The New Career Economy® is much different than what our parents’ generation experienced. Long gone is the era of working for Corporate America for 30 or 40 years toculminate our careers with gold watches and the security of retirement plans and a strong Social Security system. Unemployment rates have continued to rise in the last few years and layoffs and retrenchments have become the reality for more and more people.  Adding to these economic woes, the decline in the stock market has drained most people’s savings; and, the real estate crisis has eroded their greatest asset, in some cases leaving them owing more in their homes than they are worth. Just like nature evolves due to conditions in the environment, this grim economic landscape has given birth to a New Breed of Franchisee Candidates.

Many people have realized that their only option is to take their destinies in their own hands. They have become proactive and no longer rely on Corporate America for their financial security. They no longer trust the reactive investment market and are now becoming more proactive in finding ways to  take control of their economic future. These are savvy and educated individuals who have reached a point of frustration with the current economy that makes them willing to be more self-reliant. Tired of the ups and downs of the stock market, this New Breed of Candidate is looking to diversify their investments away from the reactive stock market into something they control.   The growing distrust of those in control of the financial markets has evolved into a renewed confidence in their own ability to generate higher returns than leaving their financial future in the hands of others.

The current economy has certainly redefined the term “job security.” Yet, these challenging economic conditions add fear to an already frightening process. Making important economic decisions during these uncertain times creates anxiety even in those individuals who habitually have beenmore risk tolerant; and of course, it increases the hesitancy of people in general. Traditional sales tactics and processes that put pressure on candidates to make decisions and move the process along are a sure bet to backfire. This New Breed of Candidates demands a different experience.

If you want to award franchises during this economic environment the pertinent questions are:

• Are you structured to attract this new Breed of Candidate?

The New Breed of Candidates wants more control over their lives. They are willing to take responsibility and educate themselves. If you are not using technology to streamline your franchise award process, you will never be able to attract these individuals.

• Are you using the same franchise sales process you’ve used for more than a decade?

If you haven’t changed your franchise awarding process to address the fear gripping emotions of the current economic landscape you won’t be able to engage the New Breed of Candidates. Processes that worked in the past have become totally obsolete. You need to learn how to improve your ability to “coach” individuals through the natural fear that occurs in our current environment.

• What do you need to do differently to create the different experience that the new breed of candidate demands?

You need to understand the consequences of the economic environment in which we live.  You need to learn to understand the New Breed of Candidates, their needs and expectations. You need to forget what worked in the past and seek new strategies that leverage technology to educated candidates. You need to find ways to remove the barriers created by the lack of funding and coach your candidates through financial pre-qualifications. You must start the discussion about funding a franchise much earlier in the process. You MUST stop selling franchises and start awarding them.

Related posts:

1. Talking Funding First – Why a Reversal of the Traditional Franchise Sales Process is Critical
2. Challenges of Selling the First Franchises
3. Looking for Franchise Leads? Start With Your Website

The premise of the “Master Mind Group” is that before we can achieve our goals and desires we must first acquire the specialized knowledge in the field we have chosen tor bring our dreams into reality. Hill claims that it’s unlikely that we possess or that we are willing to learn all the knowledge we need in order to make this happen, and that a Mastermind Group can and will ‘bridge our weaknesses.’

What does this all mean in the world of franchising?

Franchisors, regardless of their industry, share common goals of awarding more franchises, supporting and training franchisees towards success, and operating a financially rewarding company.  For new franchisors the world of franchising is complex, multifaceted; and, at times, quite scary. Most new franchise companies try to learn as they go, yet this is not the most efficient or effective path. If experience is not complemented by other methods of acquiring knowledge and information, new franchise companies struggle needlessly and the growth of mature companies becomes sluggish. Hiring coaches is one option that can pay for itself by avoiding costly mistakes. Forming or joining a Mastermind group is another powerful method to help companies learn the skills and access the information that will empower them to excel in franchising.

Franchisees can also benefit greatly from joining a Master Mind Group. There is a lot to learn about growing a successful franchise and Mastermind groups can certainly shorten the learning curve for new franchisees while assisting mature franchisees get out of unproductive ruts.

