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Archive for category Franchisees

Choosing the right franchise for you

Jan 7

Posted by Guest Poster in Finance, Franchisees, Franchising, Growth, Planning, Risk Management, Starting out in business, The Board Room, The Operations Dept | No Comments

Franchise opportunities abound, but choosing the right franchise requires careful thought and considered research.

Combing through franchise businesses for sale notices should be less daunting if you implement a well thought-out research strategy. Using online research, industry publications, news clippings and other methods is a great starting point.

When identifying franchise opportunities, consider what will complement your lifestyle, business goals and your skill set. Some aspects to consider are outlined below.

Brand strength? Behind every successful business is a strong brand, bolstered by an enviable reputation. Read widely about how the franchise brand is perceived by the industry, customers and business partners. Part of what you’re buying is the company’s brand equity. What do you estimate the brand’s equity to be?

Finding out about financial health How open and transparent is the organisation about its financial health? A company’s balance sheet can provide valuable insights about how well placed the franchise business is to harness future growth.

Expenses today and in the future Before you buy a franchise, you’ll need to know what set-up costs are involved. There could also be ongoing costs, such as marketing or advertising levies.

Strategic marketing, PR and advertising expertise? Dig deeper into the company’s marketing strategy. What level of investment and support is offered nationally and locally? What marketing and branding expertise does the company offer? How well resourced is the organisation to fund public relations programs?

Systems for success? Systems are essential ingredients in any successful franchise network. How efficient are the franchise’s systems and processes – do they help or hinder your ability to operate the business?

Investigate the level of support on the ground Do they have a dedicated operational and field support team to assist you? Investigate the ratio of franchisees to field support infrastructure.

Consider the commercial environment Determine the competitive dynamics that are likely to impact the brand. Do they have a well-defined understanding of their competitors, future opportunities, trends and issues?

Create a shortlist of franchise business opportunities? Once you’ve created your wish list, shortlist your most suitable franchise opportunities. Map out what works for you and what doesn’t, including the business must-haves e.g. IT and marketing support, costs (one-off and ongoing) and other forms of critical infrastructure.

Talk to franchise owners at the coalface Franchise owners are valuable resources. They can often provide you with the ‘inside story’ about a potential franchise business opportunity.

Lesley D’Arcy – As a franchise recruitment manager at Mortgage Choice, Lesley D’Arcy is responsible for recruiting franchisees to greenfield (new) opportunities as well as selling established franchise businesses. Her career in franchise recruitment spans over 15 years where she has worked with many major franchise brands. Lesley has a wealth of experience in recruitment of franchisees and builds on this experience by unearthing and developing the latest and most innovative ways to help franchisors build their networks. This experience has given her the skills to become an expert in the field of franchise recruitment, excelling in lead generation, screening, qualifying and selling to prospective franchisees.

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On the edge…

Oct 27

Posted by Steve Gray in Excellence!, Franchisees, Innovation and Creativity, Leadership, Planning, Risk Management | No Comments

When tough times strike my heart goes out to those businesses on the edge, and of course instead of talking about daily things that can trip up a marginal business, we are now talking about bigger fundamental global meltdown type trip ups.

So when the going gets tough how many of the businesses on the edge have a debt reserve fund, or a plan b, or an innovative structure, system, marketing plan etc to get them out of the jam? probably too few. Then on the business front, if they are a “want” type of business do they have their fingers in the pie of a “needs based” business to be able to handle the changing spend patterns of consumers… probably not.

Here’s 8 quick points to give you the edge in tough times.

  1. Have a plan A, then have a plan B, just in case!
  2. Have some reserves, stuff happens so be ready for downturns.
  3. Needs based V’s Want based, if you sell gifts for example, you might want to look at developing a needs based business to complement it, this way you cover your butt when customers walk away from the niceties. Consider diversifying into an online business of some kind that is easy to manage from your want based business, get busy while it’s quiet.
  4. Keep marketing, but make sure it’s making you money, don’t throw money out and get NOTHING back, measure it carefully, get smart about how it works.
  5. Keep the team informed, fear can run deep and fast, let them know what you are doing or plan to do to weather the storm. Batten down the hatches but make sure they know where the exits are…
  6. Lead, now more than ever the team needs you, teach them GREAT customer service, if people get picky  you need to have the BEST people upfront, with the BEST service, now more than ever. Get out on the floor and look for gaps, are they smiling, are they happy, do they know the products and or services inside and out? No? train them…
  7. Be nimble, change is a given so learn to love it, zig when the others lag or zag. This way you can be there when the others have fallen by the wayside.
  8. Improve your systems, now is a great time to tighten up on how things tick over, ask hard questions like “Are we doing things the best way?” “How can I jump start and or utilise my peoples collective intelligence to give us a lasting edge?”

You get the idea, make a difference, a poisitive difference so your business can take on the challenges tough times provide and see it through successfully. So jump up to the whiteboard and make a start NOW!

It’s risky, get over it and move on…

Sep 23

Posted by Steve Gray in Finance, Franchisees, Planning, Risk Management, Starting out in business, The Board Room | No Comments

I have seen a range of TV current affairs shows recently pointing out businesses (reasonable sized ones on occasions), going under and taking investors with them. If you invest in a business it is risky, any sort of business (and I don’t care what glossy brochure or figures they show you…)

So there are risks involved and you can lose money, you can also gain $$ to, and of course that’s generally the aim for an investment. Look I feel sorry, deeply sorry for anyone that loses hard earned cash in a business deal of some kind, and perhaps there should be a leaflet that people have to hand out in any transaction that may involve risk to explain there may be a risk.

The thing is let the buyer beware (Caveat Emptor) but also understand that people are losing day in day out, and the opposite is also true! In a capitalist society like ours the aim therefore is to have more wins than loses.

So guys, harden up, the road ahead is loaded with potholes and challenges, don’t get angry, get smart and find better ways of evaluating a deal or investment in terms you can understand.

Who’s responsible?

Aug 29

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

In the “topsy turvy” world of franchise contracts, agreements etc, (which many franchisees have little understanding of) it’s painfully obvious that many of these documents ask the franchisee to jump through hoops, but how about working things the other way?

Over time the franchisor will build a “watertight contract” and expect the franchisee to know a lot of things about business and how to get results, but if the result in the business for the franchisee is less than spectacular, where is the “Duty Of Care” by the franchisor in all of this. It’s far too easy for them to throw their hands in the air and say things like “You knew what you were getting into” or “You had the disclosure documents…” “You had the info” and a whole list of other statements/excuses.

When a franchisee is experiencing challenges (not enough customers, not enough turnover, not enough full stop!) then the franchisor says “Well ask us for help” So some do, they drop their pride and call for help. Often the answers given relate to “Put more into your local area marketing” Hello! if I am down the “tubes” and have less cash, how can I put in to make things “better”.

I figure the franchisor should establish a “Duty Of Care” policy and or procedure for the good of the franchise, and the good of the franchise industry. In fact the duty of care policy should state. (For example) That a franchisee must keep a reserve float of emergency cash (in a bank account) that ensures they are able to pull out some extra to make things go “voom”, and over time add to that so it grows to cope with inflation etc.

I also figure they should be held accountable for the marketing… If they put an advert in a publication, was it designed by a marketing expert or the copy room at the local paper…? Then making sure the results are clearly and effectively measured so you can know how well the marketing $$ are spent and you are definitely getting a respectable return on the investment.

If the franchisor is working at building a robust organisation that can provide an effective system for the franchisee, then they need to make sure the people investing in the business are developing their business and financial accumen as well. Okay some have an annual conference, the people go and have a great time, but how many put the information into action? Is their “area supervisor” following up on that? Are their business plans reflecting that development? In many cases no.

