Is your business ready to be franchised?

Is Your Business Ready?

How can you tell if you’re ready to step into the world of franchising? First of all, you must realise that you may not be ready. It’s important not to interpret this as a failing or setback; rather, you must allow common sense to prevail. You may feel ready to franchise your business, but if you take this step prematurely, you’ll find yourself struggling in the long run. If you find you’re not ready to franchise, don’t worry. Step back, keep working, and look at your situation again in a week, a month, a year.

Questions to Consider

Before you even think about franchising your business, there are certain questions you must consider.

1. Is my business successful, recognisable, and thriving?

Part of the benefit of franchising is the ability to reproduce a recognisable brand name or product. If your product is not yet internationally known, don’t sweat it -- as long as you’re thriving in your current area. Franchising will never revive a failing business. In fact, the increased cost and workload are likely to finish you. Your resources are best focused on turning your local business into a success before you direct your energies outwards.

2. Will my business catch on in other locations?

If you’re the only store in town selling umbrellas, you may want to step back and assess the reasons for your success before you consider franchising. Do you fill a niche market, or are you successful because your product is in some way extraordinary -- in quality, in price, or in concept? If you opened another store in another location, do you honestly believe it would do well, or are you relying heavily on local traffic and word-of-mouth? You may have a thriving business, but that doesn’t necessarily mean you should franchise. You must have a product that is universal -- something that will be a success regardless of location.

3. Have I attempted to open secondary locations on my own?

Before you try franchising, it’s highly advisable to try operating your own version of a franchise. In other words, launch a second business somewhere nearby, something you can supervise closely. This will allow you to reproduce your business model, which is the key to a successful franchise, as well as observe your product’s reception in another location. What’s more, it allows you to refine your business model before releasing it to the world at large -- which is essential, because once you’ve created a franchise; you’ve turned your idea loose on the world. You may have nominal control, but major changes may create dissent among franchisees.

4. Will I be able to attract franchisees?

Can you demonstrate your business model and show why your business will make a successful franchise? Remember, you have to attract franchisees the same way you attract customers. You want the best people in charge of your franchises: smart, responsible, reliable individuals. In order to attract them, you’re going to have to produce a franchise information packet that is clear and definitive. Double-talk will not work. Remember, franchisees have dozens of opportunities to choose from; you must make yours appealing.

5. Do I have the resources to expand my business?

Depending on the nature of your business, franchising may require a great deal of additional products, personnel, and commitment from you and your staff. There’s no sense creating a franchise if you lack the capacity to adequately supply and maintain it. You’ll only create ill will and demolish your future franchising opportunities. Before undertaking a franchise, be sure you’re prepared on your end.

6. Do I have available capital?

Beginning a franchise can be a costly endeavour. You must be sure you have a significant amount of capital ready to invest. As the saying goes, you have to spend money to make it!

7. Am I comfortable directing others, providing support, and marketing my product?

Obviously, if you’re considering franchising, you’re running a successful business. Franchising, however, is a far different arena than managing one or even two local businesses. You will have to entrust your product to people you don’t know well, and you must be prepared to provide adequate marketing and support. Franchisees will rely on you for training and direction. If you’re uncomfortable providing it, then you either need to find someone in your company who is willing to manage your franchises or consider other expansion opportunities.

Part of the appeal of a franchise is that the franchisee doesn’t require business knowledge or expertise. They will expect you to provide a great deal of support and training, especially in the early stages of the franchise. Of course, in the long run you hope to stand back and watch your franchises manage themselves, but you must be prepared for extra time and work at the beginning.

Franchise Your Business

Why Franchise the Business

You have developed a unique business that has the ability to be replicated throughout the UK or even the world. The franchising model allows you to expand quickly with little capital. Franchising the operation allows you to remove the day-to-day problems of running multiple outlets allowing you to concentrate on building a large national organisation.

The franchising route can be very lucrative - you can exploit your niche and expand very quickly.

The Process

The first step in franchising your business is to start by analysing the current business model and the ability to recreate it many times. At HMA we will provide a FREE consultation and provide you with a full written report on:

• Suitability of the business to be franchise
• The franchise fee that could be obtained
• The management fee that could be obtained
• Any changes needed to your operation to ensure a successful franchise
  

Step two is to work through the financial model to ensure that the business can satisfy both the business needs and the expectations of a franchisee.

Step three is to create the prospectus for the franchise. This will be used to sell the franchise.
Step four is to create a detailed and well laid out operators manual. This should be divided into two parts: one section for the franchisee and one section for the employees of the franchisee.