Whether you are a franchisor or a franchisee joining a Mastermind group can:

• Bring you and your objectives into focus
• Provide accountability
• Support you in your efforts to achieve your goals
• Offer new information and specialized knowledge
• Afford you the opportunity to learn new strategies and methodologies
• Bring a new perspective and new ideas
• Help you formalize an action plan and keep you on track

For Mastermind Groups to work in franchising they must:

• Meet on a regular basis
• Follow an agenda
• Have members committed to sharing  and supporting others
• Maintain perfect harmony
• Have diversity of experience and knowledge in the areas that support each member’s needs

Napoleon Hill shares how Mastermind groups worked for Henry Ford and for Andrew Carnegie. They can also work for you! Accepting that we don’t know everything and that others can assist us is the first step. Seeking help is what brings winners closer to success!

Consider joining or forming a Mastermind group today!

Related posts:

1. What Are the Challenges Faced by Start-up Franchisors?
2. Are Your Franchisees Able to Absorb the Information They Need?
3. Are Your Franchisees More Interested In Being Right Than In Being Successful?

I had used the perfect word to express my feelings, as well as its causes! That word ‘disillusioned’ was the key.

The dictionary defines ‘disillusion’ as ‘to free or deprive of illusion’. And, I definitely had been under a self-created illusion.  I believed that because the franchise relationship is based on the win-win principle, the parties involved must care ‘first’ about the other party; and, must always seek the win of the other party because it is in the other party’s win that they can find their own.

When the veil of illusion was lifted, I could see that I had created standards impossible to achieve. The problem was in the absolute nature of my belief. The use of the words “must,” “first” and “always” tainted an otherwise true statement.

People in most cases care more about themselves than they do about others. We even see it in the closest of families; so, why on earth would I think that a business relationship would be exempt of this human trait? The franchise relation is dictated by a legal and operational structure that invites more cooperation and more dependency than other business relationships. In more than one way the franchise relation resembles a family. Yet, although it invites cooperation, it cannot make an entrepreneur care more or less about others; nor can it make a franchisee be a better team player. People who are drawn to franchising their businesses, in most cases, feel the pull because of the economic and ego rewards it offers. Very rarely have I heard people express that their main reason for franchising was to help others. That has been my trip, my blind spot, and the cause of my disillusionment. I had created a belief to match my own preferences; and thus, when reality did not match my expectations I felt a sense of discontent and disappointment.

When illusions are lifted one can see, accept, and even appreciate, things as they are. There is nothing wrong with the franchise relationship. There is nothing wrong with franchisors seeking their own gain and franchisees doing the same. That’s just the way it is; these parties are human. The structure of the relationship makes franchisors aware that it’s to their best interest to support franchisees and likewise encourages franchisees to protect their brand and team.

Now that the illusion is gone, I can appreciate the franchise relationship even more for what it is and for what it’s not. In franchising we are dealing with people with their strengths and their weaknesses, and with their humanness. Yet, in franchising people are encouraged to bring their best qualities to the forefront; they have an economic incentive to do so; and when they don’t, they suffer the consequences. Franchisors who don’t support and/or abuse their franchisees experience a shrinking of their network of locations. Franchisees who decide not to follow the franchisor’s system or not to be part of the team have a harder time achieving the success they seek.

Last year’s debate triggered by the CNBC report “Behind the Counter: the Untold Story about Franchising,” in my opinion, resulted in the best of franchising coming forward as franchisees joined the franchisor of Cold Stone Creamery to defend their brand. This is what franchising is all about: the team, the single objective, the win-win. Franchisees and franchisors may have differences; but, like in many families, when an outsider attacks the system or the family, its members unite.

The recent economic downturn definitely has taken its toll and this time franchising was not able to escape it. As many franchisors were not able to respond quickly enough to the economic changes, their franchisees experienced drastic consequences and in many cases failure. Yet, overall, I bet that franchised businesses still have done better than most small independently owned ones.

So, yes, Franchising is not perfect. But, what is?

Related posts:

1. Franchising: the Beauty and the Beast
2. Franchising: a Love Affair by Lizette Pirtle
3. Are franchise relationships dependent or interdependent?