Watch out for more “Duty of Care” observations, as they arise and franchisees become savvy to the idea and franchisors get caught out.

So far it’s a one way street with the contracts, but a savvy organisation will ensure they provide avenues to ensure a franchisees ongoing success and what a selling point that will be.

Did you have enough cash?

Jul 4

Posted by Steve Gray in Finance, Franchisees, Planning, Risk Management, Starting out in business, The Marketing Dept | 4 Comments

When you got started in business you probably didn’t figure on how much it would cost to get started, I guess no one really knows until they have done it. and for so many people in business they find they just don’t have enough to really cover their marketing costs to get a decent response.

There is an old saying that I think came out of the dot com crash… “Want to make a cool million in IT? Start with 2 million and wait 12 months…”

But seriously if you want your business to have its best chance of being seen, being heard, or just plain known…  then learn more about marketing so your business idea can reach more people than just  your family and friends. Want to know more about how to do just that, then chat to your friendly branding expert.

When it gets quiet… you???

Jun 25

Posted by Steve Gray in Chill out!, Excellence!, Franchisees, Planning, Risk Management | No Comments

So what do you do when things get quiet in the business?

Do you…

- Wonder why?
- Start to do all the little things that you mean to do when you are busy?
- Start marketing?
- Sack some staff!?
- Sit and wait…
- Check how things were this time last year?
- Ask what’s happening?
- PANIC!
- Change things?
- Go back to the business plan?

Or a combo of the above…

Whatever you do when things go quiet make sure you do SOMETHING other than panic, as that usually leads nowhere fast.

Do you want business success?

Jun 12

Posted by Steve Gray in Franchisees, People!, Personal Development, Starting out in business | 2 Comments

Getting started in business is one thing, gaining success is another. Many of us will have seen and heard of people who have failed in business even though they felt they had a great business idea and the finances to put behind it to get started… So what went so wrong that it failed?

Lets look firstly at one possible factor, it is said that about 10% of society is motivated to achieve, and of that about 3 % are probably the ones with enough active risk taking motivation or drive to actually get started and see the business through to fruition.

So if you take 100 people and only 3% have the drive or motivation to be able to pull it off, then what happens next?

Out of that possible 3% there may be those that blindly go forth and try being in business and will flog it like a dead horse to try and get a result, even when all the money is gone or vanishing fast.

I guess it’s a time when the emotion of going into business takes over from the logic of it, and before long if there is no “balancer” the person starting the business can run off the rails with ease. Indeed the balancer may well be a person that “holds the purse strings”, figures out the budgets and projects forward when money can be spent.

The “business achiever” on the other hand will still come up with ideas and use their energy and enthusiasm to forge forward, but now within some reasonable constraints.

I figure without the emotional side being constrained by the logical side, all hell can break loose.

So here’s to better business, know your limitations, and balance things out, your long term success might well count on it!

I’m thinking about going into business, should I?

May 29

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

A friend and I were chatting, he is to be made redundant, and after many years in his role with a big multinational he stands to get a good pay out. He’s still got plenty of time as an able bodied worker and wants to work… But.

There have been a number of larger businesses fold up their operations locally and he’s not about to move out of the area. He could invest the money and watch it grow, his wife is still working a fair bit so that could be useful, but he would probably get bored (in fact I know he would…)

Doesn’t take long before his mind turns to business. “Hey Steve what do you recommend? One of those franchises or???” Well it’s like this it depends on what you want to do I thought.

It turns out someone had given him the hint that a franchise could be useful, I set him thinking by asking… “What do you currently earn per hour, and do you think you could earn that in a franchise, especially if there are people being put off work in the area…” It got him thinking.

But the temptation is there, to the untrained eye it could look okay, you get the system, you milk it and the planning side is partially done, the brand image is there? What more could you want? In all honesty a LOT more.

And here is where most people seem to go astray, they get emotionally wound up in the idea “Be my own boss? YEAH!” and the rest they say is history… It’s all very well for me to say “Go do your homework…” But what if you don’t know what to REALLY research?

So the short answer is to ask lots of questions, check out lots of options, and get savvy on the language, biz speak can be daunting for those not in the know.

In any business there are risks, so before you commit your funds find as many people as you can in that field then ask them lots of questions. In fact I suggest you get to more than 10 in any one group, and then more in other groups as well.

So do the due diligence, and make sure the full on emotional satisfaction you feel in the beginning is something that will last well into the future, just in case things go “belly up”.

Watch where you step…

Mar 7

Posted by Steve Gray in Franchisees | No Comments

Another franchise buying tip for the non business person.

You are excited about the business you are looking at and in most cases you have gone out on a limb  and “emotionally bought in” to the business and no matter what someone tells you, you are going to buy it. BUT to be sure you have made sure and made an appointment with the franchise groups marketing and sales dept and want to find out more.

In essence  you have already bought and the more details you seek from the company (who’s main interest is to sell you a franchise) the more they know you are interested. However the smart person will take this step and make it just another part of their research… but watch out for the things that some people would say are sneaky habits the sales crew might use.

- There are limited opportunities – We are selling x No of territories per week, so don’t miss out. This is often true but how long has the territory you are after been on the market? is it a resale and if so why? Get in touch with the previous owner and hammer them for info, the real info not the trumped up “Oh I have a back injury and can’t continue…” ask about the turnover, the profits, and the customers perhaps even the staff they had or still have etc.

- A good operator can make a real go of this franchise – Then ask them to define a good operator, if its a person that works 16 hours per day, 7 days a week then you might need to rethink things. Call up existing franchisees and see what sort of commitment they are putting in and the payola for that.

- Your time is your own – Sure you might have time flexibility but at what cost? If you take a day off to go to kids functions, performances etc will the income drop for the time you are not there (especially if you are a one person franchise).

- We support and train you – Okay what sort of support do they really give, ask the other franchisees when you do your research… find out how they practically put in to make your business be all it can be. Do they hep your with business plans, do they review business plans? and the list goes on.

- It’s a great lifestyle choice, you can be your own boss! – So what’s the advantage in that? Often it means more headaches than just working for someone else. Start asking people in business about being a boss and what that might really mean to you.

These are just a few, but I  hope it helps  you to “see through” the surface information to find the real  meat in the sandwich, not just the fillers.

Watch your language!

Mar 5

Posted by Steve Gray in Franchisees | No Comments

If  you are out to buy a franchise watch out for this trick designed to lure the non business person into their lair…

- Income guarantee -

You currently have an income with a job, you get $$ to take home and spend… that’s the usual definition of income, but in business circles this can be used to have you thinking that, but in fact  you get income that you then have to pay the costs of doing business out of. In fact it should be stated that it’s a turnover guarantee, then once the costs have come out you are left with some $$ (if you are lucky!) and then you can take your income out of that.

The lesson know your business terminology, get a glossary of business terms and make sure you  have a solid understanding of this important area so you can talk turkey and not feel like one!

So you are in business… Are you making any $$?

Feb 12

Posted by Steve Gray in Finance, Franchisees, Growth, Planning, Risk Management | 2 Comments

You have the business set up and things are running ok. You handle customers well, you pay the staff, you keep things ship shape in the bookkeeping area, all seems well, but are you making any money, real money, real income?

In the scheme of things those that have gone from an employee to a business operator will no doubt note there is a big difference between turning up and getting paid and turning up and wishing for more customers, the hassles to stop, and the seemingly endless challenges that creep up and take you by surprise.

Lets do a basic sum here, if you were on $700 a week income (take home) in a job, you had few hassles, in fact you got paid if you were sick, or on holidays… Now as a business owner you are the boss and you only get holidays if your business earns enough, if you trust the staff to run things while you are away etc… the list probably goes on AND ON!

