Its all about business.

Archive for September, 2007

Crafty management

Sep 30

Posted by Steve Gray in Excellence!, Innovation and Creativity, Leadership, People!, Personal Development, Planning, The Board Room | No Comments

A blog that chats about the craft of management now that’s useful! Check out the ten x 3 article I liked them all!

Management as a craft seems to resonate with the idea of the manager as an artisan, with a unique blend of artistic and practical skills. If this is the case the business could then be evaluated for its beauty, craftsmanship, structure, design and practicality. In a cultural context there is probably a lot more philosophy and depth that would show through as well.

I think if we take it further and imagine the artisan creating a clay bust for example, it needs to be built around a solid armature and the end use needs careful consideration, if the craftsman gets it wrong the bust could crack, not hold the clay or be unusable for a range of other structural reasons.

On the other hand if it is well constructed and suits its purpose the result will be a thing of beauty with a sense of elegance that enthralls the viewer. Now that’s the art of business.

Some of the favourites

Sep 29

Posted by Steve Gray in Excellence!, Growth, Innovation and Creativity, People! | 3 Comments

I get asked which of my posts are my favourites and have been asked to put a few in here for people to find. That’s hard to do in a sense but hopefully you will agree with my points.

Business spirituality this happened as the results of reading a school newsletter it was so interesting and easy to adapt the principles across to business.

Excellence this one is short but I wanted to get to the point fast!

Your annual report why just the big guys? Do your own and really get to the bottom of things.

Remember these are my favourites and if you are new to this site you might find many others, go searching and have a read or three! if its business ideas you are after there are plenty to choose from.

You do NOT have my needs!

Sep 28

Posted by Michael Crooks in Innovation and Creativity, Starting out in business, The Customer Service Dept, The Marketing Dept, The Sales Dept | 3 Comments

Printed on the sign were these words, “We have your plumbing needs.”

No they don’t. You see, they can’t have my needs. Only I can have my needs.

If I need a sink-stopper thingy, I seek out someone who has a sink-stopper thingy. I don’t need someone who has my sink-stopper thingy needs. Because if they have my sink-stopper thingy needs — that means they need a sink-stopper thingy too!

Mr. and Mrs. Retailer please, if you are currently saying, “We have your ______ needs”, please change it to:

“We Satisfy Your ______ Needs.”

Here’s the difference:

1) “We Have Your Sink-Stopper Thingy Needs”
2) “We Satisfy Your Sink-Stopper Thingy Needs”

#2 is a lot more inviting and quite frankly it tells prospects, clients and customers that an answer, a solution or possibly satisfaction is just beyond that door.

Please remember this as you put together your adverts: You don’t have the consumer’s needs, rather, you have what can satisfy the consumer’s needs.

Job satisfaction and you.

Sep 28

Posted by Steve Gray in People! | No Comments

My dad always revered job satisfaction and would ask me “are you happy at work?” Mostly I was, but more due to the role and the environment rather than any management on mine or the organisations behalf.

There is an age old debate about the satisfaction and $$ debate as to which is more important, to me I guess they go hand in hand, there would be a threshold where if the $$ did not cover living expenses then any satisfaction gained might start to fade…

So I figure itgoes the same for the business owner as well as the employees, there needs to be a balance, but lets just focus ont he satisfaction side for a while. what sorts of things provide job satisfaction? here’s my list.

- Job challenge – Not challenging to the point where it goes over your threshold, but it keeps you thinking and acting in useful and effective ways.

 - You can do it - You have the skills and attitude to do it, perhaps not straight away, but in time the role will readily become yours, with the right skill set you would be able to do it elegantly. With the right attitude you will fit into the business environment suitably.

- It works with your motivators and drivers – There is a fit that takes place for your motivational needs, be that as an achiever, power and control, security or affiliator, whichever one/s you are the job fis to that in appropriate ways.

- It fits to your personality type – Your personality thrives in the role you have, if not you might feel on the outer and people in your team and customers would soon recognise that if you are a thinker type in a socialiser type role you would be a fish out of water… not good!

All these things go to making up the profile I believe makes for job satisfaction. Check it out and see if you have the right balance for your role or buisness, you may have to change a few things to make a really solid fit.

Find the champions

Sep 27

Posted by Steve Gray in Excellence!, Leadership, People!, Personal Development | No Comments

I live in Geelong and as we come up to the final of our Australian Rules football season Our Geelong team is a hot favourite to win, so to find a champion down here at the minute is very easy! Just name any one of the team members and I will agree!!!

These kinds of chapmpion are easy to find because they have been consistent performers all year and the winning streak of 16+ games was sensational.

How about in buisness? In particular your business, your team, or your division?

Might I suggest you find a few ways to do just that and discover what are the qualities you might look for in a champion.

Make a checklist of possibilities, then award a weekly champion and record it, then a monthly one, and so on, in the end the champion of the year would be the one with the most wins. The results? maybe mixed, some might embrace the idea, while others might squirm, so go with the positive outcome and invite a few of the team to push the idea and become involved in the process of selecting the champion.

People generally like to be noticed so notice them, for all the right reasons.

How viable is the business?

Sep 26

Posted by Steve Gray in Finance, Franchising, Planning, Risk Management, Starting out in business | No Comments

In all the things that a business is, the number one thing should be viability. It’s great you have an idea to pursue, it’s great you have a mission and vision, it’s fantastic you have the skills to do it as well!

But…

How viable is it?

Let’s be perfectly honest, business is about profit, and your role in the scheme of things (having all the other traits), is to ensure it is a profitable operation. Okay there is probably a moot point about how much profit you make at the end of the day, but it is important to have one nonetheless.

Consider…

Will the business be seasonal? -It’s great to grow something and sell it but the in between time might make things tough.

Will there be a demand for it? – Your friends say so, but how will you really test it? We call it market research, go google that and find a checklist or system to do it.

Will you be able to hang on? – There is often a lag between start up and profit… Will you have enough cash at hand to handle that?

Can you do it? – It’s one thing to be trained to do something and entirely another to have the right attitude and emotional stability to do it as well.

How much work is involved? – Planning, permits, licenses the list can seem endless, please do your research thoroughly to save a lot of hassle, that way you will have some strength left when it really gets started.

If you put up cash, how long before you get it back? – Putting cash in is one thing, getting is back is another. Do some cash flow forecasts and figure out how long it might take, make sure you err on the side of low income! Better to be safe than sorry. Imagine projecting a return in five years only to have a lease run out in four… OOPS!

Sell it to experts… – Find some people to pitch your ideas to and see if the numbers you create for it REALLY stand up… this might be your accountant (Don’t have one yet? Hmm perhaps now is a good time…) This panel of experts should be people who have a real knowledge of business and can ask more the the right questions you need to focus on for viability.

These are teaser points to get you thinking about the viability of your idea, so if you are setting out on the glorious trail of business, consider using them to keep the trail sunny and warm, you will pareciate the views more that way.

For more info on getting started in business and understanding the profiles of business try this.

Transparent, secure and solid.

Sep 26

Posted by Steve Gray in Excellence!, Finance, Growth, Leadership, People!, Planning, Risk Management, The Board Room | No Comments

In Australia today, a transport company in Sydney McArthur Express has gone into receivership and has been found to be insolvent. This means the company is not viable and they will sell everything and pay out the creditors as best they can.The plight is a miserable one for workers, the creditors and operators of the business, let alone the customers… so the aim of this blog the idea of creating a secure and solid company through transparency.

I want to provide two ideas here… The first idea mooted is an old one it’s called open book management, the aim being to provide all staff with the opportunity to see exactly what’s happening in the organisation and I mean everything. In short the aim from doing so is to provide an environment and foster a culture of openness inclusion and interest. The second idea is to create a solid foundation for any sized organisation but in this case for a larger employer. The idea is to create a debt reserve fund, or a wealth account.