Step four is to decide on the initial franchise fee and the ongoing royalty payments. In the initial stages of launching the business franchise, the franchise fee will have to be kept at a low level to entice the first batch of franchisees. Once you have some franchisees running successfully then you will be able to increase the initial payment.

In step five we will start to create the web site and start on the marketing material to promote the franchise opportunity.

Step six is to create the training program for your franchisees. Some will require more support than others and a system should be put in place to cope with this. You will need to decide at this point who is going to actually carry out the training. Many franchisers outsource the training aspect to another up and running franchisee or HMA.

Step seven is to devise your franchise agreement. We have a great franchise lawyer. We do not cut costs, as this document will end up being the cornerstone of your business opportunity.

Step eight involves creating a business plan for the franchisee with full financials, which can be used to secure finance for the purchase of the franchise.

Step nine is to complete all the marketing material including brochures and video presentations to market your franchise. We will also need to decide where to market your business opportunity at this point. There are now a multitude of mediums where you can promote your franchise ranging from franchise exhibitions, franchise magazines and franchise websites. Many companies even advertise their franchise offering in the national press.

Step ten: Marketing and PR – we will devise a marketing plan to ensure a steady flow of applicants for the franchise.

Step eleven is to develop the recruitment process to ensure only the best applicants get invited to join the organization.

Once the first few franchisees are up and running we will get the franchise to be rubber stamped by the British Franchise Association.

Bear in mind that the above steps will be under constant improvement as the franchise network grows. All the marketing material, ongoing support and training will have to be developed as weaknesses are discovered.

Some of the franchisees will have to be given extra support, as they will never have managed a business before. Not only will you have to teach them how to mange your franchise but in some cases you will have to also train them in basic accountancy and admin skills.

Finally, a system will have to be created to deal with franchisees that are deemed unsuitable after they started managing their business. No matter how comprehensive our recruiting programme is, it will be very difficult to weed out all the unsuitable candidates until they actually start running their business.

The franchise fee

Depending on the quality of your franchise the fee that you can charge for your franchise can range from £5000 to £500,000. Following our free opportunity analysis we will give you our recommendation based on our initial observations.

There are high failure rates for new businesses. The latest figures show that only 4% of businesses last longer than 10 years. It takes time, effort and experience to develop a business plan, secure financing, acquire the necessary licenses and get a clientele base. Indeed, it is wise for new business owners to have six months to one year of income set aside to subsist on while the business gets its footing. And, unless you have a wholly unique business idea, you will likely find yourself in fierce competition with well-established businesses.

Franchise businesses however enjoy a very high success rate. They are proven business models, which will work for anybody who follows the system correctly.

Your franchise offering is very appealing. The franchisee will be working within a proven system and enjoy instant credibility. Additionally, you will provide ongoing support that guarantee’s success.
All of these facts add up to a quick return on the franchisee’s investment because your franchise business is operational from the moment you train the candidate.

Once you have a few franchisee up and running we can obtain a high loan to value finance offer from a leading high street bank.

How much money can you make from franchising your business?

This varies from company to company but the income from franchising can be considerable. Our free opportunity analysis report will detail our expectations for your business.


How long will it take to franchise the business?

We have a fast track system that enables us to franchise a business in just 90 days. To achieve this goal however takes a lot of commitment from all parties involved. We provide as much resource as needed to ensure completion with 90 days.

We will work to the following program:

Month 1

Analysis of current business
Model new franchised business
Agree new business model
Create financial projections and agree
Create prospectus

Month 2

Produce website – Submit to search engines
Produce operations manual
Start production of legal documents
Produce marketing material

Month 3

Create training program
Create recruitment process
Finish legal documents
Start PR and marketing of opportunity
Create business and financial forecasts for franchisees

Month 4

Recruitment and training of first franchisees


Month 7

Submission to the BFA (additional fee payable to the BFA)

Our Fees

As you have seen franchising your business will generate a lot of additional cash. This option is also the quickest way to build a very profitable and high value business.
HMA Business Growth Solutions will complete 95% of the work involved in franchising the business. We will cover all legal costs (approx £5K), provide all the marketing material needed and provide a complete plan to recruit franchisees. We will also provide ongoing support and changes to the franchise system as required for a period of three years.

* £9995 + vat payable in 4 monthly payments (£2498.25 + VAT per month).

This is a heavily discounted rate - we prefer to make the mass of our fee by linking our fees to your success.

