Franchise Focus Business News…

I decided to go back to basics with this blog post, and explain some basic franchising terms. So I got a little creative, and created this infographic which hopefully will explain franchising to those of you who are new to the industry. For more information on franchising, why not visit our franchise information centre?!

This week’s guest blog post is  by Andrew Cutler, Sales & Franchise Director, Card Connection.

Getting your new franchise business – in financial terms - from ‘in the red’ to “in the ‘black’ as quickly as possible must be the aim of every new franchisee.

If you are moving from a regular monthly salary to self employed status through owning a franchise, then getting your new business venture into profit as rapidly as possible is essential for a successful long term outlook.  The challenge is that when you start out there will be an inevitable leaning curve while you get up and running.  So how can you best prepare?

Buying a re-sale franchise is the best way to ensure you will earn money from day one as you will be inheriting customers from the outset which is a great starting point.  Selecting a well known brand with a good reputation will also mean that a large degree of the time consuming marketing effort will have already been done for you, so you can focus on selling to those existing and loyal customers.

Find out if your prospective franchisor has a national account network which will provide you with leads. This can be a great help at the start.  Card Connection’s national account network, which includes retailers such as Costcutter, Londis, Netto, Budgens, Spar and Haldanes for example, offers an opportunity for our franchisees to begin selling to these retailers immediately.

It is also important to choose a franchise with products or services that are popular and almost ‘sell themselves’.  Quality products will always be valued and in demand, so are important for gaining new business and repeat custom.  Question if you would buy the product you are looking at selling on a regular basis?  Card Connection, for example, has more than 1,200 quality greeting card designs distributed in over 16,000 retail outlets across the UK and Ireland, which ensure customers keep coming back for more.

Early focus on building customer relationships is important.  You will be the new person and so you need to create trust and show your client base you are reliable and offer a service which is as good (or better!) than the last franchisee.  Make sure that there is support from the franchisor during the handover process.  Work closely with the outgoing franchisee to meet customers and ensure accounts are all aware of the impending change of ownership, and how well you plan to look after them.  This will make for as smooth a handover as possible.

As well as getting up to speed with existing accounts you will need to devote a proportion of your time to generating new business.  When you start off this will be challenging as you will be less familiar with the product or service than an experienced franchisee.  However, the good news is that you will come to the franchise with a ‘fresh set of eyes’ and so may spot opportunities that have been overlooked in the past.  Use your enthusiasm to your advantage to generate interest in your offering!  Remember, people buy from people.

Finally look to your franchisor for support in the early days.  Take advantage of training and talk to other franchisees to see how they overcome every day challenges.  One of the main advantages of franchising compared with setting up in business alone is that you have the backup of a successful and experienced team behind you so be sure to call on them for help when you need it.

Franchising is an ever increasingly popular way to enjoy the flexibility of self employment.  However, to ensure your franchise starts to be profitable as early as possible, you need to prepare.  Choose a good and reputable re-sale franchise and take advantage of the support that is offered to you.  Be quick to build relationships with existing customers and let your enthusiasm help create new business opportunities in the marketplace, and this will help you move from the red into the black as quickly as possible.

For further information about Card Connection re-sale franchises, visit Card Connection’s franchise profile on Franchise Direct.

Franchise Bio: Joel Libava

It turns out that the King did not die, but is very much alive and well in the form of Joel Libava – the Franchise King.

Joel keeps a regular blog on the franchise world, as well as helping franchise companies grow by finding potential franchisees with innovative online and social media marketing techniques, and through direct consultations with prospective franchise owners. Based in the US, Joel helps people all over the US find fantastic franchise opportunities with his superior personal franchise matchmaking methods.

Joel describes himself as “a brutally honest, but not always politically correct, entrepreneur-who’s hyper-focused on the world of franchising.”

With a diverse background as a radio and TV announcer, Las Vegas Maitre’D, food and beverage manager, Joel has also worked in automobile franchising in a management capacity, and a sales trainer.

