Shriveling Competition – No Market = No One Cares!

I was asked to participate in a round-table where CEOs, COOs and for profit Company Presidents were discussing the challenges their companies were facing in today’s market conditions.  These were companies of $1MM to $250MM in revenues.

The group wasn’t limited to franchises. There were other forms of multi-unit businesses there. I liked that. Franchising is simply one way to distribute goods and services and these wider forums give us more scope and greater depth to understand potential business solutions.

One particular leader was quite vocal about a singular concern. Regardless of where the conversation went, he somehow managed to bring it back to his personal concern.  In his mind the most pressing issue related to the current competitive landscape.  He saw how his parochial concern had a greater impact. He actually was right.

It seems the largest company in their market space, a corporation with deep pockets, had recently acquired a smaller but very competent local competitor in this CEO/Founders industry segment. You could see he related to the smaller competitor that had been “gobbled up”. However, you also could hear that he was, himself, not in any frame of mind to sell his company. Because of this he worried what this meant to his market space. Would this event seriously jeopardize his company’s position in the market? It seemed, from his perspective, this changed his chances of competing effectively. In his case:

1. He liked the size of his company
2. He liked that he was nimble and easily adjusted to market conditions
3. He liked that he had greater control over who he served; he could “fire” customers. In his mind it created a win-win.
4. He enjoyed a selective advantage because of his particular focus when he matched technology of his making to unique and valued (by his clients) customer service.

He was “sort of” looking for guidance from the group. He had no desire to be swallowed up by mega-company. Nor did he wish this kind of market change to devalue his organization.

I can tell you that the rest of the group “got” his concern. Money for small business expansion, technology exploration and even ongoing short-term lines of credit for small/medium business meant it was no longer simple to skate by with okay performance. You must be at least, “more” accurate. You need to be better about matching your skills to your mission/vision. And, that mission/vision needs to be client/customer focused. The future depends on it.

I was there more as an observer but my host chimed in that I had widespread experience with many businesses. I was added to the dialogue.  They had created a panel for the forum and I took my seat at the end of the table. They began to discuss the competitive landscape.  As you might expect from a group of “A” and “A+” personalities was a different perspective than the fear message that gripped our initial CEO friend. But the topic took life. It seemed to foster the need to understand the upside. Once the positives of the dynamics of this vertical market were clearly identified it was possible to build solutions. 

Here are a few reasons why there was, in fact, a silver lining.

The Market has Life!

Companies make acquisitions for a number of different reasons. One thing is clear; they buy up competitors businesses, typically, in distributed business models because they see potential for growth and certainly profitable revenue streams.  In our live case the panel determined there was significant growth in the market.  They were accurate. The larger company was capitalizing on the opportunity and made an aggressive offer to buy market position where they themselves were weak.  Thus, we know that the acquisition was evidence that the business environment is healthy.  They wanted expanded market reach in a market where short and long term projections are smart. 

Our CEO agreed. His concern, actually fear however clouded his judgment.  We all get that.  This becomes a great context for lesson 1:  When faced with opposition or threatened business positions seek outside intelligent counsel.

Customer Redistribution

The round-table concurred that when there is typically a disruption in a market segment. Changes, such as ownership changes in a segment serviced by less than a dozen organizations make both client and customers nervous. Therefore the second reason for optimism is the typical nervousness and suspicion created when a company acquires another business.  The acquirer will want to retain as many of the relationships they can during the transition of ownership but usually this triggers a review by clients.  This client review is most likely when a company from outside a geographic or service area acquires one that services based on market proximity. Customers simply feel better by the old relationship which they define as more closely connected.  The resulting tremor in “the force” creates a need for those serviced to research options.

Lesson: Prepare yourself to make sure you are one that is researched. It’s your opportunity to garner new business.

Increased Market Share

Businesses resist change the same way that individuals resist change.  Leave your working relationships be if research and market “touch” shows they are solid.  Given our scenario, “change” will create movement in the market. Many customers will seek other options.  When we changed our perspective, the target CEO in our group changed his personal perspective.

The next several minutes explored market possibilities: Why did the successful small competitor sell? What is the market saying about it? How do we capitalize on their absence? What boiled to the top with discussion of their sale and personal absence in the future market? Can we exploit that absence through personal effort? What is the cost to do so?