By being open with the “books” those interested can ask questions, see the stability and get a feel for the organisation as a whole. In reality many people do not take up the opportunity however the resultant positive effects can speak volumes in terms of trust and honesty. It tends to send the message that the company cares. The idea is simple enough but it often takes courage on behalf of the business operators to be so open as for most its “Their baby”. I tend to hold the view that sure its your baby, but the minute you employ someone its a shared baby.

The second idea of a wealth fund or debt reserve fund is to create the ultimate backstop, one that you hope will never be used! The idea is simple, out of the profits the company makes a % of that is put into a bank account, when it grows to a set size some of the funds can be put into other assets that earn a higher return. The amount int he initial account grows again and so on. As the company grows there is a point where the initial account amount should get bigger before the % amount leaves the account for bigger things… this gives the Co the liquidity it requires in an emergency.

The trick with both of these ideas is having the strength to do them, the will power to keep them growing and the sense to make sure they stay in place to build a solid foundation for everyone int he company and not just the owners.

To all involved in the crushing blow to McArthur Express, my sympathy, to those wanting to avoid these sorts of tragedies, I hope the ideas I present are useful…

Use Pens As Effective Promotional Marketing Tools

Sep 25

Posted by Michael Crooks in Innovation and Creativity, Planning, Starting out in business, The Marketing Dept, The Sales Dept | 1 Comment

Everyone was screaming. Chaos ruled. Then, from nowhere she appeared. With surgical precision, she dismantled her pen, quickly cut a slit into the man’s neck and inserted the pen barrel. As color returned to the man’s face our hero wipes her brow and everyone cheers for joy.

Isn’t TV Great? You may never use your pen to create an emergency airway, however, you can use a pen to breath some fresh life into your promotional marketing activities.

First, a word of warning. There is a huge difference between a cheap pen and an inexpensive pen. Remember, even if you desire to simply hand out a pen to every Jill, John and Samantha that walks by your trade show booth, the quality of what you hand out is a reflection of you and your company.

Let’s assume you’ve chosen a pen that is appropriate for your need and your budget. Let’s explore some ways to use that pen to promote. While not all of the following may be appropriate for your particular situation, I’m going to paint with a broad brush in an attempt to generate a number of possible ideas for you.

Lumpy Mail. A pen is lightweight yet causes a regular envelope enough distortion that it will usually get opened. If you’re sending a letter to prospects and you want to increase the chance your letter will get opened, a pen will do it. Combine this idea with Prize Derby or Design Contest (explained later) and you could have a real promotion on your hands.

Targeted Placement. Where does your target audience hang out? Does your target audience frequent a local coffee shop? Maybe the hair salon is the best place to target your market. I often leave promotional items such as pens and note pads on the counter at the local chamber of commerce where I’m a member? How about your Gym or health club? Where ever your target hangs out or frequents, ask the owner or manager if you can leave a supply of your pens there.

Quick-Draw McGraw. About four times a week I’m somewhere when someone asks, “Who’s got a pen?” I am usually the first to hand over my imprinted pen. Key Point:A pen that is received at a time of need is more highly regarded than one that’s simply given when no need is present.

Forget Your Pen. Use your pen and leave it every time you sign a credit card receipt. It doesn’t matter if it’s at the gas station, a restaurant or retail store. Leave your pen, ya know … as a public service!

Permission Based Usage. Consider making friends with local sit-down restaurant owners whose clientele may be your prospects. Then get permission to supply the wait staff with your pen. Encourage them to allow patrons to “swipe” the pen. If you choose the right, low –cost retractable pen, they will want to.

Pen Design Contest. Have your clients and prospects supply you with ideas on a unique design for the imprint of your pen. Post the top designs on your website letting your clients and prospects know through e-mail or snail mail that the designs are up. Let them cast their vote for their favorite. Make sure you get their e-mail and other appropriate contact information as you are now building your database.

The winning design wins 50 of the pens. You can bet they’ll show them to everyone they know. This whole tactic is designed to drive people to your website. Of course everyone who votes gets a pen.

Prize Derby. Pay extra, if possible, and have the pens sequentially numbered. Imprint the pens with “Go to www. _______.com.” and if the number on this pen matches a number on the prize page you win!

Prizes can range from other promotional items (mugs, t-shirts, tools) or your product or service such as free samples or special package deals. Every couple of weeks you change the numbers on the web site so people have a reason to hang on to the pen and check back every couple of weeks.

Search, Explore and ASK! Look around. I go to tradeshows where a booth will want people to fill out a sign-up card with plain-Jane pens. Sometimes they let me replace their plain pens with mine. Every now and then the tube canister at the bank drive though doesn’t have a pen. You bet I stuff one in there. Opportunities are everywhere, especially with non –profits. They can always use a few extra pens. Perhaps they’d agree to send your pen out with their next mailing asking for donations.

Pens can be a powerful promotional marketing medium when supported by an effective, appropriate and creative idea. Opportunities to promote yourself are all around. But if you don’t look, you won’t see. And if you don’t ask, the answer will always be, “no”.

Customer profiles

Sep 25

Posted by Steve Gray in Negotiation, People!, Personal Development, Planning, Starting out in business, The Customer Service Dept, The Marketing Dept, The Sales Dept | No Comments

There are customers and there are CUSTOMERS! it can be very useful to know who you are deailing with so you can figure out the best way of working with them so they are influenced to purchase and deal with your organisation.

there are personality profiles, psyche profiles and marketing type profiles here is one we can explore.

1. Deal Makers,
2. Price Seekers,
3. Luxury Innovators
4. Brand Loyalists. 

There are other ways different ‘schools of psychology’ describe  these but for this is one way.

Lets start to build a profile of these and see what descriptors we can come up with to fill in the gaps (its one thing to have a title, and another to have the depth of understanding to make it useful). Some sales people run into the trap of imposing their own profile on customers, e.g. price seekers, just because  you might like to buy on the cheapsest price, does not mean all customers want to, so talking price only is of little value. Being able to relate and connect with the various buying types is therefore very useful.

Deal Makers - They want to negotiate – They want the thrill of pushing and pulling and thinking they have got good value for money – They may not want the latest release of an item because it might not have much bargaining power for them – They are not fussed about brands too much.

Price seekers - Is it the cheapest? – Will I have buyers remorse if I see it cheaper elsewhere? – Not interested in the latest technology, they know it’s expensive in teh start up phase of it coming on to the market – Brands are almost meaning less, its more of a back up to a ‘wise purchase’.

Luxury Innovators – “I only buy high end luxury items” – They buy the latest for its show off value – Price is often a secondary or lower value – they want their friends to notice – They know the top brands but are not loyal to any one of them they want the latest and the more luxurious it makes them feel the better!

Brand loyalists -  These guys stick to brands they love in all products – They belive they are getting value becasue they know that quality is important and the right brands seem to produce quality that lasts.

Using these profiles you could figure out the types of customers your offerings might attract and therefore how you might lure or influence them to buy from  you.

The “easy in” franchise start up.

Sep 24

Posted by Steve Gray in Excellence!, Franchising, Human Resource Management, Innovation and Creativity, Negotiation, Risk Management, Starting out in business, The Customer Service Dept | No Comments

For the Franchisor: How do you make the start up phase easy for the Franchisee?

For the Frachisee: How does the Franchisor make the start up phase easy for you.

This is the sort of question both parties should be asking themselves and for the Franchisor reviewing it often to make sure they have the best systems in the business.

Lets take a look at perhaps a usual scenario… the Franchisee joins the business, signs up and does the training, they start the business and pay the usual franchisee fees in the first month or so… it’s baptism by “deep end” immersion!

