Categories
People & Relationships

Making Connections Instead of “Handling” People

A few days ago I received a voicemail from a woman saying she wanted to speak with me about coaching. I thought, “Cool”, because I have a few openings for new clients. Normally when people leave toll free numbers as call backs, I might have some suspicion about why they are really calling. I also work with many folks who work for companies so it’s not always clear cut as to whether the message is disguised as a sales call.

So, I called her back, left a message and we played phone tag a few times before we finally connect,ed which was about an hour ago. Within 15 seconds she launches into a sales pitch and is asking me to go to a website so she can walk me though what her company can do for me. She says, “It was only take 15-20 minutes.”

NO.

I said, “Bottom line what you do so I can determine whether I even want to continue this conversation or see your website”.

She said, “I can’t really do that because we customize what we can offer people and it is better is I show you.”

Wrong answer.

I said, “If you can’t give me any idea about your company or why I should even care about looking at your website, you are wasting my time and this conversation is over.”

Her response was to offer me her website address for me to look at my convenience.

Oh, you bet I’ll go look. I’ll do it right now…… not.

You see, if she had come out and left me a message that was direct and told me why she was calling me, the likelihood I (or anyone else) would return the call would potentially drop. Telling me she wanted to speak with me about coaching was a perfect hook…until she gets me on phone. And had I been willing to visit her site, give her my time and attention, she was probably hoping that I would like what I see enough to consider doing business with her, right?

I find myself shaking my head in wonder that approaching people this way actually results in a sale and it must work or people wouldn’t keeping doing it. I’m sure she was trained by her company to prospect that way. And, even if what she has to offer might be worth considering, I would never do business with her or her company because I don’t like being handled or manipulated and I won’t play along.

I received an email invitation last year to attend a special event by someone whose name was familiar to me. The invitation was compelling and certain bits of information was missing like who the company was, what it was about…. So, out of curiosity I went to the first online presentation. It was a beautifully presented webinar about being on the ground floor of an exciting new business, blah, blah blah and had just enough information to keep a person interested to take the next step and still left out what the product, program or company was. The campaign was strategic and pushed all the right buttons. It’s a percentages game of prospecting. Done correctly, a certain % of people will say YES.

I don’t believe in “one size fits all” sales and marketing tactics. I prefer direct infomation without all the hype like we’re having a conversation over a cup of coffee.

Many years ago I was a sales rep on 5th Avenue in New York selling different women’s accessories (scarves, belts & unbrellas). I had lots of pressure to open new business, meet quotas and sales figures. One of the reasons I was so succesful is that my accounts felt I cared about them doing well with their company sales and they trusted me.

Most successful people recognize that building relationships is the cornerstone of having a thriving business and personal life. We build relationships by making connections. Whether you work for yourself or someone else, you bring “who you are” into every conversation and interaction. The first thing people “buy” is YOU before they consider any product or service you have to offer.

Creating rapport is an important factor in making connections with people. We can do that by being forthright and sincere. When we genuinely seek opportunities to help others succeed by asking, “How can I be of help to you?” we invite affiliations and friendships to form.

