Tag Archives: Consulting

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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Filed under Franchises, Helpful Hints, Thinking Aloud

Looking From The Inside

While you’re busy reading this, I just might be anesthetized. Today’s screed was actually written yesterday while I was preparing for today’s colonoscopy. For those of you under 50 who have yet to enjoy the ride on what my friends and I call “The Silver Stallion”, you’re really not missing much. Anyone who has ever had one will tell you that the prep is worse than the actual procedure. Then again, how could it not be since you’re mostly unconscious during the exam?

The prep involves a day of a liquid-only diet. Clear broth, coffee or tea (NO milk though), sports drinks (nothing red or orange). You get the idea. At some point, you drink some nasty stuff that evacuates your bowels. It’s basically the worst case of diarrhea you can have without a trip to some restaurant with a D health rating.

OK, you get it. So why am I bring this up on a business blog? Well, there are lots of other ways to screen for colon cancer but colonoscopy is by far the best. If you’re over 50 you need to get one and keep getting them every 5-10 years (your doc will tell you how often). The reason it’s so good at detecting a problem is that you’re being examined from the inside out. It’s not looking at symptoms, it’s not guessing. It is a first-hand observation of what’s going on.

That’s something more businesspeople need to keep in mind. Too often we don’t do the first-hand investigation or look directly at what’s going on, preferring to look at data. Sometimes you need to speak to the people who are producing what’s reflected in the data. You need to reach out to customers, partners, suppliers, and employees. You need to get inside the business.

The other thing that goes on during a colonoscopy is that the doctor will remove any polyps that are found. Most of them are benign but can become something that’s problematic. The scope can spot even tiny ones. That’s another advantage of getting inside the business – you can often spot small issues and address them before they become big problems.

Unlike a colonoscopy, getting inside your business isn’t something that can happen every 5-10 years. It needs to occur regularly, with quarterly mini-reviews and annual exams. Like the colonoscopy, prep for that review makes people uncomfortable and unhappy. The good news is that the prep is worse than the exam, and isn’t it nice to know that you’re in good health?

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Filed under Consulting, What's Going On

Learning From Leads

Like many businesses, I purchase leads to drive revenue. Leads are everything in the business I’m in now and without them, you starve. When I went to our consultants’ convention last July, nearly every conversation I had with one of my peers eventually turned to the subject of where we were sourcing leads and how productive those sources were. As an aside I’m having Glengarry Glen Ross flashbacks as I’m writing this:

These are the new leads. These are the Glengarry leads. To you, these are gold; you do not get these. Because to give them to you would be throwing them away.

In any event, following the convention, I tried out a couple of new lead sources and one of them has proven to be quite good. The reason I’m writing about them today, however, isn’t so much the quality of their leads as it is the quality of their customer experience. They do some things that are instructive for any business that has customers (and find me one that doesn’t!). If you don’t think it’s important, remember that Oracle found that 86 percent of consumers will pay more for a better customer experience.

First, although they sell packages of a fixed number of leads, they let me put together my own package as a test case. They were flexible and focused on my needs rather than on “this is how we do things.”

Second, they are generous with “freebies.” Sometimes the leads are actually not real people – the phone number is bad and the email bounces. Sometimes someone is playing a prank on someone else by sending their information in without their knowledge. Not only have I never had an issue getting the company to refund a lead because of that but they will sometimes throw me an extra couple of leads because I had a less than optimal experience. Let’s face it – who doesn’t love something for nothing?

Third, they follow-up. I get asked regularly if I’m happy with what I’m getting and if they can improve my experience in any way. That’s big because I know they’re listening and that they care. Of course, it’s imperative that if the customer does come up with a suggestion that you communicate back to that customer how you’ve handled it (and just tossing it in a drawer isn’t acceptible!).

That leads to another thought. We should always go overboard when correcting mistakes. Yes, they happen, but if you’re transparent about it and more than makeup for the error, people can be quite forgiving and what was a negative can become a positive.

It’s really about being customer-centric and showing those customers some love, isn’t it?

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Filed under Consulting, Helpful Hints