Lets step back a bit further and take a look at what really happens. For some this business opportunity is a start up, no business experience, and while there is probably great support systems in place after the training, some may not know how to use them, or perhaps might feel as though they would be embarrassed to use them. Although the Franchisee is keen to start there will probably be a range of issues they have to contend with, a new start, a change of work habits, new systems, training to learn… and the list could go on… and ON!

It might be suggested that the Franchisor’s role (in part) is to make this transition phase as simple and easy as possible so they can build the esteem of the Franchisee (vital really). So here are a few suggestions that could make a solid point of difference to the way your franchise business starts its new recruits (remember to use these as selling points!)

Fees - Consider not having the first two or three months of fees, and or making the fees a low start option (e.g. they pay an increasing percentage in the start up phase) To redeem the loss you include it in the start up fee for buying the franchise.

Income – During the training period and the first few weeks of set up, there is probably a loss of income, if you do not have an income guarantee, include a short term one to take the pressure off. Let the franchisees focus clearly on the training and getting things right.

Support – coaching – mentoring – training – Training is usually a given, the coaching, mentoring and other forms of support may be voluntary, or the onus put on the Franchisee. The aim being to ensure the Franchisee is a “happy camper” your role is to make these aspects more robust and easy to implement. If the new recruit is thrown in the deep end, how can you provide ‘services’ to ease the pain and ‘stop them from drowning”? Lets face it there are too many Franchise horror stories and the time stop this is at the start. If you have support staff in contact with franchisees how well do they coach, mentor and support?

Advertising – A vital part of the business mix, advertising can make or break a start up business. How many ways can you build extra value into the start ups advertising to ensure added value and possibly more customers? Show them the Press Releases you have sent out to their local media, then scour their local papers for articles that have been printed and show them, look for opportunities in the local media and utilise those to ensure the start up phase is happening with a lot of interest. Perhaps consider teaser adverts to build intrigue. Of course all the extras are in the price of the franchise.

List – Frequently asked questions for new franchisees (perhaps in an intra-net) and provide a whole range of support materials for them, from simple short video examples to PDF type documents or power point presentations they can get answers with very quickly. give the peace of mind in knowing the answers are there 24/7 so they do not have to wait for an “Area Manager” to call them back with an answer on Monday and it’s Friday night!

Family – A little touched on area of business… but the family support is vital to how the new franchisee feels. What material can you provide to raise their awareness of this new change to their lives? How it might effect things, the rewards it might bring later on… and so on. Most of all though provide something, even a brochure or leaflet is better than nothing and encourage them to get involved. For smaller franchises it might be as simple as inviting them to help out with the bookkeeping (if they have those skills) or delivering pamphlets in the territory. Any way they can help out can be very useful to the family stability in the early phases.

Thats the list for now, but keep searching for ways to help the new recruit. For Franchisees, look for franchises that offer as many of these support devices as possible and ask existing franchisees about how well these worked in reality.

For more franchise info…

The entreprenurial franchise?

Sep 22

Posted by Steve Gray in Excellence!, Franchising, Growth, Innovation and Creativity, Leadership, Planning, Starting out in business, The Board Room | 1 Comment

It’s probably thought of as a no go zone, the franchisor wants their members to follow a system, and the franchisee wants to have a system that ensures ongoing viability, and therefore $$ in the bank to fund their lifestyle.

For most the entreprenerial activity in a franchise will happen at the “top end”, where the franchisor develops the business and puts a lot of effort into finding opportunities the franchisees can utilise. This is the real entreprenurial catalyst area, being proactive, being innovative and taking risks… But wait, what would happen if the franchisees did that too! ARRGH! You want them to follow not to lead… well yes… to a point.

Imagine you have a franchise with 100 franchisees, and only you provided the system and there as no feedback, sounds ideal right… but What if… they were to find ways of doing things better and pass them on to you. If each of them put in one small idea that impacted the business by 1% then you would have a business that was 100% better! (okay stop laughing its a concept not a mathematical model! But you get the point.)

Many franchises have fully functioning adults as franchisees, and over time you could utilise their collective intelligence to make a difference to the overall business, to their business to our business experiences as customers. Often all you need to do is ask.

- Provide an avenue for the franchisees to have input into the business, from start to finish.

- Encourage them to think outside the square (not to create headaches) to find ideas and opportunities that could make a positive difference to the way the business runs.

- Explore focus groups and think tanks so they can feel part of the whole business and ts overall success.

- Become a business that is known for listening and then acting when appropriate. Then encourage your franchisees to do the same.

Whatever the orientation of your franchisees entreprenuerial or not… utilise their expertise and experience to build a business that can offer greater stability and strength, in the long run a well managed entrepreneurial franchise will always beat the compeition hands down, due simply to being one step ahead of the game.

Is it important to have your own domain?

Sep 21

Posted by Bren Ryan in Starting out in business, The Marketing Dept, The Sales Dept | No Comments

We see so many home based businesses these days, running small ebay stores then graduating to having there own online store. A lot of home based business have blogs like this one as well.

We see a lot of them in the FBT forum and places like The Messy Desk

I noticed something interesting though. I noticed how many of them do not own their own domain. Instead they have names like “www.myserviceprovider.com.au/my_user_name”.

I think it is almost vital to have your own specific domain, and almost unforgivable these days to do anything different when there is such affordable web hosting so freely available.

I posed the question in the forum to see what others thought.

Gavin from Australian Business Directories said:

I know if you are a band, then having a myspace site can sometimes be a lot more beneficial.

As for owning your own domain, I think it looks a little more professional when customers come to your website.

Also having your own domain is like having real estate in cyberspace and depending on what your domain name is and business, it could be worth a lot of money in 5-10 years time

Great points Gav, we are not in a band, we are business owners, even if we do work out of a home garage like a band! We still need to portray a professional image, and a myspace page does not cut it. It may compliment what you do, and I am not saying social networking sites can’t help a business, but it cant be your only domain.

Online Real Estate! Yes, too true. There is a name out there right now that I would dearly like to own, but someone has it parked and wants more money for it than I can justify spending right now. Sad fact is, I probably will buy it in the end for what the seller wants.

Steve & Kelly mention brand image:

I think its vital, in the Brand Me Inc stakes I have to make a stand. – Steve

As well as a branding thing it’s much easier to remember. Word of mouth, radio advertising, anything printed people see, a simple “mybusiness.com.au” is so much easier than “members.serviceprovider.com.au/my_user_name” is to remember. – Kelly

I cringe when a business person gives me a hotmail, gmail, yahoo or similar email address. It says so much about your brand and what you care about. If you are too much of a skinflint to pay a minimal fee to have a proper email address, what do you skimp on in my dealings with you?

Craig summed it up nicely:

……why wouldn’t you?!

The one BIG thing

Sep 21

Posted by Steve Gray in Franchising, Leadership, People!, Starting out in business, The Customer Service Dept, The Marketing Dept | No Comments

Experiences are everything, if you have any sort of business that sells to people then the experience the customer has is vital to your operation.

In a franchise the franchisor would then have a greater duty of care to ensure the prospective franchisee has customer service skills, is customer aware, is able to communicate effectively and willing to go the extra mile.

Apart from aiming to build exceptional customer experiences of the franchise business the aim is to also assist the franchisee to build repeat business and know they are well ahead of their competition dues simply to providing exceptional experiences.

In the same vein they should also be serving the customers (the franchises) so they can feel the experience of great service. (lead by example).

So in the end its about finding ways to be exceptional in the people stakes, being able to connect, communicate and value their part in the scheme of things.

To start the ball rolling, consider…

- Have I or any of my staff called a franchise to just have a catch up chat (not because I have anything I want to tell them, but just because I could…)

- Have we kept an online blog going of what’s happening in the business for our franchisees?

