues to tighten, which will again lead to more people looking into alternative career options.

According to a PricewaterhouseCoopers study from 2005, over $1.53 trillion in total economic comes from franchised businesses annually. ($Trillion!) Franchising is big business, and there is no shortage of opportunities to choose from.

To read the entire article follow the link:

http://www.smallbiztrends.com/2007/12/the-top-franchise-trends-for-2008.html

Don't be better - be different

Wed, 12 Dec 2007 18:01:21 EST

Admit it - your customers can find a supplier somewhere in the world with cheaper prices than you. That means that trying to compete based on price is rarely a viable option. What likely differentiates you from others is not your prices, but your service. The logical question then becomes is your service really that different from others. Most managers think great service means their employees are nice. But your competitors know how to be nice too. What distinguishes service as being different is when you focus more on creating trust than merely trying to be nice. Who would you rather do business with - the friend who's nice, but unreliable, or the professional who makes bold service commitments and then keeps them consistently? In this economy, nice is average, trust-worthy is different.

Today's chuckle:
Don't think you're on the right road just because it's a well-beaten path

Is your Team-working?

Wed, 12 Dec 2007 18:01:09 EST

Staff retention issues? Consider this approach by a Vancouver restaurant chain that had me conduct an Influence with Ease seminar for their managers meeting. At the end of the meeting we spent 15 minutes where a restaurant manager would give verbal kudos to another manager who had helped them over the last period. The person who received the accolade then had their name put into a draw for a gift certificate. The boost to morale and sense of teamwork this created was palpable - and the cost was insignificant. Imagine staging meetings where participants learn something useful, feel appreciated, and strengthen their sense of teamwork and belonging. In these days of staff retention challenges, can you afford not to show this kind of appreciation?

Today's chuckle:
I can live for two months on a good compliment. - Mark Twain

What Can You Do?

Wed, 12 Dec 2007 18:00:59 EST

I'm sure you've experienced this... as a customer, you have a special request about a purchase. The employee declines citing it's 'against policy'. You try another tack and alter your request slightly. The employee takes the request at face value and explains how they can't do that either. Been there? The problem - the employee thinks their job is to respond to customer requests. That misses the point. The real job of customer service professionals is to solve customer problems. In other words, as employees we need to go beyond telling customers what we can't do, and instead move immediately - without being prompted - to explaining what we can do to help the customer.

See if there's a fit

Wed, 12 Dec 2007 18:00:41 EST

A common error when beginning a sales conversation is to start talking about what the potential buyer "might like." The problem is that likes and dislikes are whimsical and aren't that reliable for decision making. Instead, you'll get better results when you offer to explore options with the buyer and "...see if there's a fit." The second phrase is easier for the buyer to agree to because it implies that you'll be systematic in helping them reach an appropriate decision.

Today's chuckle:
How does Teflon stick to the pan?

Speak lower than the previous person

Wed, 12 Dec 2007 18:00:28 EST

This is such an easy technique to enhance credibility - it's almost embarrassing. During group discussions, people get emotional or excited about certain subjects. Their voices tend to rise in tone and speed accordingly. When it's you're turn to comment, reduce the tone and speed of your voice to be slighter lower than that of the previous speaker. In the midst of the group's excitement, your controlled delivery will sound like the voice of reason. You'll immediately be taken more seriously. The only trick then is to say something worthwhile!

Today's chuckle:
If you tell the truth you don't have to remember anything.

Are you Predictable?

Wed, 12 Dec 2007 18:00:18 EST

The new role of front line employees in today's economy is to create loyalty experiences. A key reason that e-commerce and automated services are booming is that machines are predictable. They rarely give us an attitude. Where there is predictability there is comfort. Where there is comfort there is trust. And where there is trust there is the willingness to part with our money. That means that front line employees need to go beyond just being friendly; they need communication skills that build trust.

Today's chuckle:
A man and his wife are sitting in the living room and he says to her: "Just so you know, I never want to live in a vegetative state dependent on some machine. If that ever happens, just pull the plug." His wife gets up and unplugs the TV.

Pass the Candy Dish

Wed, 12 Dec 2007 18:00:05 EST

Interesting how some businesses provide amenities for customers - but their customers don't even notice. Imagine inviting a financial planner to your home... expecting company you tidy-up and even put out a candy dish. The visitor notices the candy, but certainly doesn't dig right in. That would be rude. Similarly, at work when your waiting area includes magazines, children's play area, or even refreshments - that doesn't mean you've extended hospitality. Next time you have a new customer, give them a quick lay of the land and remember to pass the candy dish. After all, displaying isn't the same as offering.

Today's chuckle:
Far too many people spend their lives reading the menu instead of enjoying the banquet.

Staffing Shortages? Maybe You're the Problem

Wed, 12 Dec 2007 17:59:33 EST

Demographers are predicting that staffing shortages are only going to worsen in the coming years. Too many managers mistakenly assume the only way to keep people is to bite the bullet and pay more in salaries, benefits and perks. Unfortunately, those managers are often 'fixing' the wrong problem. Marcus Buckingham of the Gallop organization reported that the number one reason employees quit was their personal feelings about their immediate supervisor. Ask yourself if it's time your company took measures to fix the real problem when it comes to staff turnover - managers and supervisors are not equipped with the necessary skills to make their team members feel valued...