In your business you need to be able to take into account a range of things to ensure viability, the cost of overheads, materials, marketing and so on, then have a margin on top of that to cover wages… then a profit (remember to pay yourself from the wages area!)

So the way forward is to project the cash-flow for your business and see if the amount you have to earn per day is do-able, and not outside your threshold for earning… As an example, if you are used to earning $700 per week, imagine how it might be if you have to turn over $700 in two days, just to make ends meet. For some that trips their mental threshold on money and they fail fast in the business stakes due simply to this psychological hurdle.

Once you establish the cash-flow for the business and how it fits with your money threshold, then ask are other businesses in this industry area able to do that with ease… or is it a struggle?

Answering the vital questions on cash-flow will either open a “Pandora’s box” of issues and hassles, or show the way to prosperity from being in business.

Here’s a tip, if you are currently employed and are thinking about going into business on your own, take a few days leave and check out what similar business types do… if it’s a retail store do some serious spying on them to see how many customers walk in the door, and at what time. Then check out their marketing, is it enough? Is there too much competition? Or is there scope for a new player in the game to take the lead and give it a good shot.

So if you go into business and take the inherent risks that go with that notion, consider the above points carefully, otherwise you may find you will work flat out and get nowhere fast, in fact it may cost you a great deal more than the initial investment.

How to train to Win/Win

Jan 11

Posted by Steve Gray in Franchisees, Franchising, Growth, Human Resource Management, Innovation and Creativity, Leadership, Negotiation, People!, Personal Development, Planning, Risk Management, Starting out in business, The Board Room, The Customer Service Dept | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Training to win/win
You and your staff should be trained to make the whole show win, then the customers can win too. A great position to get to and stay in.  For some the idea of training staff means showing them the bare basics of their job, but go a bit deeper and encourage thinking around the idea of Win/Win, when they get the idea the concept will probably become infectious.

  • Find out more about win/win and how you might create some examples you can discuss with your team.
  • Look for examples of win/win already at play in your business.
  • Use the concept to develop a team get together every so often to ask about and pass on ideas in business development.

Getting all this together is a great way to cause the team to work effectively together and can build the business to a strong position where people feel valued. This will then pass on to the customers and cause them to feel valued as well, in the end that’s what we all want.

How to create a business with great values

Jan 10

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, Leadership, People!, Personal Development, Planning, Starting out in business, The Board Room | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Upholding great values
People love it when you are on a positive footing and in the values area it’s a great place to start (integrity – honesty, truthfulness etc.).

Start the business with a strong stance on the rights and wrongs, if you get caught by a staff member or a customer ripping people off, word will spread fast, not a good thing to have happen. Make your act squeaky clean and others will follow.

Make a list of the sorts of values you want the business to uphold, google them on your computer and find out more about what other businesses have as values, then find ways to integrate them into what you do, yes even if you have a one person business.

You may find you already have these values, they are automatic and things that inherently are of interest to you. But there may be areas you want to tweak so you can be better at those ones as well.

Over time the staff and customers will be certain to know your business has high integrity, honesty etc.. In a highly competitive market place these things can set you apart.

How to create a business where the overheads are easily covered

Jan 9

Posted by Steve Gray in Excellence!, Finance, Franchisees, Franchising, Planning, Risk Management, Starting out in business, The Board Room, The Customer Service Dept, The Marketing Dept | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Covering overheads easily…
Overheads are often the thing, which can break the camels back, so make it easy for the camel and take the pressure off. In this case keeping the turnover and cash flow up so the overheads are not a challenge EVER! (I know, easier said than done…)

  • Sell things which are wanted by your target ‘ideal customers’ this will mean you have things moving in and out again fairly quickly, and that’s good for business.
  • Set your pricing right, sure beat your competition if you want, but make enough to make a profit too, then you are sure the overheads are covered.
  • Know what your industry average is for turnover and profits, this way you can measure (benchmark) against the industry average and see how you fit in the scheme of things.
  • Ask your customers what they want more of, it might be as simple as “better service” then you will know “It’s not the products or after sales service it’s the SERVICE!”
  • Know exactly how much your overheads are and how many things need to be sold per day to cover them, then anything over this amount puts you ahead.
  • Know what is selling and what’s not, aim to make every square inch of your sales area sell well, (even if it’s an online page!) simply by providing more of what your customers want. perhaps just moving something to another spot in your ‘store’ will make a difference.

Getting an objective view of your business is vital to figuring out which areas to focus on to improve cash flow and keep your overheads under control, so ask lots of questions, observe thoroughly what’s going on.

Now put these things into action and watch the results alter in a positive direction.

How to create a business that is enjoyable to run

Jan 8

Posted by Steve Gray in Franchisees, Franchising, Innovation and Creativity, Leadership, People!, Personal Development, Planning, Starting out in business, The Board Room | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Enjoyable to run
Who wants a business, which is a hassle to run? Who wants to work in a tough field? No one… Make it a joy to be part of for you and staff and the low hassle enjoyable nature of the business will probably rub off onto the customers over time.

  • Make the systems simple effective and clearly understood, no one wants to run a system they have little idea of why it is being done, especially in larger organisations.
  • Ask the staff for suggestions on ways to make the work more enjoyable, perhaps multi tasking could be a useful starting point.
  • Figure out the culture or if it’s a new business create a suitable culture one that is inclusive, cooperative and has fun some times, this way you will be encouraging the best from everyone involved.
  • Make a Profit! This is an obvious point but without it the stress you suffer might soon spill over into the business. Take it easy that bad stress can wipe you out! So make sure you “juggle” things properly to ensure you have a profit and not just cover the overheads and wages.
  • Smile, show you love it, show you love being there, show you love the staff, (yes love them!) let the positivity rub off.
  • Ask lots of questions from all angles, the customer, the staff member, the senior staff and you… if there are common areas to be tackled then focus on those first.

If your business is enjoyable to run now, what would it be like if you went through and made it MORE enjoyable to run!

How to create an easy saleable range

Jan 7

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, Innovation and Creativity, Leadership, People!, Planning, Risk Management, Starting out in business, The Board Room, The Customer Service Dept, The Marketing Dept | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Creating easily saleable products and services
You want people to buy, not to um and err then walk away, so it should be easy for them to select what they want and then make the purchase with great peace of mind. Especially people in your ideal target market.

It may be one thing to provide a prestige product and another thing to have enough people in the right target market to meet the needs you have. Again it might be a case of having some prestige products and more of another not so prestige product.

When it comes to business you should be making sure that customer satisfaction is a number one concern, and a big part of that is the service and support your business provides. Make it EASY for people to get things serviced, not a hassle. Make it easy for people to select the right product, Make it easy for them to find a sales person, the list goes on.

So take a customers viewpoint and walk in and out of your store as if you were them, how quickly are you attended to? how gracious was the enquiry “How are you today sir…” How easy was it to get your bearings on where things are (online or in a physical sales environment…) Now ask yourself what can be done to make changes so the people walking in and out are really satisfied.

Also look at the things you may want to add to your range… How easy are they to market? And will people readily make enquiries that could lead to sales… These are all aspects of easily saleable products and services.
Taking all these things into account you should be able to”pull apart” the customer experience to know what’s working and what you can do about it.

How to create a business that really fills a need

Jan 6

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, People!, Planning, Risk Management, Starting out in business, The Board Room | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Does your business fill a need and or want?
Hopefully it does both. If there is no need for what you have there will be no sales, therefore no business. This is a vital prerequisite for any business . Consider this, if you are selling diving gear in the middle of a desert you would not sell much, however a cold drinks stand would be a more obvious choice.