• Vision
• Skill
• Money
• Ego

Vision encompasses those people who want to grow their business quick, yet lack the resources to do it with company-owned locations. They want to enter new markets and understand that the cost and energy to do so themselves may be too high for them. Franchising thus affords these people the answer, as prospective franchisees invest their own capital in the new locations within their markets.

The skill reason category is broad. People seeking to expand their businesses often do not want to deal with more employees, so franchising is a perfect answer since the employees of the new location work for the franchisee. These people are often also seeking more motivated workers than employees tend to be. Franchisees have more to loose and thus have a vested interest in the business. On the other hand, people seeking to expand their businesses may actually lack the managerial skills that a company with multiple locations requires. Franchising calls for a totally different set of managerial skills. Since franchisees are not employees, franchising requires stronger human relations skills than managerial ones.

Money is always an element in the decision whether or not to franchise. Although franchising is expensive to set up, it saves the cost of opening locations as franchisees use their own capital for this purpose. The economic rewards do not have the same potential of an expansion via company-owned locations. However, franchising does not have the risks nor does it require the time and effort that come with the former method of growth.  Franchising creates an annuity. It can also create wealth; and, it can serve as a profitable exit strategy for small business owners. Franchising does not dilute the owners’ equity nor does it necessarily have to create debt.

Finally, there is ego. Yes, ego plays a big part in the decision to franchise. People who choose to franchise their business usually have the desire to see their creation appear all over the place. The yearning to be recognized for one’s accomplishments as a business leader and the longing to make an impact on many lives are also strong motivations to franchise a business.

What are (or were) your reasons to consider franchising?

Related posts:

1. 7 Reasons to Franchise your Business
2. 5 Tips to Creating an Effective Franchise Operations Manual
3. Who Should NOT Franchise Their Business?

During my first experience working in a franchising company I heard the voiced and common belief that franchisees are happy as long as they are making money. Now, after over 20 years of working in the franchise field, I know that the truth in this statement is not absolute. Although I also have  learned first hand that it always helps when franchisees are financially successful, but for most franchisees there is more to it than just ‘making money’.

I have found that franchisee success has to do a lot with the numbers, yet we must dig deeper. Non financial goals and objectives play an important role, although for some people more than for others. However, there is no question that the numbers are critical and how franchisors deal with them or ignore them can determine the success or failure of their franchisees.

Kate Groom is a franchise expert residing in Australia and her focus is franchisee financial performance. Kate assists franchisors have the much needed conversations around profit, performance, and results. I call these the ‘tough conversations’ because they involve topics outside of the comfort zone of franchisors and the franchisees.

“Most franchisors don’t have a financial background, and lack the experience talking about and managing this subject,” Kate said to me in a recent conversation. “The result of this lack of experience is that many franchisees don’t know where they are going nor do they know how to, or even when, they get there.”

I definitely agree with Kate. Franchisees need clear objectives and a way to measure their results. Kate mentioned: “These days technology has provided franchisors with a multitude of ways to gather, benchmark and report financial and operational information. Sadly, however, lots of people get caught up in the process of creating process; and, we make things complicated just because we can.” Kate continued;  “It doesn’t have to be difficult.”

Franchisors like to tell their franchisees that they need to get back to basics. It seems to me that franchisors need to heed their own advice. As Kate says: “It’s easy to get caught up in the ‘wretched hows’ and forget that we can make a difference one conversation at a time, one franchisee at a time. Sometimes a good place to start is with what’s simple and easy to do with what’s available.”

Kate has lots of great information in her blog; make sure to visit it at http://www.starfishconsulting.com.au/

Related posts:

1. Are Performance Tools Important for Franchisee Success?
2. What’s the Makeup of a Franchisee?
3. Are You Listening or Merely Hearing What Franchisees and Prospects Are Telling You?

And, because I have worked with small businesses my entire career, I know how many of them disregard or become overwhelmed by record-keeping. So, this contest by BookKeeping Express will come to the rescue of one lucky company. Hopefully you will be the lucky one.

