Lessons from Experienced Entrepreneurs

I recently posted a question on LinkedIn that asked, "What's the one thing you know now that you wish you knew when you started your business." There were several good answers, but my favorite came from Rob Pene, President and CEO of Mission Driven Brand. He said "To create a consistent platform for sharing my thoughts and "advice" information...regardless if no one reads it to start off with...Everyone's got to start from scratch, and having YOUR OWN platform to share YOUR ideas will build YOU as a brand." I love this and want to continue to put this advice into practice with this blog.

Here are some other great answers by experienced entrepreneurs:
Manish Kumar Aggarwal said, "How to reach my potential customer."

Dave Maskin said, "I wish I realized that my talents could be used at trade shows 25 years ago..."

Martha Retallick said, "How to sell!"

Marko Lauhiala said, "That nobody can afford to be a YES man/woman all the time, learn to say NO to things that don't feel 100% right."

Elswine Rietvel said, "All the functions and possibilities on linkedin."

Marvin Russell said, "Sales don't always equal profits. In fact, 20% of your sales are profitable, the other 80% are just headaches."

The 2010 Fast 55

This is the 7th year that FRANdata has compiled a list of the 55 fastest growing young franchises. In order to qualify, companies cannot have been franchising for more than 5 years. Given the economy, it's not too surprising to see that 11 of the top 55 fastest growing franchises come from the Health & Fitness industry and 6 come from Maintenance Services. These industries are classically recession-resistant; people are always concerned about their health, the population is aging, and cleaning/maintenance is always needed.

You can check out the full list here. Meta-Franchise Consulting is proud to represent several companies on the list including: Roni Deutch Tax Center, BrightStar Healthcare, The Utility Company, Senior Helpers, Snap Fitness, Synergy HomeCare, Ductz, and Stratus Building Solutions.

Meta-Franchise Consulting is standing by, ready to help you figure out which franchise system is the best fit for you.

Franchises are Good Investments in a Tough Economy

In an uncertain economic environment, a franchise opportunity can be a smart investment for the business-minded.

Every year, thousands of Americans invest in franchises as a gateway to business ownership, the Houston Chronicle writes. But a franchise requires a certain personality type and character traits that are not always matched with independent business ownership.

If investors are looking for a stable investment with relatively low risk, a franchise may be the best choice, the paper reports. Franchisees are encouraged to work within the already existing system - investors will not be required to try out new ideas or test innovative strategies.

Additionally, the most successful franchisees rely on the franchisor support staff and fellow franchisees for advice. A willingness to ask questions and admit when help is needed are key traits for team-building.

Franchises can be a path to financial independence and stability for many individuals. Franchising.com estimates that franchise businesses generate $2.3 trillion in sales in the U.S. each year.

Please contact Meta-Franchise Consulting at http://www.metafranchiseconsulting.com/ or metafranchiseconsulting@gmail.com to learn more about how we can help you find the best franchise that meets your requirements.

Molly Maid Earns "Extreme" Recognition

The following is text from an email that Meta-Franchise Consulting received from one of our most popular Franchisors, Molly Maid.

"Blake Mullins, a producer for ABC-TV's top-rated reality series, Extreme Makeover: Home Edition, recently found himself without a post-construction cleaning crew and only a few hours before the homeowners were to arrive for the family walk through.

Blake later revealed that he and his extended family were Molly Maid customers. He knew we could get the job done, so he phoned our Molly Maid franchisees in Houston, TX, Tony and Susie Kirby, who answered the frantic call at 6:35 p.m. "We need as many maids as you can muster at 3613 Goodhope, ASAP," said Blake, in an exasperated voice. The Kirbys went into speed dial and by 8 p.m. arrived at the house with good hope: a team of maids armed with ample supplies and equipment. Then Blake issued the challenge, "You have only one hour to get this two-story, four-bedroom home ready."

"There must have been 150 people from painters, electricians, designers, to tilers electronics guys, and lighting contractors still working. It was absolute chaos," said Susie Kirby. "But when they saw us, they all began cheering. I felt the adrenaline rush through my body. Our maids experienced a similar surge of energy because we cleaned that house top to bottom and saved the day."