If you are just starting out in business do a lot of research to make sure what you have will fit, the local people, the culture, the psyche of the whole area, again if you are selling art in a working class area the amount you might sell may just be way less than a city where the arts might be more solidly valued.

Consider if are you providing for a want or a need, e.g. if you sell food, there is a need for that, if you sell dolls it’s more of a want, not a need. Ideally I guess the best scenario might be to have a needs based business that also sells some “wants” as well.

Watch out for things changing, cassette tapes were once the only portable music device, then came the CD… selling cassettes today would be a waste of time. So move with the changes so you don’t get left behind. What might start out as a solidly moving product range can become dead in the water fairly quickly.

How to create a business people love

Jan 5

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, Innovation and Creativity, Leadership, People!, Planning, Risk Management, Starting out in business, The Board Room | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Creating a business that people love!
Customers and staff a like love the business and what it does, heck why have a business that people despise? Go for love, it’s much better. But that’s easy to say… what can you do to make people love it?

  • Find ways to engage the customers. – Consider a database and keep in contact – Create special deals they can’t get anywhere else (think packages) and the list goes on, get creative and explore.
  • Engage the staff. Right from the start, cause the staff to ‘buy in’ to the philosophy, ethics, and other values and beliefs the business has, make it strong, make it real and make it matter, make it so the idea of turning up to work is a vital thrill in their day.
  • How about you? Do you love the business? Why shouldn’t you aim to create an entity that really rocks, so you want to be there in such a way that it causes everyone else to believe in what you have created and it builds from there.

Now you have some starting points, what will you do to go the next step? research, evaluate, plan, budget, implement? Whatever order you put them in, make it work for you.

How to grow your business

Jan 3

Posted by Steve Gray in Franchisees, Franchising, Growth, Planning, Risk Management, The Board Room | 2 Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Growth ability
Starting out in business is one thing, growing the business to be more than it currently is another… And for many business people the idea of growing the business seems strange, they have a fear of change it seems, and don’t want to go any further, unless pushed.

The problem is multi fold but lets take a basic view, the business operates and costs go up for supplies, the rent goes up on the lease… but without a growth strategy they are stuck paying more with the same amount in their pocket… when they do put the prices up they are apologetic about it to customers, and start to sound more like victims than business people.

Therefore the business needs to be the type that can be grown readily so that these (and other growth related challenges) can be handled easily.

To grow your business make room in your business plan for it, flag it for discussion with your business coach, accountant and partners. Explore your target market and look for ways to expand on what you have to offer.

Growing your business does not automatically mean you have to take on more staff, you may be able to find ways to delegate some tasks to sub contractors outside your business, like bookkeeping, virtual admin services and so on.

How to make your business profitable.

Jan 2

Posted by Steve Gray in Franchisees, Franchising, Growth, Planning, Risk Management, The Board Room | 2 Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Profitable
At the end of the day it’s what’s left in the kitty that counts. With no profit you’re a charity or a hobby, which do you want?

Lets say that you want to be more than a hobby (that’s what business is about I guess…) so you should be able to know readily and easily if you are in profit, by how much and what to do with it.

Your bookkeeper or accounting software should be able to tell you where you are at, if you have put in all of the $$ spent and $$ earned, so that’s easy, but the other sides, what to do with it and how to make it is another.

Firstly lets imagine that you have paid yourself out of the $$ in so you are covered, and all the expenses are covered, you now have a surplus to work with… nice eh! Some people just spend it, some pour it back into the business, some do a mix of both. My thought is to create what I call a debt reserve fund or business wealth fund. This is simply a bank account where you put the $$ in and don’t spend it, you let it grow.

This is a different way of looking at what to do with profit but it sure feels good to see a bank account growing… the security it offers is fantastic and the fact you don’t touch it is even better, it compounds.

As for making a profit… lets see if you have paid everything and have a surplus, then you have a profit, so the aim is to ensure with your pricing you have left a margin to cover the profit, and in some industries the profit can be 500% in others 15%… in your research for your business you should be able to find out the average % of profit and work out some of your projected cashflow from that.

Whatever you do with your profit aim to make it work for the business, as often people simply take out of the business without a thought to it’s growth, growth potential and future.

How to make your business readily understood.

Jan 1

Posted by Steve Gray in Franchisees, Franchising, Innovation and Creativity, Planning, The Board Room, The Customer Service Dept, The Marketing Dept | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Is it readily understood?
If your business produces widgets for the trucking industry it’s important for the target market (trucking companies in this case), to readily understand what it is you are providing. If you are in the start up phase your brand may not mean anything until the prospect sees it a few times (probably 6+ times!) so you have to make sure that it is presented in such a way that they know who you are, what’s on offer and how it’s done (online, retail, wholesale etc.)

There are many companies that put a logo on their vehicle, drive around and no body has a clue what they do or if they are of value to them (i.e. target market). It can be ok if the target market is a niche In this case a trucking supply Co, but if even your target market does not know then you have a challenge on your hands.

Consider working closely with your designer or PR people to make sure the people that should know clearly do know, otherwise your marketing $$ can be wasted.

How to create structural integrity in your business

Dec 30

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Planning, Risk Management, The Board Room | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Structural integrity
The systems and procedures for your business are vital to ensuring a solid foundation and the supporting structures up from there are suitable. The aim with developing structural integrity is to ensure that “when the wind blows” the house stays in tact, or when it rains and a tornado comes through after it that you have the ability to get the business back on track quickly.

Depending on the business will depend on how you plan to develop the structures to keep things in place. If it’s a retail store you might keep some stock off site, the same with databases and records in the event of sabotage (yes staff can do it to you if they are displeased…) or a natural disaster, you have a back up.

You can extend the idea right through the business to leadership, HR policies and so on, so that the organisations backbone is supported by healthy muscles, all finely worked and tuned to provide the right amount of support.

To begin working with ideas on structural integrity you would probably start with looking at the values and beliefs the business has and how the ‘culture’ supports that and vice versa, then you can identify strengths and weaknesses and start to see the spots to tackle.

How to create a sustainable and robust business

Dec 29

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Planning, Risk Management, The Board Room | No Comments

From an original article on various business success pointers, here are the individual “how to” possible options for you to explore.

Sustainable and Robust
When you start up in business you probably do so wanting it to last, so you can get more than just the $$ it cost you to get started. So you need to think about what will make the business sustainable and strong so it can last. Ideally you will want to set up a profitable passive income device so that you can reap the rewards of being in business without having to be there.

Sustainable will probably mean your industry niche is one that means people will be require what you have for a long time to come, it may be a flexible area so that you can go with the flow and include new innovations with ease.

A robust business could be seen as one that has good investments in place that create passive income returns JUST for the business, so that it can be supported by its own wealth. This can be done by putting away a percentage of profits, so that in the event of a disaster happening you can weather the storm. (You still need insurance though!)

These are just some of the ways to create a strong business and over time I suggest you add these points to discussions you have on business planning, this way you can really know that they are being considered and acted on for the future.

Jerry Seinfeld’s 3 rules of life

Dec 10

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, Innovation and Creativity, Leadership, People!, Personal Development, Planning, Starting out in business | 2 Comments

Here’s Jerry’s 3 rules of life, pretty simple… so lets add some business thinking points to it.

Print it, use it, tick things off as you do them, make notes, add to the list, include some of these points in your staff training and see what happens.