- Have we found ways of opening the lines of communication further so they feel they can call us at any time, (and do they? If not why not…)

Take these ideas further… Now show your franchisees how to do it (you are the role model here…) give them ideas on how to build the customer experience so it becomes a rock solid foundation for them to build a successful business from.

Remember it’s all about the experiences we have, yours, theirs and the customers…

For more on franchising

Open the floodgates!

Sep 20

Posted by Steve Gray in Franchising, Human Resource Management, Leadership, Negotiation, People!, Risk Management, Starting out in business | No Comments

Who is blaming whom? In the failed business stakes there are those with the crushed ego from the fall who want to blame anyone but themselves. They will claim the system failed them, customers failed them, area supervisors and suppliers failed them… then of course the franchisor failed them!

In all the blame game generally gets people nowhere and often it happens too late.

No one wants a business to fail, so what happens? really it’s a simple cycle, born out of the old adage resistance, resentment and retaliation… lets take a stab at a possible scenario.

A franchisee gets started and is niggled they can get a support person to call them back from the main Co. (its been a busy time for the Co recruiting and starting a bunch of new franchisees). the franchisee gets miffed and start to build a sense of resistance, and becomes standoffish despite the supervisor apologising profusely.

In some people this resistance clears up and in others it festers in the background.

If this and other things continue the franchisee starts to resent the situation and the hollow they now find themselves in… (Often though these things start from a small issue though.) The retaliation when things have multiplied out of control becomes a range of finger pointing and blame and before long a hostile situation looms and any issue seems to push things further into a downward spiral. The flood gates have opened and Voom the rush of water knocks over everything in its path.

Seriously it does not take much to see this happen, in a franchise, personally run business or in general life!

Here’s the aim for the franchisor, stop it happening before it multiplies.

Herea re some simple points to make things happen more effectively…

- Open the Company communication floodgates – Make the franchisee see that everything is being done to assist them, pester your team to find out who they contacted in the past few weeks, and if they haven’t why not.

- Open the family communication floodgates – successful businesses have family support, its important that you know if a franchisee has this support if not find ways to boost it and get the family interested, supportive and involved.

- Make it a great start up – Before the business gets started make sure the franchisee has the right mindset and attitude to run the business and is willing to learn ways to build their skills in all areas.

- Train them and train your people, to be exceptional communicators – To do this, find ways to get them together to really get to know each other (and don’t wait for the next conference to make this happen.) for people to REALLY communicate effectively they might need to work more like a family.

- Make BIG! promises - And KEEP them. If you say you will jump, make sure you tell them how high it will be. Hollow promises cause a lot of problems. To make sure they happen set up simple and effective systems so your team can ensure they are done.

If you make these a major priority for your franchise business you will form a positive foundation to really set up a caring company that shows it is interested whole heartedly in its members. That’s my view on ways to make the 3 R’s that can damage any relationship (in this case business relationships) and make it less of an issue. Hopefully this is enough to calm the madding crowds!

More franchising articles

Trash Talk & Delete Buttons: A candid letter from your prospective customer. By Jill Konrath (Guest Blogger)

Sep 20

Posted by Guest Poster in Excellence!, Innovation and Creativity, Starting out in business, The Customer Service Dept, The Marketing Dept, The Sales Dept | No Comments

Dear Seller,

I only have a few minutes, but I understand you’re interested in what you can do to capture my attention and entice me to want to set up a meeting with you.

Let me say this loud and clear right now – you have no idea what my day is like. You may think you do, but you’re missing the boat. Until you understand this, my advice to you makes no sense.

I got into the office early this morning so I could have some uninterrupted time to work on a major project – something I can’t seem to squeeze into the normal business day, which is filled with back-to-back meetings.

But, by 9 a.m. all my good intentions were dashed. My boss asked me to drop everything to get her some up-to-date information on a major reorganization initiative. Product development informed me that our new offering won’t be available for the upcoming tradeshow. Sales is already in an uproar because they have customers waiting for it. Then HR tells me that one of my key employees has been accused of cyber-stalking.

Starting to get the picture? Welcome to my world of everyday chaos where, hard as I try to make progress, I keep slipping behind. Right now, I have at least 59 hours of work piled on my desk, needing my attention. I have no idea when I’ll get it all done.

Did I mention my how many emails I get daily? Over 100. Everyone copies me in on everything. It drives me crazy. Then, add to that at least 30 phone calls – many from vendors who want to set up a meeting with me. And the pile of junk mail I get each day is ridiculous.

In short, I have way too much to do, ever-increasing expectations, impossible deadlines and constant interruptions from people wanting my time or attention.

Time is my most precious commodity and I protect it at all costs. I live with the status quo as long as I can – even if I’m not happy. Why? Because change creates more work and eats up my time.

Which gets us back to you. In your well-intentioned but misguided attempts turn me into a “prospect,” you fail woefully to capture my attention. I’m going to be really blunt here: I could care less about your product, service, solution or your company.
I’m not one bit interested in your unique methodologies, extraordinary differentiators or one-stop shopping. Your self-serving pablum, while designed to lure me into your clutches, has the exact opposite impact.

It’s trash talk! I quickly scan your emails or letters looking for those offensive words and phrases that glorify your offering or your firm.

The minute they jump out at me, you’re gone. Zapped from my inbox or tossed into the trashcan. When you talk like that in your voicemails, I delete you immediately. Delete, delete, delete.

That’s the most expeditious way to handle bothersome telemarketers. Use those same words on the phone with me and I’ll quickly raise an objection you can’t address.

I’m a master at sniffing out trash talk and deleting it. I have work to do and refuse to waste even one iota of my time on something that’s irrelevant or self-promotional.

You need to know though that I’m not always like this. Occasionally a savvy marketer or seller captures my attention, gets me to raise my hand asking for more information and even entices me to request a meeting.

What are they doing? They’re completely focused on my business and the impact they can have on it. That’s what’s relevant to me – not their offering.

I’m always interested in ways to shorten time to market, speed up our sales cycles and reduce our supply chain costs. Notice that this is business talk, not marketing speak!

When you get even more specific and tell me how much impact, now you’re really talking my language. I guarantee that if you mention you’ve helped organizations similar to mine increase sales conversion rates by 39% in just 3 months, I’ll be on the phone to you in no time flat.

Do you have any good information or fresh insights about the challenges my company is facing? How about how other companies are addressing these issues? If so, I’m interested in that too.

That’s the good stuff. It stems from a focus on the difference you can make for my company, instead of how you’re different from every one else. When you emphasize that, I’m interested.

But you can’t rope me in with the good stuff, then slip back into that trash talk. If so, you’re gonzo as fast as I can hit the delete button.

I pay attention in about 5 second increments, too. I don’t have time for fluff. If it’s relevant info, you’ve got me; start meandering and I hit delete.

Get the picture? I hope so, because I’m late for a meeting and while I’ve been writing this, the phone’s been ringing off the hook.

Hope this helps!

Your Prospective Customer

Jill Konrath, author of Selling to Big Companies and founder of the Sales Shebang, is a frequent speaker at national sales meetings and industry events. For more articles like this, visit www.SellingtoBigCompanies.com. Sign up for the newsletter and get a BONUS Sales Call Planning Guide.

The Franchisor has a duty of care…

Sep 20

Posted by Steve Gray in Excellence!, Franchising, Health and Safety Dept, Planning, Risk Management, Starting out in business, The Sales Dept | No Comments

In business we all have a duty of care to some degree, we also have to make a profit at some stage by providing a product and or service that’s what makes us a business and not a charity.

In franchising I see it that the duty of care is still there, its perhaps very different to working directly with an employee but it still exists. In some areas Franchisors have been criticised for some of their practices and over time regulators have put in a lot of work to ensure unscrupulous operators are out of the system or not supported, by putting into place some devices to make their business be seen as one that cares at a deeper level will only assist them in sales and their longevity in the market place. If the duty of care is lacking there can be issues arise that cause more friction and pain than good will and esteem.