You will frequently find Joel giving presentations on the topic of franchising, and he is the “Franchise Expert in Residence,” and columnist for the award winning Small Business Trends website. Joel is also The Community Promotions Director for Small Business Trends. Joel also writes over at the OPEN FORUM by American Express blog, joining other small business experts like Guy Kawasaki, Chris Brogan, and Anita Campbell.

In addition to all of this, Joel also regularly contributes as an expert source to The Wall Street Journal, Fox Business News.com, Entrepreneur Magazine, MSNBC.com, Bottom Line Personal, Crain’s, The Plain Dealer, and numerous other US national and local publications and websites. He is also interviewed regularly on Jim Blasingame’s Small Business Advocate radio program, as well as on Barbara Weltman’s Build Your Business radio show.

Pheuw! And if that wasn’t enough, Joel was recently approached by Business.Gov to contribute articles about the business model of franchising. This website is the official business link to the US Government, and Joel says he is very excited to be a part of it!

Check out Joel’s Franchise King blog (http://www.thefranchisekingblog.com/) to read about all the goings on in the franchise industry, as well as some insightful observations on the nature of franchising and the environment in which franchisees operate their businesses.

Everyone knows that while you may have the qualifications in every kind of business management, your success really depends on your drive and ability to manage your business through a recession. This is why I was interested to read this article by Gerard Burke who is the programme director at Cranfield School of Management, Bedford.

In this article, Burke outlines the characteristics which SME owners will draw on to successful guide their business through the choppy economic seas! While a considerable amount of SMEs are finding themselves struggling to keep their heads above water, SME owners are drawing on key skills to optimise their business practices.

Here are Burke’s top 6 business characteristics:

Being in Control: Owners should take control of their destiny. Take ownership of your business and grasp opportunities which may come your way.

Confidence: While there is most certainly an economic downturn, there are still customers with money to spend so all is not lost! Communicate a confidence in your business and this will start to rub off on your staff and show your customers that you believe in your business.

Be Distinctive: Make sure your product has a strong unique selling point, which there is a demand for within your target territory. Communicate this effectively to your customers to show how you differ from every other business.

Strength: Remember the goals of your business and what it promises its customers. Don’t start trying to add on extra services without ensuring that you are carrying out your current services to the highest standards. Question any costs and follow up on debtors to make sure you keep your books balanced. Running a tight ship will ensure that your business is operating to the best of its ability and has the best chance of surviving the recession.

Wisdom: Make sure that you don’t lose your drive to grow your business. While sales may be falling, you should not outline all investments, as some may allow you to grow and expand your business. Make sure you research all opportunities which come your way, and invest wisely.

Being Prepared: Keep an eye on your competitors and developments within your target market. As some of your competitors may drop, this could create a good opportunity to you to acquire new customers and even key staff. Recruitment has become highly competitive and you should be able to fill any vacancies with high quality staff.

Gerard Burke is involved in the Business Development Program at Cranfield. SME owners can attend free briefing events to find out about the services which this program offers; visit the program’s website to find out more. Alternatively, visit Franchise Direct’s franchise expos and events calendar to find out about business and franchise seminars coming up near you!

Small Business Trends recently published a document on creative tips for small business owners. This website publish a lot of work online with helpful tips and thoughts for small business owners, and this latest publication is also helpful for all those who find themselves at the helm of a small business. The tips are contributed from individuals running their own business which prove to be quite insightful and are split up between money saving tips and business growth tips. In times such as these, sharing information and tips between small businesses is the way to go!

At the recent IFA convention in San Diego, Dina Dwyer Owens of The Dwyer Group spoke about how her company believed that they had a responsibility as a larger organisation to give advice and help to smaller companies and that this recession would inevitably improve and strengthen businesses. Click here to watch Franchise Direct’s Lillie Burroughs interview delegates the IFA annual convention in San Diego. Listen to the delegates speak about how they intend on ensuring the survival of their businesses during the economic downturn.