When it absolutely, positively has to get done, who do they call-our Molly Maid franchise owners. Mark your calendar for Sunday, September 26, 8/7c, for the Extreme Makeover: Home Edition season premiere and our Molly Maid to-the-rescue episode."

Please contact Meta-Franchise Consulting at http://www.metafranchiseconsulting.com/Maid-Service-_-Cleaning/Molly-Maid or metafranchiseconsulting@gmail.com to learn more.

The Best Kept Secret in Franchising

If you really want to own your own business, there is a franchise that will fit every requirement. Do you want a home based business? Do you want to work on the business part time? Do you want to be a passive owner? Do you want a business that operates during standard business hours, Monday through Friday, 9-5? After Meta-Franchise Consulting finds a franchise that will meet all of your requirements, the next question is: what type of franchise arrangement is best for you?

There are three franchise arrangements that a new franchisee can choose from before signing the franchise agreement. The first arrangement is a single-unit franchise. In this arrangement, the franchisor grants the franchisee the rights to open and operate one franchise unit. This is the simplest and most common franchise arrangement. Some franchisees start out as single-unit operators and then buy the rights to a second or even third unit after the first becomes successful.

The second arrangement that a franchisee can choose is area development. In this arrangement, the franchisor grants the franchisee the rights to open more than one unit during a specific time, within a specified area. For example, the franchise agreement may state that the franchisee will open three units in a three year period within the county in which they live. The benefit of agreeing to multiple units up front, as opposed to adding on later, is that the franchisor will often discount the franchise fee for your second and third units.

The third arrangement that a franchisee can choose is a master franchise. This arrangement is similar to the area development in that the franchisee is granted the right to multiple units. In addition to multiple units, the franchisee is granted the right to sell franchises to other people within their territory. When the franchisee takes on sub-franchisees, they take over many of the tasks of the franchisor like training and support. In exchange for taking on those tasks, the master franchisee receives a percentage of the franchise fee paid by the sub-franchisees and a percentage of each month's royalties. Additionally, the franchisor will often significantly discount the franchise fee for each unit opened by the master franchisee and the master will pay reduced royalties on each unit they own. The master franchise arrangement may be the best kept secret in franchising, and for the right franchisee can provide an amazing return on investment.

Please contact Meta-Franchise Consulting at www.metafranchiseconsulting.com or metafranchiseconsulting@gmail.com for more information.

Metro franchises rise as proven models hit the ground running

This article from The Denver Post reports that the number of franchising units is expected to grow by 2% this year and Denver is expected to attract more than it's fair share. Job losses, coupled with entrepreneurial spirit, an educated workforce, and commercial landlord incentives are making franchising an attractive option for Denverites.

Please contact Meta-Franchise Consulting at http://www.metafranchiseconsulting.com/ or metafranchiseconsulting@gmail.com for more information about franchise availability in Denver.

Share

Blood, Sweat, But No Tears (Franchise Times Magazine: June-July, 2010)

Blood, Sweat, But No Tears (Franchise Times Magazine: June-July, 2010)

Freshii is one of about four hundred franchises in Meta-Franchise Consulting's network. This article was published in Franchise Times Magazine and provides a great look at the concept and the founder. When you buy a franchise, it's important to believe in the concept. At least as important is believing in the management team. Matthew Corrin has a great story, great ideas, and will take his business far. This is an amazing opportunity for the right entrepreneur.

Please contact Meta-Franchise Consulting at http://www.metafranchiseconsulting.com/ or metafranchiseconsulting@gmail.com for more information about Freshii.

Share

20 Questions for the Franchisor

When you enter into a franchise agreement, you are taking on a business partner for the life of your franchise. The Franchisor will provide the initial training and on going support for everything from technical issues to marketing advice. To make sure you know exactly who you are going into business with, it is import to thoroughly interview the Franchisor. Many clients tell me they know they should be asking a lot of questions, but they don't know exactly what to ask. Here is a list of questions to help you get started. As you hear the answers to these questions, you will probably think of many follow-up questions that will provide you with the information you need to make an informed decision.

