franchise buyer by franchise buyer

July 2018

www.franchisebuyer.com.au

Realising process, technology and people efficiency in a business of any size

Lead generation basics

Buying yourself a job, whatâ&#x20AC;&#x2122;s wrong with that?

Locating your food franchisebuyer.com.au business

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Inside this Edition of July 2018 06 News Bites 12 Digital Strategy Robb Snell 15 Buy Yourself an Awesome Job! Glenn Walford 18 Mobile Trades Business N-Hance

Talking business

20 Marketing John Dwyer

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27 Freight and Logistics Business PACK & SEND

Jayesh Kasim, MD ValentaBPO

24 Locating Your Business Peter Buckingham

28 Broker Tips for Buying 30 Finance James Scurr 32 Mobile Trades Services Business Mobile Skips

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w w w . f r a n c h i s e b u y e r . c o m . a u Publisher

GLENN WALFORD Editor GLENN WALFORD glenn@franchisebuyer.com.au

Digital & Technology Strategy ROBB SNELL

Writer PAUL ROBINSON

Art Director KATHERINE BERCASIO

Contributors PETER BUCKINGHAM JOHN DWYER JAMES SCURR ROBB SNELL

Published by Published by Franchise Media Group Pty Ltd Opinions expressed in Franchise Buyer are not necessarily those of Franchise Buyer or the Publisher. Persons entering into a franchise agreement are strongly urged to seek their own independent advice. All material is copyright and reproduction in whole or in part is not allowable unless specific permission from the Editor is provided.

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What we see at Franchising Expos Pedal Powered Coffee!

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News Bites

Face-to-face expo’s – are they the best place to research?

ecently on 21-22 July, the Brisbane Franchising and Business Opportunities Expo was held. Even with a subdued Saturday,

the busy Sunday attendances showed that getting face-to-face for your research is ‘back’. It feels odd saying it, as face-

to-face research never really went anywhere! But it is clear, that there is nothing quite like getting to meet someone in person and talking with them about the attributes of their business and how it might relate to you. What was even better, is that people came along ready with questions that their research had uncovered. Years gone by, we’ve noticed expos filled to the brim with people ‘kicking tyres’ everywhere! Not that there is anything at all wrong with that – it was just clear that many more looking to invest in a franchise, are now approaching it in a diligent and deliberate, methodical based approach. Get out from behind that key board! Come along and say hi at the upcoming Melbourne Expo on 25-26 August. Grab your free tickets HERE. Use code FBM

Branch Managers in Distribution, Logistics or Sales

ith record turnover being achieved by the franchise network, the SafetyQuip business has set its sights on expanding its national footprint. With a business model of industrial distribution in the safety sector, Gary Shearer, CEO, announced recently that, “2017/18 was a wonderful year for the business. Our franchise network posted

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monthly numbers end-on-end that kept breaking records. The end result was that our network achieved sales growth in excess of 14% for the year. I’m so happy for our entire franchise network and support team, as it’s truly a collective effort.” With SafetyQuip reporting impressive numbers like these, Gary is working to grow the network to give it

even more buying power. “If you are looking for a way to leverage to your distribution, sales or managemz̄ent experience into a business of your own in the B2B environment, then our impressive growth numbers are hard to go past.”

Check Out SafetyQuip

News Bites

Creating uniquely local ‘hotspots’ with a franchised café

tellarossa, a Queensland based café business with a network of 23 locations in South East Queensland alone, has launched its ‘true local’ approach.

“We wanted our brand to be flexible enough to thrive in any community, no matter the market.”, said Darren Schultz, MD. “We saw the trend over recent years

of café brands looking for efficiencies in mass produced items and freighting them in. This can make sense for certain products and instances. We just wanted to push in the other direction and connect as a local café to each local community.” “We see an enormous win-win opportunity by doing the opposite and building a competitive advantage through; Fresh food positioning, Truly connecting locally in buying produce from each community, and Tailoring a menu to fit the local market.” Darren explains that as part of entering the business, Stellarossa café owners get to work with the team to develop the best-fit menu and locally sourced product for their market.

Check Out Stellarossa

Taking accredited training to remote regions

ecently at the Brisbane Franchising Expo, we came across an innovative new franchise concept in the safety training space. We took a couple of minutes to have a chat with Michael O’Reilly, CEO of Harness Mobile Training Unit, about the concept. In brief, using a custom built training trailer, they travel to regions and conduct accredited safety training with the trailer designed to create varying evacuation / rescue scenarios. The video and demonstration runs for 2min 17 secs.