So what sorts of things can they do to bolster their duty of care?

1. Stop the churn - Churning is a term used to describe a person giving up their territory and the main company reselling it at a future time, so they get a number of start up fees from the one territory. This great for them but not for the person trying to sell their territory. it causes a sour feeling for the seller and perhaps some tension from the franchisors side, over time the wound may well heal but the stigma remains. if they had worked with the initial owner to create a business that was glowing, and perhaps create a ‘passive income’ then they would not have to sell, in fact they would have created an asset of greater value.

2. Make the start up better – Sure new franchisees get training and before the training is the sales process. What if before the sales process came a due diligence checklist? Or a guide to what makes a successful franchisee in their business… It would be great to have info that showed a scenario of how to make the business work rather than a risky stab in the dark. It could also be a model of how to operate the business if they get into it. It serves two purposes, to inform as to how the business might run, and as a qualifying device to pick the right franchisee and not just any franchisee. Take it further and insist they spend at least a week or two helping out another franchisee, then ask if they really want to do it, find out the whys and why nots and build on that to make the business stronger. Even go so far as to provide them with a simple financial checklist or spreadsheet, that shows the average costs of running the business and then do some financial from there, it could be an excel preadsheet they use ont he computer to punch in various figures to see what they could make, not trying to figure out roughly what’s possible.

3. Train better – It’s one thing to learn about a product or service but another to learn about business skills, even if you have some already. Business is such a diverse device that one type of business may not mean the skills are transferable. Role plays, scenarios and various practical examples can be useful as well as the mechanics of leadership, finances, marketing, HR and so on. The more info you get to work with the better. Then add to the training later on, seminars, franchise group meetings and conventions go some way to doing this so make it a feature.

4. Communicate more – So you have a new franchisee, a contact at head office and over time they get disgruntled and you wonder why… make the effort to have the team keep in contact, when you contact them they say, “We would be more productive if you head office people did not keep calling us!! Ha ha! but hey keep it up the support is great!” An email occasionally is nice, a newsletter okay, but the real McCoy of face to face or over the phone contact regularly makes a real difference. Be there for the franchisee, not just pay lip service to it so they can really sense you care.

5. Use your FAC – The franchise advisory council or whatever you choose to call it, should be a vital link to the inner workings of your organisation. It should be the guide to improvement, the quality development device that you call on to get momentum happening. Lets face it the franchisees are the customers to the franchisor so the FAC becomes the focus group to learn from. Well trained FAC’s can become mentors, and get feedback from the people at the coal face.

6. OHS – In most cases where a duty of care is mentioned, Occupational Health and Safety is the area where it gets mentioned. The same here, all the above points are about caring for the franchisee physically and mentally. So consider using some form of OHS plan to find ways pf helping the franchisees. It may even be as obvious as showing them ways to boost their own OHS in the workplace and becoming “safety watch its” that may make a difference.

7. Minister and discipleship – Not totally in the religious sense, but in the setting of standards, the leadership of teams, the passing on of the “good word”. Be the way, the truth and the light… Be the person they respect as a leader, be the one who is the font of knowledge and is there with the right sort of advice and helping hand they need when they need it. It’s more of a holistic approach to caring and your role in the organisation as the leader. Consider it as mentoring, coaching, leading, ministering, discipleship and or anything else you care to call it, be their right hand and be it brilliantly!

8. Do the internal stuff - It’s one thing to work with the franchisees, but how often do you focus on your staff? How are they awarded and rewarded for their contribution above and beyond the $$ they earn. If the franchisees and prospective franchisees are doing their job they will notice the turnover of staff, any annoyances in the background etc. Your job No: 1. is to build the esteem of the internal team so that they glow with enthusiasm and delight at being part of your team and the things it achieves. Tey in turn will look out more for the franchisees and any issues they have more readily.

None of the above points are meant to be easy, in fact they might just add to your workload a little, However if you want your franchise business to be exceptional in all it does, these are a guide to finding the way forward and the franchisees will love the care and attention you show.

Red hot testimonials, with ease.

Sep 19

Posted by Steve Gray in Growth, Leadership, People!, The Marketing Dept, The Sales Dept | 4 Comments

The guys in the sales dept of your business just love to use testimonials from happy customers, the ones that willingly tell how good the company and product was. In some cultures its hard to ask for a testimonial (or as I like to call them a Yestimonials!) The one thing that stands out to me as to why businesses do not have red hot testimonials is that they do not ask for them.

Maybe the person asking for the testimonial is not sure that the person is really happy with their service or product, perhaps they think its going to take up their precious time, or cause them undue stress. Whatever they think its a shame, because an opportunity to gather another red hot Yestimonial.

So here are a few ways to get one.

1. ASK! – Tell the customers you love to get testimonials as they make the marketing so much easier and if they provide you with one it would only be as an endorsement of the service they got today. “Hey I’m being open here, if you don’t like the service write that down too!” Be open and honest.

2. Put it in a survey – The survey reinforces in the customers mind the things they experienced with the sale, at the bottom of the survey ask for a comment, a short testimonial to be used in your marketing.

3. Prompt them – Okay the sales is done and you might say “Thanks for buying from us today… I would like to ask you what did I do today to earn your interest and for you to buy form us?” they tell you a few points. “Thanks for that its important for me to know as I want to be surrounded by happy customers and the more I get to remember that the better we get. I wish I could have that in writing it would be useful to add to our testimonial file…” then hand them a business card so they can address the letter to you personally. It may not be as obvious as the first two ideas but with some customers it may well be the only way to get one.

4. The advantage? – Once you have peole giving you testimonials you can probably ask for referrals with ease as well, especially if it’s been a multi part sales process and the prosepcts have taken a lot into considerationbefore buying from you. the level of trust has built along with the relationship.

Make a list of your own and search for ways to get real testimonials so your buisness can stand proud on the service it provides.

Choosing a supportive franchise

Sep 18

Posted by Steve Gray in Franchisees, Franchising, People!, Planning, Risk Management, Starting out in business | 2 Comments

Starting in any business is fraught with challenges, in franchising its the same, there are challenges. The aim however with a franchise is to diminish some of the risks so you can begin with a solid system behind you that offers training and support as well as a proven brand people want to buy from.

It is important therefore to select a franchise that can work with you in a way that suits you and while people have different things they want from a supportive business arrangement here are a few points to guide you.

Note that prospective franchisees have a great deal of power, the sales person wants you to buy, you are looking and therefore have the power to say no, the power to ask lots of questions and can walk away at anytime if it does not suit you. Use this “power” to make sure you are getting into the right kind of franchise, because a rushed decision can cost you dearly over time if its the wrong one!

This article is part of a series on franchising, you may like to see the first one in the series, it’s here.

Business and practical skills training - A caring Franchisor will provide both, therefore, as you work on the business you can work in it as well. The training provided is vital to ensure you are able to tackle the business with ease, not with trepidation. So ask lots of questions about the training and how they measure the results of that training. E.g. do they follow a competency based assessment model to ensure you meet a set std or do they simply show you and expect you to figure it out later… A supportive organisation will make sure you know the right way to do things and how to build your business to be all you want it to be and more.

Ask for examples – Of how they have helped existing franchisees with their businesses, then get their contact details and verify that this is the case, check for gaps in the communication they say they are offering and the actual communication taking place. The differences can be huge, so the smaller the difference the better. I would also ask franchisees how the organisations leaders operate, if they are leaders and how they prove that (note, not dictators but leaders… their team love them, the franchisees love them)

Fluff and bubble – Some franchises have franchisee meetings, seminars and or conventions, are these full of “fluff and bubble” or are they of real value to the franchisees? Yes you should be asking all about these things as they may well form the backbone of support for your business after the initial training. A caring and supportive franchise will certainly want to make these sessions power packed, relevant and to the point.