Categories
Franchise

Don’t Undercapitalize Your Franchise

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Franchise Genius: What can I do to help avoid undercapitalization? As you already know, a franchise start-up is much more likely to succeed than a non-franchise business start-up. Still, even a franchise isn’t a sure thing.
One of the biggest mistakes that people make in opening a business is starting undercapitalized. The good news is that making sure you have enough money to get to the starting line (opening your business) AND the finish line (running a business that meets your financial and life goals) is almost completely within your control. All you have to do is be willing to learn from others.
Remember, when you join a franchise system, you’re joining a group of people – your fellow franchisees – who’ve already been down the road on which you’re about pursue. If you are willing to learn from their experience, and you’re willing to put your desire to open for business tomorrow on hold while you do your research, you’ll reap the dividends for years to come.
Before you do anything else:
– Accept that it can happen to you. This is really the first step. Once you accept that your business could fail due to undercapitalization, you are much more likely to do your homework. And the more homework you do, the more likely you are to succeed.
– Be willing to learn from others. Remember, part of the reason you are considering a franchise is so that you don’t have to do it all on your own. So let some other people help you. Learning from the experience of others is a lot wiser – and less painful – than learning from your own mistakes.
Before you sign your franchise agreement:
– Do some basic research. Franchisees are the single best source of information regarding startup and operating costs. They can tell you about the unexpected things that drove their costs up, as well as tips for cutting costs and increasing profitability. Also, don’t underestimate the wealth of information and resources that are available on the internet, and on the International Franchise Association website (www.franchise.org).
– Get help. There are plenty of places where you can go for help. Start with SCORE (www.score.org). It’s free, it’s in most cities in the country, and even if your counselor doesn’t have specific franchising experience, they can still help you with the basics of business planning and budgeting.
– Build some high-level budgets and financial models. Once you’ve narrowed your choice for franchise systems down to the most appealing, build some high-level budgets and financial models. Do this for each of the franchises you are considering. This will help you understand the potential risks and rewards for each franchise you are considering. Your accountant or consultant can help you with this.
– Run your budgets and financials past existing franchisees. Ask them to tell you if they think your numbers are realistic. Be sure to choose a mixed group – some who are doing well, some who are doing okay, and some who are doing poorly. It will give you a well-rounded picture of what to expect.
– Have an accountant review your high level budgets and financials. Ideally, choose an accountant who is familiar with your line of business.
– Don’t budget a theoretical or ideal Cost of Goods Sold – use a COGS that is based on the real numbers that franchisees in your area are experiencing. If you are the first franchisee in your area, be sure to verify distribution costs, which sometimes vary widely from market to market.
– Verify employment costs. Just because someone in one city pays $8/hour for help doesn’t mean that you will also. It could be more, or it could be less.
– Verify real estate costs. If you need to rent or acquire space, make sure you understand what other franchisees in your market are paying.
After you sign your franchise agreement:
– Prepare a detailed proforma. Be sure to include projections for startup and for ongoing operations. If you’ve established a relationship with any franchisees, ask them for help again. Many will be amazingly open with their books, partly because they’re nice, and partly because it’s in their best interest to see you succeed.
– Be realistic about startup costs, operating costs, and revenue. Don’t base your budget on “I think I can”. Base your budget on “this is what other franchisees are reporting”. Many people prepare aggressive, realistic, and conservative models so they can be as prepared as possible for whatever comes up.
– Don’t guess. If you’re not sure, find out.
– Factor in the cost of delays. Delays are a fact of life, even with the best planning. Make sure you have enough time and money set aside to weather whatever comes up.
– If your business involves renting space, negotiate for rent abatement and TI money. First-time renters will often fail to negotiate for rent abatement (essentially, “free rent”) and Tenant Improvement money (money the landlord gives you to help make the improvements to your space). Don’t make that mistake. In fact, get an attorney to help you negotiate your lease.
– Factor in turnover and training costs. People often forget to budget this expense. Remember, somebody has to pay to teach your employees how to do their work!
– Budget marketing dollars and operating capital. Even the best businesses often start slowly. Make sure you have enough money to operate the business AND market the business during that slow period. A safe rule-of-thumb is to have at least a year of operating capital.
Have your accountant review your detailed proforma. Your accountant’s responsibility is to give your numbers a logical, unemotional analysis. Encourage them to challenge your assumptions on the front end, and things will end up much nicer for you on the back end.
Start with these items and you’ll be well on the road to making sure you have enough money to get to the starting line AND the finish line!
By: FranchiseGenius.com is the largest, most comprehensive online directory of franchise concepts and includes a franchise resource center full of objective and useful information.

Categories
Planning & Management

Top 7 Ways To Stay Motivated

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YoungEntrepreneur: The results are in from our latest YoungEntrepreneur.com poll! This time we asked you “How Do You Stay Motivated?” and you responded with some great answers.
The top seven results are:
#1) Read Inspirational Material
“Read blogs like TechCrunch, VentureBeat, Mashable, ReadWriteWeb and get myself excited over others success. I would tell myself “I can be like that person too and I want to be like him/her” Read books like “The Art of the Start” by Guy Kawasaki, “The Secret” by Rhonda Byrne.”
#2) Passion / Strength From Within
“I think what keeps me motivated is the strength from within, knowing you are doing what you really are passionate about. I do connect with other blogs but in the end I just write what I feel is very inspirational to me without worrying what others think.”
#3) Picture The Future
“Picture my future if I continue to work for someone for the next 10~20 years. I will NOT have the freedom to decide when I wake up, when I go to lunch, when I get off work, when I get a vacation, how much money I make, where I live. Most importantly, I do NOT get to decide how big my computer monitor is. ook at my current financial situation and tell myself “this is not the way I want to live my life for the next 10~20 years””
#4) Review Your Vision / Goals
“I stay motivated in a couple of ways. Reviewing my vision, revising my business plan and setting new goals always gives me the push that I need to continue on my journey as an entrepreneur.”
#5) Listen to Inspirational Material
“Listen to podcasts about starting a startup. I’m a loyal listener to Andrew Warner’s Mixergy interviews. He does great interview with people who have already been through the trenches. Andrew does a good job at controlling the pace of the interview and tries to get as much information as possible for the listeners. Check it out at blog.mixergy.com”
#6) Surround Yourself With Positive / Accomplished People
“Surrounding myself with positive people or consulting my fiancee also helps a lot when I doubt myself.”
#7) Look For Small Measures Of Success
“When in the early stages of starting a business, I keep myself motivated by looking for other measures of success other than profits (ie: hits on a website, learning something new, etc…).”
“Like some of the other guys mentioned, I use small incremental targets.. and I take care to give myself a mental pat on the back.”
How Do You Stay Motivated? – Entrepreneur Poll Results