Check Out HARNESS MOBILE TRAINING franchisebuyer.com.au

COVER STORY

BUSINESS ON THE MOVE REALISING PROCESS, TECHNOLOGY AND PEOPLE EFFICIENCY IN A BUSINESS OF ANY SIZE BY PAUL ROBINSON

t’s a long way from the mines of Mount Isa to running a company with global reach, but it’s a journey Valenta BPO managing director Jayesh Kasim has made in record time — and he shows no signs of slowing down. In a relatively short time frame, Valenta BPO has positioned itself as a global organisation that is the answer to every SME’s prayers. Specialising initially in outsourcing consulting, the company rapidly realised it had the expertise to supply both business process and technology 8

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advice that would complement the outsourcing component, streamlining its clients’ businesses and resulting in impressive cost and operational efficiencies. Business is booming and Valenta has offices in Asia, North America and Europe, with a core team of 200 staff growing by an average of 10 people every month. And now Valenta has decided to expand its successful business model into the franchising sector — in Australia, the UK and the US. To hear Managing Director Jayesh Kasim tell the story, his company’s rapid

growth almost happened by accident. After finishing university in Adelaide, like many at the time, he had responded to the West Australian mining boom and was working as an engineer. Keen to get out of the mines, and wanting his own business, he started a financial services/mortgage operation in Mount Isa. One thing led to another. “We discovered we had a lot of back office work to do, but we wanted the people we had employed locally to be looking after customers — bringing in new clients and developing the business,” recalls Jayesh.

“We thought, why not get this (back office) work done offshore? So we set up an office in India and that’s how it all started.” Over the next few years, Valenta expanded its team, establishing more sales offices and delivery centres in India, Malaysia, Hong Kong and Brisbane. “We wouldn’t have been able to grow the business quickly any other way,” says Jayesh, “ given the costs.” In 2014, Valenta decided it had outgrown its original business model. “We took the BPO (business process outsourcing) operation to the open market and began working with other companies in Australia, then in the UK and the US,” says Jayesh. “Then we expanded our services to include the process and technology consulting solutions because we realised it was a logical fit. A lot of businesses struggle because they don’t have the right CRM (customer relationship management) system in place, and it doesn’t matter what you do with the processes — if you’re not using the right software, it’s not going to work.”

“ For whatever reason, businesses often face challenges finding the right staff or enough staff. We find the people, train and manage them, and take the HR headache out of it,”

There are three key parts to the Valenta business model. The major component is outsourcing. “For whatever reason, businesses often face challenges finding the right staff or enough staff. We find the people, train and manage them, and take the HR headache out of it,” says Jayesh. “Once we understand what a business needs, we can supply it. There’s an immediate cost benefit and once they see how well it works they often take on more resources.” Process consulting is the second string to Valenta’s bow. “For the

outsourcing to work smoothly, a business has to have its processes sorted out,” says Jayesh. “We work with them to evaluate their current process and make sure it’s efficient for their business — it’s got to be seamless.” Which flows to the third part of the Valenta equation, CRM. “We have our own “nuclear” CRM, so we can design all their workflow to fit within their system, automate reports and so on,” he adds. The way Jayesh tells it, Valenta’s process and technology consultations run with the smoothness of a well-oiled machine. “We spend between two and five days with the business observing everything, then we identify process items that need work at the end of that period. We go away, work on the designs and make it happen. Full implementation can take anything up to 12 months, but we will project manage the transition for them to make sure everyone is on the same page.” Valenta’s BPO operation initially targeted SMEs because smaller organisations are usually able to make quicker decisions, but as Jayesh says, “We can work with businesses of any size, big or small. Every business has its challenges and we can assist all of them.” He says most businesses seldom have 100 per cent effective processes, they’re not using the technology that’s right for them and they have staff who are over-extended and unable to deliver the appropriate level of customer service. Valenta’s trump card is it will take care of all these nagging problems while the company looks after new business and servicing existing clients. Cross-selling is an important part of the Valenta model. “These services all complement each other, so it has become part of our marketing strategy,” says Jayesh. “One of the first things we do with a new client is to conduct a complementary audit of their systems and it’s amazing what we see. They franchisebuyer.com.au