To view the entire article follow the link: "Staffing Shortages? Maybe You're the Problem"

It's OK - I trust You

Wed, 12 Dec 2007 17:58:01 EST

To strengthen your client relationships - and encourage prompt payment, consider this statement. Looking for a gas fitter to install a line to my bar-b-que, I found "Jock" of Artisan 98 through the Yellow Pages. He arrived as promised and gave me a competitive quote. When I asked if he needed a deposit, Jock declined stating, "It's OK - I trust you." I was flattered, and more importantly, paid him promptly upon completion to prove his trust was well placed. It strikes me that Jock was a master at more than just gas fitting. I wonder... are there similar opportunities for you to voice your confidence in your customer when your gut tells you that you should?

Today's chuckle:
Pride is what we have. Vanity is what others have.

A Lesson from King Arthur

Tue, 11 Dec 2007 18:20:41 EST

The legend may be centuries old, but King Arthur's lesson in reaching consensus remains relevant. You'll recall from the story that a council of knights would make decisions at a round table. The shape of the table meant everyone gathered was seen to have the same status. There was less of the 'them vs us' dynamics that can happen when people take sides across a table. Since everyone can see each other, communication is clearer. Ironically, the vast majority of tables in today's corporate boardrooms and family dining rooms are rectangular. That design may be more efficient at saving space, but it's less effective at building community.

Today's chuckle:Shin: a device for finding furniture in the dark

The Many Benefits of Franchising

Tue, 11 Dec 2007 18:18:34 EST

The Many Benefits of Franchising

Author: Paton Jackson

Franchising is practiced in many business establishments today. With franchising, the franchisor generally licenses its trademarks and business modus operandi to the franchisee. This is done in exchange of a recurring payment from the franchisee which may be a percentage of gross sales or gross profits and annual fees. Businesses working as franchise arrangement are referred to as chain store, franchise or franchise outlet.

The advantage of franchising lies in the fact that the franchisor is still in command of the financial part of the business. The franchisee only pays the franchising fees and other commitments while the assets are controlled by the company. Moreover, with franchising, the franchisor provides trained employees for the franchise. In fact, if required, they will also provide the necessary training to the employees, wherein the franchisees save in training costs.

When entering into a franchise agreement, it is necessary for the franchisee to pay some capital amount as security deposit to the franchisor. With this payment, the franchisee runs the franchise with the needed dedication as they will not want to lose the capital sum to the franchisor. As the company would have already had a good standing in the market, and allots franchises just to expand, there is not much of a hassle in getting customers, and business to the franchise.

Franchising helps in the growth of a business as there are no limits to the number of franchises to a company. It is in fact much easier to open franchises of a company, than branches of a business as the cost involved is much lower. Moreover, the franchise receives franchise fee, franchise royalty, better lease options, discounts on equipment and raw materials and discounts from vendors. So they basically have more money to run the franchise than an individually owned company.

Our experts have made a research and found the best franchise opportunities. Find it only on the franchise opportunities index . All about franchising on http://www.best-franchise-opportunities-information.com

This article is free for republishing
Source: http://www.articlealley.com/article_115336_15.html

Finding the Money for a Franchise

Thu, 06 Dec 2007 22:55:44 EST

Finding the Money for a Franchise

By Mary E. Tomzack

The cost of buying a franchise can be substantial, but you don't have to be a trust fund baby to get into the franchise of your dreams. Where is the funding going to come from? That's the number one question franchise buyers ask. There are numerous sources of capital, but start with these basic steps first.

1. Talk to the franchisor. About one in three franchisors provide financing directly or have arrangements with third party lenders. You will find any financing arrangements spelled out in Item 10 of the UFOC. Even if the franchisor doesn't have money to offer, it is still the best source of information about your financing options.

2. Look within. It is a common misconception that you can or should borrow all the money to open a franchise. Be prepared to come up with at least 25 to 30 percent of the total start-up costs. To assess personal resources, start by preparing a personal financial statement (you'll need one to present to lenders anyway).

3. Ask family and friends. This is one of the most common ways to finance a new business. After all, who knows your dreams and capabilities better? Plus, they want to help you succeed.

4. Call your accountant. Ask your accountant to recommend a banker. A good accountant - one with small business experience - is usually a great source of leads.

5. Find a specialist. You should start at the bank where you do your personal banking, but there's a good chance you won't get what you need there. Local banks are often unable to fund franchise projects. Your chances will be much better with independent lenders like GE Capital Franchise Finance that specialize in franchise lending.

6. Search the SBA Franchise Registry (www.franchiseregistry.com). The SBA's small business lending guarantee program is a key source of loans. This program for new franchise buyers is much easier to access since the creation of the Franchise Registry, a central database of information about franchisors that have been certified by the SBA.

Different Types of Franchising

Tue, 04 Dec 2007 22:13:27 EST

DIFFERENT TYPES OF FRANCHISING
by Dr Callum Floyd

http://www.franchise-chat.com/resources/franchise_forms.htm

Whether buying a franchise or looking to franchise an existing business there are numerous issues to consider. One seldom mentioned but important area affecting prospective franchisees and franchisors is deciding on which type of franchising is suitable to their individual circumstances. This is a complex process as there are several methods of franchising. With the terms of franchise agreements typically spanning years, the final decision carries long-term consequences.

