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Pretend Role-Playing Solves Real Problems

Nov 18

Posted by Michael Crooks in Excellence!, Innovation and Creativity, Personal Development, Planning, Starting out in business, The Marketing Dept, The Sales Dept | No Comments

“Daddy”, my 11 year old daughter excitedly exclaimed. “All I have to do is sell seven Holiday wreaths and I earn enough money to go on the school trip to the amusement park at the end of the year!”

As I reviewed the info packet with an advertising professional’s eye, I casually asked, “What do the wreaths look like?”

My daughter pointed to a photocopied, black and white line drawing that was totally void of warmth or cheer. I looked at the drawing and immediately became depressed. Then I became irritated.

The ability of a businesses to “think things through” is paramount to launching a successful promotion or for a non-profit to launch a successful fundraiser. Unfortunately, no one thought this wreath fundraising thingy through.

Without a photo, you’ve got 11 year-olds trying to sell warm, Holiday cheer by showing people a crude drawing that evokes about as much warmth as sticking yourself in the eye with an icicle.

One of the best tactics you can employ to help you “think it through” is to role-play the steps of your promotion or fundraiser. Walk it through. Use props. Have fun and actively look for problems or difficulties. If possible, role-play the activity with an outsider, someone who has had nothing to do with the planning of the activity, event or promotion.

I saved a client an embarrassing moment just the other day, because I helped her “think it through”.

Jan asked me to print up some raffle tickets for a fundraiser for the church. She wanted “Need Not Be Present To Win” printed on the ticket. No problem. Then I asked her to explain to me how the raffle would work — verbal role-play.

“Well, we’ll draw the first ticket,” she explained. “The person with that number comes forward and chooses the prize they want. Then we draw the next ticket on down the line.”

“That’s great, Jan,” I replied. “But how does that work with the whole, “Need not be present to win” thing?

A moment of silence was punctuated by a blank stare. We then revised the drawing protocol to facilitate the attendance issue.

As for my daughter’s wreath fundraiser? All I can say is, “Thank God” for grandparents, aunts and family friends who don’t have the heart to say “No”. In two hours of going door to door my daughter managed to sell one wreath. That’s when we invoked the friends and family tactic.

Then my wife asked me how many we were buying. I noted she said, “how many” not “are we”. I then quickly role-played in my head a scenario where I said, “none”.

Boy, that wreath sure looks nice on my front door.

Retail, retail, retail… When will people learn…

Nov 16

Posted by Steve Gray in Innovation and Creativity, Planning, Risk Management, The Marketing Dept, The Sales Dept | No Comments

I have been doing some work near a newish shopping centre, it was completely revamped in the past few years. It has a supermarket and some other shops to act as a draw cards and so far so good.

I went there for lunch on two occasions, an Asian food shop is near one of the entrances, clean neat and tidy, I took a look at their menu and chose garlic prawns. Okay so far so good, I sat and waited. Of course I checked out the details. Next door is a fashion store JAMMED with stock and while I was there (a good 1/2 hour) only two people wandered in and out again with no purchase.

I noted that the shops on this side of the entrance are set back about 5 metres from the flow of pedestrian traffic, so there was little chance of any browsers wandering in as the menu was on the counter and not out the front.

Lunch arrives, it was a seafood and chicken combination. Whoops it was wrong… I was now very hungry so I took it, tasted ok but not what I had ordered.

In the time I was there only one other person came into the shop, had a glance at the Bain Marie and walked out. So it struck me, here we are at peak lunch time, they sell food but no one was buying… In the mall there were lots of others shopping and not coming this way.

My thinking cap went on…

  • What if they had a super cheap loss leader to get people at least trying their fare? (eg. very small $3 lunch specials)
  • What if they gave out some discount vouchers (by wandering the mall and actively handing them out) so that people could be tempted. Normally I do not advocate discounts but in their case the idea of some customers is better than no customers.
  • What if they had made sure I was given the right food… (that’s another issue!)

Here is a business that will fail due to lack of income, no doubt about it (they can’t sell too late as they have no outside access and people will stay away from the closed shops near by even if the place is open late for the supermarket.)

I ask… what is it with people throwing money away by not trying to boost heir business to at least get some sales… The downward spiral has begun.

The message here for other businesses is to be vigilant and open to fresh ideas to ensure your business has every opportunity of succeeding.