Transparency – Is the main Co transparent in ALL their dealings? Of course most will say “yes” however does that include the financials? Head office staffing issues (happy, sad, turnover of staff) all these things can have an impact on the stability of the overall organisation. Of course it may not be as transparent as a cooperative group where the members are like shareholders and an active part of the organisation, however the amount of transparency is useful to know. Often people trust a transparent organisation more than one that appears to hide information.

Ease of information – The main Co should be way to get info from, they should have been through the hoops before with these issues and have the ability to answer the questions with ease. If things are starting to become challenging with a few questions, imagine how they might be in a few months after you joined their business. the aim is ease of working with them.

Passive income and you… – Ask them about how they can help you specifically to build a business that provides you with passive income, they should have an easy to follow system to assist you over time. Passive income? Income where you don’t do too much to get a return on your outlay. Initially it would be build the business, make a profit… then you install a manager to run it for you, you do little and reap the rewards, mainly income.

Sales reps and you… – The sales rep for the company could be anyone from the CEO to the State or area Manager. Ask yourself, did they respect you? This can show up as a range of things, like, were they on time? Did they have a clear presentation? Did they stick to a set time frame? Did they bring material to leave you with? Did they do anything else they promised to do? I judge this on a ten point scale, if they start at a ten and then fade, from there I would start to evaluate if it’s worth it below say a five or four. I am not saying the rest of the company is like them, but chances are the first impression can be a vital indicator.

That’s the list. Its a starting point to ensuring your investment in the business system is one that ensures you will be cared for, if not I would ask is it worth it? Remember this information is provided as an educational device and not speific advice, the decisions you make are up to you.

In the end it’s all about a great business model and the relationships they build from there.  If you feel it can grow and blossom or fade and wither. I know which I would prefer!

The exceptional organisation.

Sep 17

Posted by Steve Gray in Excellence!, Growth, Human Resource Management, Innovation and Creativity, Leadership, People!, Personal Development, Planning, Risk Management, The Operations Dept | No Comments

The exceptional organisation according to Tom Peters associate Ed Michaels, is one that provides and nurtures rigourously the following…
“Remarkable challenges, rapid professional growth, respect, satisfaction, fun, stunning opportunity, exceptional reward, amazing peer group, full membership in ‘Club Adventure’, maximized future employability…”

All this leads to attracting more of the right people both internally and externally. In a world where skilled and motivated people are in hot demand then this list is just a starting point. Now take the list and make your organisation “fit the bill” or miss out, the race for influencing great people to partner with your organisation is fast running out of options!

The info was sourced from www.tompeters.com and makes for great reading.

Suggestion, make a list of the items above and get your team and or yourself to create a list of ways to make it happen, I would do it as a table or matrix and see what’s already in place and what can be added. Go on go for a WOW organisation!

The hard yards of franchising

Sep 16

Posted by Steve Gray in Franchising, Negotiation, Planning, Starting out in business | No Comments

When it comes to buying a business or starting out in a brand new venture, it is vital to do your “due diligence” so you can know if the business is right for you. In franchises its the same, however it is reasonable to expect the franchisor should be able to supply you with more information beyond the usual sales pitch so you and your support team (accountant, advisor, mentor, business coach etc.) can make a rational decision on what’s possible. It should alsoguide you to see if there is a suitable match between your skills and attitudes for the business. In an earlier post on franchising I gave a broad outline of the major things to look for, now lets go deeper and see what else you might do before you make a “leap of faith”.

You will have found a few franchises worth looking into and now you are about to come face to face with their sales representative. Sure they will make it sound all nice and rosy, but you can cut to the chase once they have done their presentation and give yourself more info to work with if you ask a few poigniant questions. I have listed a few questions and some likely resposnes so you can second guess their responses and get greater depth. (That’s the theory!)

Is there growth potential in the market? – The usual response might be “Oh sure we have doubled the amount of franchise businesses in the last 12 months and it’s growing from there.” This may well be true, your aim is to find out how many were sold in the last few years so you can compare, then ask about how long people stay in their franchises, e.g. how many get out at the end of the first contract period? And what statistics do you have that you can show me the customers are growing, not just the franchise numbers? (It’s one thing to project to sell x franchises and entirely another thing to actually do it! And another thing to have the customers to buy what’s on offer. They should have clear statistics showing the amount of sales in existing franchises.)

What opportunities exist? - “Oh there’s lots, things are going ahead in leaps and bounds, let me show you a map of your suburb” You may be looking at an area to explore, however do the right thing and ask to see a map of where they currently are and where they want to be, some have maps of the country with different coloured pins in the various territories and you should be able to see the sold ones, and the one’s up for grabs. For you this gives a big picture view and lets you see what other areas might be available for expansion later.

Tell me about the competition? – They will no doubt tell you about other franchises in your area, some may even “bad mouth” them to build themselves up. What you really need to know is if there are many smaller players that could eat into your business, if they have done the research they can tell you more, if not they might be at a loss to know more about your region or territory and the actual customers you can expect to see through the door.

How long did it take for the average franchisee to get a return on investment? – “Of course this varies and its so hard to tell.” But they should be able to do a model of the AVERAGE so they can give an indication of the return. Imagine putting $200k into a business but not getting a return on that investment for 12 months, that could be very alarming… better to know now than later. If the franchisor does not know the answer, then ask some of the franchisees, if they don’t know maybe the training and support team can tell you… or maybe they have no idea, remember the aim of buisness is to make a profit, so they should be abel to tell you when on average that might happen.

Does the business develop into a passive income stream? – Who wants to work all the time, if you can get a return on your investment to the degree that you do not have to work, then that might be useful… so ask how many have achieved that, then get their details, if you sign up they should become your mentors! or if nothing else a great point of research info on the company in question.

What hours does the average franchisee put in to make a real go of the business? – Again it’s profit, and the how hard do I work question. It’s not a job you are buying, it’s a business system, it would be ludicrous to go from working a 5 day week to a six day week for the same return or even a lower return! Sure the change might be great (sick of the old job?) but how long will that last?

Staff, are they easy to get and train in this industry? – Back to the passive income section, you will need people to do it for you right? So lets make it easy to do, not a struggle. Some franchises will have people queing up to work for them whle other will avoid it due to the hassle.

This list of questions is a starting point to choosing a suitable franchise, its up to you to develop a longer list of questions but these ones will probably be the key ones in time. Enjoy the hunt for the right business for you, I ope the list makes it a little easier at least.

Here is a link to a checklist on franchising questions (Australia) a prospective franchisee should ask. Franchise Checklist

3 more favourites

Sep 15

Posted by Steve Gray in Innovation and Creativity, People! | No Comments

From our forum to you here are more favourites from the last year.

Entrepreneurs mind set

Keeping employees happy

Exceptional yet?
Most of these also got lots of views from our members so that’s useful. But mainly I see these as having the scope to get people involved, mindsets and keeping people happy… I guess there is always the power of having a catchy headline too (Exceptional yet?)

UK Business resource website

Sep 14

Posted by Bren Ryan in Excellence!, Innovation and Creativity, Personal Development, Starting out in business, The Board Room, The Operations Dept | 1 Comment

I, like many of you, know running a small business can be a lonely existence – you need to wear many hats and keep up to date with the latest developments and thinking. It was one of the reasons we started this site.

But I am not one to rest on my laurels and just use this site only for my research, I am always on the look out for new resources. I recently came across Uk business resource site.

Freshbusinessthinking.com is an on-line resource for small business owners, directors and entrepreneurs. It is where information hungry and time-poor business decision makers can source information and advice to help them run their businesses more effectively and efficiently.

Screen shot of Freshbusinessthinking.com

It’s a wealth of information, there are articles, Business news (although i found this was a little biased towards UK news, but it’s a UK site, what did I expect?), Documents and forms templates, and Videos.