COVER STORY

The next step in Valenta’s march to success will be its franchising operation, which was launched in Australia in June. Eventually Jayesh aims to have around 100 franchisee business owners in Australia.

might have a great business, but they don’t have a very good website for example. These are things we can easily value-add for them.” Jayesh says many businesses are unaware of the benefits of outsourcing for example, or have heard negative reports and are reluctant to give it a go. “Businesses can see improvements and cost savings within six to eight weeks,” he says. “With business processes and technology, it takes a bit longer, but after 12 months or so, we can deliver major improvements in quality and turnaround, for example.” The next step in Valenta’s march to success will be its franchising operation, which was launched in Australia in June. Eventually Jayesh aims to have around 100 franchisee business owners in Australia. 10

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“We’re absolutely committed to developing the franchise model. We realised if the business works well for us, it will also work well for the right franchisee and it will be the best way for us to expand our distribution,” says Jayesh. The idea is that the franchisee identifies a business opportunity for Valenta and is paid a percentage of the billing amount. “The product or service is delivered by the franchisor,” says Jayesh. “It’s all about the franchisee going out and finding the opportunity and we will take care of the rest.” His ideal franchisees will be people with business experience and a corporate network of their own. “Some of them will be retired CFOs and CEOs who are now ready to set up

a business for themselves. There will be mums returning to the workforce after having children, and BDMs (business development managers) with experience in corporate affairs. They don’t have to have our skillsets as we will deliver the resources and services, but they must have good communication, sales and relationshipbuilding skills.” Following launch here in Australia, the franchise model will also be launched in the US later this year and in the UK in the first quarter of 2019. To the casual observer, it may seem like Jayesh has an awful lot on his plate — that with all the varied components of the business. Unsurprisingly, Jayesh doesn’t see it that way. “I have oversight of the company, but we have different departments throughout the business, with different people with different expertise responsible for them,” he says. “We have our accounts team, our IT team and so on. It’s important for any business to have the right people in the right positions, and that’s what we aim to do. We know this business works and we know what we can deliver. We know our processes work because we use them every day ourselves. And many of our contracts are now coming from referrals from previous customers who are very happy with what we have done for them. So we know what we are providing is working. It’s a win-win all round.” More About ValentaBPO n

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DIGITAL STRATEGY

Lead generation basics for every business IT’S THE BIGGEST TICKET ITEM FOR EVERY BUSINESS. SO, IT IS NO WONDER THAT MANY PEOPLE SEEM TO CONSTANTLY WONDER, ‘WHERE ARE OUR SALES GOING TO COME FROM? BY ROBB SNELL

ith the sudden influx of urgency, most businesses make the mistake of just pumping their name out there because more leads is never a bad thing...right? Well, I say ‘wrong’. The problem is that generating large numbers of random leads is the easy part, it’s qualifying of those leads and converting the good ones into customers that’s the issue. If you don’t have a solid conversion strategy then 90c in every dollar you spend is lost in the wind before you even get started. To get off to a good start you’ll need to 12

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design a series of conversion funnels that match the personas of the leads you’re interested in. This is something that your digital strategy can help you with, and I highlighted the terms conversion funnels and personas because they are going to need some explanation. I’m going to assume that you’ve got a really clear handle on what your products are and where they sit in the market compared to your competitors. You know how to explain and differentiate your products from each other and also how to demonstrate their points of difference and strengths when

compared to other products. That’s a basic starting point for any type of sales communication.

CUSTOMER PERSONAS The big step forward comes when you start to really analyse your customer personas. At its most basic, a customer persona is a better type of insight into the different types of customers that purchase from you. Rather than treating everyone as a bland two dimensional ‘human’, you start to treat them in a way that is far more contextual.

Typical traits that you might use to split out your customers are: Age Gender Location Marital Status Family Status The potential list of traits is endless and it’s only limited by how much you know about your customers and your ability to target audiences based on those traits. Typically you would try to isolate a good number of personas to test, I normally go for around eight personas if I can, but it also could be less depending on the product. Some of those personas will be obvious and you may already have good data indicating that they’re key customers of yours. Others within your list may be a little more speculative. Perhaps you’ve got a hunch that they’re good customers for you so you might as well test them

out and validate (or invalidate) your hypothesis. So now we have a list of personas, let’s take a quick peek at targeting ads to them.