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CMIT Solutions Refused to Participate in Recession

Nation’s Leading Small Business IT Franchise Expanded at 50 Percent Pace During Downturn

CMIT Solutions is one of the leading small business IT franchise company and it has expanded at a rate of 50 percent during this recent economic downturn. Now that’s something to celebrate!

“Plain and simple, it’s a winning business model,” said Jeff Connally, president and CEO of Austin, Texas-based CMIT Solutions. “We hit home hard on two key differentiators: First, we give downsized corporate America professionals or those seeking to make a career change a successful business model that fills a critical need today; second, small business owners can’t find the type of IT solutions we provide with tremendous affordability anywhere else.”

During the tumultuous past two-plus years in the American economy, CMIT Solutions has flourished as a franchise. Nationwide, the company added 38 new offices in 2009, 26 new offices in 2008, and is continuing exciting growth in 2010.

CMIT has obviously refused to participate in the U.S. economic downturn. Good for them and congratulations!!!!

For more information about CMIT Solutions and franchise opportunities, visit www.cmitfranchise.com, call (800) 710-CMIT or email franchise@cmitsolutions.com.

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Contest to Award $25,000 in Bookkeeping and Accounting Services to Small Business Suffering from Financial-Recording Disaster

America’s Small Businesses Savior: The “Great 2010 Accounting Makeover”

From Boston to Tacoma and everywhere in between, small businesses entering the “Great 2010 Accounting Makeover” contest stand to win a comprehensive BookKeeping Express 12-month service package.

HOW TO ENTER:

Business owners and management interested in the makeover must enter the contest by e-mailing a link to a video, photos or a few sentences conveying the accounting nightmare they are facing to makeover@bookkeepingexpress.com. BookKeeping Express will post entries to www.facebook.com/BookKeepingExpress and the winner will be named on Monday, December 20, 2010. All entries must be e-mailed by noon ET on December 17, 2010.

The contest winner will be chosen through a “like” vote system, in which small businesses encourage business associates, friends and family to “like” their entry on the BookKeeping Express Facebook page. The small business’ entry with the most “like” votes will be deemed the winner.

The winning small business will receive:

• A review of previous year’s financials (up to 12 months)
• Comparison reports to industry standard
• 20 hours of consultation (can be used at beginning or spread out)

Plus, BookKeeping Express will give all entrants a waiver on their set-up fee (up to $500 value).

To help ensure a full accounting overhaul, BookKeeping Express will customize its consultative and strategic accounting services for the winner.

So, are you overwhelmed by records? Don’t wait, send your entry today.

BookKeeping Express is a national company with more than 150 locations. For more information, please visit www.bookkeepingexpress.com or contact 877-525-5337.

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Disclaimer: I am not affiliated with either CMIT Solutions nor with BookKeeping Express in any way.

Related posts:

1. What’s Happening in Franchising?
2. Disillusioned about Franchising?
3. Franchising: what is it, really?

Gratitude is a positive emotion and a way of looking at the world that engenders a sense of well being. Studies have suggested that grateful people are happier, less stressed, and more satisfied with their lives and relationships. They are able to cope with difficulties in a more positive way, hence experience a sense of more control over their lives. So, what does all of this have to do with franchising? A lot!

Gratitude is a choice. We either choose to complain about what we have or don’t have or choose to see the beauty in what we do have and the blessings that come when something is not be present in our lives. It is in that choice that we find the control over our environment. We all have heard the adage that says: “we may not be able to control our circumstances, but we can control how we feel about and react to them.” So, what does all of this have to do with franchising? A lot!

Gratitude is a habit that we create by repeating our choice for the positive frequently. The more often we make this choice, the more ingrained this habit will be. So, what does all of this have to do with franchising? A lot!

If you are a franchisor, you can’t change the way franchisees behave, but you can certainly choose how you will react. Similarly, franchisees have no control over their franchisors’ actions, but they surely can choose whether or not they affect them negatively. It is all about what we choose to see. When either party is upset at the other they have the choice to remain dwelling in the negatives which only creates more discord, or choose to be grateful for the positives such as:

If you are the franchisee:

• The franchisor started a business, took the risk, and created systems.
• The franchisor shares his or her experience with me so I don’t have to make the same mistakes.
• The franchisor is thinking of ways for me to improve my bottom line.
• The franchisor has trained me and continues to train me.
• The franchisor invests in staff to support me.
• The franchisor spends a lot of money in R & D to ensure that my business has a future.