With any business challenge, it’s all in how the issue or situation is addressed.  It’s important to first address any natural negativity such as fear, perceived competition advantages and, yes, even our own aversion to change.  All of this is obvious from our example. Competition is good. It indicates a healthy market.  Always continue to review and analyze challenge until you put together the elements that formulate a plan to address it.  World class leaders quickly identify and assess change and challenge. Strategic planning ensues to adjust, or even transform an organization of system or product to compete effectively.  It will always pay to put yourself in a group of smart guys and let the ideas, emotion and approaches to the issue flow.

John is a 30 plus year professional in the franchise industry. He has been a multi-unit franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

His business is based on providing key wisdom and knowledge interjections that provides clients with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give him a call. 805-328-4569

Do You Mean Tenacious When You Say Passionate?

I just read another article where the author is telling their audience that success comes when you are FIRST, passionate about what you do!

Being tenacious and being passionate are not the same.

No one thinks a soldier who fights on, who perseveres in the face of an insurmountable enemy is necessarily desirous of the battle. He has no passion for war or killing.

However, his character, being tested, proves there are things that, though he finds distasteful and even frightening, having vision for the end result, he concludes he will stand. He will fight on! His tenacity is his secret weapon.

Business is the same way. We must STOP telling people you only succeed when you are passionate for the business. You will succeed in it if, understanding how this work will solve your priorities, you realize your “stick-to-it-ness” means ultimate victory!

By the way, they were talking about restaurants and hair cutting salons. I have known many a success in each who were neither foodies or stylists and yet their tenacity paid off and they got their good and just reward for ethics, character, solid operations and market positioning in business operations!

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

10 Things You Might Not Do In Considering A Franchise Business – But You Better Do Them

I’m often asked why I think franchisees fail. The question however most always has a story associated with it. I mean truly everyone has a story where someone lost everything in their small business; often in their franchise business. Typically the question they ask ends with a statement. “The franchiser should have done their homework and they would have known it could never work in that area”. Or, “They really were taken to the cleaners by that franchise company. ” 

Well here is a little intel for you, 99.5% of all franchises companies hate failure. Moreover, nothing makes a franchise company look worse than failure. But there are steps a thinking individual should take in order to protect themselves. Here are 10 common mistakes people fall into when investigating franchising.

1. Not reading, understanding or asking questions about the disclosure document. The Franchise Disclosure Document (FDD) is written in simple and straightforward language. There is no legalese. Anyone who has a high school education should be able to understand it easily. Sometimes people incorrectly assume they can’t understand it. They are intimidated by its title. But, instead of trying or acquiring professional help in going through it, they simply lay it aside. Never do this!
2. Not understanding or having an inaccurate or incomplete interpretation of the franchise agreement and other legal documents to be signed. The franchise agreement, by extension of the Franchise Disclosure Document (FDD), must also be understood because it is your personal contract with the franchise company on the extent, the breadth and width of your relationship. It fully defines your relationship with the franchiser. No one enters into a multi-year relationship (or shouldn’t enter into one) without knowing the ground rules!
3. Not seeking and finding a solid small business accountant. Ican tell you it is not necessary to put an attorney on retainer when you start a business. I can also tell you that you should consider it a requirement to have a highly qualified, successful, knowledgeable small business accountant and pay them monthly for the services you require of them. They will save you tens if not hundreds of thousands of dollars over the course of your franchise agreement.
4. Not verifying oral representations of the franchisor. If you are going to get into a room or spend significant time on a phone with franchise development (franchise sales) and they are going to be explaining components of the business modelthen you will want to have these recorded. It’s just good business sense. If they tell you certain franchisees will provide you with certain information then follow up with those franchisees to verify and validate that information.
5. Not contacting enough current franchisees. This is a HUGE deal for me. The section of the disclosure information (FDD) on “Past, Current and Future Franchisees” is a valuable starting point for locating franchisees. It is imperative to discuss any concerns you may have with existing franchisees. If the franchisor gives you a tour that includes two or three franchisees, get back to them later and ask any questions that could have been confrontational or embarrassing if asked infront of the franchisor. Another important factor here is to find out whether the franchisor has introduced you to specific franchisees compensated for their help to solicit new franchisees. Ask them directly, then follow up with letter stating their answers to your questions. It is surprising how an inaccurate response might change once it is in writing.