1. What are the strengths of your franchise?
2. Where do you see this franchise system in 5 years and what steps are being taken to reach that goal?
3. Who is your competition?
4. How are you viewed in the consumer marketplace?
5. Can you give me a break down of all of the expenses associated with getting started (franchise fee, equipment, product, training, real estate, etc.)?
6. How much additional capital (working capital) will I need after I launch my franchise?
7. Please explain the contractual responsibilities if I join your franchise system (length of agreement, renewals, etc.).
8. What can I expect to earn if I join your franchise system and do you disclose this amount in an Item 19 Earnings Claim?
9. What does your training program look like? What kind of ongoing training do you offer?
10. What goods or services do I have to purchase directly from you or your preferred vendors, and can I competitively shop for a better deal?
11. Is there an advertising fund that I must contribute to and what rights do franchisees have to audit that fund?
12. What is my protected territory and how is it defined?
13. What are your plans to develop additional franchisees in my state and how will that impact my franchise?
14. How many of your franchisees have failed and why?
15. Will you assist me with financing, real estate selection, and construction?
16. Have you been sued or are you currently being sued?
17. How have previous franchisee/franchisor disputes been settled?
18. What happens when I want to retire or sell my business?
19. If I sell my business and leave the franchise system, what am I forbidden to do?
20. What is the biggest complaint from your franchisees?

http://www.metafranchiseconsulting.com/

Share

Where There's a Will, There's a Way

You and your franchise consultant have identified the perfect franchise that meets all of your requirements. You called existing franchisees and love what they said about their experience in the system. You reviewed the FDD with a franchise attorney. You have the support from friends and family. You are ready to sign the franchise agreement and become a franchise owner. The only thing standing in your way is money, or more specifically a lack there-of. Traditionally you would put together a business case and go to your bank for a business loan. Unfortunately, the credit markets are tight and traditional funding is very difficult to come by. Thankfully budding entrepreneurs have other options. Benetrends and FranEquity can make your dream of business ownership a reality.

Benetrends has been in business for over 15 years, helping people use retirement savings to fund a new or existing business. Benetrends will set up your company as a C-corporation. They will roll-over your existing 401(k) into your new company's retirement plan, and then use the money to buy stock in your new company. You will not incur any early withdrawal or tax penalties. You can use cash generated from the stock sale for legitimate business expenses, including a salary for yourself. You and your employees can make contributions from paychecks to the retirement plan to save for the future.

FranEquity is another option to secure financing for your franchise. FranEquity is essentially Match.com for franchise financing. At FranEquity, you publish an investment opportunity to the investing community. Angel investors, private equity groups, and traditional banks will review the opportunity and start a dialog with you if they are interested. Through this channel you might be approached by people looking to invest in your company or loan you the money you need to get started.

Meta-Franchise Consulting looks forward to working with you to secure the financing you need to make your dream of business ownership a reality.

http://www.metafranchiseconsulting.com/

Share

The Currencies of Trade

The following post was written by Pam Duskocy, Director of Business Development for Schooley Mitchell. Pam sends out a newsletter on a regular basis. This one really struck a cord for me and I'm excited to share it with you.
-------
The Currencies of Trade
Every Franchise system should have a clear understanding of the following concepts. In addition, they should have a clear marketing strategy to help their Franchisees communicate to customers and prospects about how they will deliver these currencies as they operate their Franchise.

Trade. Give something to get something. Our inhabited globe has come a long way since the act of trade meant that ‘I’ll give you one caribou if you give me three baskets of carrots and a cord of wood’. However, that same basic tenet still drives all economic transactions. Value for value is the test. If we can create more value then we can get more value back when we auction ours. The only difficulty is that the definition of value is ever-changing. Therefore it would make sense that if we can figure out who defines value, we will be able to create and deliver more of it.

Remember from the discussion about Basic Business Concepts that ‘It’s all about the customer’. So if we accept that it’s all about the customer then it follows that the customer is the beast that defines value. Seems simple. Seems basic. Seems unchallengeable.

O.K. so how do we figure out what the customer defines as value? It seems to make sense that we need to find ways to ask the customers that we choose to serve. We need to ask them to define what they find more and more valuable. We also need to accept that the definition of today will not be the same definition of tomorrow. At some point, somebody figured out that the customer wanted a fatter caribou, and if a fatter caribou was delivered, then four baskets of carrots and some extra wood could be obtained. They probably asked the carrot guy.

Study of business customers in today’s world will reveal that there are some basic currencies of trade that hold value for the customer. Understanding these basic currencies will help to define the specific methods and characteristics that are required of the product or service you provide to meet the value definition of your customer.