TARGETING YOUR ADVERTISING The power of targeting your advertising to detailed customer personas is the primary reason why Facebook has become such a dominant presence in the advertising industry. Not only does Facebook have a huge audience within its network, but more importantly, it knows more personal traits about that audience than any other network in history. If you are an author that writes crime thrillers then a (very narrow) persona trait that you might look for would be all people that read John Grisham books. Prior to Facebook that would be a fairly useless trait because even though it would be a great way of identifying potential customers, there was no such audience that you could get access to. These days you can access exactly that list on Facebook. If you want to target a similar audience with search-based advertising (Google or Bing) then you’ll need to spend some time determining the patterns of keywords that these

customers are likely to use when searching for products like John Grisham books. The differences between advertising on search-based (eg, Google)and content-based (eg Facebook) networks is a large topic of its own, as is developing your keyword strategy for maximising click-through-rates (CTRs) and comparing conversion rates, so let’s just say “stay tuned” for future articles.

AT THIS POINT LET’S STAY ON TRACK WITH YOUR NEWLY TARGETED CUSTOMER PERSONAS.

By now you’ve isolated a handful of customer personas and you’ve worked out ways of targeting them on Facebook or via a search network using an appropriate set of keywords. Here’s the step that most businesses skip; how are you going to speak to those personas? You can’t just point them all to your stock sales pitch, as that would be ignoring what you know about them. What you need to do is view

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DIGITAL STRATEGY At a high level, a conversion funnel is a series of steps that you guide your prospects through in order to encourage them to take a conversion action that is of value to you.

your products and services through their eyes. Think about the concerns or objections that they might raise, and try to identify the type of proof they’d be looking for when assessing the suitability of your offering. There are two places you need to put this information they’re looking for, in your advertising and within your conversion funnel.

WHAT EXACTLY IS A CONVERSION FUNNEL? At a high level, a conversion funnel is a series of steps that you guide your prospects through in order to encourage them to take a conversion action that is of value to you. The type of action you’re after will depend on the type of audience you’re targeting and where they sit within your customer lifecycle, but if you’re trying to generate leads then it’s highly likely that your audience is a list of potential prospects and the action is getting them to provide you with their contact details. Conversion funnels exist in every sales situation and often these funnels will involve non-digital steps like telephone calls, free

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appraisals, invitations to events or trial subscriptions for products and services. There are many articles that could be written solely on conversion funnel strategies, but for this article I have one very clear and elementary point. If you’re going to achieve a high conversion rate from the prospects from each of your targeted personas then you will need to tailor a conversion funnel to each of those personas. Just as you will need to write different ad copy for each of your personas, you will need to continue the sales conversation as seamlessly as possible from the point of first interaction all the way through to actual

conversion, otherwise you run the risk of losing their attention and failing to reach the all-important conversion action. One of your personas might be very happy to submit a web-based form and schedule a Google Hangout, whilst a different persona would prefer to ring a telephone number and schedule a face-to-face appointment in your local branch. If you get those conversion steps mixed up then you can imagine how your conversion rate will suffer. Of course we’ve only had a chance to touch the surface of lead generation but in many ways these fundamentals are responsible for the vast majority of lost business opportunities and wasted advertising spend in the world of digital marketing. There really is no point driving more prospects towards a leaking funnel, as you’d be far better off fixing the funnel first. From the start of the online revolution, Robb Snell has crafted technology solutions to get the best out of any business. From the biggest corporates to ‘Day One’ start-ups, Robb’s work has launched companies, won international acclaim and revitalized P&L’s time and time again. n

From the start of the online revolution, Robb Snell has crafted technology solutions to get the best out of any business. From the biggest corporates to ‘Day One’ start-ups, Robb’s work has launched companies, won international acclaim and revitalized P&L’s time and time again. www.MagneticFranchising.com.au

FEATURE

Buy yourself an awesome job, where you’re the boss. SO, WHAT’S WRONG WITH THAT? BY GLENN WALFORD

or some strange reason, I’ve heard people referring to lower-cost franchises in a negative way as “But they are just buying themselves a job.”. This is a pretty common assessment by many people on lower cost businesses. The type of business we’re talking about here are things like; • Mobile services (many of these), • Work from home online, • Some broker businesses, • And many more.