It really is a great online business resource for entrepreneurs. It’s the leading UK website giving advice, information and ideas to successful and growing businesses

Check out freshbusinessthinking.com, but be warned, you may be there for a long time reading!

The ideal monkey

Sep 14

Posted by Steve Gray in Growth, Innovation and Creativity, Leadership, Negotiation, People!, Personal Development, Planning, The Sales Dept | No Comments

No this is not about Homer Simpson getting a helper monkey! it’s about the ideal clients we all want to chase, but hey there are issues about going for gold, its time, money and often our attitude.

Firstly the ideal customer “monkey” is at the top of the tree, try to climb it too fast you might scare the monkey (not good!) Those that have wooed the monkey in the past know that once they are off the ground and climbing, they have to entice the monkeey (influence it if you will) with the right food, if you have things right the monkey may even come to you!

Secondly you have to be aware that the non ideal monkeys don’t like to work so hard to get to the top of the tree, and therefore they stay to the lower branches and on the ground, they are lazy and want you to go to them, enticement or not, they cost time and money in the long run, but they help to pay the bills. These monkeys create a hard bond to break.

Okay, so it would be good if you could climb the tree quickly and quietly and be back in time to look after the monkeys on the ground, but the top monkey wants to be courted on their terms, not on yours, so what to do?

In an ideal world your sales rep could be trained to court the monkey in the right way while you keep the lower end monkeys happy, but until that happens not much can happen, and note how the lwer level monkeys keep you too busy and not earning enough to hire a sales rep?

Its an age old conundrum, if you take the slow path, costs can overrun you, but once the top monkey is in the giving mood you can then free yourself up to look after more of them and jump readily from tree to tree as the other top monkeys can see you coming at their level and are often more welcoming.

To get to the top monkey takes a strategy, and an action plan to ensure you have the steps in place to get to the right monkey at the right time. This is called a sales process, its a step by step method of research, sending info, and building up to the final presentation. Then and only then if they are happy with what your offer, will they give a little.

Some monkeys are a pest, but a top monkey can be a sought after leader in the pecking order of business, If you want to get the “monkey of your back” you have to find ways to get to the top monkey.

The attitude or the money?

Sep 12

Posted by Steve Gray in Excellence!, Growth, Human Resource Management, Leadership, Negotiation, People!, Personal Development, Starting out in business, The Customer Service Dept, The Sales Dept | No Comments

In business there are many things to consider, but one of the most overlooked is the fact that you have to deal with people, staff, customers, suppliers, partners and support teams (accountants coaches and the like). The factor that makes or breaks the relationship that’s built is your attitude. But what is it, and specifically how does it fit to a business context.

Here are a few points to consider that go some way to making up your overall “business attitude.”

- Service orientation

- Persistence

- Practical and direct business skills (or lack of them)

- Planning and organisational skills – to set achieveable goals

- The ability to achieve

- Creativity and innovation

- Desire to succeed

- Honesty, intergity and sincerity

- Communication and leadership skills

- Motivation and drivers

All of these have a bearing on your attitude and if you take one or a few of them away or skew them poorly the money vanishes, or at best fades. In business profit is king, therefore you should be finding ways to enhance your “attitude” so you can attract more of the “right stuff” into your business and personal life.

Your aim is to have a Positive Mental Attitude and avoid a Permanent Bad Attitude!

7 steps to finding the right franchise

Sep 9

Posted by Steve Gray in Franchising, Growth, Planning, Risk Management, Starting out in business, The Board Room | 1 Comment

With hundreds of franchise business opportunities to choose from it can be a daunting task to find the right one, retail, service based, business to buisness and each has so many options avaiable, and to top it off the costs involved can make the choice easier (less options available) but harder (cheaper does not mean quality will follow).

If you have not been in business before find resources on getting started in business (Business forums, glossaries of business terms and books) and familiarise yourself with some of the terminology used, so that when you get into the research you can have a better understanding of what they are talking about and how it might effect you. It can be confusing to try and get your head around terminology you do not understand when a sales person is doing their level bet to sell you something.

Here are some tips for making a selection, remember this is not specific advice, but a starting point on the road to your education on franchises and their ability to provide what you need. Best of luck with your decision!

1. Competition and demand for the product – This is basic but can be overlooked, just becuase a franchise has developed a business system does not mean people in your area will want to buy. Ask about and do your own research on the competition in your area, (just because there may be none at the moment does not mean there has not been some in the past which may have learnt the hard way that the locals do not buy that service or product.) – Is the cost to the consumer feasilble? – Is the concept one that your community (or territory) finds okay and wants to utilise? – Is the brand brilliant? – Is there going to be sustainable demand for the product so you can be readily rewarded for your efforts?

2. Profitability and costs – This is what business is all about, you are not creating a charity, so you need to know how profitable the business is, or is going to be (and how long that will take!) Ask if the profit they might quote to you is after wages (your own included…) too many people find the costs too hard to handle and the profitability is not there despite many hours of hard work and determination.

3. Ease of operation – Does the company provide a simple business plan? – Simple operational systems? – Do other franchisees follow it? – Does it work ALWAYS? – How does Head Office respond to requests for assistance in this area? Now ask yourself this, if I am going to buy a busness is it going to be easy to run or a pain? I know what I would want! I also know that in time I would want it to be able to run itself so I can enjoy the passive income it can provide.

4. Support - Like anything a business can “fall over” with out the right foundation and support. You will need support from the company’s head office, your family and friends. This can include moral support when things get challenging (and they will!) Training, meetings to assess the group performance (Franchise meetings), one on one support from a company “area manager” or similar. Now ask yourself, am I able to listen to this information and put it into practice? Will I be able to work with them? All of this adds up to ensuring your business success.

5. Costs – There will be the start up fee, ongoing franchise fees and of course your overheads (the costs involved in running a business.) This is probably a good time to involve your accountant or even a bookkeeper, to work out some of the costs involved in running the type of business you are thinking of. For many people they go from being employed to running a business, they see the money come in and then (almost mysteriously) go out again! It can take a while to understand what’s taking place and how to handle it, for some what’s left after the expenses is not enough to live on. Understand the costs involved and even project what level of work is required to meet the costs so you know what sort of effort you need to put in to make the business thrive, not just survive.

6. Me! – Can you do it? – Do you have the skills required? – Can you learn the skills? – Do you have the right attitude? For many the answers will be yes, yes, YES! But in reality often this is due to the emotional excitement of the thought of running the business, not based on reality. Ask lots of questions of family and close friends. Chat to the company about how they go about assessing prospective candidates (their process should be vigorous!) Then ask yourself am I really up to this?

7. Research – Do lots of research, chat to many of the existing franchisees, and ask them all the same questions so you can really gauge how things are from the other side of the business. Get yourself into the business and offer to work with one or a few of the operators for a few days, pick their brains to save you a lot of stress later on. Find out what sort of hours are they putting in to the business to make it work, and watch out for two partners working and taking out one wage, it can look very productive, but in reality its two people earning half as much. When chatting to other franchisees, ask them about the franchise support meetings and the value directly to them, this an give a good window into the inside of the business. Also ask how many franchise owners currently make a passive income out of the business?

Thats the list. If you get into any business I wish you all the best, and franchising should offer you a great deal more than just trying to fly by the seat of your pants in your own start up phase, but you need to find out exactly what that is and how it will work for you, or not.

Post Cards As An Effective Trade Show Giveaway

Sep 8

Posted by Michael Crooks in Innovation and Creativity, Planning, Starting out in business, The Marketing Dept, The Sales Dept | 10 Comments

Tired of handing out pens and other junk at trade shows that don’t give you any return on your investment? Consider the benefit of a 4″ x 6″ postcard.