The art business continum

Nov 6

Posted by Steve Gray in Innovation and Creativity, Planning, Risk Management, Starting out in business | No Comments

Later this morning I have to go and pick up some paintings I have on consignment at a local art gallery. I suspect things have been a little slow in the sales area, as the gallery is only open now at set times on set days and is about to close down. Ok we live in a mainly working class area so I never did hold my breath for an “arts led recovery”. The two shows I have held in Metro Melbourne to date were nice but did not garner any major earnings either… as a business possibility the visual arts can be a hassle.

Nearly every week the art gallery directors in major areas get fresh faced “wanna be’s” emailing images, sending in portfolio’s and bios, some will look, others send an automatic reply “no thanks”… one gallery told me of up to five artists per day presented themselves and their wares. So during a 5 day week they got 25 new faces in the door (that’s a lot of art!) now imagine for an artist to pluck up the courage and do this they would have to have more than a few images to present, in fact probably enough to have a show. (lots more art than I thought…)

It gets me thinking, (ok this has been brewing for a long while) each year in our state there is an outpouring of young hopefuls… final year graduates of visual arts. Fervent minds challenging convention, grinding a fresh edge on life (probably on the axe handle actually rather than the head of the axe). So let’s see, a bunch of about 10 Technical and Further Education Colleges, and about 6 university level courses… if each only pumped out 8 students each (lets play the average game here) that gives us… 128 grads…

Some of the 128 will go into work… drop right out of the art scene, and keep it as a “dream point” they might grab onto later on. Some just wanted to get the starting point qualification to do graduate studies or higher level than a Cert IV so they go across into more study. Lets rough out a few numbers… further study – 50 – Work – 40 – drop out and move on – maybe 30… (I am guessing here give me a break) so that’s 120 that leaves 8.

Out of the 8 some will want to exhibit and others want to build a bigger portfolio first. So lets say half go forward and exhibit (its not that high but I am an optimist) so that’s 4 to get a show and the rest (4) go on to develop their portfolio.

So over a period of 10 years this would be 80 people, but take into account the ones that come from interstate and overseas and the market can soon be full to the brim of of young (and old) hopefuls., some get snapped up, some have to face the reality that their work might have got them good marks while studying, but in the cold hard light of day rate no where on the gallery directors scale.

It’s a tough world indeed a tough business and it requires a great deal of persistence and determination to make a go of it. Also remember our little end of the world (Australia) has nothing on the big apple, New York with over 250 art galleries (most of the commercial kind)!

I guess for new hopefuls the art scene can offer a glimmer of fame and for some fortune, but in the main its as tough as any business and still requires all the same due diligence of any business.

Win win marketing

Nov 2

Posted by Steve Gray in Growth, Innovation and Creativity, Negotiation, Planning, Risk Management, Starting out in business, The Board Room, The Marketing Dept | 1 Comment

Most of you will have heard of the term win win, meaning a positive outcome for both parties, I thought about it as I was pondering some marketing options for a business.

My thought went like this, what if a marketing Co (lets say a newspaper selling advertising) were to only offer win win advertising so I knew I would get work from that advert that was greater than the cost to place the advert… (yeah I know its not about to happen any time soon.) But what if they did? Would I want to spend more $$ with them in the future… YOU BET!

What would it take… let’s see a measurement device (to see if the advert is working) and a more cooperative approach to working out the marketing “ploys” to make it work. You see often an advert on its own is not enough, it may need to have a deal attached to it, a call to action, a loss leader int he acvert as a solid draw card and so on.

It would take more effort than an artist creating an advert and the sales rep pestering you to place the ad. But would it be worth it.. OF COURSE IT WOULD… after a while the relationship built between the sales rep and the business placing the advert would become rock solid and after the initial process the rest may well become much easier.

So next time a advert sales rep says they want to chat to you about your advertising, ask if they can guarantee it’s a win win advert…

Now if only I can create a win win situation with my wife…hmmmm… :)

Leave the juggling to jugglers…

Nov 1

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

In business it seems like we juggle a whole bunch of things, from finances, planning, to marketing and operational issues and lots in between. I often say it’s about how well you juggle as to how well you do in business, however lets take some pressure off for a while and imagine if we stopped juggling. What would things be like?

Example if we outsourced the finances to a bookkeeper -  handed the marketing to a marketing company, and so on… It would leave you to focus on one or two things instead of multiple things. Imagine having a clear focus on your plan, aims, objectives, and GOALS… It would free up your time and therefore it suddenly makes sense.

Henry Ford was one of the first to say “If I want to know about marketing I call the marketing people…” He did okay… I am sure there are many others in the same boat, outsourcing these tasks and creating more time for themselves.