When (Note: Not if) interviewing other franchisees, try to cover a large cross section of franchisees. Seek answers from those that:

• Are in different locations,
• Have one franchise,
• Have multiple franchises,
• Have been in business a long time,
• Are still new,
• Are successful (get permission to call these back), and
• Are not doing so well.

6. Not confirming the reasons for failed franchises. Locate some franchise outlets that are closed, sold, or have changed ownership to company-owned, and find out the reasons for their change of status
7. Not having enough working capital. Make sure you have enough captal to cover every cost associated with the business including all pre-opening costs, enough set aside for your family budget, and enough operating cash for the business to make it through the break-even point.
8. Not recognizing the need for financing, not knowing how to make a proper loan request and not developing a true and accurate financial statement.  Again, if small business accounting is not your forte, solicit the help of a good accountant.
9. Not meeting the franchisor’s key management personnel at their headquarters and the field representative assigned to your territory.Quite often, the sales representative will do such a good job in building your confidence that you may not bother with trying to meet the other important personnel or traveling to the headquarters before signing the franchise agreement. Do not make this mistake. Meet the other franchisor personnel and verify the information provided by the sales representative.
10. Not analyzing your market in advance. While the franchisor representative may help with site selection, or, the franchise company may have its own site selection department, it is still your responsibility to decide for yourself whether a particular location is desirable and promising. It is important to confirm the market for your product or service in this area. It is important that you educate yourself on what makes for a right location or market area.

If competition exists, there are several things to consider. Do the competitors have any weaknesses that you will be able to avoid in your business to capture more market? Are the competitors so strong that their market saturation may be hard for you to penetrate? If a local competitor dominates the market, entering it may turn into a competitive struggle that will increase your working capital requirement.

Also, evaluate your franchisor’s marketing strategy; find out the amount of advertising and promotional dollars intended to help. Although helpful, it is not a good idea to rely totally on your franchisor for your market research. It is to your advantage to do your own market analysis and to develop your own marketing plan.

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

Quick Thot On “Proximity” – The Family Biz

Often I’m asked how owning your own business affects your life. One of the great benefits and challenges is it typically means the family either knows everything about the business or works in it. And, yes that can be a huge benefit or it can be a massive challenge!

When the topic rears its head the discussion quickly turns to the disruptions business ownership can cause to family life. And, while that is true, there are ways to overcome most of those since most of the disruptions have to do, not with core issues like the financial strain but rather on how personalities, that know one another quite well, actually work together for long periods of time.

Here are some quick thots on this for the working partnership (Husband and Wife or Family in general) …

1. Verbalize your partner’s abilities and talents on a regular basis; share with others their strengths

2. Make sure you each have your own areas of responsibility relating to your particular strengths; be careful to not assume authority in the other’s area!

3. Avoid expressing criticism of your partner’s mistakes in negative language.

4. NEVER do so in front of others…

5. Make sure that you praise your partner’s efforts (See #1)

6. Respect the role that your partner has in the business and the work that they do by giving then access to all resources that would allow them to succeed at the highest levels

7. Celebrate your business successes together and often; even small wins celebrated together create higher levels of unity.

8. Recognize that you and your partner will both, at times, need “space” – Harder to do when you are used to breathing down their necks about important and time sensitive deadlines (So remember #3!). 

9. If you are faith-based (And, if you own a business and weren’t you often soon are!) pray together and for one another daily with encouragement and affirmation that God has great plans to work through them and between you both!

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

A New Problem for American Professionals – The Chronically Unemployed

The New Poor – Suits from Saks

Like many of you I am involved on LinkedIn. While on the sight, today, a   professional group member posed this question, “I’ve been out of work for over a year. What should I do?” The man, by the content from the rest of his posting was either an upper or high level mid manager from corporate America. He had been there for 20 years plus.

Tell me, how does someone, with this kind of background, ask this kind of question? Let me give you a perspective; this man is frozen with fear. As intelligent as he might be with as much experience as he might have, he does not have a sense of how to approach a bigger issue which is, “I am going broke and using my best efforts and the support tools that have been given to me freely and I am failing.” It has caused divorce and break-ups in families and a host of other societal cracks.

My point here is that you can make the same kind of mistake no matter where you are at in life. Yes, you too can get stuck in a personal paradigm of what is possible. Then, by adding the element of fear to it, find your life spiraling out of control until you begin to ask stupid questions; questions that you, as a thinking person, can create a half dozen simple answers for if you will just expand your knowledge base (mentors, reading and other smart people) as well as get out of the box of who you are and what you’ve done before!

