Demographics

When exploring businesses it is important to have a strong understanding of the demographic data of the area where your business will be located. Never assume that a national franchise will succeed in your town just because there is not one located there currently.

Determining if there is a market for the proposed business is something that should be taken very seriously and included in your due diligence. Understanding this information will also help you grasp the territory or market the franchise is proposing and what may or may not be the possiblity of expansion down line. But how can you go about finding out this information? Here are a few free websites that provide great information to start you down the path.

#1 ePodunk.com
#2 US Census Bureau
#3 City-Data.com


Have a great week!



Regards,


Rob

E Pizza!

I am always amazed at the effect the internet is continuing to have on traditional brick and mortar businesses. Just this week it was reported that GM is reducing its advertising budget by $600M for 2007. The direct beneficiary of this reduction is reportedly online media. It is cheaper, provides endless targeting opportunities and results can be tracked very accurately.

The Internet is even changing the pizza business as highlighted in the below article. Domino's Pizza reported this week that 1 in 8 pizzas are being ordered online in the UK. The really good news is that this trend not only helps sales but ultimately allows the local business owners to consider less expensive online advertising to drive orders resulting in a healthier bottom line for the franchisees! Maybe one day the dreaded yellow page bill can be avoided for good!

Have a great weekend!

Rob

Article"
'E-pizzas' bulk up Domino's bottom line

SBA To Host Chat On Virtual Business Start-Up

I am continually impressed by the quality of the events and resources the SBA is producing for entreprenuers. Be sure to include regular visits to the SBA site for tips, tools and resources. The following was sent over this morning in their Advisory Newsletter. It is an example of one of their ongoing programs.

Have a Great Day!

Rob


****************************************
Advisory Date: February 21, 2007
Contact: Cecelia Taylor (202) 401-3059
Advisory Number: MA07-05
Internet Address: http://www.sba.gov/news

SBA’s Web Chat Series to Highlight Virtual Business Start-up

Victoria Parham, SCORE Business Counselor, to host discussion on Entrepreneurship February 28, 2007 at 1:00 p.m. ET

WHO: Victoria Parham, SCORE counselor and small business owner, will host the February Web chat on "Entrepreneurship: The Essentials for Starting an Online Virtual Business." Parham will share her personal story of growth from active duty soldier and military spouse to self-employed entrepreneur and creator of a thriving business educating clients, including military spouses, on how to do business in the virtual marketplace. Join her for an online dialogue as she shares her business advice and insight.

Parham serves as a distance learning contractor for the Department of Defense Military Spouse Portable Careers Initiative, and was featured as one of Inc. Magazine’s 26 Most Fascinating Entrepreneurs of 2005. Parham has served as a SCORE counselor since 2004, providing small business advice to entrepreneurs.

WHAT: The SBA’s live Web chat series provides business owners the opportunity to have discussions online about relevant business issues with experts, industry leaders, and successful entrepreneurs. Participants have direct, real-time access to the Web chats via questions they submit online in advance and during the session, and receive instant answers.

WHEN: Wednesday, February 28, 2008, from 1 p.m. to 2 p.m., ET. Parham will answer questions for one hour.

HOW: Chat participants can join the live Web chat by going online to www.sba.gov, and clicking the "Online Business Chat" icon. Chat participants may post questions for Parham before February 28th by visiting http://app1.sba.gov/liveMeeting/Feb07/ and posting their questions online.

To review archives of past Web chats, visit online at www.sba.gov/tools/monthlywebchat/index.html.

Would You Do It Again?

This simple question is probably one of the most important to ask current franchisees of any system you are exploring. It gets straight to the point of everything you are ultimately trying to uncover in your due diligence. ..... having walked in the shoes as an xyz franchisee ,would you do it all over again?

Over the last few years, two new companies have entered the market and conduct "satisfaction" type surveys of their client systems. Franchise Business Review and Fransurvey are the most widely recognized and both provide in-depth reports. Their surveys provide great insights into a system but they should never replace your calls directly to current and former franchisees. Why? Simple. I am always a little skeptical of surveys that are ultimately contracted and paid for by the franchisor. Besides, nothing beats a direct question and an old fashioned direct answer.

If the franchise you are researching is featured on one of these sites, use the reports to identify responses that may be troubling to you (ie hours worked, weekends worked, sufficient working capital etc) and ask franchisees during your calls to expand on the questions.

Have a great week!


Rob

Flipping the Biz Opp

A few years ago, one of the techniques recruiters used to gain access to corporate employee lists was called flipping a website. This, in brief, involved searching the internet for things in the public domain (Ie a personal website that linked to a project they client was working on) that provided a path (back door) to things that were not in the public domain. This technique has gone the way of the dinosaur due to increased security and firewalls across all sizes of business.

