Month: July 2009

Evaluating Franchisor Support

Post author By Ethan Theo
Post date July 5, 2009

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You’ve narrowed your search down to three franchises. All of them promise great support. How can you get a better idea of what you’ll really get from each of them?
That’s a great question. One of the main benefits of being in a franchise system is that you don’t have to figure everything out on your own. With a little research, you’ll find a wealth of information about levels of support. That information will help you pick the franchise system that’s right for you.
Before you get started, take a few minutes to think about the word “support” and what that looks and feels like to you. Does it mean someone holding your hand through the pre-opening phase, or does it mean someone handing you a manual and checklist and letting you go? Does it mean an “in-market” support person living in your market, or are you willing to accept less frequent visits from franchisor staff who fly in from a home office? The better you understand what’s important to you, the more likely you are to get it.
Next, check the UFOC for lawsuits, closures, and transfers of existing units. While not a direct indicator of level and quality of support, they can at least serve as an early warning system. If a company has high levels of lawsuits or closures, it’s a good indicator that you’ll want to look at everything a bit more closely – including support.
Then, review the list below to determine which items are most important to you. Once you’ve reviewed the list, start talking with the prospective franchisors and their existing franchisees. The more people you can talk to, the better. Also, look for support information in writing. Does the franchisor have manuals for training you? For training your employees? How often are they updated? Do people use them? If not, why not?
Remember that no franchise system is going to have everything. A young franchisor will often have fewer of these, and that’s why it may cost less to get into their system. A more mature franchisor will often have more of these, and that’s why it may cost more to get into their system. Here’s the list:
Protection of Intellectual Property
* Trademarks and copyrights
* Willingness and ability to protect intellectual property from infringement
Real Estate
* Verification of suitability of potential locations
* Preparation of construction documents
* Preparation of signage construction documents
* Relationships with contractors
* Lease negotiation
* Construction oversight
* Discounted pricing on materials
* Checklists to help keep you on track
Purchasing and Distribution
* Vendor screening
* Vendor negotiations
* Vendor management
* Getting the product to you
* Getting it to you at a cheaper price than you could on your own
Marketing
* Clear, intelligent marketing and advertising plan
* Branded marketing and advertising materials
* Ability to produce custom materials for you if needed; how much does it cost, and how long does it take?
* Development of a marketing plan for your business
* Guidance to help you maximize your return on investment on marketing dollars
* Grand opening support
* Regularly-scheduled marketing coaching
* Discounted pricing for media and printing
* Advertising cooperatives
Operating Systems
* Outlines the standard procedures for running your business. Usually in manual form.
Training Systems
* Initial training at the franchisor’s training location how long? How good will you be when you’re done?
* Ongoing pre-opening training; does the franchisor have pre-approved training locations, either franchisee or company-owned, where you can continue practicing what you learned at your initial training?
* Grand Opening Training; does someone come out to help you make the last push to get your business open? How long do they stay? How long have they been with the company and what is their level of experience?
Business Operations
* Visits from franchisor staff. How often do you see someone? What happens when they come?
* Back office support staff
* Maximizing profitability
* Budgeting and forecasting
* Local, Regional, National, and/or International workshops and conferences
* Trademarks and copyrights
* Willingness and ability to protect intellectual property from infringement
Enforcement of Standards
* How clearly do they communicate standards? Are they written down? Talked about regularly?
* Is there a clear, objective system for measuring compliance to standards?
* How often are standards checked to verify compliance?
* Once a franchisee or vendor is found to be in non-compliance, what action does the franchisor take, and how quickly do they take it?
* Do they leave flexibility for innovation within acceptable guidelines?
This article is contributed by: Franchise Genius
FranchiseGenius.com is the largest, most comprehensive online directory of franchise concepts, with 1,700+ concepts summarized, and includes a franchise resource center full of objective and useful information.