Thanks Jerry lets see what happens now…

Bust your ass…

  • Work hard, work smart, if it’s not fun, do something else.
  • Following your passion, you will then want to do the work, in fact the work will be so enjoyable it won’t seem like work, you will be early and rarely late….
  • On something that will make a difference for more people than just you, you win they win.
  • On being exceptional, who wants to be mediocre? Ok so lots of people do, but why do you have to be…
  • Getting the next goal, and then the next, the journey of a thousand miles begins with that first step. The sense of achievement is a powerful drug.
  • Providing what the market place wants, you will soon be happy with the sales, they will be happy you provided what they want and those that work with you will be happy you thought of it.
  • Getting people to know about your business in the start up phase and then to come back for more of what you have, often.
  • To influence others in your circle of influence to be exceptional at all they do.
  • To surround yourself with great people who want to pass on great information you can all utilise.
  • Living life to the full, when the show is over it’s over folks…

Pay attention…

  • To the details so that you can understand the bigger picture from within. No point in having a business that no one knows what’s going on, especially you…
  • To planning. No plan no house, it should be the same in business.
  • To how you present what you have to the market place… Get great at marketing and sales, then do it with the rest of your team.
  • To the way you learn, then you will be able to pay attention more effectively.
  • To how others liearn, your role as a business leaer means you will probably do a fair bit of instructing on how things are done, so teach others in ways they prefer to be taught.
  • To the way you communicate, so get very specific about what you communicate.
  • To the way you listen… Be an attentive listener, that’s why you have two ears and one mouth.

Fall in love

  • With what you do, how you do it how your team does it…
  • With causing others to fall in love… with the job, the business, the customers, the service the products, their life, their significant others.
  • With life. Life is what we do day to day so we should get great at loving it.
  • With how others see the world. This level of fascination is from the old American Indian idea of “walking in another mans moccasins” it hlps to give us perspective.
  • With the people you surround yourself with. Are they all lovable? Are they all worth fighting for?
  • With the glory and beauty of nature. If the view is lousy, I wonder what you are looking at?

Risks are what business is all about… or is it?

Dec 8

Posted by Steve Gray in Franchisees, Franchising, Growth, Leadership, People!, Planning, Risk Management, Starting out in business, The Board Room | No Comments

This is the eighth in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of “how to” as it can be too easy to read and say “Oh yeah that’s it, I need to do that”, and then forget it and let it go.

Risk taking (all business is this, the further you go the more risks seem to ‘pop up’)

These days there is a lot of talk about risk management to ensure your business is not exposing itself to too many risks that could undermine it. In this article I wanted to point out that being a risk taker is often a useful device in starting a business, without the ability to take a risk we might never start one and spend the rest of our lives wondering what would have happened if we had…

  • Do your business research to ensure the risks you are taking on is minimised where possible.
  • Know how far you can go with the risk you are undertaking, if you pull out at any stage, will there be “something in reserve” or will the project finish you?
  • Explore the unknown, often great ideas come from the strangest places or mishaps in scientific research, sure there are risks involved but the ‘pay off’ can be worth it.
  • Making mistakes often leads to learning opportunities, far too often we are risk adverse and fail to give things a try. When you or an employee make a mistake, are you ridiculed by others for the mistake or is it seen as an opportunity to learn and grow?

Its not all risk taking but hopefully when the challenges arise you can be ready to accept the challenge and not merely dismiss it.

Running on autopilot

Dec 7

Posted by Steve Gray in Excellence!, Franchisees, Franchising, People!, Personal Development, Planning, Risk Management, Starting out in business | No Comments

This is the seventh in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of “how to” as it can be too easy to read and say “Oh yeah that’s it, I need to do that”, and then forget it and let it go.

Automatic functioning (the skills are already known)

After a while of doing a task you can become competent at it, then at the next level become proficient, at this level, things can seem automatic. Do that with the basics of what you do in business and a solid foundation can be built for your enterprise. Teach others to do the same and the base structure can become much stronger again.

  • Recognise the things that are BASIC skills for your business and then train (often its informal) you and your team to do them well, (effective beats efficiency hands down.) Then find a person in your team that picked it up fast and see if they have the skill to put the process in writing so anyone can learn it.
  • Chunk the skills into groups so as you and your team learn higher level skills, the previous skills have become proficient and form a solid foundation.
  • Review the skills you and your team have at all levels and work to understand areas to be developed further. (Leadership and communication skills are often good examples.)
  • Work to make your business a lifelong learning exercise so your organisation can be highly flexible in what they do.

Getting an organisation to run on automatic may seem like an easy thing to do, and that’s often the challenge to be able to figure out what skills are simply hidden due to them being automatic and therefore hidden.

Get uncomfortable and see the results…

Dec 6

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

This is the sixth in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of “how to” as it can be too easy to read and say “Oh yeah that’s it, I need to do that”, and then forget it and let it go.

Comfort zone stretching (An elastic band is only working when it’s stretched.)

Have you noticed yourself only doing things within a set range? It might be mingling with only a select group of friends at a party… or only looking to set ways of solving problems all the time. Stretching what you are comfortable with can be a great way to develop your resilience, problem solving skills, and ability to become more flexible. In business thee skills can be very useful to the ongoing success of your enterprise.

  • Travel the road less traveled and enjoy the view – Literally take different roads while out driving, yo may have gone to the same destination day after day and have never thought about a different route. Now you can start to explore things by simply changing your view of the common things you do.
  • Ask others for ideas and input – You may never do this normally, but give it a go and see what happens, be sure to pat people on the back if you use the ideas, the recognition can be very useful for their esteem.
  • Explore creative options – There is more than one way to do most things, so start to look at things from different perspectives. It might be as simple as thinking about wearing a different “hat” if you usually see things from a bosses perspective try a marketing “hat” on.. how does that change things for you?
  • Do some internet research on creative options to explore.

It may take some time, but having the chance to find others ways of doing things might just be the break you need in your organisation.

Have you decided what to do yet?

Dec 5

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, People!, Personal Development, Planning, Risk Management, Starting out in business | No Comments

This is the fifth in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of “how to” as it can be too easy to read and say “Oh yeah that’s it, I need to do that”, and then forget it and let it go.

Decisiveness (Either a thing will happen or it won’t, often the decision is the only thing that stands in its way.)

I was once told that the best way to become better at making decisions is to make the, right or wrong stand your ground and see what happens, before long you can become very decisive and develop the skills and confidence to live with the outcome/s.

  • Make lots of them even on little things, and see what happens, avoid the procrastination cycle of saying you will do it soon.
  • Check out the idea of “Whats the worse thing that can happen if I make the wrong decision?” then check to see if it really is that big a deal.
  • Ask others to make the decision for you (delegate) and check the results, you can be surprised just how well this one can work for you.
  • What is the difference between a person that is decisive and one that is not? Check out those qualities and ask if you can readily develop the skill/s or if you will need assistance, then do it!

Keep on going with the concepts laid out and put together a personal list of achievements made by being more decisive.

The journey begins and ends with you and your goals…

Dec 4

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, People!, Personal Development, Planning, Risk Management, Starting out in business | No Comments

 This is the forth in a set of articles designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of “how to” as it can be too easy to read and say “Oh yeah that’s it, I need to do that”, and then forget it and let it go.

Goals (If you know where you are going it makes it easier to get there.)

In the story of Alice in Wonderland the Cheshire cat sat in the tree smiling widely as Alice asked which road to take at a fork in the road, the cat replied “It depends on where you want to get to” The goals we set will assist us in finding the right roads to take and in business the wrong road can cost us dearly.