Five methods of franchising
Though further variations are possible, most franchise systems draw from five common methods of franchising. To help illustrate each method we can consider a scenario involving Jean of Jean's Camera Shop and Jim Burton. Jean has decided to franchise her successful Camera business in the hope of building a nationwide network of Jean's Camera stores. In this instance, Jean assumes the role of the franchisor. Jim is interested in buying a franchise. The type of franchise Jim could buy from Jean depends on which of the five methods Jean uses for her franchise system.

Single-unit franchising
The method of franchising most people are familiar with would involve Jim (or another person, partnership or company) buying a franchise business from the franchisor (Jean). Jim would then operate the business in a particular location or area. This is called single-unit franchising. The result is often a franchisor (like Jean) with a number of franchisees (like Jim) owning and operating individual stores in different locations.

Sequential franchising
Sequential franchising is an alternative type of franchising arrangement. In our case, Jean may allow Jim to purchase a second, and perhaps even a third, Jean's Camera franchise. Using sequential franchising, these additional franchises are granted on a one-at-a-time basis. In other words, after establishing the second franchise, Jim would need to prove he was capable of operating both stores, before being allowed a third franchise. The implication of this type of arrangement is that it becomes increasingly difficult for Jim to maintain direct involvement in each of his businesses. Therefore he would need to hire and manage employees to run the different stores.

Area development
A variation on sequential franchising is area development. If Jean used this method of franchising Jim (as a franchisee) would become an "area developer." Unlike sequential franchising where Jim could gain an additional franchise only after proving his capability, Jean from the outset would give Jim (in return for a fee) the rights to multiple franchises. Jean would then expect to Jim to establish and manage these stores himself, with the assistance of hired employees. Using this method of franchising (and the following two), Jean may also require Jim to establish a certain number of stores within an agreed time frame.

Subfranchising
The fourth method of franchising is termed subfranchising. Often called master franchising, subfranchising involves two levels of franchises: subfranchisors (often called master franchisees) and subfranchisees. Subfranchisors are like a franchisor in that they will often be responsible for recruiting and providing ongoing support to operating franchisees. However, in contrast to the franchisor with nationwide interests, they are responsible for a smaller area. For example, Jean could offer Jim a master franchise for the Canterbury area. Within this area Jim could be expected to attract, select, train and provide ongoing support to owner-operating franchisees (subfranchisees). Jean may also have master franchisees responsible for other regions, such as Wellington and Auckland. Jean would then manage the subfranchisors who, in turn, manage a number of subfranchisees in their respective regions.

Area representation
Less common than subfranchising is area representation. Like subfranchising area representation has two levels of franchisees. The main difference is that the master franchisees (called area representatives in this instance) are delegated less responsibility than subfranchisors by the franchisor. Specifically, the franchisor will often play an important role in recruiting and providing ongoing support to franchisees, within an area representative's region.

Final comment
As illustrated above there is considerable variation in the methods of franchise agreements available to franchisors and prospective franchisees. For both parties, this means considering what method is most appropriate for their individual circumstances. Each method carries a set of advantages and disadvantages relative to the other types of franchising. From the point of view of franchisors, like Jean, my own research is seeking to determine which type of franchising is most suited to a particular type of business.

For people interested in buying a franchise factors such as level of available investment, managerial ability and ambition are likely to play an important role in determining what type of franchising opportunity would be most suitable. For example if Jim has a lot of money to invest, has sound managerial skills and plenty of ambition, single-unit franchising may be too restrictive for his needs. Consequently, he may want to consider a franchise opportunity that would at least give him the option of establishing further stores, sometime in the future.

Minorities and Women Turn to Franchising

Mon, 03 Dec 2007 19:26:34 EST

Scott Olson of the Indianapolis Business Journal wrote an interesting article on why women and minorities are finding business opportunities through franchising. The IFA Educational Foundation says that minorities own 20 percent of the U.S.'s franchises, while women own 25 percent

Olson points out that their is "less risk to find success" because of the established business plans found in franchise systems. While their is sometimes a larger start up fee, it is worth it due to the proven business model. Also, it is often easier to receive funding for a franchise than other start ups for the same reason.

For the complete article visit,

The Indianapolis Business Journal

How Do I Find Franchisees?

Mon, 03 Dec 2007 19:17:01 EST

According to Mark Siebert, one of the most commonly asked questions about franchising is, "How do I find franchisees?" He claims that the internet provides up to 70% of all sales leads. However, Siebert still feels that franchise and industry shows are as relevant for finding leads today as they were in the past.

What is the difference between a franchise show and an industry show?

Franchise Shows

Industry Shows

For more information from Siebert on choosing the proper show for your franchise see his article,

Selling Your Franchise at a Trade Show - http://www.franchise-chat.com/resources/selling_your_franchise_at_a_trade_show.htm

International Franchise Expo - http://www.ifeinfo.com/

Franchise Expo Stats & Facts - http://www.ifeinfo.com/pdf/May2006%20p16-17.pdf

Internet & Telephony Expo - http://www.tmcnet.com/voip/conference/

Do you confront or attack?

Thu, 12 Apr 2007 09:17:19 EDT

Do you confront or attack?

Perhaps one of the toughest challenges in relationships is giving 'corrective feedback' to people you care about. As a supervisor, husband, and father, I've made my share of mistakes when confronting others - less so since discovering this tip. Focus your feedback on behavior - not attitude. Instead of saying, 'You need to be friendlier to customers.' (Friendliness is an attitude), focus on behavior with, 'Within 5 seconds of the customer's arrival, you are expected to smile, show teeth, and greet them.' Avoiding confrontation doesn't help anyone. Focus on observable behavior. As for 'correcting' the other person's attitude - what they think, believe, and feel - forever hold your peace.