If you are the franchisor:

• Franchisees believed in my concept and in me.
• Franchisees trusted me and invested their life savings in my business idea.
• Franchisees paid me and continue to pay me money.
• Franchisees represent me every single day in their communities.
• Franchisees have stepped out of their comfort zone to implement my system.
• Franchisees share their ideas with me and they also help each other.

Did you hear a ‘but’ as you read the statements above? If so, you need a little bit of work on being truly grateful. Gratitude is all about shifting our perspective. It is not about denying the negative; it is about focusing on the positive that is always there, regardless of the situation or person. So, what does all of this have to do with franchising?

• Grateful franchisees are happier, better performers and validators.
• Grateful franchisors create a productive company culture.
• Gratefulness engenders good franchise relations.
• Gratefulness is contagious.
• Gratefulness produces a positive environment that invites communication.

Gratitude is not just for those ‘tree hugging’ folks, as some may say.  It is for all smart franchisors and franchisees who want success.

So, when was the last time you said ‘thank you’ to your franchisees or to your franchisor?

Related posts:

1. 3 Simple Ways to Create Strong Relationships with your Franchisees
2. 3 Things Your Franchisees Expect From You
3. Franchisees, Franchisors: Do You Need a Surety Bond?

• Underfunding

Franchising is expensive to launch. There are legal, operational, and training documents to prepare and management strategies to develop and implement. In addition, once you are ready to offer the franchise you must have funds available to market the opportunity and to support franchisees.

Many small companies have the finances to get the first step done but fall short when it comes to marketing their opportunity or supporting their franchisees. The resulting slow growth caused by not investing sufficient funds in marketing the franchise can be deadly for many entrepreneurs who aspired to recover their initial investment quickly. Their motivation fades away and many stop their efforts to grow their franchise networks.

Other underfunded franchisors may be able to sell franchises but lack the funds to hire the management and staff to train and support franchisees. The result is not only under-performing franchisees but also unhappy ones both of whom affect your ability to sell more franchises.

• Non Sustainable Product or Service

If your product or service is a fad or has the chance of its demand decreasing drastically, franchising your business is most likely not the right move. You may be able to sell franchises, but if there is not a strong probability that your franchisees will be able to make income commensurable with the required investment over the life of the franchise agreement, you should not consider franchising the business.

Another facet of sustainability is your ability to provide value to franchisees in an ongoing basis. In other words, do you have a business model that ties the franchisee to you, that makes it valuable to them to be associated with you? Are you able to offer ongoing value for the royalties they have to pay? Or, is the only thing you have to offer your knowledge of how to start and operate the business? If the latter applies, you should probably not consider franchising.

• Inability to Let Go

If you love what you do and can’t see yourself doing anything else, you may not a good candidate to franchise your business. Granted, it is important to be passionate about your product and your services, however you must be able to let go of your current duties, as the job of a franchisor is different than that of the operator of the business.

If you can’t let go of your current duties, are you willing and able to bring someone else to lead the franchising efforts? If not, you will most likely not be able to grow your franchise and your investment getting it set up will be in vain.

Franchising is a wonderful way to grow a business and it makes sense for many business owners. However, franchising is not for everyone.

Related posts:

1. 7 Reasons to Franchise your Business
2. Sustainability of the Franchise Relationship — THE 4 Keys
3. Is Franchising a Good Exit Strategy for Small Business Owners?

A few weeks ago I commented on a colleague’s Facebook post agreeing with his argument to encourage franchisors to create and implement Social Media Policies and Procedures.  A franchisee of an unidentified brand also made a comment enraged at the original posting and at my agreement with it. Her argument was that franchisors should worry more about support than about policies and procedures. In her mind she saw the two totally different and she seem to see the issue as an ‘either/or’. I can understand her point of view and her anger as I have worked with and known of many franchisors whose only or main objective is the enforcement of the agreement or policies, whether or not they make sense or add to the success of the franchise network.