So ask yourself, what can I give up or delegate and profit time wise, so I can create better lifestyle options. I hope it entices you to at least think about it.

Rich with the gifts of life

Oct 27

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

Business can be fickle, some succed, others fail, some just plod along making just enough to struggle on even though the market might be very buoyant.

In the end many will say business is just about money. Yes and no… I like to think I get more than just money out of what I do. In many cases I get a great deal of satisfaction out of being in business.

I recently came across a summary of the success classic Think and Grow Rich by Napoleon Hill, its simple, practical and highly effective… the thing is you need to know that richness is not about money… its more about the things. Things like how you feel, what you won, what you control, what you develop, what you create, Its all there you just need to know the simple formula for making these things happen.

Hills book was based on the success of many people and using extensive research he was able to distill the results into this classic.

Knowing that it’s easy to implement helps, but you have to be able to overcome procrastination, other peoles intervention, fears at all levels, above all you have to accept abundance is the norm, not the exception.

Stop now and think, am I rich with the gifts of life, or am I merely existing and chasing my tail… If you are ready to take on a full and rewarding life then do so by reading or re reading the classic.

The business success points

Oct 26

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

Over time I come up with a list of business success pointers and change it, the order does not matter much I think all the points are usually of equal importance.

Then I think about it some more, weigh that up against things I see and arguments I have in my head about how things are and what I am seeing. So for now as at Oct 07 this is “The list”.

  1. Effective systems - Production – Management – Marketing – Risk management. No not systems to create a bueracracy but systems to create elegant flows of the right information and resources to the right place at the right times. Checklists, operational procedures etc.
  2. Excellent products and services – With the right ones in place the profit margins are easy to sustain and even build on. Think apple’s Ipod, it really was just another MP3 player, but the design and the hyoe compbined made it a stand out performer, everything else (generally cheaper) paled into insignificance. It is clearly No 1 in the market If you were able to produce stand out products and back it up with service second to none then you would clearly have a siner.
  3. Clear aims and strategies - Marketing – Operations – Management, from profit to HR issues clarity of the aims and strategies (the how to’s in the system) will (and does) make every bit of sense, your people will know what to do and when, and chances are you let them develop the aims and strategies and so they are hell bent on bringing them to fruition. Make sure innovation and leadership are a part of the aims and strategies, if not add them NOW, business requires organisations that can and do make positive use of these two.
  4. Clear mission and vision – And I don’t care how small or large the organisation is have something you can hang a mantra on, so you and your people can chant it silently and know it permeates everything your organisation stands for. Then imagine, what if each division had its own mission and vision… could be useful for larger organisations wanting to take teams to a fresh level.
  5. Growth and development strategies - This probably comes out of the mission and vision along with the aims and objectives, the aim in short to make sure the business is able to develop and grow in effective ways… It might be profit to begin with, then more staff to share the load… then, well its up to you, check out your aims and objectives, if they don’t fit to this area alter them now.
  6. Brand image – People, customers – suppliers – prospective and existing staff should be able to say they know the organisation and perhaps what it does by the brand image. Clarity of communication here will build pride all round and leave a professional image in their minds. Look at the logo, the slogan (if you have one) then all the marketing materials, signage adverts THE WHOLE SHEBANG and see if it’s a rock solid image that is being presented.
  7. Customer focus - No customers no business, so get vital about focusing on them, are they treated like royalty? Should they be? They bring $$ in to the Co… so go all out to make them feel fantastic, so much so they want to come back with their friends and buy all you have! Suggestion make it sustainable, there is no use to a focus that becomes fuzzy over time and is not sustained.

That’s the list, pull it apart, print it out and hang it on the wall, throw darts at it to figure out what to do next, I care not, I just know that this list of “stuff” works and will make a difference. date for implementation… NOW!

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.

The circle of business a guidepost to understanding

Oct 17

Posted by Steve Gray in Excellence!, Planning, Starting out in business | No Comments

Years ago I put together a guideline to assist my clients in fully understanding what’s involved in a fully blown business, and for those working in one area to better understand the other areas around them. The result was a PDF file like this one.

It proved to be a useful device and I share it with you so you too can see the depth involved in a business.

I aimed to include all areas of the business but still find things I need to add from time to time.

Use it as a a guidepost to understanding, in time as you grow your business you can see the areas that need development and those that are already strong.

Enjoy…

Innovation and the fight to make it work

Oct 16

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

An article by Kirsten Le Mesurier in the Age on innovation struck a chord.