Today's chuckle:
Jesus loves you, but everyone else thinks you're a jerk.

Becoming the Employer of Choice

Thu, 05 Apr 2007 09:18:22 EDT

Becoming the Employer of Choice

If you think you have staffing shortages, you ain't seen nothing! Come to my town, Calgary, Alberta and we'll talk. The economy of this boom town is so overheated that managers and business owners are scrambling to hang-on to even mediocre employees. Far too many managers figure the only way to gain staff loyalty is to buy it. That's a myth - and it's an excuse that you shouldn't accept of yourself or other managers. Of course money is important - but there is another way to gain employee loyalty that doesn't cost a thing.

I'm referring to employee recognition. Just how important is this to employees? According to the landmark studies in employee motivation spearheaded by Dr. Kenneth Kovach at George Mason University, the second biggest motivator for employees is recognition. Number one is interesting work- which requires an investment in staff training. Since I want to focus on zero cost ways to increase staff retention, let's talk about recognition. The question you need to ask yourself is, "Do you recognize the performance of your employees as much as you know you should?" For most managers and business owner the answer is a cold, hard no. I think the simple explanation is managers get so busy they tend to forget to express appreciation to the people who deserve it. Although, this is generally an oversight, it is an expensive oversight.

Employee recognition is relatively cheap, yet it has a tremendously high payoff in terms of morale, reduction in staff turnover, and most importantly customer satisfaction. I believe part of the problem is that when you work with employees for a long time, it's hard to find creative ways to recognize them. Plus, mangers tend to view employee recognition as being a scattering of random events rather than an ongoing process. Fortunately, there is a systematic on-going process for recognizing your employees that goes far beyond an isolated slap on the back.

Recognition in CAST Meetings©
I'm referring to recognition that happens in a CAST Meeting. CAST stands for Customer Service Team Meeting. CAST is a monthly, 90 minute in-house forum where managers and front line employees discuss how to enhance the customer experience. Of five elements that are covered in a CAST Meeting, one of the most motivating is the agenda item I call Service Legends. At this point in the meeting, managers point out specific incidents where certain employees have provided exceptional service. The employee is asked by the manager to share the details of the incident with everyone and why they did what they did. Then the whole group joins in a round of applause for the person.
When you see employees literally cheering each other on for providing exceptional service, you know that the customer-focused culture is growing roots. That was certainly the case with one of our clients, a government-run vehicle-registration department...

During the Service Legends portion of a CAST Meeting, a manager asked 'Richard,' a vehicle-registration clerk, to share with the group what happened when a customer phoned and asked for a refund cheque. Richard explained to the group the dire circumstances that the person was in. He realized that 'standard practice' was to mail the cheque and the customer would receive it in a couple of weeks. However, it didn't sit well with him, so he drove the check over himself that same day. He introduced himself and said that he figured she could use the refund right away. "You could see that tears were welling in her eyes as she thanked me. I was really glad I did it." At that point in the CAST Meeting the group erupted in heartfelt applause for Richard. Richard's co-workers and supervisors were doing more than expressing their support for what he had done; they were also demonstrating their pride in the way people in their department respond to the individual needs of customers. That story, and the fact that the manager brought it to everyone's attention, provided a lot of lessons about customer service that no policy will ever be able to convey.

That's recognition based not on seniority, but service. And the approval doesn't just come from the employees' supervisors, but from their peers. Most importantly the stories that emerge become your own in-house parables that serve as wonderful learning examples for everyone. In other words, the CAST Meeting's Service Legends piece transforms recognition into part of your ongoing education process that people learn from.

We all want to do well - and be recognized for doing so. Of course people need to be paid market value for their services. But hard cash is cold. You'll warm the hearts and the loyalty of your team members when you take the time - and have a process - to recognize actions that merit talking about. It doesn't cost a thing and in this marketplace - and with the impending staffing shortages that all the experts are forecasting - it just may make you the employer of choice.

Today's chuckle:
I need someone really bad. Are you really bad?

Franchises and Basic Concepts of Business

Tue, 31 Jan 2006 08:48:28 EST

In order to truly understand the concept of Franchising, an exploration of the basic concepts of business is required. There is no magic in that. It just makes sense in order to provide clarity about the Franchising strategy.

Franchising is not a business in itself. It is a business strategy. It's a business system. That's a significant distinction that isn't always clear. McDonalds is in the fast food business, although many people feel they are really in the real estate business, while others think they're in the entertainment business. Regardless of that discussion, they are not in the business of Franchising. Schooley Mitchell Telecom Consultants is in the business of telecom consulting. Ramada is in the business of operating properties. Snap-On Tools is in the business of selling tools.

If someone says to you that they're in the business of Franchising, they don't really get what they're doing. It's all about the customer, and if the focus is not on the customer and their needs, then something is awry. Customers don't need a Franchise. They need hamburgers, telecom consulting, hotel rooms and tools. So therefore Franchisors are not in the business of Franchising.

It has to be about the customer doesn't it? After all, the customer pays for everything. They pay for salaries, they pay the rent, they pay the utilities, they pay for the costs of delivering the product or service, and they pay the profit. In businesses using the Franchising strategy, the customer pays the royalties, the customer pays for the development of the system, including support and operations, and they pay for everything the business does in its day-to-day activities, both Franchisor and Franchisee.