Here is a personal example.

Recently I was interviewed by www.EvanCarmichael.Com who asked me one question, “What is the biggest mistake you ever made in business?” And here is a part of my story…

When I began to investigate franchising, in my mind, it was difficult to discriminate between how simple the franchises operating system was and how hard I would have to work that system. Part of the reason for this was becoming so familiar (Why, they are my buddies and friends!) with the sales people from the franchise and hearing what they were saying as if this new venture and all the work, as a company, they had put into it, made it a sure lock for me to simply print money! What I heard was, our plan + you = $$$$$$$!

And, then, as if that wasn’t a big enough error, my own business arrogance put me further in a hole. I had previously been a “successful” entrepreneur. When “the franchise system” didn’t flow as simply and easily as I had thought it should, and my personal bank account began to run dry, I completely flipped the system on its head and began operating this new business, in this new arena, as if I was back in my old area of expertise. I had to! After all, the franchiser didn’t know me. They didn’t understand my clients, my territory, my unique situation. I freaked out!

I did this in the first 12 months as franchisee. It was a disaster. At month 13, running out of cash and desperate, I turned to a mentor of sorts, another franchisee, who told me to go back to the tried and true franchise system and just realize that business is effort. It is even more effort, (hours of time + dedication + discipline to create continuity) on the front end when you are starting up. So, we went back to the franchise companies operating processes and re-engaged them much to our ultimate success!

American professional corporate types, some 60,000,000 are out of work. They used to create the income to pay the bills, to buy the iPad’s and take the big vacations and get a new car every 2 years. But they can’t figure it out now.

A Christian psychologist Danny Silk has created a program of parenting where you empower your children to work themselves out of the problems, the errors, the laziness with the accompanying results rather than yell, scream, threaten and ultimately solve it for them. Part of that solution is an exclamation and a question, “Oh no! What ARE you going to do?” Now, as a parent, mentor, discipler you then work through with them the alternatives. But right now, if you are reading this and you are part of the chronically unemployed of the USA middle class I ask you with the associated exclamation, “Oh no! What ARE you going to do?” Clearly it shouldn’t be what you have done unless you are sure it’s quickly leading to a permanent solution.

Now, it is true that business ownership can be a great solution. It’s not…not EVER…EVER EVER EVER…a good solution as a knee-jerk reaction to not finding a job. You can’t own a business as if it is buying a job. That is an oxymoron. Owning a business and being an employee are apple and orange groves. You care for them differently. You feed them differently. You also reap different results from them. If you go into business to create personal employment you will fail. Period! Oh sure, one guy in 10,000 won’t but those aren’t the kinds of odds you want are they? If you want to find out if you should be a business guy or gal then contact me. I help. I help for free. I also help franchises because I won’t send you to them if you aren’t cut out to be a business owner. I’ll do one better. I’ll only send you where you will succeed. Franchise companies like that. It means they succeed too.

But please, whatever you do, get moving in a direction that provides a solution to your big problem, you can’t pay your bills! Heck, go to Montana. They have 2.7% unemployment and in some places less. In those places even the McDonald’s employees are making $18-22 an hour and living is pretty cheap. Just an idea…what else ya got?

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

Understanding the Goal of Business Ownership

As a franchise organization matures it must begin to understand the need to turn more customers into promoters if they are to grow profitably. At the outset this was true but often the message gets lost in the grasp to gain new franchisees. The company stops focusing on end users and tries to please potential franchisees that are what I call the “Interim” client.

Founders rarely fall into this trap independently – not if they were once behind the counter. Rather marketing, sales and development types within the growing company push them into it. When they come back to their senses they also recognize that they can’t accomplish the goal of sustainable and rapid growth unless front-line employees and supervisors are enthusiastic and love their work. This often has little to do with marketing and sales.

The thing I mentioned about employees as enthusiastic evangelists there at the end of the second paragraph has given rise to the mini-industry of Expert Employee Engagement. These experts help companies implement periodic surveys that gather confidential responses from employees on how “happy” they feel along a variety of dimensions. The experts aggregate the data, sprinkle some statistical fairy dust over it (each provider has its own magical recipe), and identify the “key drivers” of employee satisfaction. They then recommend a set of improvements based on comparisons to proprietary benchmarks (to be interpreted my very own set of business prejudices) and reputed best practices. The logic seems reasonable: find ways to satisfy your employees, and they in turn will delight customers.