The premise of CEO’s and senior exec’s saying innovation must happen… rarely works, it’s often a directive that can be buried in red tape and politics. Too many times the ideas are wanted but the process becomes a durge and in no time people resent the “new thing on the block” in this case innovation. For most it’s business as usual but with more headaches.

Organisations need to think carefully about taking on innovation as a systemic device as well and not just as a think tank option for new products and or services.

Innovation should (in my view) be about involving all, and working towards creating elegant buisness options, not just some products and services to make the profit look good.

“Brand You” trademarking…

Oct 14

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

In a previous post I mentioned trademarking as a development tool and I discussed “See something – Do something” It’s a nice simple model for business but it can be taken further than a business context, here’s how and perhaps why…

In the branding stakes there is a lot of mention these days about “Brand You” If you look at yourself as a device or commodity (how strange) branding is therefore important, on the basic personal level a resume is the marketing ‘hype’, and your actions (should you land the job) are the results. In a decent brand the hype or spin matches the end product… So the same with Brand you. It’s about congruency, things working in alignment.

I am sure you have met people that are full of ‘hot air’ and they say more than they do, well in their case there is a low level of alignment between their words and actions. that’s where this newer idea of trademarking comes in.

Using the premise of “See something – Do something” the astute brand developer, would say I have things to develop in me that will benefit me and then probably benefit the company, in the long run. This is fairly standard personal development thinking for some of you whilst for others it will seem like a new thing ripe for the picking.

In the business context the see and do device is relatively easy to work out (focus on marketing – operations and management) bu for the individual its a bit different. However in the business owners context they could map across from the business context, by noting “In each of the areas of the business I can influence, how well do I do those things?” leadership therefore becomes an issue, the management and then communication, then time management.

So make a list of the areas you want to improve then do your level best to chip away at those areas to make them count, not just for you, but for the business as well.

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.

Profit is number one…

Oct 12

Posted by Steve Gray in Finance, Growth, Innovation and Creativity, Planning, Risk Management, The Board Room | No Comments

Anything else to do with your business MUST therefore be about supporting the profit.

Before people go all money crazy though and start saying “business is all about taking and here’s another example.” I say if you are not making a profit you run a charity, and as this article is about business it’s therefore about profit. AND of course there are other ways to profit other than making money.(if your people advance their skills and are happy with that might be just one example.)

lets look at what I mean…

Marketing – This should be driving or directing people to your business, so they can buy and you make a profit from what you sell.

Management – Ensures things run well – so that your profit can be maximised. Sloppy management would mean unnecessary overheads, therefore wasting profits.

Operations – making sure things run smoothly here is vital, often this is the workings of the business and needs to be running well, imagine if stock levels ran low and demand went up… oh bad move.

Sales – No sales no $$ in, then you have an impact on your profit… not good!

Service – People vote with their feet, no service, they move on. Again not good for the profit.

Human resources – They provide (or at least should…) great people, great people systems, great training and elegant payroll options to ensure the people in your organisation are effective and efficient at what they do, if not they are eating into the organisations profit.

Wealth systems – Your profits go here to develop passive income options and leverage the $$ better. If this is not working your business may as well not make a profit… (hard words but true). Your team works hard to make the profit, now make the profit work hard for the business.

All of these impact on the profit, either the gaining of, or the use of it. To make sure you are having an impact on it take a deeper look at all of the above and get to work on those things that can make a positive difference to the profit. You might like to start with this.

See something, do something…

Oct 11

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

Earlier in 2007 I did a post on Trademarks not what you think… It gave some starting points and some background to an idea that is really all about values and beliefs but does so in a more street smart way.

I thought it was time to pull out a few more and explore how they can be developed and a bit about why they can be developed (e.g. the end product of doing all this.)

Trademarks, the notion is that it sets you apart from anybody else that might have a similar business name (in the traditional use of the word), but beyond that it says “This Co does things in certain ways, ways that set it apart.” so the same with our trademarks.

It can be used to provide guidelines and information on bigger picture things in the business Marketing – Operational issues – Management. Then of course it can go to smaller issues within each area right down to the last ‘nut and bolt’

One key to using “Trademarks” is to utilise an overall device to assist with the development of each area within the framework lets call it a mantra.

“See something,
Do something”

If one person in the organisation saw something that was not “right” within the organisation they can invoke this mantra and take it from a saying to a thing to be acted on. If anyone says we can’t do that ‘because…’ then the person putting forward the idea need not feel put down, they were just doing what was asked of them, their aim might be to look deeper to find a way that can alter the first point they raised.