At Schooley Mitchell, we have a credo that says that "Good is the Enemy of Great". It's not absolutely original, but we hope our approach is just that. First of all, if greatness is to be achieved, focus must be completely on the customer. We have to continue to strive to have our customers clamor for our services. If we're satisfied with being good at it, we'll never be great. I want to be great. We want to be great. Our focus must be entirely on the customer to achieve that goal.

Purpose of Business

O.K, so let's look at the purposes and objectives of business, regardless of whether the goal is to be good, or great. I don't think anyone has a goal to be bad, so we'll leave that one out. First of all, the basic purpose of business is to make money. It is not about your way to give back to humanity. That's a charity. People that wish to be in business for themselves are doing so in order to make money. That shouldn't be a surprise to anyone.

So how do all businesses make money? As stated above, they focus on the customer. Therefore, the purpose of daily activities, the objectives of business, are to get new customers, satisfy those customers, keep the customers, and grow business, either with, or through those customers.

Get, satisfy, keep, and grow. There you have it. These are the purposes of business. They form the first set of four in a concept we have developed at Schooley Mitchell called our 4 By 4 Concept. The other four will be discussed at a later point. You can't think of a transaction that happens in business that isn't aimed at one of these four things. The key is to understand that they are four distinct things, and they each require distinct strategies designed to achieve excellence in all four areas if greatness is to be achieved.

Get

Most people "get" this one. This is sales and marketing. Peter Drucker said there are only two things that create value in business - sales and innovation. The rest are costs.

I would suggest that many companies tend to become happy with their existing suite of customers. Or they land the "big one" and all is good. I would also suggest that if there are not constant strategies put in place to continue to get new customers, to get new blood, then stagnation will follow. Landing the "big one" can actually put the business in a very precarious position. It's called over-trading. If the business relies too heavily on one source for its revenues it can be in big trouble if something goes wrong with that customer.

The solution to over-trading, and to keep generating a steady stream of new customers in order to keep any business vibrant and moving forward, is to implement great "get" strategies. And never quit. That's certainly not rocket science, but it is a basic tenet of long term survival.

General Motors should have been trying to figure out how to "get" Japanese customers in the 1970s. That would have led them to understand how to "keep" North American customers. Enough said.

Satisfy

A lot of people really miss the boat on this one. I actually saw a truck drive by me recently that had a slogan on the side in proud, bold letters that said "We Deliver Satisfied Customers". They seemed to be quite proud of the fact that they actually provided what they sell. All customers for all businesses expect to be satisfied or they wouldn't complete the business transaction in the first place. Boasting that customers are satisfied is like saying, "we don't rip you off". Well, big deal and thank you.

Satisfaction must be a given. It is required for survival. It is certainly one of the four main purposes or objectives of business, but it is so often misunderstood. Satisfaction is what people buy, so they expect it to be delivered. Michael Vickers, one of our Sales & Marketing instructors at Schooley Mitchell, says that "Whatever company, in whatever industry, sets the standard in customer service, moves the bar up for all of us." It's a great message. We must constantly be wary of what customers expect in order to be satisfied, and it's an ever-increasing standard. However, it's nothing to brag about. It's just what you sell.

In a book called "If It Ain't broke, Break It!, Robert Kreigel wrote, "Embrace the unexpected. The only thing that won't change is that everything will keep changing. Today's skills, knowledge, and products live fast, get old before their time, and die young. The overnight letter, which was the innovation of the 1980s, is now used only when you're not in a hurry." He wrote that message 15 years ago! It's a clear, and still valid, indication that we need to continually re-tool to meet customer satisfaction goals.

Keep

If satisfaction is a constantly moving target, and satisfaction requires ever-increasing effort and commitment, then to keep customers requires more than just satisfaction. Customers expect satisfaction. They buy satisfaction. People will copy satisfaction. If that's all that is provided, then it comes down to price, and that's a losing game no matter what business is at hand. Therefore, strategies are required to provide more than what the customer buys, in order to maintain long-term trusting relationships. Michael Vickers says to "take a standard service offering and up-level it." That defines the "keep" strategies that a business must employ. Ignoring this one will again create stagnation or denigration.

Grow

Most of us have heard that it is less expensive to do more business with existing customers than to obtain new ones. It is my belief that you must do both.

In order to do more business with existing customers, there have to be consistent strategies in place to educate them about new products and services. In addition, you must understand their business, particularly as it changes, so that it becomes apparent when your products and services can be provided. You must also put practices in play to ask for more business. Complacency is too often the norm when opportunities are in front of us. Companies that implement processes to ensure these things are managed will continue to grow business via the grow strategies.

The grow strategies also include asking existing customers to support you in your business growth through others. It's surprising how many people would be willing to help if they are requested to do so. Things like referrals, testimonial letters, agreeing to act as a reference, and introductions to their association are all offshoots of this strategy.

So there you have it. These are the four basic objectives of any business. Business needs strategies and formulas to continually get new customers, satisfy them, which is an allusive and demanding standard, keep them, which requires more than delivering what you get paid for, and grow business with them or with their help. These are the basic concepts of business, and they must be at the heart of every good business, and every good Franchise system. Evaluating a Franchise system should include an assessment of how well the Franchisor understands these concepts, and how well they execute strategies to make them happen.