To me, policies and procedures are not about compliance as much as they are about the support of all franchisees. Franchise procedures are simply step by step explanations or directions of how to operate the business successfully. Franchise polices are guidelines of conduct that allow franchisees to communicate and relate with each other, their customers and the franchisor. These policies protect the brand and therefore the franchisees’ investments. Can policies and procedures be used for compliance purposes? Of course they can; and, in the appropriate circumstances, they should.

True, there are some franchisors who see policies and procedures as a way to control the behavior of franchisees; and, in some cases, just for the sake of this type of control. But successful franchisors learn that policies and procedures are tools to guide franchisees and the entire organization to success. They are not all about compliance, or enforcement, or control; they are about guiding and supporting franchisees; and, as the situation dictates, they provide the legal grounds to protect the brand and the franchise system.

Franchising is all about policies and procedures and successful franchisors use these tools to train and support franchisees. As new technology or methodologies are created such as for example the social media explosion, franchisors must update their franchise policies and procedures to guide franchisees about the best way to incorporate the new technology into their businesses. It is not only the franchisor’s right to do so; it is his or her obligation.

Related posts:

1. My franchisees are using Social Media already. What do I do?
2. Franchisors, Have You Added Social Media Policies to Your OPS Manual? Part 1
3. Social Media: Too much to learn…How do I keep up?

Conflict is not pleasant, but it seems to be part of all relationships at one point or another. In franchising, if conflict is left unchecked it can escalate to the legal arena where communication no longer can heal the differences. Therefore, like it or not, we must deal with conflict and seek ways to resolve it.

• Prevent differences from escalating to conflict.

The answer to dealing with conflict is not to avoid it, instead it is to prevent it. Avoiding conflict can paralyze a person and a company; and, it may also lead to secrecy and lack of communication.

When we avoid conflict we generally create a much bigger mess. Take for example the franchisor who refuses to move ahead with a needed change in the organization because the franchisees may get upset. His or her lack of action is sure to ignite the discontent of proactive franchisees who desire the change. And, the franchisor who keeps information from franchisees to avoid conflict is bound to face a higher level of discontent. We all know that secrets do not stay secret for very long and that franchisees will find out and resent the lack of trust and honesty.

Preventing conflict is about communication. Keeping franchisees informed of what you are doing and the reasons behind your actions and inaction is the only way to keep differences from escalating to larger issues.

• Catch it before it goes to the written form.

If you can’t prevent conflict, at least catch it before it soars. If you allow differences of opinion with your franchisees to go to the point of being discussed in a written format you have let it go too far. When franchisees begin to write down their grievances you may be just a few step away from legal action. And, those franchisors who tend to answer any and all complaints with references to the franchise agreement invite such move. The key is to resolve the differences while you are still talking with each other and the only way to do this is to proactively check the morale of your franchisees consistently and often.

• Seek common ground.

Conflict can only exist when you and your franchisees are pulling in different directions. When dealing with conflict, find the common ground between you and your franchisees. Start the conversation by talking about those things that you agree upon and let these shared values, needs, interests and beliefs be the starting point of your discussion.

• Actively seek a solution.

Franchisors seeking to resolve conflict must contemplate the fact that they may not have the best answer. To be actively seeking a solution means that you are willing to ask your franchisees and to listen openly to their positions and to their proposed solutions. It requires that you give these proposals an honest chance, at the very least in your mind.

• Listen.

Conflict can never be resolved if we don’t listen. If franchisors or franchisees keep thinking about their own needs while the other shares theirs, no listening can take place; and thus, no room for conflict resolution exists. When discussing different opinions we must rescind our need to convince our franchisees that we have the answer, at least long enough to hear them out.

To find common ground and find solutions we must be able to sincerely elicit input from franchisees and truly understand their points of view. We need to put ourselves in their positions. We will never be able to do this if we do not listen. Remember, hearing the words is not listening for the latter requires our full attention AND our embracing the possibility that we may not be right or may not have the best answer.

Related posts:

1. 3 Things Your Franchisees Expect From You
2. 3 Simple Ways to Create Strong Relationships with your Franchisees
3. 5 Email Sins to Avoid in Franchising