The problem with this process is that it does not work very well.

“Satisfying” employees isn’t even the right goal.

The right goal is to empower employees to earn “job joy” by putting them in a position where they can satisfy the customers’ personal needs and reap the rewards of having done so. When they succeed in getting a customer to happy, you can make sure they get full recognition and appreciation for their accomplishment. (Earning 4 1/2 or 5 Stars from a customer is like receiving a stadium ovation.) Every day, for instance, Apple Retail employees review feedback in their pre-shift huddle (the “daily download”) from customers they served the prior day. Nothing does more to engage team members than hearing applause from customers in front of their peers and then to have those same peers echo that applause right back. This is the Joy-O-Meter equivalent to a) Telling you I’ll create a place of satisfaction for you 2) Delivering that joy in the form of people love you and 3) Getting immediate feedback and “Re-enjoying the Joy!”

Apple Retail also survey every 3-4 months to determine employee view of improvement. Apple calls this program Net Promoter for People (or NPP). It represents a radical break from the standard employee satisfaction surveys.

First, it focuses on finding solutions to problems that employees believe must be addressed if they are to delight more customers and increase the joy per store guest. Second, it helps the front-line team members at the store have a productive dialogue. Instead of generating a statistical key-driver analysis that leads to top-down “improvements,” it provides the basis for mandatory all-hands meetings, usually held on a Sunday night. Attendees review the store’s NPP results (real comments in real time), discuss them to ensure accurate interpretation, and identify the issues most vital to that store’s success. Store leaders then recruit teams of employees to consider each high-priority issue and to develop alternative solutions, which the teams then present to leaders over subsequent weeks. Each store adopts the best solutions and communicates actions taken back to the team. Then the team gets to evaluate effectiveness on subsequent NPP surveys.

This NPP process not only leads to productive dialogue and grass roots solutions; it also is a great professional development experience for all concerned. It clarifies the notion that the leader’s job is not to make employees happy but to put them in a position to earn happiness. And unlike conventional employee surveys, the process focuses on delighting customers. Sure, some stores adopt measures that help employees remain motivated, such as providing remote break rooms for employees in mall stores that were designed to handle modest customer traffic and are now bursting at the seams. But the central objective—the objective that makes all investments in employees possible—remains front and center: creating more customer promoters.

Is this process worth it? Yes! Is it replicable? Yes! Why? It is valuable, locally executed and personal/intimate to that location. Every store has its own measurement. Is this a great idea for franchises? It is. The question becomes can you log the challenges and will you have the discipline as an organization to make, as part of the culture, a process that allows people to see problem solving as a means to grow and create more personal satisfaction?

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

What You Might Miss – Thinking About Products & Service Franchises

Previously I have discussed two topics that folks considering franchising might contemplate. Demographics and Branding might be something you think about but might not have a clear picture as they relate to your selection of a franchise in which to invest.

Today I want to tackle two categories of franchise, those that are primarily service oriented and the other that is primarily product focused. Why would you choose one over the other? Why are product based franchises (McDonald’s, Dairy Queen, Floor Coverings International, ColorTyme, Budget Blinds, etc.) a better bet than service franchises (Express Employment, Liberty Tax, ServiceMaster, Mr. Handyman, The Maids, etc.). Is that a true statement?

Before I offend a franchisee that owns one of these names I mentioned; who views their offering in the opposite category as I listed. Or, perhaps they view their franchise as some amalgamation, blend or union of service and product let me state that I am merely using my “branding” label from the previous post to make a distinction the way the market does. No label is perfect but definition is good for purposes of understanding.

Each type has its pluses and minuses.

Product franchises are more easily defined. They also require better demographics and more specific location technologies to determine where they should be placed inside a defined territory. Typically product franchises have more tightly managed marketing strategies driven by the professionals at the parent company. This is important for quality of product control purposes.