Franchise Opportunity (Part 2) - Who are the Competitors?

Thu, 12 Jan 2006 09:02:00 EST

Finding the Right Franchise

Whether it's hamburgers, pizza, telecom, coffee, Internet, muffler parts, or seniors' services, there are Franchise opportunities available to evaluate. There are great Franchise systems, good Franchise systems, and bad Franchise systems. The challenge is to ask the right questions to find the right system that will fit your goals and dreams. The key is to ask the questions - and listen closely to the responses. Only then can you determine if the Franchise opportunity is the right fit for you. So whether it's food services like burgers or coffee, professional services like telecom or IT, or manual services like cleaning or oil changes, ask the questions and record the answers.

Who are The Competitors?

The Franchisor should have a good understanding about the competition, and how much market share they command. It doesn't matter how big a market is if it's completely saturated, unless the Franchisor has specific strategies to eat someone else's lunch.

The Franchisor should be able to talk to you about specific competitors, what their strategies have been, what they will likely be in the future, and how the Franchise system intends to penetrate that market.

The Franchisor should also be willing to discuss the future competitor that may appear on the horizon. They may not be willing to disclose their specific strategies about dealing with that eventuality - at least not without erasing your memory after the discussion. However, a general discussion about the issue should give you some solace that they have thought about their approach, and that you feel comfortable with their preparedness.

Again, if the Franchisor is not sufficiently prepared to discuss current competition, as well as future competition, then warning bells should go off.

Franchise Opportunity (Part 1) - How Big is the Market?

Tue, 10 Jan 2006 09:04:40 EST

Finding The Right Franchise

How Big Is The Market?

The Franchisor should have a good handle on the available market for the product or service that you will be offering as a Franchisee. Presumably the Franchisor has done extensive research on the current market size, as well as the potential market size for the future.

The Franchisor should be willing to share that information with you so you can assess the data to make sure that the opportunity is going to be of sufficient size to satisfy your own goals. You may have to sign a non-disclosure agreement first, but the information is important to you, so it must be assessed. The whole idea of Franchising is to ensure that the goals and dreams of the Franchisee, and those of the Franchisor, are unified. If the market availability will allow for strategies to be implemented by you, which are consistent with your goals, and those penetration goals are congruent with the Franchisor's goals, then all is good.

If it's a long-standing and stable market, then there should be plenty of statistics to back up that conclusion. If it's a new and burgeoning market, there should be analysis that you can assess to give you a comfort level that you, together with Franchisor, can go get a significant share. If it's a fad market, or limited life market, then the strategies should reflect that, as should the agreements.

The caution is that if the Franchisor is wishy-washy about the market, or is unwilling to discuss the issue in depth with you, that should be a significant warning sign.

Franchise Opportunity (Part 12) - What's the Challenge? (B)

Tue, 20 Dec 2005 09:06:33 EST

Emotional fulfillment must continue be evaluated if you truly wish to make the right decision for yourself. If you have a need to face challenge, as well as growth in your day, you must determine if your job can, or will, provide that challenge. Then determine if a Franchise can meet your need.

In the book titled 'Trevayne' by Jonathon Ryder, who is widely held to be a pseudonym for Robert Ludlum, the main character, of the same name as the title, said; 'I can't imagine being dead before I'm President'. Sorry to ruin the book for you if you haven't read it, but he made it. Is there a challenge that you need to meet before there is no more opportunity?

That's really the question isn't it? Put in a much bleaker tone, in a song called 'Where Am I Going', Gino Vannelli said 'Every breath I take is farther from youth and closer to death.' Whoa, that makes me think I shouldn't be sleeping so much! It also makes me feel that I don't want the birch leaves falling on me before I find fulfillment.

Being a true follower of Adam Smith, I can't imagine waking up without the drive to provide some type of supply, in order to meet a market demand. That's my self-worth. That's my reason for clouding a mirror. That's why I believe in the credo we have in our business that 'Good is the Enemy of Great'.

In your analysis of a Franchise opportunity, determine if it will provide the challenge that you wish was already in your life. If not, then don't do it. Compare your current situation to the situation you can create for yourself. Some of the related questions include:

Do you have a general feeling of self-satisfaction?
Are you happy when you go home at night?
Are you able to progress up the ladder?
Are you increasing your knowledge and skills each day?
Are you growing or static?
Is there challenge in your life?
Are you respected for what you do?
Are you mapping a course to reach your goals, dreams, and desires?

Each question should be answered systematically from the perspective of the job you're in, the job you could be in, and the business opportunity you are evaluating, to determine which is most likely to get you in flight towards the place you want to be.

If you have trouble shifting your seat to the upright position for take off every morning, you should probably see if there's a better flight crew to help get you where you really want to go. Perhaps a Franchise is the answer, and perhaps it's not. However, until you ask these tough questions, and answer them with conviction, you won't know whether you have the possibility of leaping out of that rut, and over the Chrysler building in a single bound.

Franchise Opportunity (Part 12) - What's the Challenge? (A)

Wed, 14 Dec 2005 09:07:39 EST

Do you look forward to Friday afternoon or Monday morning? Perhaps that's the true litmus test of happiness. If you're thinking about the fact that there's only one day to go before the weekend, when you just got back from lunch on Wednesday, it may be time for a change. Maybe your day-to-day activities simply aren't all that fulfilling. Maybe you're in a rut, and it feels like you have to crawl up the side of the Chrysler building to get out.

