Tag Archives: Business and Economy

Walkin’ The Talk

I spend a lot of time on the telephone these days. I’m constantly calling people who have indicated that they have an interest in changing their lives by investing in a franchise. It’s great most of the time even if it’s frustrating at the same time. The reason for that is something from which any of us in business can learn.

I think that a number of folks are now using some sort of auto-responder on their phones. I will very often dial someone and just as their voicemail kicks in I get a text from them. “I’ll call you back” is pretty common or even the more maddening “I’ll call you back in an hour.” The reality is that I rarely get that callback.

I pride myself on walkin’ the talk. If I tell you that I’m going to do something, I do it. People are trusting me with a lot of sensitive information – their financial situation, their unhappiness with their current work situation in many cases – and I need them to know that I’m worthy of that trust. Keeping commitments is part of building trust. If I tell you that I will call you at 10, you can be quite sure that your phone will ring at 10. That’s what several decades in the TV business do to you – 10 means 10, not 9:58 or 10:02.

Trust is foundational in business. Yes, there are contracts so that everyone knows what the deal is although I probably didn’t pay enough attention to contracts because I always felt that if I could trust the person I was dealing with, contractual issues would tend to take care of themselves. Making a commitment via autoresponder isn’t walkin’ the talk. It’s just talking to get someone off your back. I’m willing to bet most of the folks don’t even know that a text was sent.

I made a resolution this year. I’m not chasing after anyone. They can generate all the texts they want but if they don’t follow through and make the call, I’m done with them. There are lot of foks who are serious about changing their lives for the better and I’m going to be spending my time with them. That’s a commitment and you can bet it’s one I’ll be keeping.

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Filed under Franchises, Reality checks, Thinking Aloud

Tasks And Experiences

Happy Foodie Friday! This article came into my news feed this morning. It’s about Walmart’s store of the future, where robots can fill grocery orders up to 10 times faster than humans. Pretty spiffy and it’s an interesting read, but it also got me thinking about a pretty important distinction about which I think you may want to ruminate.

When I go to the grocery store (every Thursday!), I have a list of things I want to buy. Most of the things on that list are there because I’ve planned out meals for the week and I need things to make those meals possible. It’s a pretty straightforward task. Other things are on the list because I use them in general and they’re on sale. Maybe I have a coupon that for them that is expiring. Maybe they’re on sale AND I have a coupon (can you feel the excitement?). Again, it’s pretty cut and dry – here’s the thing on the list, buy it and bring it home.

That’s really only half the trip, however. Inevitably, I find things to buy that aren’t on the list. I’ve found them as part of the shopping experience. Maybe it’s an unadvertised sale, maybe some local produce came in and looks spectacular. This is experience-oriented shopping versus the aforementioned task-oriented shopping.

Back to the article. It’s lovely that Walmart (and Amazon and others) are extremely efficient in servicing these orders, but they’re only serving the task-oriented shoppers. In-store discovery is impossible when there is no in-store experience. That’s why you always see “people who bought (the thing you’re buying) also bought (another thing).’ I think it’s also why Amazon is moving into physical stores, both through Whole Foods and their own “register-less” stores. Obviously, serving the task-oriented shopper is only half the battle.

I think it’s the same in other businesses.  Almost every business interacts with customers, partners, vendors, and employees in a task-oriented framework. When you stop and think about it, good businesses make sure there is an experience-oriented aspect to the relationship as well. What I mean is an experience that the participants can enjoy for its own sake and not as a means for accomplishing a task or achieving an extrinsic goal. Maybe it’s just drinks after work with no agenda. Maybe it’s a round of golf. All of my best business relationships had both task-oriented and experience-oriented aspects.

Think about how you interact with your customers. Is everything a task where items get ticked off a list or is there an experience that’s part of the relationship? How can you bring that balance?

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I’m Sick Of Scammers

Another year, another scammer surfaces. I’ve written many times in this space about marketers who try to take advantage of people’s limited attention spans and fear of all things “official”. The mail delivered another example of one to my doorstep the other day and I want to tell you about them. Admittedly, part of this is venting but another part is a very real concern that many marketers have lowered their standards to a point where they’ll do just about anything to drive business. It’s even worse when the business itself is a scam.

North Carolina, like many states, requires that all businesses file an annual report with the Secretary Of State. If you’ve never done that, it’s a very easy process that can be completed online in about 3 minutes. I had to do the same thing when my LLC was registered in Connecticut and the process was equally easy. You check a few boxes and pay the fee. Easy peasy.

In the mail the other day was an official-looking document – 2020 Annual Report Instructions Form.  The blanks in the form were already pre-populated with my LLC’s information. It also contained the language from the general statutes about having to file an annual report. I thought it was something the state had sent until I gave it more than a cursory look.