Setting goals is easy, making them a reality is a different matter again…

  • Get smart about your goals -  specific, measurable, achievable, realistic and tangible. If these can not be thought out readily you will find the achievement of the goal nearly impossible. Write out the details in DETAIL… leave nothing to chance.
  • Work on small goals first and build up from there. – Often these are the basis for a “to do list” and chipping away at the small bits will make the big bits come to fruition.
  • Take action, avoid talking about what you are “going to do” and get on and do it. The world loves people who take action.
  • Consider how well you have done with goals in the past… Easily achieved them or… make sure you build up these skills if they are a challenge, then you can get more automatic in setting and achieving them.
  • Use your calendar – set time lines for the achievement of the goals, then tick them off as they are achieved, the sense of achievement is often a cause for some small celebration.
  • Use a project plan – These help you to break up a big goal into smaller ones and fit the details to a time frame. There is specific software for this or  you can create a table in a word-processing that can give you the basics to work with manually.

Go get ‘em tiger should be your catch phrase at this point and with the basics of goal setting up your sleeve the results should follow on soon after that.

Conviction, have you got the all important edge?

Dec 3

Posted by Steve Gray in Excellence!, Franchisees, Franchising, People!, Personal Development, Risk Management, Starting out in business, The Board Room | No Comments

This is the third in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of how to as it can be too easy to read and say “Oh yeah that’s it, I need to do that, and then forget it and let it go.

Conviction (You are sure it’s a great product and or service, otherwise you would not be doing it… RIGHT?)

This is an important area of new business and project start ups. It’s the strength of conviction you have that will probably appeal to people when you are selling your concept/s. the question is what is it and how will you develop it?

If you are starting out the product and or service should be convincing, to you and your target market, if they don’t want it and you are not sure about it, then how will you have the internal fortitude to make it work? I guess the obvious thing is checking out what you have from all angles to ensure it has a fit in the right product and or service niche and also in the buying niche of the intended audience.

So how to build in it?

  • Test the idea with people who might understand, family and close friends may not… so go for independent advice (accountant, other entrepreneurs and so on) see if it does have a place in this world. Sure there may be confidentiality issues, but just remember if an idea is any good you will probably have to RAM IT DOWN PEOPLE’S Throats to get them to be interested. (at least in the initial phase). Also telling family and friends about it can set you up for failure if they think you have a “hair brained idea” and want to put it down to help you “save face.”
  • You have done the research so you might need to know find ways to present the concept. A business plan is one way to do it, but before you get in too deep, consider the basics. then jot them down in point form. What it is, how it will be done, what it might cost, who will do it, how much time will it take, where will this happen, why it fits to the niche you have sought out, how it is different from other concepts and so on… This will assist you to assess the idea first.
  • Look at others who have done this type of thing before, how did they get started? were they confident from day one, or… If they were not confident, how did they build that confidence? If need be try different short courses that may assist you to stand tall and tell the world about what you have, This might be public speaking and or personal development courses of some kind. Whatever you do make sure you are sure about the conviction you have to make things work well.

I am sure there are more points that this start up list puts forward, but really give it some thought so you can formulate things clearly in your head and then articulate them on paper.

Building stamina and resilience

Dec 3

Posted by Steve Gray in Excellence!, Franchisees, Franchising, People!, Personal Development, Risk Management, Starting out in business | No Comments

This is the second in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of “how to” as it can be too easy to read and say “Oh yeah that’s it, I need to do that”, and then forget it and let it go.

Resilience – stamina (The ability to keep on keeping on and to bounce back)

I have put these two together as I felt there was a natural attraction to both, they cross more borders for me than they stand alone.

Have you ever noticed that some people give something a go once and give up trying… or they say “it’s not for me” often without really giving it a go so they can develop the basic skills to a reasonable level to fully assess if they “have it or not”. have you also noticed some people can go “hard” at the start and then fade out too quickly. If that’s the case then the following points may assist you to understand the issues a bit more and possibly even be able to assist you in overcoming the issues in yourself.

  • Do some soul searching, if you have given up on things easily in the past, is starting a business really right for you? And is the ability to start out strongly and then fade fast an issue? It’s better to face this now than later when the stakes might be much higher.
  • Can you build your resilience? Falling down and getting up again is one thing, but doing it repeatedly might take it out of you. What qualities do resilient people have? and are they the sort of qualities you can learn… and how long can that take if it is possible for you?
  • Having the energy to run a race is one thing, but if you trip during the race that often saps some energy you might need for later. If a sports person can build their staying power by more exercise in a carefully worked out training plan, can you do the same? and how will the plan differ for your business prowess as opposed to a sporting scenario…
  • Check out the biography of business people, and look for examples of how they built their ability in these areas, then ask are these things you can implement? If not keep searching and asking for answers that “fit right” for you.
  • Know your limitations, then push them a little each time to build your capacity to go a little further next time.
  • Having support from others can help to build your resilience and stamina, its that cheer on as the chips are down, or a welcome “You do this really well” when you may be in doubt. this can come from, family, friends and associates and can make a big difference to the way you ‘handle things’ being aware of this, ask yourself, can I foster this so I can get more support? The short answer, yes…

Enjoy building your stamina and resilience, hopefully the “workouts” to get you there will be well worth it.

Preparation makes all the difference.

Dec 2

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Planning, Risk Management, Starting out in business | 1 Comment

This is the first in a set of posts designed as a series to complement the initial post… Strengths in your business The aim being to provide a simple “How to” guide for people daunted by the prospect of how to as it can be too easy to read and say “Oh yeah that’s it, I need to do that, and then forget it and let it go.

Preparation (No plans no direction)

The topic of preparation takes into account research as well as plans, so lets look at these.

Many people in business make the error of not doing full research or think they know better than any research often going off a hunch they have a great idea that will bring them great profits. Fact is many people are throwing away thousands of $$ by not getting the research in the start up phase right.

Some research basics

  • Find out all you can about your competition, chart it on paper and figure out what sets them apart from the rest in your line of business.
  • Find out what the basic profit margin is for your business then figure out how much you have to sell to be able to make that kind of turnover, then break that down into a daily figure to see how much you have to earn.
  • Know what it will cost to run the business (find info on cash flow and make a LONG list of every aspect of your business and its expenses.)
  • Know if it’s legal, do you need special licences or registration to run the business, find out now, NOT LATER!
  • Chat to an accountant or solicitor about the right structure for your business, there are a few options here, pursue them and know the difference.
  • Get smart around business terminology, create a glossary of terms (Google that, there are bound to already be a few.)
  • Know your target market – focusing specifically on a group of people or types of businesses you want to target then find out how these people buy
  • In business (especially in the start up phase) you will be selling, ideas, then products and or services so do some research on the right sorts of sales methods and then practice them to build your skills in this area.
  • How much money is required to set the business up.
  • How long it takes before the business will make money (They rarely make money from day one…)
  • How will you pay your way in the start up phase? (a wage or similar…)

Planning

  • A business plan is vital so you have a guide to follow, it can be The Mini Business Plan or a fully blown complex one but have one ON PAPER, they are no good in your head.
  • The plan will at LEAST set out the goals you have for the amount of sales, the way the business will run (management) and the marketing.
  • Because planning needs to have goals set, find easy ways to make goals work (the SMART system works well.)
  • Make the plan usable, and make it the FIRST thing you turn to when you need to have an answer.
  • Use a calender a 12 month one even if it’s a photo copy of a 12 month diary page, it’s better than nothing. Then write in all the things that will happen from start up day.
  • Check out a bookkeeper to handle the accounts do you can focus on your business and running it right. Learn the bookkeeping terms and how they effect you. If you plan to do your own books, make sure with your accountant this is the best way to do things. Some will not accept your input of the info and prefer a bookkeeper (a professional) do it for you. (accuracy counts.)

There is a starting point for for your business preparation. I hope it makes things easier for your business planning phase.

Do you have this kind of strength for your business?