I seem to carry a certain amount of guilt on weekends because I'm always looking forward to Monday morning. I know the next challenge resides there. Although I certainly enjoy my leisure time, it seems that I'm always looking for the next opportunity to rev up, and meet the next challenge of being in business. It is my belief that the vast majority of us, all members of the same realm of humanity, miss the opportunity of feeling that motivation in our work.

On average, each of us gets about 3 billion heartbeats. We all have to determine what to do with them. If you're suffering through 35 to 40 hours a week in a job that offers no challenge, perhaps alternatives need to be examined. Perhaps that's a lot of blood being pumped nowhere.

Now that's not to say that many jobs don't offer that challenge. Many of society's best producers are employed, and through that employment, they help their companies achieve great things. If that's you, then these humble thoughts don't address your situation.

On the other hand, if it seems like it's just past a million o'clock, and it's really just before your morning break on Tuesday, then it's probably time for a re-think. Speaking of breaks, I think the last formal break I took was in 1977. I find that breaks aren't as much fun as the business at hand, so why bother? Now that's got to have some psychoanalysts seeking me out to slather some wisdom on me like cocoa butter on a sunburn. That's the price of loving what you do.

Franchise Opportunity (Part 11) - Control Your Own Destiny

Mon, 12 Dec 2005 09:09:06 EST

The degree of priority that this particular criterion holds for an individual is probably the single most important factor to consider before making the decision to strike out on your own. Just how important is it that you control day-to-day decisions about what you do, and where you do it. How important is it to you to know that you have ultimate control over whether you stay or whether you go at some point.

The reality is that it's not really possible to control your own destiny with a job. Even the most important CEO's must answer to the Board of Directors. In more traditional circumstances, when and where you travel, when you get promoted, how much you earn, and how long you keep your job are items that are simply not in your control. The boss, and his boss, and her boss, control those things. As we have seen, bosses change, as do Boards, and status quo is sent for a topsy-turvy spin. When, and if, those things happen, are generally not in the control of an employee.

As we have seen in recent years, decades really, right-sizing, down-sizing, out-sourcing, and severance packages are the norm of the employment world. The importance of these items, including the degree of control you require over them, should help guide you to your own comfort zone. In addition to a systematic approach to the objective items in making a decision to become an entrepreneur on your own, or to become a Franchisee in a good system, these emotional factors should be ticked off the list as well. Are you satisfied where you are? Can you achieve your goals and dreams in your current situation? Are you more likely to satisfy the need to control your results with your own business? How important is each criteria to you?

Did you have to travel over your son's birthday? Did you have an expense disallowed unfairly? Is the likelihood high or low of the bronze (as opposed to golden) parachute at age 53, with a low chance of a comparable position in the job market? Did you get passed over for a promotion, did you have to work overtime through the Christmas holidays, did you miss your daughter's volleyball tournament because you couldn't get off early on Friday? If these things eat at you, perhaps a change in course is due. If you accept that these things go with the territory of employment, then change may not be necessary.

Of course, as you progress up the ladder of promotion, you gain some additional autonomy for these types of issues. However, you must also try to determine if that next rung also carries an additional risk of termination at some point.

On the other hand, will being in the business you are evaluating help solve the problems that are important to you? Will your business cause the same travel issues? Will the time demands, or strange hours of being a businessperson, be an advantage or disadvantage?

Evaluate these items honestly, and with as much empirical evidence as you can gather, along with the other control issues that matter to you. Then determine which situation meets your goals more appropriately. And determine how important that is to you. Then it's time to move on to the next evaluation criteria.

If you always use the 'I deserve to be happy' test with each criterion, and try to determine which scenario is most likely to get you closest to that goal, then you will know which column to tick. If you execute this exercise in a systematic fashion along with a systematic evaluation to the objective criteria, it will help to provide clarity for you in the decision-making process.

Franchise Opportunity (Part 10) - Does A Franchise Meet Your Emotional Needs?

Wed, 07 Dec 2005 09:10:22 EST

When you think of becoming a businessperson by making the transition from employee to Franchisee, you don't generally think in terms of emotional fulfillment. However, in reality, the evaluation of emotional factors should play a significant role in making that final decision to join the world of the capitalist, or remain in the realm of employee.

Of course, every analysis should include the standard of comparing risk to return. It should include income projections, and cash flows. It should include the analysis of financing avenues, site selection alternatives, and many other objective criteria to lead to a final decision about becoming an entrepreneur. The course of due diligence should be driven by a systematic approach to each of these items.

However, in the end, assuming the objective criteria have been ticked off your list in a satisfactory fashion, it should boil down to emotional fulfillment. After all, we all have a right to be happy. That particular statement - 'we all have a right to be happy' - has changed the course of my life on several occasions. It was one of those statements that was passed casually by an acquaintance over dinner one evening, and ignored by everyone at the table, except it hit me right in the heart. It stuck to me like red on a stop sign. As a result, I have made many important life decisions based on emotional criteria, in addition to objective criteria. If it doesn't pass muster on both fronts then I look for a better course.

There are many employment situations that can meet your emotional needs, wants and desires. Of course, there are also many that do not, and cannot. A full examination of emotional criteria should include the analysis of several items, with the ultimate goal of determining whether your needs can be met by a job, or whether it is more likely they can be met by your own business.