In a different typeface was a sentence that said this was being sent by a third-party who would file my report for me. Just send along the $292 fee and that would be that. Of course, the filing fee is only $202 – the other $90 was what this company was scamming me for. The grift IS the business – there is very little, if any, work involved otherwise.

My first thought when I saw the form was, oh, I’ll do this online, as I do pretty much everything. My next thought was “wait, this isn’t the state, this is a scam.” The thought after that was “some percentage of business owners are going to fall for this.” It has all the right information and it’s very official-looking. Of course, anyone can get that information on the state’s website and matching the state’s form and typeface isn’t exactly rocket science.

I admit there are a couple of disclaimers that the company is not affiliated with the state but why should anyone have to read very carefully to avoid being taken advantage of? Are they providing a service? I suppose so, but why not offer the service in a clear manner instead of trying to obfuscate that you’re charging $90 to save someone a few minutes’ work?

If you market a product or service, the road to profitability isn’t made easier by misleading or scamming your customers. Let’s not do that. Even better, let’s shine some sunlight on those scammers who do.

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Most Read Post Of 2019

Happy New Year and a new decade to boot! This post was the most-read screed I published in 2019. It’s fitting both to end and to begin the year with it since the topic involves change. This is the time of the year when many people stop and assess their lives which often leads to change. This piece, originally titled “Taking The Beaten Path” has to do with some issues involved in starting your own business. I published it last February and I hope you’ll give it a read and some thought if you’re thinking about starting fresh in 2020.

One of the questions that has come up often in my newish role as a franchise consultant has been why one should look to invest in a franchise to begin with rather than starting a business from scratch. After all, there are generally fairly substantial franchise fees associated with a franchise along with the other expenses one might expect when starting a business plus you usually have on-going royalties. You’ll still have to pay to incorporate, you still often need insurance, licenses, equipment, space, and people. Why incur the extra fees on top of the ordinary expenses? It’s a good question and I have what I think are some good answers. If you’re thinking of starting a business or maybe changing the nature of the business you’re running, here are my thoughts.

First, the biggest advantage of buying into a franchise is that it’s a business in a box. It’s a proven business model, one that comes with built-in support. Almost every franchise I work with has some form of training and on-going mentoring. I think about that in terms of the businesses that have hired me to consult in the past. Much of what I did would have been covered by that sort of support, negating the need for an outside consultant. The franchise will have research and the business results of all the other franchisees. That’s invaluable and beats the heck out of going it alone.

Another consequence of that is you’ll probably experience much faster growth. You won’t be spending time formulating a business plan. Instead, you’ll be getting trained and executing one that has been time-tested. Something as simple as logo design, which can take time and several iterations, is not really a concern. You’ll generally be presented with operations manuals and marketing materials. Your time to market is greatly decreased.

One thing that is much easier is financing your business. Franchises are less risky in lenders’ minds since they’re known brands and proven businesses. While banks aren’t the best source for franchise ending, there are many lenders who specialize in that (I work with 6 of them) and SBA loans are easier to come by as well. Finally, your potential customers will already know who you are. Most franchises have good brand recognition, and even those that don’t have a current local presence can often benefit from being seen as part of a bigger entity.

The Bureau of Labor Statistics says that roughly 1 in 5 of all businesses in the U.S. close after the first two years of operation and a little over a third shut their doors after four years. You can beat those odds by taking the beaten path and investing the franchise fee to gain the above benefits. In my mind, and why I added this to my consulting portfolio, that investment yields as good or better returns than blazing your own new trail. What do you think?

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Foodie Friday Post Of The Year 2019

We are continuing in the yearly review of the most-read posts written this year and today it’s the most-read Foodie Friday post written this past year. In fact, this actually was the most-read post of all, as it turned out. I wrote it last April as a meditation on salty snacks and how they really aren’t a long-term solution to our hunger problem. As usual, it turned out there was a business point lurking. Enjoy!

It’s Foodie Friday! Today I’d like us to contemplate the foods that make us hungry. No, I don’t mean the ones for which we have cravings. I mean food that can actually increase your hunger when you eat them.avoid fast food solutions

Have you ever wondered why bars put out salty snacks like popcorn or peanuts or pretzels? As it turns out, salt makes you thirsty and what better place to be when you’re thirsty than your favorite watering hole? Salt, according to some studies, is addictive, as is sugar and fat. The food industry has become very good at layering those things together to create products (I’m deliberately not saying “foods”) that play to our addictions, light up our dopamine centers, and cause us to engage in self-destructive behaviors. When you hear the old Lay’s slogan about “bet you can’t just eat just one,” you might try to think about what the drug pusher says as they give away their free samples to people: “don’t worry – you’ll be back.”