Money
This is the most accepted version of currency in most people’s minds. In fact, money is used in our common language synonymously with currency. I propose that it is only one currency, albeit the one we trade with in commercial transactions most apparently.

In reality, it’s just the bridge between the caribou and the carrots. I mean, surely people don’t really want a stack of paper. No, they want the carrots if they’ve already got a bunch of caribou. Our forefathers have simply been able to structure a system where the paper can be traded for stuff, and stuff can be traded for paper – and we’re all willing to abide by this trading system.

So a dressmaker is willing to trade one of his dresses for some paper. The landlord is willing to rent part of her space to the dressmaker to display dresses in return for some of his paper. The grocer will accept the landlord’s paper for some carrots – no caribou required.

We all get this one. So if we know that one of the currencies that businesses desire is money, then our products and services must be able to help our customers gain more money. It seems simple but I’m not sure we have that goal firmly in mind when we illustrate our wares.

However, just like the system of trading stuff for paper is simple, so is the concept that we need to show our customers how they can gain more money by doing business with us. The better we can communicate that message, the more attractive our goods and services will be to our desired customers.

Time
Any desired commodity, currency in the case of this discussion, increases in value as it increases in scarcity. Although we were all hoodwinked into believing that the computer revolution of the 1980’s was going to make us so efficient that we would have gobs of time on our hands, I don’t think there are too many converts to that ascribed belief any longer.

When we discuss our clients’ need for more time in their respective businesses, during our training class for all new Schooley Mitchell Franchisees, I always relate the following story.

The scene was at a National Franchise Convention waiting for the kick-off speaker to begin the proceedings. There were several hundred Franchisors like me sitting in the convention hall, when from the back of the room this guy entered, flipping a head of lettuce up and down. He walked right up the middle aisle continually flipping the leafy orb. There were a few snickers because it was apparent to some that an inmate had gone over the wall at the local asylum.

With a determined look, and a single purpose in mind, this guy trotted right up to the front of the room, climbed onto the stage, and leapt behind the podium. With a greatly threatening look, he bellowed, “Somebody in this room tell me why this head of lettuce represents the most important concept that you must understand for your business to survive in the next decade!” He was completely fired up, spittle was flying, and he was turning red. At this point half the room was convinced of the asylum scenario, while the other half realized that this was actually the guest speaker.

Gliding down a bit from his commando high, he said, “O.K., I want to ask you a couple of questions.” He went on to say, “I want you to think back ten years, picture in your mind your local grocery store, and tell me how many square feet were dedicated to heads of lettuce at 79 cents each.” After a bit of a pregnant pause, someone in the audience yelled out, “30 square feet.”

Our now calm and seemingly rational speaker now asked, “O.K we can accept that answer, so now flash forward ten years to today and somebody tell me how many square feet are dedicated to heads of lettuce in today’s grocery store at 89 cents.” The answer came back as ten square feet.

The next question was, “Now somebody tell me how many square feet are dedicated to prepared salads at $4.95 each.” The revelation was clear. Yes, that’s where the other 20 square feet went – in fact, the current stores may even use more than 20 feet! The crowd was elated that they had solved the riddle.

Then in a very quiet, almost ominous tone he asked, “So what is that about and why does it matter so much to your business?”

His message was of course that it was about time. We are willing to pay good money, already conceded to be a valuable currency, to save ourselves time. We will pay a premium to avoid cutting carrots and cucumbers, and in my mind I plead guilty to the act.

In fact, he said, “Time is the currency of today’s economy, and you need to figure out how you are delivering time to your customers, or you will not thrive.”

The story hit hard, made a strong and valid point, and I have been thoroughly convinced of the importance of time as a currency of trade ever since. The challenge of course is to figure out how to deliver time to our customers. Before we can do that we have to figure out how we can make it clear to our customers that we will, in fact, help them to gain time through our wares.

Money and time are certainly the most recognizable and widely accepted of the currencies of trade. However, it is my belief that we also trade in Security, Knowledge and Prestige. These currencies will be reviewed in more detail in a subsequent release, but for now, suffice it to say that we need to feel secure, not only physically, but also that we have made the right decisions. We also crave knowledge. In fact, we live in a knowledge-based society now. The vast majority of people trade for prestige as well. Otherwise, why would we wear what we wear, drive what we drive, live where we live?