Franchice Opportunity (Part 9) - Why Do I Pay A Royalty Fee?

Tue, 06 Dec 2005 09:12:40 EST

The first point to make about Royalties is that good Franchise systems should look at them not as a payment but rather as a remittance. It is the Franchisor's share of the income derived from customers or clients. The Franchisee collects that fee along with all other revenues from the customer.

It's an important concept because it emphasizes that the customer ultimately pays for everything, including the Franchisor's royalty, the Franchisee's overhead, all costs of sales, employee's salaries, and the Franchisee's profit. Therefore it's all about the customer - as it should be.

The Franchisee should want the Franchisor to earn a significant amount of royalties because that's really the oil that makes the engine run. Each Franchisee collects and remits a small portion of that oil to the Franchisor. All elements of the system can continue to improve as long as the royalty stream is strong.

The Franchisor's royalty will be based on the fact that they have provided a system and strategy that has ultimately served the customer. The Franchisee delivers that system to that customer. The royalty represents the Franchisor's share based on the various parts of the Franchise system, which has four elements.

The four elements of a Franchise are:

Brand
Operating System
Support System
Franchisee

Brand - the name associated with the services delivered in a memorable and satisfying experience to the customer

Operating System - institutionalizes the excellent service delivered in a memorable experience so it can be done over and over again from Franchise to Franchise in a consistent manner

Support System - helps the Franchisee get better and better at delivering the service in a memorable experience - helps a Franchisee improve their performance

Franchisee - the individual motivations or reasons for being in a good system, as well as the talents and experience delivered to the business.

The Operating and Support systems will generally provide access to advice at the level of professional consultants in the fields of marketing, management, advertising, execution of the delivery of the product or service, customer support, etc. The cost of these types of consultants on the open market will often far exceed the value of the royalty fees that are remitted by the Franchisee that participates in a system that delivers these items from a position of experience. In fact, it's the exact experience the Franchisee requires as opposed to open market advice.

Now here's the test. If each of the four elements of a Franchise system is evaluated in terms of the percentage of contribution to the overall success of the business, then the royalty can be assessed in a proper light. Many people will say that each of the four elements contributes equally - or 25%, to the overall success. That means that the Brand, Operating System, and Support System provide 75% of the success formula. Therefore, as long as the royalty is less than 75%, it's a good decision to participate in the system. That's a little silly, but it emphasizes the point.

Most royalties range from 2% to 10% depending on the type of system, so as long as the Franchisor's systems contribute 10% or more to the success of the business, it makes sense to participate, and remit the collection of royalties to the system.

Franchise Opportunity (Part 8) - Unified Thinking

Mon, 05 Dec 2005 09:13:49 EST

The entire process of due diligence, for both parties, should be about determining whether there is unified thinking. My counsel is to step back at the end of the due diligence process and ask yourself the following question: Did the process help both parties to determine if they have unified thinking about the business at hand? If the answer is not yes, then you've either got more work to do, or something with the system is not right and you should examine alternatives.

Franchising is about finding the right strategic-partnerships to allow both parties to prosper at a higher level together than they would if they were not to enter into an agreement to do business together.

You must be comfortable with the Franchising concept itself. It's the Franchisor's strategy to penetrate and dominate a marketplace. You've got to be comfortable with the Franchisor's strategies to do just that. If they make sense to you, it can be a great ride in achieving success together.

You should assess your needs, wants and desires to make sure that they can be met with a successful Franchise in the system. You should bring to the surface all of your fears, uncertainties, and doubts to determine if you can solve them with the business and the future you can create. The worst thing you can do is leave them buried.

Finally, can you see yourself reaching your goals, dreams and objectives by operating a successful business in the Franchisor's system? Will the Franchise help you to achieve those goals and dreams?

Franchise Opportunity (Part 7) - Face-to-Face Meeting

Sun, 04 Dec 2005 09:14:48 EST

The system of evaluation for both parties should include a face-to-face meeting. After all, you are trying to determine if you want to get into business together for 5, 10, 15 or more years. If a Franchisor wants you to join the system without a face-to-face meeting, it doesn't really make sense. Would you start a partnership business without meeting your partner? A Franchise is not an actual partnership, but the same criteria should apply. It should actually apply to the Franchisor every bit as much as to you. So if that meeting is not part of the process, the system is incomplete.

There are several ways for the face-to-face meeting to take place. Many Franchisors have development personnel that will meet you in your community, or a convenient location for both parties. Some Franchisors require a head office visit. Others will host Discovery Days, either at their head office or on a regional basis. All of these methods are fine, as long as you have some time for some one-on-one interaction.

I once asked a mentor of mine when our company was first beginning to offer Franchises, about the best method to determine that 'right' match. He said to me that the ultimate test is whether you would be willing to have the person over for a barbeque in your backyard. Of course, there are many other factors, but his point was that it should be someone that you would like to be in business with, and would enjoy their company.

The face-to-face meeting should also include an invitation for your spouse to participate. In fact, some systems require the spouse to be in attendance. Again, it is sensible to include spouses at the discovery stage because the ultimate decision to start a new Franchise business will be focused on building family dreams, and providing family security for the future. If a spouse is not fully aware and comfortable at the decision-making stage, it could create difficulties down the road as you build the business.

The main point is that if a face-to-face meeting is not a part of the process, and your spouse is not welcome to attend, the process is faulty.