Dec 1

Posted by Steve Gray in Excellence!, Franchisees, People!, Personal Development, Starting out in business | No Comments

I watched this afternoon as a bunch of people stood up, stepped forward and got the living daylights pummeled out of them. They stood tall and after a grueling 3+ hours of warm up exercises it was an incredible feat.

I am talking about Karate not a street fight… (thank goodness!)

What I witnessed was people from youngsters to mature age, male and female do battle. As I watched it occurred to me that these people had not just put a up their hand to say “Yeah I’ll do it” but firstly they had to put in the effort to attain the skills required, then went on to train to develop those skills and sparring techniques… Wow it was intense at the end to watch the sparring, seeing people let down their guard and get hit, some fell down and got up again even though there was “some pain!!!”

Watching this I was thinking of the parallels to business. (how could I not!)

  • Preparation (No plans no direction)
  • Resilience – stamina (The ability to keep on keeping on)
  • Conviction (You are sure it’s a great product and or service, otherwise you would not be doing it… RIGHT?)
  • Goals (If you know where you are going it makes it easier to get there.)
  • Decisiveness (Either a thing will happen or it won’t, often the decision is the only thing that stands in its way.)
  • Comfort zone stretching (An elastic band is only working when it’s stretched.)
  • Automatic functioning (the skills are already known)
  • Risk taking (all business is this, the further you go the more risks seem to ‘pop up’)

All of these personal qualities relate to business, it’s probably this list and a few other points that cause sustainable and profitable businesses to make the grade.

Why is it then that there are businesses that fail, despite people knowing these guidelines? and why is it that even people that have put in the effort only get so far and stop?

Firstly it’s one thing to know the guidelines, and another thing entirely to putting them into action. Secondly some people achieve a goal and stop right there, not sure what to do next.

All of these great points take commitment, and often it’s as easy as turning up each day and learning something new, putting in the effort to plod on and look for ways to make improvements at each step.

If you want an exceptional business, then these guidelines should give you the start to a great business.

The impact of the “stages” of business

Oct 25

Posted by Steve Gray in Franchisees, Franchising, Growth, People!, Personal Development, Planning, Risk Management, Starting out in business | No Comments

Describing business in terms of its stages, infancy, adolescence, maturity and so on is a great way to sum up the situation, but there are impacts and of course differences in each.

So in the development of the franchise from the start up infancy stage, through to maturity there are some different challenges to face that would not ordinarily show up. here’s an example, for some it will be starting out with an understanding of why they pay a franchising fee, then doubting its value when the chips are down, then up again as things turn around.

The question is will the franchisee ever fully regain the respect they had for the fee in the first place. Chances are no… Some of the edges may well have been chipped off. But its all part of the stages and this up and down attitude can happen multiple times in the course of each stage.

The challenge therefore is for the head office team and peer mentors to be able to recognise the situation and then be able to do something about it. Even if it is just a list of things to look out for, or a reminder list of what the franchisee fee covers, or even in the newsletter or Co blog it outlines more ways the franchisee fee gets used each month.

These sorts of reminders can go a long way to clearly showing the franchisees how they are being served and the value of that service.

For the non franchise business it may well be a case of looking out for challenges as they arise (e.g. why am I spending $x on insurance) then looking at the peace of mind that can bring and the potential hassles it can prevent, then move on from there.

In business there will always be stages to go through but its up to us to be able to handle the challenges within each.

Up the downhill or how to look at challenges.

Oct 24

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

In a previous article I mentioned business being like a roller coaster with its ups and downs… This time lets look at some of the causes of this “uppsy downsy” situation.

1. I feel flat – This can be from a build up of things not going too well, everything else can be okay but the flatness you feel can cause your downhill attitude to rub off. Be aware of this happening and endeavour to keep the team in high spirits. One waqy to do this is to say “I feel a bit flat today, things have been busy and I’m a bit worn out, its not so much the team here but the workload, so guys, cut me some slack if I seem a little grumpy” This clearly states the situation so they don’t have to feel as though they are at fault.

2. $$ down you are up – You know the work load has been steady and the accounts go out at the end of the month, but the expenses are piling up and there will be too much month at the end of the money! You feel okay but the word is out that the $$ are short… the undercurrent hits the team like a dumping wave in the surf, they can hardly come up for air… In a one person business this can be a double edged sword, and who knows next month when you are flush for cash the work may well slide off the scale (the bottom ind of it!) Therefore aim to build your cash reserves to cover these situations, build a buffer between you and the bottom of the $$ jar.

3. Personal dramas – Your personal life is just that PERSONAL, so keep it that way, there are times when the “chips are down” and you want to “throw in the towel” Again this is like No 1. on the list, you can communicate to the team that things are not great for you right now, so they know its not them. Then get on with things…

4. Lack of skill – You want to do a job for a customer but you are not sure of how to go about it, so you sweat on it, lose some sleep and get yourself all knotted up… over what? Often its as simple as asking someone who has done this type of job before or doing some research to see what’s involved. If you still feel you can’t do it, ring them and say so… Better to walk away with your ego in tact than make a real mess of it working under pressure.

5. You are over it – Business seemed like such an idealistic dream at first… then reality set in, long hours, low pay (how did that happen!) and the rest of the hassles that can come with being out on your own. Take a reality check is business a long term thing for you or a short term hope for the best scenario. It’s okay to start a business, it’s also okay to close one down. To be good in business there is a lot that goes into it and sometimes the only way to learn that is the hard way.

6. Permanent bad attitude – Some people seem to be born a little grumpy, or maybe you just became that way. Acknowledge it and do some thing about it. The staff turnover will be enough to put you off being in business for too long if you have a bad attitude.

That’s the list for now, maybe you have a few things you can tell us about in the comments?

Aussie franchising gets teeth…

Oct 18

Posted by Steve Gray in Franchisees, Franchising, Planning, Risk Management, Starting out in business, The Board Room | No Comments

The ACCC (Australian Credit and Consumer Commission) in Australia has released a document to assist franchisees in buying a franchise. The doc outlines a bunch of details about how to find a scam franchise (rare) a glossary of terms… (had to I guess) and a range of things to look out for (good logical stuff).

Problem No 1. The horse has probably bolted by the time a prospective franchisee reads the document… It’s true, people get ideas in their head and run with it… They go to an accountant (maybe) chat with a “Solicitate” (sic) (maybe) and jump in the deep end. Did they go to the ACCC Web site? (Heck why would they…) shouldn’t the info be on the government business website? (Probably is…)

Problem No 2. They buy based on emotion – We all do, some of us go a bit further though and check out more details (logic and facts.)

Note how they are interlinked, jump in, and emotion.

The idea of starting a new job, a new venture, getting started, getting going… You might feel invincible at the thought of going into business, you might feel that the choice you have made is right (hey if it feels good do it right?)

Chances are most people that buy into a franchise are probably not fully clued up about business, its pitfalls as well as its earning capacity. Mos may find the difference between marketing and promotions a challenge, let alone the income and turnover differences question or the net V’s gross profit question. (Sorry guys you’re only as good as what you know…)

The ACCC have done the right thing (basically) however they could have mentioned that an emotive decision is not always a right decision and possibly save a whole lot of heartache and money hassles.

Who do you want to sell to?

Oct 18

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

Of course you want to sell to people… that makes sense (until they invent a robot that can spend cash…)

BUT, what sort of people? Rich ones? Poor ones? Ones that work? Ones that play? Ones that have too much time on their hands? Ones that make decisions on BIG buying opportunities for a BIG business…

Whichever it is you should be sure that you can target the right people with the right offering and make sure it has a great profit to boot.

Low profit is fine for high turnover items in some instances but it all depends on your business, the costs to bring the item to market and all the rest of it. Remember you are in business so the aim is to make a profit, FIRST AND FOREMOST!