Money, time, security, knowledge and prestige make up the suite of Currencies of Trade. So the challenge is how to deliver these items, and how to make our customers aware of how we deliver them.

http://www.metafranchiseconsulting.com/

Share

1 Month Check Point

Today marks the end of the first 4 weeks of business ownership. It has been a month of highs and lows, celebrations and disappointments. The most important thing is that I have learned a lot!

Lessons from Month 1:

1a. Don't be afraid to speak up. I called and emailed a Franchisor multiple times over the course of several days and didn't get a response. This is HIGHLY unusual. Most Franchisors call or email me back within 1 hour. The lack of response (and a couple other things that day in particular) had me really frustrated so I left feedback on my Alliance's broker site about the lack of responsiveness. The manager of the broker site saw the feedback, got a hold of the Franchisor, and told them to straighten up or they could not be part of the Alliance. Hopefully that saved another broker some headache.

1b. Think before acting. I really feel like I got lucky with 1a. I acted hastily and could have made a name for myself as a problem child. The manager of the broker site was understanding of my beginner's frustration and agreed to remove my feedback from the site. A fresh start!

2. I will close 1 out of 100 deals, on average. I put in a lot of time and effort doing research for my clients. Often, they have second thoughts and stop returning my calls. I need to learn to expect it. After all, it is not personal, just business. After one of those clients I am closer to helping my next client achieve their dream of business ownership.

3. Don't assume a lead is invalid too quickly. A couple of leads have come to me that say my potential client is looking at a franchise that is not in my Alliance. I can work with "outside" franchises if that is what my client wants. My job is to listen to my client's requirements and match them to the best possible franchise, whether inside or outside of my Alliance. For example, a client recently contacted me about a franchise that is a great restaurant, but not a great franchise. After discussing what my client really wanted from a business, I provided him with other options. My client agreed his first idea wasn't the best fit and has decided to work with me on the other options.

4. Follow my instincts. I have one client who was so excited during our initial call that he did most of the talking. He thought he and his business partner had all kinds of great ideas and he wanted to see what I would come up with. He gave me their requirements and I did my research. I called him at our scheduled time to review my findings. He said he and his partner were looking at lots of different things at the moment and I should just email my findings. From my training I knew that was outside the normal protocol, but I felt like I was losing my client. I knew I had great options for him based on his requirements, so I sent the email. He emailed back immediately and LOVED one of my ideas. That was on 4/14. By 4/16 he and his partner had talked to the Franchisor multiple times and they were already scouting locations for at least 3 restaurants!

So much excitement in just 4 weeks! In the next 4 weeks I'm hoping for additional excitement in the form of reaching new milestones and, of course, learning more lessons that will ultimately help me be successful.

http://www.metafranchiseconsulting.com/

Share

Why Do Franchisees Pay a Royalty?

The first point to make about Royalties is that good Franchise systems should look at them not as a payment but rather as a remittance. It is the Franchisor’s share of the income derived from customers or clients. The Franchisee collects that fee along with all other revenues from the customer.

It’s an important concept because it emphasizes that the customer ultimately pays for everything, including the Franchisor’s royalty, the Franchisee’s overhead, all costs of sales, employee’s salaries, and the Franchisee’s profit. Therefore it’s all about the customer – as it should be.

The Franchisee should want the Franchisor to earn a significant amount of royalties because that’s really the oil that makes the engine run. Each Franchisee collects and remits a small portion of that oil to the Franchisor. All elements of the system can continue to improve as long as the royalty stream is strong.

The Franchisor’s royalty will be based on the fact that they have provided a system and strategy that has ultimately served the customer. The Franchisee delivers that system to that customer. The royalty represents the Franchisor’s share based on the various parts of the Franchise system, which has four elements.

The four elements of a Franchise are:

a) Brand
b) Operating System
c) Support System
d) Franchisee

Brand – the name associated with the services delivered in a memorable and satisfying experience to the customer

Operating System – institutionalizes the excellent service delivered in a memorable experience so it can be done over and over again from Franchise to Franchise in a consistent manner

Support System – helps the Franchisee get better and better at delivering the service in a memorable experience – helps a Franchisee improve their performance

Franchisee – the individual motivations or reasons for being in a good system, as well as the talents and experience delivered to the business.