Categories
Newsletter

BIZNESS! Newsletter Issue 81

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This newsletter is sponsored by PeopleWebInternational.com, a new global independent news network that is wholly user-contributed.
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Top Stories From GetEntrepreneurial.com
– Can’t Find A Job? Buy A Business!
– 3 Lead Generation Myths That Will Clog Your Sales Funnel & Keep You From Closing More Sales
– Does Anyone Knows Anything?
– 8 Small Business Strategies to Learn From This Economic Recession
– Four Easy Personal Branding Tips
– Three Major Keys to Powerful Goal
– The Pros And Cons Associated With Franchises
Continue reading these top stories in the BIZNESS! Newsletter >>>

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Categories
Entrepreneurs

Can’t Find A Job? Buy A Business!

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Article Contributed by Ray Haiber
Having a tough time finding a job? Unfortunately that’s not surprising news due to the fact that this current recession has already to near double digit unemployment rates in some regions. Many of the hardest hit industries such as financial services and home construction face the prospect of an extended or permanent contraction that will force many workers to seek new careers as positions in those industries become eliminated or harder to replace.
One viable alternative that has always been available to workers who either want to leave the restrictions of the corporate world, or can‘t find a job in their industry because of tough economic times is to “buy a job”. How do you do that? By either finding and purchasing an existing small business, or starting a franchise.
Buy An Existing Business:
Business Brokerage Industry statistics indicate that your odds of success increase dramatically when you buy an established business as compared to launching a start up. This is particularly true in challenging economic times, and if the target business has been established for over 5 years and has a proven track record that can be validated via a thorough due diligence process.
What Type of Business?
Your basic goals should be to find a business that you will enjoy working in and growing, compliments some of your existing skill sets, and will also provide enough net income for you to make a comfortable living. Ideally the business should also generate enough income to allow you to cover any debt service you may have incurred if you financed a portion of the purchase price.
How To Find a Business: What’s the best way to find existing businesses for sale? The most efficient way to begin your search is via the Internet. There are quite a few online “Business For Sale” directories like bizbuysell.com that offer a large searchable database of existing small businesses broken down by categories like states and industries. When you see a business that strikes your interest you can then contact the owner or the Business Broker who represents the listing for more information. In most case you will be required to sign a confidentiality agreement and provide some basic financial qualifications before receiving a detailed business summary.
Another way to find an established business is to employ the services of a professional business broker in your local area. Many Business Brokers have access to listings that might not normally appear on a local MLS system, are kept in house, or have knowledge about new listings coming available soon that may fit your investment parameters. A good Broker can also show and help you indentify potential business matches that you may have not even considered. And in most cases Business Brokers working with buyers are paid on a commission basis with the fee paid by the Seller so you have no out of packet expenses. You can find a Business Broker in your local area by visiting: http://www.findabusinessbroker.com
Buy A Franchise
Another viable option to replace a lost job is to start a franchise business. The biggest advantage of buying a franchise opportunity is that it’s a lot less risky than starting a new business from scratch. Most established franchise concepts are proven business models that have a verifiable track record of success that generally can be easily validated during your investigation of the offering. Franchisers can also provide comprehensive training and support before and after you open your location. And keep in mind that one of the main reasons for the success of franchising as a business model is that Franchisers have a vested economic interest in your success in the form of royalty and other fees.
Find A Franchise
As with existing small businesses, the fastest and most convenient way to begin the process of finding a franchise is with an Internet connection. There are now dozens of franchise directories on line today that offer comprehensive listings of franchises available for sale, including information about investment levels, training, availability, and how to contact the franchise company for more details. These directories are also a good source for free information about the general process of buying a franchise business. You may want to visit A couple different directories such as franchiseopportunites.com, franchiseforsale.com, and azfranchises.com because not all of then will carry the same franchise opportunity listings.
Final Note: Always thoroughly investigate any franchise or business opportunity, obtain all appropriate disclosure documents available, and seek expert consultation prior to making any investment decisions.
About Author:
Ray Haiber has 10 years experience as a professional Arizona Business Broker and franchise sales consultant. View and research franchise opportunities for sale across the USA here.