A postcard is a great trade show handout …. IF, it is backed by an effective idea. Many describe a great postcard handout as little more than a giant business card. While a postcard may be better than a business card, it’s still a yawner — unless it contains something of value or potential value to the prospect.

Lets explore some examples. Let’s say you own a high end women’s clothing store. In that case your postcard could offer the prospect a “Private In-Home Showing”. High-end buyers like to be catered to. A private clothing showing in the prospect’s home or place of business speaks to that desire. The card asks the prospect to call to make arrangements. Over the phone you get her preferences, likes, dislikes and sizes. Then you make the appointment and take a fine selection of clothing to her. This also allows you to gauge your Return On Investment (ROI). Best of all, it allows you to develop a personal relationship with the prospect.

Lots of marketers, eager to cast a big net like to offer discounts and freebies on their postcards. By and large, I detest dollar-off coupons, discounts and freebies to build a loyal, money-spending client base. Mostly they attract “bottom-feeders” with whom you are establishing a relationship based on price. If your goal is to make money, then a relationship based on price works in the prospect’s favor — not yours.

If you insist giving away the store to get new clients or prospects … at least make it a buy one get one, a buy one get the second for 1/2 off or a dollar amount off with a specified dollar amount in purchases.

A more effective approach to rewarding prospects and getting your name spread around is to offer an imprinted promotional item or gift with purchase. This can really help drive trade show traffic to your retail location. This way, you are only giving promotional products away if they actually take the time to visit your location and spend money. For instance, a restaurant could offer a free steak knife with purchase of two dinners. Combine this with a punch card program and give customers the opportunity to collect a complete set though subsequent meal purchases.

Another way to use a postcard is to make it a ticket to a special after hours store event. You can give the highlights of your product or service at the trade show. Those who seem genuinely interested, receive the “ticket” for a more in depth demonstration, product review or test drive at the special event. In this case, you only give the postcard to those who express a desire for your product or service. Those who show up for the event are genuinely interested. And genuinely interested prospects and are YOUR golden ticket.

If any of the product lines you sell has a co-op program, check to see if the post card can qualify for one or more of your suppliers co-op programs. This will help you lower the cost of the entire program.

Use of the tactics described above can also help drive traffic to your website. In cases where the postcard is used as a ticket, you can give people the option of reserving their place at the event via phone or through your website.

By and large, a postcard that’s little more than a glorified business card is a waste of your time, energy and money. However, if you marry the postcard with an effective idea … then you may have promotional marketing trade show gold.

My 3 favourite articles…

Sep 4

Posted by Steve Gray in Excellence!, Growth, Innovation and Creativity, Leadership, People!, Personal Development, Planning, Risk Management, Starting out in business | No Comments

 Okay world, here are my 3 favourite articles for the period Sept 2006 – 2007 our first year of www.freebusinesstips.com.au

Jenny Stilwell  3 pillars… Because at the time it knocked me flat! I loved the depth yet a simplstic approach that ANYONE in business could follow. I love most of Jenny’s work and so the link is her name, but this one article grabbed me, and to think that its available free for all to use WOW!

Business profiling a 3 tiered approach  Because it has the potential to make waves, waves of understanding, there is still more to come to add to this but time will tell. I am very proud of this one, and yes its mine… It came about because of freebusinesstips.com.au and my involvement in it, it was like shuffling through so many options and possibilities and then it hit me, it had to be done.

My third choice is a culimination of the many “Cries for help” that have echoed across the forum posts, some are loud, some are probably caught between the lines as pockets of distant hope, pockets loaded to the hilt with grief, drama and pangs of guilt. To those with the strength to put up their hand I salute you, to those that put in to the whole web page experience here at free business tips, then I say a HUGE thanks for assisting us to make this all possible.

“From the dirt and moisture comes a sprout, a tiny green organism pointing skyward, its roots grabbing tight to the ground its potential unknown. It may be a weed, a strangling vine or a mightly tree that lasts for a few hundred years. Either way it makes its imression on us, lets hope that impression is highly valuable.” 

My Favorite FTB Stories of the Past Year

Sep 4

Posted by Michael Crooks in Excellence!, Growth, Leadership | No Comments

When asked to write a short article on my favorite Free Business Tips blog stories I answered, “yes” before I should have. Have you read the stories?! Choosing my favorite stories is like choosing my favorite child. I mean sure, I’m always going to choose my own … but then when it comes down to choosing between two of my own … I can’t decide!

Well, creativity being the better part of indecision, I believe my favorite Free Business Tips story of the past year is … the story of FreeBusinessTips.com.au.

Two guys that didn’t owe anyone anything decided to do the world a favor. The result? Probably one of the most insightful, comprehensive and educational libraries of business articles on the face of the planet. More than 6500 articles on everything from waterless tattoos, negotiating and sales to marketing, better business practices and e-commerce. Articles written by people who are actively and successfully involved in the subject matter about which they write.

My second favorite story of the past year is the story of those who overcame business struggles with the help of Free Busines Tips.com.au. The dozens and dozens of start-up businesses that sought out and received solid advice, suggestions and insight from their peers and sometimes their competitors.

Sometimes, I can actually feel the anguish, fear and frustration about which a troubled business owner is writing. Equally as impactful, is the sigh of relief, written between the lines, of posts from grateful business owners thanking those who helped steer them in the right direction or through a minor difficulty, seemed large.

My third favorite story? Well, that’s the one that has yet to be written. For that’s the story of the future. A future that is made up in part, by a thousand little successes stories that had their beginning with FreeBusinessTips.com.au.

Thankful are we, to those among us who listened … when mommy told us to share.

Tear it down then rebuild it.

Sep 3

Posted by Steve Gray in Innovation and Creativity, People!, Personal Development, Planning, Risk Management | No Comments

Take a business or division of a business that is doing okay, (note… not doing exceptional, just okay…) take a good hard look, is it doing what you want, chances are no, you would prefer an exceptionally performing team right? So what to do?

You could do a review, and implement some extra training… chances are though the resultant change and upward jump in productivity will be short lived, a few months at best.

You could sack a few workers and try some new blood… destabalise it a little and see what happens… Chances are the changes will force a few to leave out of fear, and a few to perfom poorly due to the fear and a few to become more pushy as they try to handle the added stress of not knowing what’s next (if anything.)

Or.. You could walk in, and address the issue head on, It probably will not need a lot of ranting and raving. It probably won’t need a lot of cash injection either. Here’s a possible strategy that may get some lasting change.

  1. Get the whole team in and show the stat’s, facts and figures speak volumes.
  2. Outline what was expected and note the gap… Call it gap analysis if you like.
  3. Break the team into smaller groups (min 3 max 5) and then ask them to jot down the issues as they see it. do it in 90 secs or less, but don’t tell them how long they have.
  4. Collate the info on to a white board, and ask them to prioritise it. (60 secs)
  5. Mix up the groups, now get them to specifically come to conclusions as to what has to happen and how it can be done. Jot down these ideas in 90 secs or less. Create Key Performance Indicators for each conclusion.
  6. Create a 3 month action plan to implement it (or less if you can).
    Invite people to become leaders to oversee each part of the plan and keep a tab on the Key Performance Indicators.
  7. Set dates to review the process and make sure each review is short sharp and to the point.

Now set them free to make it happen.

My views… It needs to be fast, it needs to happen without warning, it needs to put them on the spot but without finger pointing and attributing blame, it needs to be an exciting plan to be a part of, finally it needs to be accountable.

Then sit back and provide the resources to make it happen, cut out any red tape, just get what is required (within reason) to make it happen.

At the end of the process your team will have either risen to the occasion or maybe failed dismally. If its the latter then you need to evaluate your coaching style (or lack of it) as a leader and find ways to alter it to suit.

Have fun – Play hard – Get results!

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