In addition we will:

A) Advertise the franchise

B) Qualify the potential franchiseesC) Meet all potential franchisees

D) Any franchisees that we feel are suitable will be invited to meet with you.

E) Close the sale and setup all legal contracts.

In return for handling this process and incurring many costs, our fees will be 20% of the franchise fee. This fee will only be payable on success.

Isn’t that refreshing - A consultancy company that links payment to performance.

The exciting part of our service is that it won't cost you a fortune. We mainly work by charging a small project fee and accepting a minor percentage of the increased profits that we create for you.

We like to share in the extra profits we make for you.

This makes us highly motivated to achieve major increases in profit.
Plus—we guarantee that your franchise will be a success or we’ll work for you for absolutely nothing until we do

We are not like any other consultancy company you've ever come across.

www.franchisemybusiness.co.uk

How To Develop Lasting Customer Loyalty

Do you have trouble making money in your business? Do you not seem to be able to get people to buy from you? And the few who do...do they rarely if ever make a repeat sale...much less demonstrate any deep loyalty to your business?

You've heard the business slang flying around the internet. You know, words like 'CRM' (Customer Relationship Management) that we're supposed to spend thousands of pounds on to learn how to develop wonderful customer loyalty...deepen trust...to get repeat business.
And yes...it is true. All of those things are important. But it is so easy to get caught up in the details that we often lose sight of the 'BIG' picture. We swallow the camel while straining at the gnat.

While I believe that CRM and all those other things are very important for running a business, we just need to use a little common sense. I know...I know...you're going to tell me that common sense isn't so common in most businesses this day and age. And you would be right.
But before I get to the point, let me try to illustrate what I mean with a short story. Maybe it will help clarify what I am getting at.

I had an employee I ended up firing due to some rather 'unloyal' actions on his part. He soon got a job with one of my competitors...which turned out to be a really beneficial thing for me as he kept me up-to-date on what was going on over there.

He lives just a few houses down the street from me and would come by every once in while to say 'hey' and shoot the breeze. Once he came by and told me about this big seminar that he was going to be attending.

His boss was paying for his 'ridiculously' priced ticket to some 'CRM' seminar. The idea was that they wanted everyone in the company to learn how to manage their customers. Right?
So anyway, after all is said and done, I asked him how it went. He said it went great. But the only problem they were having was that his boss wouldn't implement any of things they had learned there.

Listen! They had spent a lot of money to send the whole staff to this fantastic (expensive) seminar, but then wouldn't let the employees put anything they learned into practice. Can anyone say 'common sense'?

Sometimes, we (yes, I am included here) get so bogged down with all of the little things we need to do that we lose our focus. If you want to 'manage your customer relationships' just keep it simple.

Think 'Golden Rule' simple.

"Do unto others as you would have them do unto you!"

Can you imagine how loyal your customers and clients would be if you treated them like you would want to be treated all of the time?

Uh huh!

So, take a few moments to sit down and imagine yourself walking into your business. How would you most likely be treated vs. the way you would want to be treated?

Think about ways to wow your customers and give them more than they bargained for. Do you really want loyal customers or not? You say you do...but your actions don't show it now. Do they?

So, simplify your life of all that 'fancy CRM' stuff you deal with...and get into your customer's shoes. Give them the experience of a lifetime. They will give you the lifetime of loyalty you seek in return.

Dave Grooms
HMA Business Growth Solutions
www.hma-solutions.co.uk

Do you have trouble making money in your business

___________________________________________
The Business Growth Newsletter
By Dave Grooms - Business Transformation Consultant
___________________________________________
8th November 2005

------ This Weeks Article ----------------

Do you have trouble making money in your business? Do you not seem to be able to get people to buy from you? And the few who do...do they rarely if ever make a repeat sale...much less demonstrate any deep loyalty to your business?

You've heard the business slang flying around the internet. You know, words like 'CRM' (Customer Relationship Management) that we're supposed to spend thousands of dollars on to learn how to develop wonderful customer loyalty...deepen trust...to get repeat business.
And yes...it is true. All of those things are important. But it is so easy to get caught up in the details that we often lose sight of the 'BIG' picture. We swallow the camel while straining at the gnat.

While I believe that CRM and all those other things are very important for running a business, we just need to use a little common sense. I know...I know...you're going to tell me that common sense isn't so common in most businesses this day and age. And you would be right.
But before I get to the point, let me try to illustrate what I mean with a short story. Maybe it will help clarify what I am getting at.