Planning & Management

How to Create a 20/20 Business Vision and Why it Matters

Post author By Ethan Theo
Post date July 3, 2009

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At some point in his or her career, every politician gets tarred with a catch phrase—and usually not a flattering one.
George Bush, Sr. is stuck with two. There was “Read my lips, no new taxes,” of course. But only slightly less unfortunate was his dismissal of what he called, “The ‘vision thing.'”
He was trying at the time to shake the impression that he was a competent day-to-day manager but he lacked any grander vision of where he wanted to lead the country. His choice of words and tone of voice didn’t exactly help.
John F. Kennedy had a vision: “A man on the moon before the end of the decade.” And it inspired the seemingly impossible. We had about 15 percent of the needed know-how when he made that declaration.
Bill Gates had a vision that there would be a computer on every desk in America. And this was back when most people didn’t even know what a computer was!
Why vision matters
I once had a CEO look me straight in the eye and say he didn’t really “go for” visions. “I put my energy into training,” he said.
But training for what? I wondered. You do training without a vision, you’re all gas pedal and no windshield.
A study at the Sloan School of Management showed that leaders who create, communicate, and implement successful organizational visions were more successful in EVERY measure than those who did not.
Three elements of a truly GREAT vision
Powerful, effective, propelling visions all have three things in common:
1. Short, simple and strong. Shorter is stronger. Take a given sentence and ask which words are pulling their weight and which can take a hike. Change vague expressions like “high-quality” and “world-class” into specific, powerful language that reflects your values. Simpler is also better. Use words a fourth grader could understand.
2. Visual. A statement that doesn’t create a powerful visual image of the future isn’t a vision. It doesn’t give people anything to keep in their mind’s eye while they work. You need a landmark on the horizon or you’re driving blind.
3. Of service to others. Make sure your vision statement reflects an intense, focused drive to serve the needs of your customers, not just to “satisfy.”
The human spirit will not invest in mediocrity. That’s why a vision always starts with a bold and audacious idea. A vision statement is nothing less than an invitation for others to invest in your dreams and a promise to do the same in return. By following these simple rules, you can create the kind of vision that has been proven to power companies beyond what was ever thought possible.
Vision doesn’t stop at the top
Once you’ve got your vision defined—your clear, concise, powerful, visual, service-oriented vision—don’t put it in the drawer. Pour it all over your company. Let it seep into every nook and cranny of everything your company does. Put it on the lips and in the hearts of your workforce or it will never find its way into the wider world.
The turning point for a vision is when everyone sees it, gets it, and buys into participating to make it happen. And if you’ve built your vision around a bold and audacious idea, a ludicrous, unreasonable, captivating idea—like, oh, I don’t know, going to the moon—people will throw their hearts over the bar with you to make that unreasonable dream a reality.
About the Author:
Roxanne Emmerich is renowned for her ability to transform “ho-hum” workplaces into massive results-oriented “bring-it-on” environments. To discover how you can create a 20/20 business vision, motivate employees, ignite their passion and catapult performance to new levels, check out her new book – Thank God It’s Monday. Now, you can get a free sneak preview at: http://www.thankgoditsmonday.com/preview_the_book/

A Blueprint for Success

Post author By Pamela Swift
Post date July 1, 2009

Article Contributed by Lori Olson
Business goals need to be defined. Startup business plans always need to include what the expected destination will be. Image that you are going on vacation and have no idea where you are going as you get in your car. How do you pack for such a trip? You might end up in Florida with a suitcase full of ski clothing. As obvious as this may seem, many online businesses start out pretty clueless about this.
Step 1 – Pick an online business monetization model.
The four ways to make money online are:
– Ecommerce model – this applies to any business that has a product or service to sell online.
– Lead generation model – this is the cost per action (CPA) approach where information is sold to other businesses
– Advertising model – this applies to sites that are rich with content and attract lots of information seekers and repeat visitors. The site makes money through pay per click and affiliate products. It relies heavily on high traffic and repeat visitors.
– Support – this applies to businesses that specialize in solving customer problems
Once your business model has been defined (“your travel destination”) you can figure out the steps needed to get you there. In some cases, there will be overlap of models but one will prevail as dominant.
Step 2 – Identify the steps you need to accomplish your goals.
Here are the minimum requirements for online success:
– Keyword research – This is a crucial first step that is most often skipped or done in a shoddy manner. It accounts for the majority of startup business online failure. It is so critical to be done right, yet most startups fail to take the time to fully research it. They make the mistake of brainstorming keywords that “sound” right. If they do any keyword research they usually stop after identifying keywords that are highly searched. They don’t continue the investigation by finding out how much competition exists for those keywords. They don’t determine whether the people searching on those terms are information seekers (and will never buy anything) or actual buyers. Keyword research needs all three of these components. If one of these is missing, it is extremely likely that the website will not succeed.
– An SEO friendly website – Failure to develop a search engine optimized (SEO) website is another typical and huge mistake that startup businesses make online. Unfortunately, the main focus is on a website’s looks (whether that be “pretty”, “trendy”, or professional). Many startups make the mistake of using web designers who know little or anything at all about SEO. They are graphic designers who will make a site look terrific but will be a coding nightmare for search engine spiders. They often include excessive amounts of flash (spiders are just starting to be able to make some sense of it) and dynamic scripts (e.g. spiders cannot read JavaScript). The focus should not be on creating the most beautiful website but rather on the most functional one that has high visitor usability.
– Great content – Sites need to provide the content that is highly relevant to the expected audience and that is also of great quality. It must contain the right keyword weight, frequency and proximity. The content needs to be chunked in a way that makes it easy for visitors to find and consumed. It needs to have correct spelling and grammar.
– An obvious call to action that is easy to execute. Anything that is frustrating to your visitor is likely to send them away (even if they are in the midst of your shopping cart).
– Web analytics – Business owners need to follow the Japanese concept of kaizen. This is looking for ways to make continuous improvement. Web analytics is essential for all web businesses. It can tell you about the way visitors enter and exit your site, how long they stay, what pages lead them on and which ones cause them to leave and so forth. Web analytics will tell you where your site needs to make improvement otherwise you will be completely clueless as to why the traffic your site gets does not convert.
– Marketing strategies – This includes developing organic search engine traffic (developing back links etc.), PPC and Social Media strategies.
– Business processing software – Systems that automate your business will cut down costs, prevent follow up failure and make your business manageable. This is important even no matter what size business you have. If you are a solo entrepreneur, it can be the difference between having free time or not.
Step 3 – Evaluation of your resources:
The first thing to realize is that there a lot of technical steps that need to be done. Startup businesses need to determine what in house skill sets exist and what needs to be outsourced. Solo entrepreneurs and small business owners typically have the “must do it yourself” attitude. This can be a formula for online businesses that are unprofessional looking, never get found online, and never get passed the formulation/beginning stage of development. It is not necessary to learn HTML, JavaScript and PHP. It is not necessary to become and SEO or analytics wizard. It is however, essential to know that you need these things. This is why so very many of online businesses fail. They are missing so many crucial elements because of not knowing or by doing things in an incomplete, haphazard and non-professional manner.
Evaluation of resources includes determining what can and should be done by whom. It includes deciding on how to allocate funds so that your business will grow. The reality is that most individuals to not have all the skill sets that are needed to do the required tasks of a successful online business. Getting the help of experts is the most cost effective route. Fortunately, getting expert help for an online business is highly affordable; especially compared to the costs of starting an offline business. Many so-it-yourselfers turn to “magic bullet” solutions. Startup businesses need to evaluate the benefits of the many do it yourself type of products that are available from internet gurus. While many of these products do have value, the cost in terms of time to learn how to effectively use them (and the energy involved) must be considered. How many products will be needed for the do-it-yourself approach? Will the product do what it says? The reality is that the cost of hiring professionals is often the same or less than attending workshops and buying products. After the workshop is over, small business owners still need to attend to execution of the details whereas hiring a professional accomplished this.
There is no doubt that startup businesses who follow this three step blueprint will distinguish themselves from the vast majority of new online businesses that fail.
About the Author
Lori Olson has a passion for helping small businesses develop strong online presences with a team of 250 professionals who analyze & implement SEO, SEM, PPC Campaign Mgmt, Social Media, Copy Writing & Web Development strategies which are customized to fit any needs, wants & budget. Update Small Business also provides leading edge employee & sales assessment & training; & CRM solutions. http://updatesmallbusiness.com or call 877.265.6568.