I take exception to this view, as what is wrong with buying yourself a job? A job that YOU own and can decide how much you want to earn that week and how hard you wish to work. Of course, not working hard comes with the consequences of not earning as much money – same as in any business. The phrase ‘buying yourself a job’ comes about by people putting their own expectations onto other people. Not everyone has the dream of buying one café or pizza store and becoming a multi-site owner turning over multimillions of dollars annually. Not that many actually have

the capacity or capability to do that successfully, but all power to those that do. The potential of investing a small amount of money with low risk is very attractive to many people, and especially those first time business owners. It’s quite a sensible way to approach getting into your own business. SOMEONE ELSE’S DREAM, SOMEONE ELSE’S MEASURE OF SUCCESS. Don’t be sold on someone else’s dream or measure of success. Don’t let them apply that to you. If they see

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FEATURE success as having a multi-million dollar turn over business and making a healthy profit on that yearly – good for them. BUT, I see nothing wrong with people not wanting or thinking like that.

The Average Wage In this whole discussion, the important number really as far as ‘a job’ is concerned, is really quite subjective when it comes to earning. However, for simplicity and logic, let’s just go off what the actual data says on the average wage in Australia. The Australian average weekly earnings / wage according to the Australian Bureau of Statistics (ABS) is;

• $1,567.90 per week, or

• $81,530.80 per annum.

With WA and the ACT average weekly earnings being closer to the $1,800 mark, the differences between the rest are not substantial.

Earning $81,000 is the norm for most Let’s look at what it takes for on a daily basis for most to earn ‘the average’ $81,000 odd. Let’s say you get up at 530am, get the kids up, fed and ready for school. You both race out the door to do the before school care, or school drop-off run. Quick kiss goodbye to the kids from the car, and they are dropped and away. Now you both commute to work. Get to work and get on with your day, maybe juggling work commitments and the odd personal appointment depending on what is happening that day or week. End of the day and it is time to do the whole kids drop off thing in reverse. This can be chaotic and entirely inflexible, and before you know it, 10 years have gone by!

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A low-cost franchise (So called, buying yourself a job) Of course, It matters which franchise you choose, but there are many low entry cost franchises out there that can demonstrate large networks giving you plenty of existing owners to speak to about their experiences. The number 1 question I believe when talking to existing franchise owners in a business is “From where you sit now, and knowing what you know now, would you do it again?” The typical features and benefits for a services type franchise owner in a good system might be; n Choose a territory to work close to home n Structure your work day around the hours that work best while considering the needs of your business, n Share jobs with fellow franchisees close-by and viceversa in the event of family time / occasions and needs, n Receive customer leads from franchisor AND generate your own with local marketing and referral – market more, earn more, n Be in control of your own day and life in general, n Do something every day that you actually enjoy doing and chose to do. The particular business type may even allow you to focus on key parts of the business / service that you most enjoy doing.

Funding the ‘buying of your job’ Invest anything in the range of $35k - $100k, most of which is likely entirely funded from home owner equity which is quite common in investing in franchises like this at that price point. Generally, the good thing about

that is the smaller investment fitting within the equity level re-draw where applicable, means that the payable interest and serviceability on the loan is low in comparison to other funding. BUT, the kicker is when people don’t have a structured pay down in a reasonable time period. Don’t make the same mistake, and as always, you must get professional advice.

The low-cost franchisors dilemma I recently met with a mobile services based franchisor who is doing quite well with 50+ franchise territories

FEATURE

From where you sit now, and knowing what you know now, would you do it again?” nationally. They have thousands of customer leads going un-serviced per year, so they are trying to meet demand. His story is not uncommon in the type of franchise it is as I’ve worked with many of them over the years. The success of their business model, and

through the work of the franchisees and franchisor in growing their brand and reputation, mean they have significant unrealised potential nationally. Yet he experiences frustration having a number of franchise owners who are comfortable just as they are earning $80-$100k per year. With his top earners exceeding $150k per year, he sees potential for all of them easily in that range per year, but they are more than comfortable as they are. Of course, as a franchisor he wants more for them, and so he should for the benefit of his business system.