The screed today isn’t meant to be a lecture on improving our eating habits. Instead, there is a business point here. We don’t eat salty snacks or sugary foods or processed foods or even foods sweetened with artificial sweeteners (they made you hungry too) to get fat. We eat them to solve an immediate need – hunger. But there is any number of other options that can fill that need without triggering the problems that come from really unhealthy foods.

It’s the same in business. We often take the easiest or most available or cheapest solution to solve an immediate need. Unfortunately, those “fast food” solutions only solve the problem in the near term and can often cause long-term damage. Just as with food, we need to be aware of our cravings and think before we eat. We need to consider all of the options, not just the “fast food” ways out. We need to choose more wisely, not just more expeditiously.

Make sense?

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Posts Of The Year – 2019 #4

I hope you all had a great Christmas holiday. It has become a tradition that I use the week between Christmas and New Year to recap the most-read posts that were written this past year. Today is the fourth most-read post. I published it last April 8 after seeing a photo of an old friend’s dad. While I have many great memories of his father, the one I wrote about is probably the most indelible. Enjoy.

My friend posted a picture of his father on social media the other day. Outside of my own father, he was probably the most influential male in my life as I was growing up in many ways. Aside from wondering why he’s aged and I haven’t as I saw the photo (that’s a joke, kids), it made me recall one thing that he did to teach my friend and me to be better baseball players: hitting curveballs.

My friend’s dad was no ordinary dad when it came to imparting that little piece of baseball knowledge either. He had tried out with the Yankees and the family lore is that had my friend’s mom not told him that she would walk on the marriage, he would have been signed and playing in Yankee Stadium. Obviously, when this guy tells you he’s going to teach you about curveballs, you listen.

For those of you that have never stood in against a pitcher with a lively curve, the pitch starts by heading at your head and breaks down and away from you. That’s what my friend’s father threw at us – pitches that started at our heads and broke in over the plate. Of course, once he felt we were getting complacent about standing in against the curve, he’d toss the odd pitch right at our heads to teach us to look for the rotation of the ball and to duck if it wasn’t going to curve. A fastball at your skull gets you focused very quickly!

Almost every player who makes the majors can hit fastballs. It’s the ones who can hit breaking pitches – sliders and curveballs – who become stars. It’s true in business as well. When things are going along according to plan and not diverging from the track they’re on, things are relatively easy to manage. Even if something appears dangerous (like a fastball heading for your ear) it’s relatively easy to get out of the way if you can see where things are heading.

Learning to hit business curveballs is something that you need to do if you’re going to elevate your game. You need to prepare for them by planning and recognizing that they’re going to show up from time to time. Your team needs to be ready, and you need to think about who can handle curveballs as you’re assembling that team.  People who are regimented and can’t deal with it when events start tracking differently are probably not your priority hires.

Mostly, you need to expect things to go wrong. After bailing out and hitting the dirt a couple of times, I realized that some attempted curveballs don’t break even when the rotation makes it look like they’re trying. It’s better to have to wash your uniform than to repair your skull. Your team needs to recognize that bailing out might be the smartest option when things begin to go awry. Watch out for those curves, learn to hit them out of the park, and your team can’t be beaten. Right?

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Eating In The Cafe Car

This will probably be the last original Foodie Friday post of this year (and decade!). I’m writing it whilst barreling north on a train. I’m a fan of train travel. Putting aside the environmental pluses, I think it’s more relaxing and more social than driving or taking the plane.

The train has a cafe car that offers up snacks, drinks, and food. The “food” consists of microwaved stuff – burgers, sausage and egg biscuits, wraps, etc. I think you can probably find most of the items at your local Costco or supermarket. The drinks are generally unhealthy sodas (yes there’s just water) and the snacks consist of candy bars and chips. It’s not the sort of stuff that you would choose if you had a choice, but when you’re on a 9-hour train trip you really don’t have much of one, which explains the line out the door.

Most of the time you would not catch me eating anything that’s offered here. Oh sure, I love me some sausage and egg on an English muffin, but I’ll usually have a multigrain muffin with plenty of fiber, not some white bread masquerading as a muffin. I might put some interesting cheese on mine and not the “cheese product” I’m sure is on this thing. Oh yes, of course, I had one. I’m hungry and they were out of the healthier options

The cafe car got me thinking about what sometimes happens in business. When businesspeople find themselves in an unusual circumstance they often will let their standards slide. I suspect they feel much as I do now – they solved the immediate issue (hunger in my case) but there is guilt and the knowledge that the “solution” they found might have created more problems than it solved.

If I had planned ahead, I’d have packed a decent snack and brought my own beverages. Money isn’t the issue – everything in the cafe car is reasonably priced (except the liquor – $8 for a drink? And I thought the airlines were committing skyway robbery!). The issue is solving my problem without lowering my standards. That takes planning. Is your business doing that?

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