Too little profit means low cash reserves, which means a risk is being undertaken, the list goes on. So you should be thinking about what sort of people to sell to (to ensure a good profit is made) and what to offer them (product’s and services/s) then you should be able to focus on more effective ways to deliver that to them.

Go ahead and think about the ideal customer you would like to sell to, then build the picture from there, the results could well be amazing…

For more information of customer profiling… click here.

Is it a turn-key business, or a tur-key’s business…?

Oct 13

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

Buying a franchise can be a great way to get into business, (if you have not heard that line before you have not been looking into franchises for long.) and if it’s a ‘turnkey’ operation you are probably getting an even better opportunity, one that has all the bells and whistles on start up and a system to be reckoned with.

The term “turn key” relates to being able to turn the key in the lock to the front door and the whole thing is set to run. It doesn’t need more than a good dose of training, the cash to buy the franchise, and a solid helping of the right attitude to add to the skills base.

Some franchises offer this and over time many have learned how to make the business work really well (lots of mistakes and challenges being solved can do that…)

Other franchises offer a more bare bones approach, sure they give you a degree of support and training but after that you are on your own, in your area working to make the business work. If you complain too much they might answer back with “Hey what did you expect for what you paid?”

Like anything you get what you pay for. Those in the know will research the business, will not take the sales persons view as being the only one, and just because a franchise has a heap of members does not mean they are all floating merrily on the millpond called tranquility.

The difference between the two is not always evident to the new business person, they might be venturing into their first business and thought a franchise was the way to go (in some cases it probably is.) The first look at a business idea can be daunting, exciting and loaded with emotive drive. So seeing the differences and knowing the implications of them can be hard.

The start up businessperson with ‘blinkers on’ can be a hard mule to shift, they might only see the straight and narrow missing out on the bigger picture which may well have reality painted all over it. To make sure you are going to get a sustainable business opportunity and not just become another ‘statistic’ you should make sure you ask a lot of questions, questions to help you appreciate and understand what you need to know and not just what the sales person wants to tell you.

Like anything you buy you should go into the situation with both eyes wide open and have a solid grasp on what’s really taking place. Sure if you chat to enough franchisees you will find a whinger and that could put you off, or better still an ex franchisee with a major axe to grind.

My suggestion, take the time to really know the difference between a real turnkey operation and one that might make you look like a turkey, the pain it saves you will be well worth it!

Buying a franchise… a reality check.

Oct 13

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

When buying any business (or any asset for that matter) it’s advisable to do your homework. Logical? YES! Practical… Not always. In the case of a franchise they (the franchisor) often has the power of numbers, “X number of franchisees can’t be wrong”, (yes some can be ‘wrong’, but they may not want to admit it.) Of course there are other ways the ‘numbers’ can be glossed over to make things look rosy.

It’s time to take a look at the reality for some.

Let’s look at some basics, there are large, small and medium franchises, and most have the basics of a good business so let’s take one group and single it out for viewing… the small franchise.

To begin with you have a reason for looking for a business opportunity, perhaps you want to get out and about more than a job stuck behind a desk, good reason, but in reality the numbers involved might not add up to all you want them to be. Sure money is not everything, but we are talking business so there needs to be some profit, otherwise you are running a charity or a hobby.

The smaller franchises are often to do with home or business services, gardening, dog wash, cleaning, handymen, and so on. The Franchisor offers the business for sale, you want to run it, and away you go. So lets break down some basic costs and look at what happens when it’s all added up. Remember you are in business to make money so you may well be making money to pay for a lot of things BEFORE being able to pay yourself.

Note: I have not put in any figures for any of these as they will vary greatly from business type, to business type and then between various Franchises.

Franchise purchase price – A one off amount, some people take out a loan for this amount, while others may have a redundancy package, savings or an inheritance they will use. Either way it’s money spent on a potential asset, in this case the asset should be one that can appreciate, not depreciate… At the end of the process if you choose to sell your ‘asset’ you would like to think you made this amount back in earnings (perhaps it shows up as profit) or if you can sell the franchise then you would hope to make this amount back in the sale price.

Franchise fees – Monthly amount to keep the head office wheels in motion – area supervisors – master franchisees – admin costs – systems development – Training – Call centre operation, the list goes on. It should be seen as a fee you pay that provides great value to you, and not as a fee that bleeds you dry each month or is seen as a burden of some kind.

Vehicle - Many of the small franchises mentioned require a vehicle, some require specific signwriting which may be part of the initial franchise outlay. You may have a lease on that vehicle, you may have to tow a trailer and want to use an existing vehicle (either way you have an outlay vehicle or trailer).

Overheads – Every business has these, phone, home office, computer, mobile phone, materials, fuel, tool maintenance, liability insurance, sickness insurance (You may well need it!), uniforms, the list can go on and add up quickly.

Marketing fee – This is usually deducted by the Franchisor with the monthly franchise fees and covers some of your marketing costs that the main company will do. Sometimes they want to do more and may ask for an extra levy to be imposed, this depends on the contract and how they can go about it, it can be legitimate but an extra cost to be aware of.

Wages – If you have staff they want to be paid, so think of the workers insurance, the holiday pay you have to cover and so on. If you take a wage out yourself you have to look at it carefully

Profit – The bit left over after all the expenses are taken into account.

There it is, the list of costs, if you look into these for the business you want to buy, you now have a starting point to fully evaluate the situation. This will give you a solid objective viewpoint to work from and not an emotive one which is so often the case with someone going into business for the first time (or even the fifth!)

In an ideal world after the expenses, you will have paid yourself and have a profit to put into the bank and watch it build. However in reality the opposite can also be true, which can shatter a dream in no time flat. Be aware that this can happen.

Remember the statistics do not lie (they may bend the truth a little…) so take a look with both eye’s open. A little known fact is that many franchises are seen as being a great business model because people often appear to last longer in them than starting their own business, true BUT note that most are in contracts that have them paying fees for the duration of that contract. So instead of a business going ‘belly up’ after 12 months it looks like 3 or so years have passed and even then it may be just a transfer of ownership to the next person looking at a business opportunity. On paper it looks rosy, in reality it may not be. And that’s just the start…

For more information on Franchising click here.

Franchising and the “family connection”

Oct 10

Posted by Steve Gray in Excellence!, Franchisees, Franchising, Growth, Innovation and Creativity, Leadership, People!, Personal Development, Planning | No Comments

In the world of franchising there are many chances to connect with the Franchisees and the Franchisors, meetings, conferences, and the initial training. As the leader of the franchise (or franchise division) or as the franchisee, search for more ways to connect with each other. Then pass on that ‘connection’ attitude or skill to your team/s.

In the process of business you will soon find you are part of an organism or a family if you like, some members you may never see (like distant cousins) and others you see often as they are very close. In franchising it’s the same with lots of family type links, The challenge is to make sure the links lead to solid loving relationships and not just sibling rivalry or a runaway “missing person”.

In the start up phase there will be lots of connection opportunities (if any) but as things more through to adolesence there is a chance that the connection can be come frayed.

The challenge is to overcome the disconnection and cause people to work together in harmony (as much as possible.) Importantly it’s a two way street and both parties need to be aware of that and do their bit to make it work.

One situation where this can happen is in training. the Franchisor can be training the Franchisee and they can pass it on to their staff and train them as well. This could be leadership skills, mentoring skills, delegation, and negotiation skills, the list could be endless.

Training can be formal or informal and why not do it over the phone, via a short video on the internet, or face to face at a franchise meeting. What ever way you do it, it can be ongoing, and benefit both parties. Over time the franchise ‘family’ will experience grater connectedness due simply to both parties being engaged in a worthy process.

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