If you are a concrete thinker you will be more comfortable in a product driven business because you offer a visible/tangible difference. There are staples in the product franchise industry that have continued to grow. But, one challenge is that product franchises most often are also affected by the tide of public opinion (think of yogurt and high fat fast food as examples) and changes in taste and perception. We franchise coaches and consultants for instance often here, “Well, I want a food franchise because people always will have to eat!” Well, yes but they may choose not to eat what you serve. You can ask Blimpies, Bonanza and Ponderosa Steakhouses, Bennigans, TCBY and Tony Roma’s and I just bet you can name a few more (Mrs. Fields?) that have lost more than 60% of their marketshare over the last decade. Why? They simply fell out of favor.

While product based franchises are easy and more tangible they can also be more cyclical in nature with higher start-up costs because of the cost of buildings, high dollar equipment and ongoing expenses in inventory’s and perishables.

Service franchises have actually taken over in terms of raw numbers of outlets and units. Though they are less tangible they are also cheaper to operate with a lower cost of entry. They provide the opportunity for faster ramp up times to profitability because you do not have to recapture high initial expenses.

When you think of service franchises you might think of maid services, handyman services, carpet cleaning and industrial clean up. But you should also think in terms of real estate offices, tax and accounting services, investment services and business coaching and consulting franchises. If you are a white collar worker with years of experience in managing employees and understand needed but less tangible or definitive consumer/business needs, then you may find service businesses more appealing. This often carries through to lifestyle issues as well since most service business can be operated in a shorter hour work week than the retail offerings that cater to the general public.

The downside of service franchises is that because many service business are not located in a big building, with massive signage on the main street in your town they may not have instant recognition. As a matter of course, many service franchises are niché businesses. This means you must personalize the marketing and business development efforts at your local level. While the franchise company will have a strategy and collateral materials, they also are counting on partnering with franchisees who enjoy personally getting out and into the market to drive up business.  With the right fit and personal confidence in your ability to drive a business plan, a service business can be an excellent, less investment opportunity. Note, typically nothing is lost in terms of earning power but much is lost if you are not confident in your ability to market and sell or manage the marketing and selling of your services.

So, which is right for you? The answer is you can find out by engaging with a professional consultant who understand the concept of psychometrics. We’d love to be of service to you at Vision Reach. Frankly, the franchises we work with and our past clients would agree.

Next time we’ll tackle the topic, how much do I invest in my new business?

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

What You Might Miss – Thinking About Branding

People think through a lot of things before investing in a franchise. They rarely get the full picture however. Here is a partial but primary list of areas considered:

Brand Name

• The product or service offered
• Amount of money to invest
• Training & Support
• Number of franchises already
• Number of franchises in my area
• My market
• My reasons for thinking of a franchise business

Yesterday on Facebook I mentioned an article about Demographics. (http://www.facebook.com/groups/358050090891690/)

Today is about Brand name and Branding.

What is it, as a franchise seeker that you might not consider when thinking about a brand name?

First, if you are like most everyone who begins to consider franchises you probably think about name brands such as McDonalds, Burger King, Taco Bell, and Starbucks which is not so much a franchise by the way…more on this later, and maybe things like MAACO and AAMCO care repair.

You are thinking about what you see on Main Street.

Just like most people never heard of Bain Capital before Mitt Romney’s run for the Presidency, or Mabuchi, Fischer Fasteners and Karcher Industries (Billion dollar creators of high pressure cleaning equipment), franchising is full of niché franchises that are wildly successful and virtually unknown.

Some are even out in the wide open. Most people do not know that Sears has a franchise division.

Use a professional coach and consultant to find a franchise that fits your priorities, (Note: I did NOT say goals) personality, communication and principal learning styles. In this way you protect your ability grow financially and massively improve your chances of success beyond your expectations and life plan. As it relates to branding, you will be able to articulate the concept of brand in terms of the market. Brand Awareness aimed at the target market is the key. Your professional coach should understand those companies who fit the bill for their market focus.

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

Franchise Trends – 2013

 This last year has had its challenges in the world of small business. Franchising actually began to see recovery first.   That isn’t unusual. Financing first loosened up for franchising and, just now, is the market for new capital, growth and development dollars becoming available for other small business types.