An example a customer service indiscretion is witnesses, you would (under ideal circumstances) report it as a matter of urgency or act on it immediately in some other way (take action) as it would effect a key area of the business (Customers!). If a mistake was spotted in an advert, “see something, do something” should then kick in immediately before it’s too late. (Again a key area of business and one that needs to be right.)

Using this simple mantra can give the business a developmental edge in all areas… so what to do, how to go about putting it into practice… make a sign “See something, do something” and put it up, everywhere! email people in your organisation about it (keep it brief) and support it at all levels, (from the customer down…)

Next, make a list of all the key areas in the business (to raise awareness) and give a few examples of how this system could be used in each, then start developing the business from that stand point. If profit is down, start with that, you will soon see what things are preventing your profit from developing and so you will be able to action those things more strategically.

Imagine, you know have a way of creating an improvement culture in your organisation simply and effectively. So go ahead, you have seen this now do something.

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.

Business first, then…?

Oct 9

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

You start the business and then… Well apart from working hard to make it sustainable…

A few things first, let’s make a list. Why did you get into business? Is it turning out how you wanted? Is there a profit? Is it providing a better life for you? If not when will it do that?

Note how I end up with the lifestyle side and start with the business side? That’s my focus in many of these articles, because I see people drop perfectly good jobs wth 4 weeks annual leave (here in Australia anyway) and in the most part security, for what? Hassles and more stress, more responsibility and the list goes on.

In buisness I figure you have to fight vigorously to make a profit (and sustain it, then celebrate the fact you got your goal.) So what’s next.

  • Wealth?
  • Peace of mind?
  • Less stress?
  • Less hassle?

Does all that lead to a better life? I hope so. Then pursue that, make a plan, set a time line then do something radical, halve it! Not the quantity of the results but the time frame. Get the results in half the time… What would it take to do that? Is it possible, is it feasible, is it out side of your threshold? Push that thought around for a while and figure out just how to make things fit.

I suggest that if the goal is a really worthy one you will be in a poition to make it happen in the shorter time frame because you truly connect with it. If there is no connection then try another goal, keep searching until a truly compelling one hits you. then go  for that.

Whatever the goal, make sure it’s one that gives you a better lifestyle. All work and no play makes for a dull person!

If you head up a franchise, what goals can you assist your Franchisees to set? What goals can they assist you to set too! Push the boundaries, go for gold, and if you come in second place the silver medal will still be quite valuable.

The fragile business

Oct 7

Posted by Steve Gray in Finance, Franchisees, Franchising, Growth, Innovation and Creativity, Planning, Risk Management | 1 Comment

No matter what sort of business you are in, it’s only as good as the next crisis is. Has that got you thinking? I hope so. You see many business people chip away at the coal face to get ahead, but do not stop to think about how to handle major challenges that might arise. Of course we do not want major challenges to arise but they can.

Example, imagine a franchised business, lets say it’s in an early phase of development and the main company has sold a few territories and is pushing to sell more. But the offering turns out to be a flop, (e.g. customers did not want a garden watering service…) so things start going downhill. When push comes to shove they end up with no more sales, no more fees in and it goes belly up.

Well apart from a poor business concept how well the main company does will also depend on what they do to develop their wealth.

Consider this. If the income stopped for the Head Office of this organisation, how long would it last? Answer, not very long (often it’s allegedly about 2 weeks for most). For the business owner/s this means their dream has gone up in smoke.

BUT, what if they had developed a “wealth creation program”, or a “debt reserve fund”. Often its as simple as a separate bank account where a % of funds from all income goes. Over time it compounds and provides a growing liquid asset. This is left alone to grow and provides the main company with a solid foundation to build on (The key is to never spend it.) When it builds, some of it can be put into other forms of investments that can be liquidated fast if need be (shares for example) to do this effectively I would suggest a % be agreed upon to retain cash in the reserve fund (cash is king…)

Although I have used a larger organisation as an example, it can be done (and in my view should be done) by all businesses.

The aim, to build a foundation that keeps the business solid and even if things go “down the tubes” the future has at least been allowed for, obviously the longer the business can run the stronger the foundation and if need be the security can be leveraged against to start another business (hopefully a MUCH better one than the first!)

For more articles on franchising…

What do you get for the money?

Oct 6

Posted by Steve Gray in Finance, Franchisees, Franchising, Planning, Risk Management | No Comments

Most (if not all) Franchises have a franchise fee, (it’s a monthly fee usually) designed to keep the head office “humming”. It’s generally separate from a marketing fee, but that might be on the same invoice you get per month. So what do you get for paying that? I guess the Franchisor will have an answer for you that “covers their butt” but in reality what do you get?

