Category Archives: Consulting

December 11, 2019 · 4:14 pm

We’re Not Stupid

I do quite a bit of headshaking these days. We won’t talk about the political stuff that causes me to do so but there are just as many things outside of politics to trigger the behavior. I’d like to talk about one of them today because it’s instructive for anyone in business.

One term that’s become en vogue is “alternative facts.” You know what I mean – the dissemination of pieces of information that are mostly or completely untrue. Orwell termed them “doublethink“. I term them lies.

What brought this on? I subscribe to a bunch of magazines – golf publications, cooking publications, and several others. This time of year, in particular, I get snail mail with offers to send a gift subscription. Some ask me to renew or extend my existing subscription and offer to send a free gift subscription to someone as a thank you. So far, so good. These offers are usually clear and only mildly annoying.

Then there is one publication that just doesn’t get it. It’s part of a larger family of magazines and I wonder if what I’m about to describe goes on at the other publications as well. An envelope shows up stamped first notice. I’m told my subscription is expiring and I should renew. A few weeks later comes the second notice. Last week, I got some mail marked THIRD NOTICE in large letters outside the envelope. Inside was the same notice I’d already received twice – my subscription was going to expire (aren’t we all?) and I need to renew ASAP for uninterrupted service.

Here’s the problem. I just renewed this subscription last year for several years. Just to be sure, I found the last issue and sure enough, there on the mailing label was the expiration date. It’s January alright. January 2021. I’ve got a year to go. I wanted to confirm this so I logged on to my account on the magazine’s website. My account lets me use the site’s “recipe box” which I do quite a bit but for some inexplicable reason, it’s not linked to my magazine subscription. When I click on the “manage account” link, up pops a new tab asking me to renew. Again, there’s an assumption that you’re dumb and will just renew because a very in-your-face page is telling you that you need to. In order to see your current account, you need to click through on the FAQ link at the foot of the page and scroll until you find a link to “log in to your account”. Of course, when I finally found this and did so, I confirmed that I had a year to go on my subscription.

Putting the awful user experience aside, what’s bugging me is that these publishers think their readers are dumb. They seem to believe that sending out misleading notices with “alternative facts” will lead to renewals. I wish I could say they were unique but they’re not. I’m sure you get the same kinds of “notices” that I get. My home warranty is expiring (I don’t have one), I can have a “free security system” (it’s far from free), and on and on.

Companies that think we’re stupid deserve to be out of business. I’m well aware of Mencken’s statement that “No one in this world, so far as I know … has ever lost money by underestimating the intelligence of the great masses of the plain people”. We need, instead, to think like David Ogilvy: “The customer is not a moron. She’s your wife”. Putting aside that deceptive marketing just might be illegal, doesn’t it bother you to be thought of as an idiot?

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December 6, 2019 · 4:54 pm

Pots And Pans

Happy Foodie Friday! Have you recovered from last week’s massive food fest? If you were the host of the festivities, at some point you hauled out some pots and pans. Cookware is the most basic kitchen equipment besides a great chef’s knife (you have one of those, right?) Other than when you’re outdoors cooking on a grill or smoker, you pretty much need a pan or a pot or several of each to get the job done.

This isn’t going to be a “how to equip your kitchen with cookware” screed. The reality is that my favorite sizes and types of cookware may not be at all appropriate for you. I mean, I cook on a gas cooktop which means that I like cookware that can handle high heat and distribute it evenly. You may cook on an induction stove which means your pots and pans need to be a “ferrous” metal – meaning a magnet needs to cling to them to work properly on an induction cooktop or range.

I often will start something on the stove and then move it to the oven. That means I want pans that have handles that can go in the oven without melting as well as pans that won’t warp in the oven heat. In fact, thin, insubstantial pans may be less costly but single-ply cookware does not heat evenly nor does it retain heat well. This means that you are likely to burn things. Thin pans warp easily as well and if you’ve ever tried to maintain a thin layer of oil or butter for sautéing in a warped pan, you know it’s damn near impossible to get it right in that case.

You might insist on everything being non-stick or you might have concerns about the surface leaching into food. You might love ceramic pans while I don’t like how they discolor over time. To each his own, right? But what’s important is that you THINK about what you cook and how you cook before you invest in cookware. Ideally, it’s something you’re only going to do once for each pot or pan you buy.

The same holds true in business. What’s right for my business may be totally wrong for yours and, like a non-ferrous pan on your induction cooktop, might not work at all. You need to do requirements planning with input from all constituencies (all cooks weigh in!). You need to evaluate all the options and costs, while always important, can’t be the primary criterion. I generally buy my stuff at a restaurant supply place that sells to the public – it’s high-quality, will stand up to my home use since it’s made for much heavier use than I give it, and it’s less expensive than the stuff you find in the “consumer” stores. That is a great guideline for anything you’re doing in business as well. Plan, research, evaluate and buy for the long-term. You’d be surprised where the best solutions can be found!

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November 20, 2019 · 4:26 pm

Am I Hot Or Not?

One question that often comes up as I’m discussing franchise opportunities with people is that of what businesses are “hot.” It’s interesting that “hot” comes up at least as often as “profitable”. I can answer the questions for them (and usually do), but I also add a couple of other thoughts. That’s our topic for today.

For those of you that are curious, what’s currently “hot” in the world of franchises falls into a few broad categories. Within the food sector, breakfast places, juice bars, Mexican food, and healthy bowls are doing well. Restoration services – businesses that clean up after accidents or disasters are hot as well. Some of the other categories that are in demand are childcare, pet services, fitness businesses, and some “alternative” health businesses (cryotherapy, etc.), and beauty/grooming. As an aside, I represent businesses in every one of these categories – let me know if you want to learn more!

I’ll review those categories with interested candidates but then I caution them and I’d like to do the same here. Many of the businesses in those categories are “sexy” but several are not particularly profitable.  When you’re thinking about making a huge life change, which is what many of the folks I speak with are doing, you need to take a step back and look at the big picture. It’s not about what’s hot because what’s hot today may be gone tomorrow. Think about businesses that were all the rage a couple of years ago. Yogurt stores (yes, I have some of those too) seem to be fading away. Most of the “daily deal” sites have consolidated or gone away. Same with many of the subscription box services. The tanning bed business has transitioned into a spray-tan business.

My point to them, and to you, is that focusing on what’s hot isn’t a great criterion as you’re looking at new opportunities. Instead, ask yourself what makes you happy. What can you see yourself doing every day that will have you excited about getting out of bed? The odds are that there is a franchise that will allow you to do that. Some folks are equally concerned (or more concerned) with making money. Many of the businesses that do that aren’t “sexy.” They’re things like home repair or remodeling businesses or they’re businesses that might require a higher level of capital like a senior care business where you might need to “float” a payroll until cash flow grows.

Businesses ebb and flow. Categories run hot and cold, but what makes you happy probably doesn’t. Add profitability to the mix and you’re on the right track, whether it’s hot or not.

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