I had a wonderful conversation just yesterday (11/19/12). One of the topics of that webinar was a question I was asked directly, “What are the trends to watch for in 2013?” I’m not sure I answered the way they wanted but here is my take:

1. Franchising has become simpler to enter for more people. By that I mean that there are more types of franchises for more types of backgrounds, personality types, educations, skillsets, passions, interests and individual priorities. Further, funding has partnered with more franchises at more levels (types of franchise, grant monies for minorities, benefits to veterans, etc.) than ever before.
2. Continue to expect franchises to be simpler to operate. Greater automation has always driven franchising and provided a leg up versus their independent competition but that automation and “instant-on” educational tools are becoming simpler to access. The great franchises are using there systems to deliver those easy to use tools to ramp up knowledge and marketing. Turnkey will have greater meaning.
3. As it relates to types of franchises, expect there to be even more! More, and more profitable home-based or remotely operated (this can also be read as “mobile”) businesses will spring up. The gourmet food truck is an example. The gourmet coffee bicycle is just one more example. There are literally hundreds of other examples I could name.
4. You will see more franchises open up that relate to changes in the culture. In England as an example, more people are staying home more and vacationing less (This is also true, though less so, in the USA). This has led to Henry Ashdown’s Garden Furniture franchises and they are quite successful. In the USA as mentioned before, we see the gourmet food truck responding to both Americans improving their gastro palette while simultaneously attempting to respond to a faster paced life and a slimmer wallet.
5. This might be an unfortunate trend from my perspective but you can be assured that you will see more ideas, coming to market in the form of fully formulated businesses and they will be doing so more quickly. The reason I say I see this as  an unfortunate trend is that my philosophy hasn’t changed much in 30 years; a franchise should prove itself by opening multiple units in varying markets before it launches to a full-fledged franchise.
   Still for the already growing business owner with a great franchising idea, who has proven their business model, it is easier to get up and open and into the franchise field more quickly with more content today than ever before.
6. You will see franchisors attempt less control on operational components of the business. Franchises are learning quickly to improve on the brand, on market positioning and on the future of their market niche is far more productive and valued by their franchisees. The parent company needs to stay on top of trends and pass vision on to local operators.

While I am not a proponent of finding a franchise according to what is trendy I do believe you can count on 2013, regardless of political interference, as a year where franchising grows and thrives. In part, Americans are getting accustomed to the current lack of confidence in corporate America. There are no more jobs for life. There are no more career paths that ensure 20, 25, 40 years of uninterrupted employment. As a people Americans are adaptable. Once we know the landscape we adjust, learn, and execute on the new reality!

So, don’t go looking for a “trendy” franchise business. Look for a solid business that meets your priorities and needs; one that provides you with personal and familial satisfaction. Shameless plug: That is where Vision Reach and John Wilson and our expertise comes into play. I promise I can provide a service to find the right fit business for you and it won’t cost you one dime. What it will cost you is commitment to becoming a businessperson and the time to do it right; and we do not see those two things as cheap!

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569

2 Final Ideas for Pioneering Business Types – Part 7

This is the seventh in a series on Important Elements of Entrepreneurship. It also applies to first time business owners. In part I’ve written this blog series to help new business types gain perspective on the significant breadth and depth needed to develop a strong business with the capacity to create earnings, jobs and longevity.

How will you keep the “Team” happy? Too often we have seen young businesses struggle because important cogs in the initial success bolt. Have a plan in place to keep the help happy. More to the point understand your help. Assess them. There are some great tools so you might understand each individual and how they view their value. You’ll be surprised though money is important, it isn’t the only thing. How they view your understanding of them is just as important. Do they get a sense of your caring and concern for them? I’m just sayin’…

And in the end what do you want it to look like? People go into business for decidedly different (and very unique and sometimes oddball) reasons. Are you looking to flip your business to the first guerrilla (big player) that comes along? MySpace did just that. While Facebook hasn’t. Different end games require different strategies. Always be mindful of yours. Although on day one you don’t need to have this pinned down I would suggest you evaluate yourself as you go through your business development. It will help you save money along the way and maximize your future under any circumstance and with any specific outcome in mind.

John is a 30 plus year professional in the franchise industry. He has been a franchisee, a franchise executive and an advocate/consultant to the public and to dozens of franchise companies. He is the founder and managing partner of Wilson Associates. If you are looking for support and a proven Life Purpose or Franchise coach/consultant with expertise he can be reached at john@visionreachinc.com

Our business is based on providing key wisdom and knowledge interjections into an individual, couple or families life in order to provide them with a deeper awareness and primary action steps that they might move forward. If you are struggling to best understand your key success markers give us a call. 805-328-4569