Look, some will suggest I have put on my cynical ‘hat’ and am talking sour grapes… Perhaps that has some truth to it. BUT it’s a great issue and one that all current and prospective Franchisees should be asking about sooner rather than later, and one that Franchisors have to be acutely aware of. Think of how many Franchisees are in a group and then look at how many franchises there are world wide, and growing! the amount would be staggering per month.

So you shell out a management fee per month?

  • Perhaps you will get a support person to watch over a bunch of Franchisees – If that happens in your franchise group, does the number of support people match or better the industry average? How often will you see them? how specifically will they work with you? Have they been a franchisee before ? Or are they bringing employee mentality and or attitudes to the role…?
  • Perhaps it goes into developing new systems – Things change so that can be useful, but what if someone created a new system and it failed, you still paid for it? Perhaps the new system will save you a fortune, in time or money…?
  • Perhaps the fee goes into organising the annual conference – If you have one, but wait that’s usually a separate fee… so the organising cost should come out of there? SHOULDN’T IT? Whoops a slight oversight from head offices viewpoint.
  • Perhaps it goes into training – You go to the franchise meetings don’t you? well you get training there??? hmm maybe not… Well at least your fees go to the meeting room hire.
  • Perhaps it goes into the end of year function… – Well for some it might, but for others well that’s separate, so no joy there.
  • Perhaps it goes into a marketing development fund – No that’s surely under the marketing fee. so if the Co is spending management fees on marketing there is a false economy going on… Perhaps the Co should be altering the management fee amount down and the marketing fee up, same total but different results, one more accurately reflects the real situation.
  • Perhaps it goes into building a new head office – Hey why aren’t they leasing? There are tax benefits to that in most places… Oh the CEO has a company that is into real estate development, oh that’s a bit different… no?
  • Perhaps the company wants to create a great web presence complete with franchisee intranet – Better hope they pick the right sort of web developer or the $$ might just be going out the window… or is that Windows® he he.
  • Perhaps some is going into a debt reserve fund, or a weatlth development fund so the company can build its cash wealth and not just its branches and image.
  • I know, it goes into processing the monthly fees!

The point. To find out where the money goes, it should be available to the franchisees as a graph, a pie chart or similar so they can know where the money goes, and so their Franchise Advisory Council can advise based on facts, not on here say and good will.

Is your Franchise group showing you the “money…” or are they showing you a chunk of “PR” that makes the “money” look good?

For more information on franchising.

A fresh approach

Oct 2

Posted by Steve Gray in Human Resource Management, People!, Planning | No Comments

If you are hiring employees, the usual take on things is to try and match the person you want via assessing their skills an abilities as well as attitude and qualifications.

So you place an advert and put in the role and some Co details, then wait for the cover letters and resumes to arrive. In the final phase you wade through the applications (or pay an organisation to do it,) then get the likely few to attend an interview. It all takes time and time is money…

Consider a fresh approach, one that can turn the process around and give you a few ‘good’ applicants. Place an advert with minimal info, let them know the role and a few basics (really basic basics…) and invite them to send in a one page “response”, a question like… “tell us why this role would be of value to you?” can soon sort things out. From these responses you should be able to gauge if they have the determination for the role, the motivation to bother taking your “fresh approach”.

If nothing else it will save you a HEAP of time in assessing candidates the old way. If you get a lot of responses consider a group session where you outline the role further and hold 60 second interviews… That should sort things further for you! First impressions can (or should) be very telling.

I found something interesting…

Oct 1

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

In flipping about the net I came across this link. http://www.bcg.com/

Simply put the publications section has some great resources for businesses of all sorts, check it out, there’s plenty for everyone…

Very professionally put together, usually when I come across resources like this you end up having to pay or need to be a client with a special password to get in. So it was refreshing to come across this one from a large consulting group.

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.

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 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.

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.

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

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.

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.” 

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!

It’s about the money….

Aug 31

Posted by Steve Gray in Finance, Growth, People!, Personal Development, Planning, The Board Room | 2 Comments

In business it comes down to cash. numbers, $$ samoulians, do rey mi, dosh, call it what you will its the “stuff” that makes a big chunk of the world go round.

so check this out.

Where’s the money?

It’s a post in our forum, and it has some interesting twists and turns. basically it gets to a situation when you do the numbers, you might get a shock (and often not a good one…) so take a look and let us know what you think.

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