When going through the Due Diligence process with a business opportunity it is very common to receive a very specific list of licensees to contact about their experience with the business. They may have 500 open locations but provide a list of 20 people to call. Those lists are great but make sure you reach several not on the list provided.

So how do you identify those not on the list? Since most Biz Opp Licensees operate under unique names it can be very difficult identifying who is and who is not associated with the company on the internet.

Taking a trick from early internet recruiters, try "flipping" the biz opp to pull related licensee websites. Here is how....

Step #1 - Review the sites of the licensees provided. If you don't have thier websites on the list ask for them when you speak. While on their sites, look for common marketing phrases used, business explanations, form names, common articles, etc and make note.

Step #2 - Head to Google and query by these phrases in quotes to identify unlisted owners of the business and then contact them to continue your due diligence. Looking through the results you will be able to target those that are most like involved in the business.

Step #3 - Call them. Ask is they are affiliated with XYX business and the reason for your call.


Have a great weekend!

Rob

Climbing The Mountain

I often refer to the process of researching a franchise or business opportunity as “Climbing the Mountain”. This is due to the challenge, perseverance, time, persistence and of course the intestinal fortitude required to start and complete either task successfully.

No one new to mountaineering simply wakes one morning and decides to go climb Mt. Everest. They commit to the goal and invest in the needed training, planning and research to insure the highest probability of a successful climb. Yes probability. No climb can ever be guaranteed to be 100% safe and equal challenge awaits on the ascent as well as the descent.

The same can be said for the would-be business owner. To simply say, “I want to own a business” unfortunately will not make it so. Their “Mountain to climb” is the time, research and planning required to identify their ideal opportunity. Unfortunately, for the business owner, climbing this mountain is not enough. For the climb to be successful they can not climb back down methodically to the flat ground below. They must stand at the top of the mountain and make the decision to jump believing in the preparation that got them to this point and the faith they will grow wings.

When considering a business search it is best to begin with the end in mind. Will you be able to “jump” when the opportunity arises?


Have a great week!


Rob
http://www.northstarfa.com

Gen Y Franchise Boom?

I was pleased to read a recent article from the Jan. 2007 Franchise World Magazine highlighting the valuable impact young franchisees are bringing into systems across many sectors.

Early last fall while attending an industry seminar, I had an opportunity to speak with a very well respected industry trainer/consultant who suggested I only steer my practice towards the 45+ crowd. He advised younger candidates lacked the seriousness to be effective franchisees. Being in my mid-thirties I took a little exception to his guidance and decided to not take this nugget of advice.

The below article provides some great insight into how some systems not only relish their young franchisees but see Gen Y as a vital component to their future system growth.

http://www.franchise.org/Franchise-Industry-News-Detail.aspx?id=32038


Have a great weekend!


Rob

Loss of Job Security

Continued discussion from my January Newsletter article “Why Not?”


The phrase “job security” always creates a wonderful picture in my mind. A utopian environment where both employers and employees work together for the others mutual benefit. Where the job you held was always yours to loose. Work hard, be consistent, provide more solutions then problems and you will always have a job.

The reality of “job security” is of course very different. “Employment at Will” seems to paint a more accurate picture.

A few weeks ago, I attended an outplacement event for workers contemplating buyout packages from a few Detroit area employers. During introductions, a gentleman near me stood up and mentioned he had over 25 years with his employer. He had worked hard, been consistent and certainly created more solutions then problems yet his employer was asking him to leave. Unfortunately, this scenario should not be too surprising as it plays out everyday across the country.

This change in the Employer / Employee relationship has lead to significantly reduced employee tenure and tripled the number of employers the average worker will have over a career.

In this day and age, haven’t most already lost their job security while still keeping the job?


Have a great week!


Rob

My Favorite Franchise Mascot

With the SuperBowl advertising war kicking off Sunday, I thought I would introduce you to my new all time favorite corporate mascot. Sorry Noid, Taco Chihuahua, Mr. Nut, Green Gecko, Sock Puppet, Baby Bob, etc.....

Please meet Mr. Happy Crack! He is the lovable, humorous and very memorable mascot of The Crack Team where he proclaims the slogan, "A dry crack is a happy crack!".

Underneath this amazing branding tool is a growing franchise system. The Crack Team is a foundation repair franchise which is capitalizing on the rapidly growing home services sector. Through providing time tested permanent repair solutions for foundation cracks, you just may see Mr. Happy Crack in a neighborhood near you soon!

Interested in learning more?

Best wishes for a wonderful weekend and GO COLTS!

Rob