This conversation actually prompted me to write this story. And when you see the data around the national average wage being $81k per year, you can understand why many sit and stay at this point. As it seems very likely that many probably never had much intention or desire to go to the level they need to do, to double that earning. My guess is, that the pay-off in lifestyle is too high. Either way, I reckon buying yourself a job like this is absolutely fine by me, and don’t let anyone else tell you otherwise…n

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FEATURE – MOBILE TRADES & SERVICES

Find a problem in the market and provide the solution THIS COULD BE THE ESSENCE OF THE POSITION THAT N-HANCE OCCUPIES IN THE FLOORING AND CABINET REFINISHING MARKET. BY GLENN WALFORD

s an experienced exfranchise owner himself, Darren Leaney, National Franchise Manager at N-Hance, quite possibly knows more than most about business and franchising. “What I know about both, is what excites me so much about N-Hance”. In Australia, the N-Hance system delivers both flooring and cabinet refinishing solutions. It utilises a number of attributes that have so far seen the USA system grow to over 500 locations throughout the country. “It’s the way we do our refinishing that is at the heart of our business and gives us our competitive advantage. Our proprietary LightSpeed technology system uses UV lighting to dry and cure flooring in a fraction of the time of anyone else. “Our entire offer to the market is firmly built around over-coming the common objections from customers that stops them getting the kitchen or flooring re-done; n We refinish rather than replace – saves money, n We’re dry and ready for use within hours, not 4 – 5 days – saves inconvenience.

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For the most part, kitchen cabinets are generally in pretty good condition. So, simply a professional refinishing process can make them as good as new again. This is the market, and how we meet it.” According to Darren, the domestic kitchen market opportunity is significant, but the market for floor refinishing extends even further by pushing into commercial opportunities. These include; home, theatres, restaurants, pubs, clubs, basketball courts, churches – well beyond the home market. With a detailed training and support program in place to welcome aboard, and develop new business owners, N-Hance is ready to build similar

momentum in the Australian market. “Over many years in business it’s very clear who are the most successful. It’s people who are strong relationship builders, that believe in their own ability, and that are focused on delivering a high quality product and service to their customers. The rest, we can teach you!” More About N-Hance Want to see the N-Hance LightSpeed® System in Action?

A revolutionary new franchise has arrived Offering you...

• Low start-up & fixed costs • Exclusive territories • Full training provided • Continued support N-Hance Wood Refinishing is the #1 market leader in the US today! As a N-Hance franchisee in Australia, you’ll specialise in the refinishing of tired-looking wood cabinets and floors using revolutionary techniques that cuts down cost, time and inconvience for the customer — all without compromising quality or durability. Be your own boss and reap the rewards!

Refinishing without compromise.

“We are excited to be part of the team. N-Hance provides expert advice in all areas, from purchasing, inventory, technical advice, training, financial and management strategies.” N-HANCE, PARRAMATTA

For a Franchise Information Pack contact:

DARREN LEANEY, NATIONAL FRANCHISE MANAGER 0418 393 377 | 1800 957 811

franchisebuyer.com.au dleaney@n-hance.com.au | www.n-hance.com.au

N-Hance Australia Pty Ltd

MARKETING

Want An Avalanche Of New Leads? It’s Simple When You Know How!! “JUST GET ME MORE LEADS” EVERYONE SEEMS TO SAY. WELL, HERE IS HOW IT’S DONE. BY JOHN DWYER

s a Marketing Advisor, I hear all sorts of complaints from business owners – but the main one is that they are NOT getting enough “leads”. It seems to me that most owners believe they “can convert” – as long as they can enjoy a constant flow of “leads”. If I was to ask 100 owners “for their preference of me providing advice on getting leads or tips on converting prospects” – 95% would say “give me more leads!” I must confess that I am constantly surprised how many business owners still simply open the doors (offline or online) and expect people to come in. Of course, this is particularly prevalent in the offline world - take a walk down any retail strip and you’ll see butchers, delicatessens, hair salons, cafes and hardware stores just waiting for people to come through the door. And when someone actually goes through the door, 99% of these businesses fail to capture any data and therefore can never contact that person in the future to invite them to come back. But let me get back to “leads” - as this appears to be the

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number one priority for every business owner, online or offline. My view is that every business needs a “leads machine”, one which continually pumps out prospects at will. At this point, you may be having a bit of a giggle & thinking “oh yeah, that’d be so easy… sure – dream on!” But believe it or not, it actually “IS” possible – particularly now that we have online tactics at our fingertips. And the likes of Facebook & Instagram provide us with the most laser-targeted form of advertising the world has ever seen, increasing our chances of

attracting reasonably warm leads quickly & cost-effectively. So, if you’re not using these platforms, you need to quickly start – but only if you know how to exploit this opportunity.