I had an employee I ended up firing due to some rather 'unloyal' actions on his part. He soon got a job with one of my competitors...which turned out to be a really beneficial thing for me as he kept me up-to-date on what was going on over there.
He lives just a few houses down the street from me and would come by every once in while to say 'hey' and shoot the breeze. Once he came by and told me about this big seminar that he was going to be attending.

His boss was paying for his 'ridiculously' priced ticket to some 'CRM' seminar. The idea was that they wanted everyone in the company to learn how to manage their customers. Right?
So anyway, after all is said and done, I asked him how it went. He said it went great. But the only problem they were having was that his boss wouldn't implement any of things they had learned there.

Listen! They had spent a lot of money to send the whole staff to this fantastic (expensive) seminar, but then wouldn't let the employees put anything they learned into practice. Can anyone say 'common sense'?

Sometimes, we (yes, I am included here) get so bogged down with all of the little things we need to do that we lose our focus. If you want to 'manage your customer relationships' just keep it simple.

Think 'Golden Rule' simple.

"Do unto others as you would have them do unto you!"

Can you imagine how loyal your customers and clients would be if you treated them like you would want to be treated all of the time?

Uh huh!

So, take a few moments to sit down and imagine yourself walking into your business. How would you most likely be treated vs. the way you would want to be treated?

Think about ways to wow your customers and give them more than they bargained for. Do you really want loyal customers or not? You say you do...but your actions don't show it now. Do they?

So, simplify your life of all that 'fancy CRM' stuff you deal with...and get into your customer's shoes. Give them the experience of a lifetime. They will give you the lifetime of loyalty you seek in return.

------ This Weeks Quote ----------------

A business has to be involving, it has to be fun, and it has to exercise your creative instincts.

by: Richard Branson

------ This Weeks Marketing Idea ----------------

Newsletter

By publishing a regular newsletter you are creating a high-powered selling and relationtions tool.

------ This Weeks Operations Advice ----------------

Preparation Will Win the Day

The business world is not unlike a courtroom. One of the marks of a successful litigation lawyer is preparation. Preparation is essential if you wish to receive a favorable result...


________________________________________

I hope you enjoyed this weeks newsletter.Please feel free to pass this newsletter on.

Have a successful day!
Dave Grooms

________________________________________

Business Improvement Consultant

www.davegrooms.co.uk
As a large proportion of my fee's are linked to

profit improvements nearly any business can afford to hire me

Please feel free to email me: mail@davegrooms.co.uk

Active Listening Skill Tips for Interviews

During a job interview, a potential employer asks, "Can you take on more than one project at a time?" If you respond, "Yes," you may want to rethink that answer. According to Dynamic Listening: Interview Skills, a computer based training module from Mindleaders in Columbus, Ohio, you should avoid one-word or one-sentence answers.

Be specific. And speak money-language. Here’s a preferred answer to the question above, "In general, depending upon the type and length of projects, I believe in efficiently handling more than one project at a time. This could save a company as much as 30%." Let’s check out the definition of "active listening skills" and learn more to help with your next interview.
Active Listening Skills

Just as everyday speaking is not the same as public speaking; listening is not the same as active listening. Active listening means two things: analysis and response to the message being communicated.

An active listener maintains eye contact and good posture with a slight lean towards the speaker. During the interview, the listener nods, smiles and takes notes. Be ware, however, that a daydreamer or pseudolistener, can adopt these behaviors. So a listener’s physical response does not necessarily mean good listening skills are at work.

Nonverbal communication, more than just the nod or smile, is important. Gestures, appearance, timing, voice responses, facial expressions, spatial distance all affect how the speaker (or interview) interprets the listener. So a person preparing for a job or work project interview should consider the cultural climate and norms of society of the interviewer. In short, perceived active listening based on nonverbal signals can vary from culture to culture.

Especially in this age of such great cultural diversity, be courteous of others regardless of cultural, sexual or societal backgrounds. If you are a woman and get to a door before a man, open it. If your interviewer doesn’t speak English very well and looks puzzled at your words, go back and explain yourself again in different words and re-establish a good communication exchange.

Note: a major part of active listening is paraphrasing. It’s not the same as summarizing. A summary is a shortened version of the original message, focusing on the main point. To paraphrase means to re-state the message in your own words.

Active listeners take notes by paraphrasing or restating what the speaker said in their own words, and summarizing main points. A good listener is not the same thing as a silent listener. Good listeners ask questions, even something like, "Is this an accurate paraphrase of you have said?" to let the speaker know that you understand the message being communicated.


Dave Grooms
www.davegrooms.co.uk
Business Growth Consultant