Tag Archives: Reality checks

December 4, 2019 · 5:21 pm

I Can’t Quit

I hope everyone had a great Thanksgiving. It’s one of those times when your focus is truly on family and friends and not on the more mundane things that tend to tie up the bulk of our lives.

One of those things has become social media and specifically Facebook and its family of products. I think that if it was a drug, it would be among the worst drugs ever and should be heavily regulated at least. Let me explain why.

I was an early user (does that make me a long-term addict?). I signed up way back when you needed a .edu mailing address to join. At first, it was fun and getting back in touch with my college and high school classmates was great. I’d accept friend requests from people I barely knew and rarely spoke to from way back when. It made reunions less jarring since I already knew who had gained weight, lost hair, or, as in my case, both.

I don’t feel that way anymore. I limit my “friends” to people who are really just that. Acquaintances don’t make the grade and very few business-only relationships are part of my friend group. Unfortunately, some business associations in which I participate have chosen to do their communicating via Facebook. I also have consulting clients from time to time that want my expertise on using Facebook both for content and for advertising. If those circumstances ever change, I’ll be gone the next day.

I’m sure you’re aware by now about Facebook’s utter disregard for your privacy. They track you pervasively (I use a browser extension to limit that). They sell your data, accurate or not, to scammers and liars as well as to legitimate marketers but they don’t try to distinguish between them. I wrote in 2010 that they just might fail because of their disregard for security and privacy. I could not have been more right about what they were doing and more wrong about their success.

Why do we all seem to hang around? Metcalf’s Law, which states that the effect of a network is proportional to the square of the number of connected users of the system. There were alternatives and still are, of course, but unless and until your real friends, family, and business groups move someplace else, you’re kind of stuck. It’s why I post the screed on Facebook as well as on LinkedIn and elsewhere. Fish where the fish are, right?

My first resolution will be to use Facebook less in 2020 and beyond and to reach out via phone and email to people more often. It’s not just about maintaining privacy but about helping my mental health. Do I think I’m striking a blow for privacy and responsibility? No, not being one of 1.6 billion daily users. I’ll still be on Facebook – it’s the easiest and best way to keep up with old friends and I need it for business. But you can bet I’ll be a lot less active. Don’t take it personally. It’s not you – it’s Zuck.

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November 22, 2019 · 4:29 pm

The Grocery Store

The topic for this Foodie Friday is the grocery store. Think for a minute about where you do the bulk of your grocery shopping. Is the merchandise that it carries substantially different from one of its competitors? My guess is that it probably isn’t. All the national brands are there and the same person who stocks the snack or bread aisle at your store might have left a competitor twenty minutes earlier. So why do you go?

We had a Wegman’s open here. The lines to get in were HOURS long. I’ve never shopped at a Wegman’s but those who have proclaimed their undying loyalty. There’s been a rumor floating around my neighborhood (since confirmed!) that a Publix will be opening in the not too distant future. People who’ve missed their sandwiches and service are swooning. In the case of these two stores, they separate themselves from everyone else in very clever ways; Wegman’s via setting themselves up to feel like a European marketplace and Publix via their signature subs.

Some of it is just smart branding. While my local Harris Teeter and Lowe’s Foods both make various types of sausages in-house, Lowe’s brands the entire operation as The Sausage Works and gives each type of sausage a clever name. They even sell “My Sauageworks” tee-shirts (and you can imagine the looks I get when I wear mine in public). They pride themselves as being the Best Of The Wurst and are constantly inventing new flavors such as their newest, The #63 Philly, which they describe as a brotherly love blend of chicken sausage, mozzarella, green peppers, onions, mushrooms, and spices. No commodities here but while both stores sell the same basic sausages, Lowe’s goes the extra mile and can market behind it.

I think may business sectors have become quite commoditized. When I was running a sports site, we would often remind ourselves that people can get a game score or most statistics anywhere. The only way we could compete was to provide something unique, better, and in-demand. I think every business needs to think of itself in terms similar to that, even if you really do have unique aspects baked in. It won’t be long before someone has what you have and maybe is offering it on better terms.

Why do you shop where you shop? If “better prices” is the only answer, that store might have trouble the minute a competitor decides to price match.  It’s much harder to match a better experience or unique merchandise, no matter what business you’re in. Don’t you agree?

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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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