The Operating and Support systems will generally provide access to advice at the level of professional consultants in the fields of marketing, management, advertising, execution of the delivery of the product or service, customer support, etc. The cost of these types of consultants on the open market will often far exceed the value of the royalty fees that are remitted by the Franchisee that participates in a system that delivers these items from a position of experience. In fact, it’s the exact experience the Franchisee requires as opposed to open market advice.

Now here’s the test. If each of the four elements of a Franchise system is evaluated in terms of the percentage of contribution to the overall success of the business, then the royalty can be assessed in a proper light. Many people will say that each of the four elements contributes equally – or 25%, to the overall success. That means that the Brand, Operating System, and Support System provide 75% of the success formula. Therefore, as long as the royalty is less than 75%, it’s a good decision to participate in the system. That’s a little silly, but it emphasizes the point.

Most royalties range from 2% to 10% depending on the type of system, so as long as the Franchisor’s systems contribute 10% or more to the success of the business, it makes sense to participate, and remit the collection of royalties to the system.

http://www.metafranchiseconsulting.com/

Share

Where do you see yourself in 5 years? In 10 years?

I hate this standard interview question, which is probably why interviewers love to ask it. I think it’s important to have plans and goals but it’s also important to take advantage of opportunities as they present themselves, be flexible, and be adaptable. In interviews I usually gave a very vanilla answer to this question like “Continuously manage bigger and more complex projects, eventually transitioning into Program and Portfolio Management.” I used to think this meant I wasn’t very creative or didn’t have vision. Then I decided to go into business for myself and realized I am creative, I do have vision, and I know exactly where I want to be in 10 years.

I want to own my own companies. (Yes, companies, plural.) I want to generate an income that will allow me to pay the bills, save for retirement, and have fun along the way. I want flexibility. I want to be in control of my career. I know myself well enough to know I can get there and I also know I need to be careful with how much risk I take as I work towards those goals. So here is the 5 and 10 year plan.

Year 1: Work two jobs; one for someone else, one as owner of Meta-Franchise Consulting. Become an expert in my new industry (franchise consulting). Build a client base and pipeline. Generate income from my new business.

Years 2-5: Focus exclusively on Meta-Franchise Consulting. Grow the business by 10% every year. Be on the look-out for exciting new franchises in the marketplace.

Years 6-7: Choose a franchise whose concept, product, and management I believe in. Become a master franchisee or area developer for the company, opening multiple locations in my chosen territory. Continue to run Meta-Franchise Consulting.

Years 8-10: Enjoy my career as the owner of multiple small businesses. Nurture them and grow them. Mentor others wanting to be small business owners. And, going back to the top of this post, generate an income that will allow me to pay the bills, save for retirement, and have FUN along the way.

http://www.metafranchiseconsulting.com/
Share

What's in a Name?

Being the left-brained person that I am, the thought of coming up with a name for my new business was very intimidating. We all know the power of names and brands so I knew it was really important to get this right. Therefore I turned to the best, most creative, right-brained person I know. Jester Levity didn't let me down!

Jester, being the smart AND creative person she is, recommended we start with synonyms of a word like "embarking" since I was embarking on a journey. From that list she identified "venture" and we threw "franchise consulting" on the end. Just like you do with baby names, you have to check the initials to make sure nothing weird is going on! "VFC" sounded safe enough.

The next brilliant step was to Google "Venture Franchise Consulting" to see if there was another company using that name. Luck! No issues with that name being taken. Then Jester offered to do some numerology for me. Not really sure what that meant, but as it turns out, it was an unnecessary step.

At the end of the conversation Jester says, "I also LOOOVE Meta Franchise Solutions/ Meta Franchise Consulting." Hmmmm...I've heard of the word "meta" but I don't really know what it means. A quick wikipedia search tells me that meta means, among other things, "about (its own category)". Metadata, a term I know from database work, is data about data. Then I saw a posting for Meta-advertising which means an ad about an ad. Hmmmm...so Meta-Franchise would be a franchise about franchising! Could anything be more perfect?

http://www.metafranchiseconsulting.com/
http://www.utilityplayerscomedy.com/
http://homesliceproductions.com/Homeslice_Productions.html