Sales & Marketing

Close More Sales: 3 Ways to Get In, Get Started and Make More Money Now—No Matter the Economy

Post author By Ethan Theo
Post date July 1, 2009

Yes, the economy is lagging and budgets are cut. Yes, we have competition. Yes, clients are postponing buying decisions.
So what?
If you focus on building relationships and implement the sales strategies I reveal here, you’ll be able to close more deals and get more sales now. People will buy from you even in a lagging economy — no matter what your price point.
3 Ways to Get In, Get Started, and Close More Deals
Sales Closing Tip 1: Recommend New Approaches
Good salespeople have always talked about creating value. Now we need to put ourselves in our clients’ shoes and be creative. We must get in and get started. Think smart, not big. It’s always smarter to have a smaller piece of something, than a big piece of nothing. Begin with a smaller project, a reduced order, or a regional, rather than global, implementation. Get in, and get to know the client. Let them get to know you. Get to know their business.
Sales Closing Tip 2: Create Metrics
Sit on the same side of the table as your client. Work together to determine the best way to get started. Always, always, create metrics with your client. How do you, together, define success? Get agreement that once this project is successful—according to the metrics you’ve agreed upon—that the client will work with you to identify other sales opportunities within their organization. A successful project breeds a successful relationship, which leads to successful referrals. This means more sales leads and more money for you!
Sales Closing Tip 3: Negotiate or Walk
Yes, the client will want to negotiate on price. That’s their job—to build business while watching the bottom line. How many times have you submitted a sales proposal to a client, and had them say, right off the bat, “Great! Where do I sign?” It doesn’t happen. We always want to get the best deal, so why wouldn’t our clients?
If you must adjust your price, then adjust the scale of your project or the deliverables as well. Always get something in return and write it into your agreement. Maybe the client agrees to write a testimonial or promises to refer you to another business unit in their organization, or to someone they know at a different company. Maybe you barter some of your services. Bartering is an age-old way of doing business, and it makes sense in many cases if you want what they have and they need what you have. Perhaps the client has software that your company needs, or a consulting methodology that could propel your business. You get the picture. Work it out.
If you can’t work things out, be willing to walk away. It’s a tough decision, but it may be your best strategic sales decision. You’ll be off to the next client who values what you offer and is willing to pay for it.
If you follow my advice in this article and in my book, No More Cold Calling™, you will build lifetime customer relationships with clients who want to buy from you over and over again even in a lagging economy. You will get more referrals. And, you will close more sales.
So, what are you waiting for? Get in and get started now!
About the Author:
America’s leading authority on referral selling and founder of No More Cold Calling®, Joanne Black helps salespeople, sales teams, and business owners get more referrals and attract business fast without increasing the cost of sales. Discover how to turn prospects into clients more than 50 percent of the time even in a lagging economy with her No More Cold Calling sales programs at http://www.nomorecoldcalling.com.