FACEBOOK & INSTAGRAM “LEAD MACHINES” Whilst Snapchat & Twitter are of course major players in the social media world, most business owners would choose Facebook, Instagram & YouTube to promote their wares. For the sake of simplicity here, I’m going to give you examples of “avalanche lead generation” using Facebook only. Nonetheless, the same principle can be used on Instagram & perhaps YouTube. One of the members of my advisory program was an aluminium fence supplier with a market focus on

Gosford in NSW. His target audience was very clear to him – owners of older houses (maybe homes 30+ years old) who would’ve likely had an old paling fence that was showing its age. He had tried letterbox brochures to postcodes that had older homes, with hardly any response. Then he tested Facebook advertising in such areas, with a woeful response. He was at his wits’ end and nothing was working. So, when he came onto my advisory program, I offered to create a new campaign angle for him, one which broke sales records for him instantly. I crafted a Facebook advertising campaign that was laser-targeted to postcodes with older homes. It was a competition titled, wait for it, ‘The Ugliest Back Fence In Australia Contest!’ Homeowners were invited to take a photo of their ugly, decrepit back fence, and post it to the aluminium fence company’s Facebook page. It was that simple in execution! The result was that I received a call 3 days into the campaign from the business owner, saying that he had to turn off the campaign, as he had gained 2 years-worth of leads in just a few days!

NOW THAT’S HOW YOU GET AN AVALANCHE OF GOOD LEADS IN JUST 3 DAYS!!! This concept also follows my mantra of a 2-StepSell – where your Facebook advert sends a prospect to a Landing Page which collects their contact details so you can then follow them up and SELL to them. This is where many business owners fall down with their Facebook advertising, as they try to sell straight from the actual

Facebook ad. What you need to do is create a Facebook ad that intrigues a prospect to click through to a Landing Page to get something like a Free Report or perhaps a Free Entry into a contest. When the prospect does that, they of course leave their details, which means you can then contact them to promote your product or service!

Hence, why I refer to it as the 2-Step-Sell.

Say for example, you were an Italian Kitchen Renovation company. I’d recommend you create a Facebook advertising campaign that perhaps mirrored my Ugly Back Fence one (which we’ve done for kitchen companies with spectacular results) or maybe offer a Free Report titled “The 3 Biggest Mistakes People Make When Renovating Their Kitchen”. In the case of the latter concept, prospects click through to a Landing Page and whoever does this has immediately flagged they’re in the market for a kitchen makeover. And that’s when you’d follow up quickly with a great offer for renovating their kitchen! Again, a 2-Step-Sell.

BURGER RESTAURANT JAMMED WITH LEADS!

Another member of my marketing program experienced insane responses from a Facebook lead generation campaign I devised for him. The Burger Institute is a Brisbane family restaurant serving gourmet burgers. It’s licensed & pretty funky, somewhat similar to the franchised burger chains going around. Although their burgers normally retail for $15 or more, the actual cost of making a burger is a few dollars. So to generate traffic to the restaurant, we created a Facebook ad campaign offering a Free Burger on the basis that you bought another one. Respondents simply clicked the ad and went to a Landing Page – where they provided their contact details and then

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The 22Franchise Finance Experts! MAGAZINE

MARKETING

downloaded a printable voucher. They took that free burger voucher to the restaurant. And what was the result you might ask? Avalanche traffic to the restaurant, and for a giveaway that cost just a few dollars, the average sale to respondents (who of course always came with a friend) was near $50, a pretty good return on investment!

GOLD COAST FASHION STORE SWAMPED WITH INSTANT LEADS! Another client, a Surfers Paradise women’s fashion store called Destination 4217, needed to exploit the fact that it was the exclusive stockist in South East Queensland of the outfits worn on Channel 10’s The Bachelor TV Show. I created a Facebook Ad Campaign that invited women in the appropriate target audience (30 to 50 year olds) to ‘vote for their favourite colour of the jumpsuit featured on the program’. The respondents to the ad went to a Landing page where they voted after providing their details. And bingo! the fashion store owner had an avalanche of new prospects within just a few days. Of course, they are prospects to follow up and sell to.

MY OWN AVALANCHE LEADS FACEBOOK AD I hold 1 Day Marketing Events around Australia aimed at business owners, and whilst years ago, I heavily advertised in Airline Magazines & Business Publications, I now exclusively use Facebook to fill seats for this type of event and offer. I do this by simply implementing my 2-Step-Sell formula. My ads feature a ‘tease headline’ that invites business owners to click and find out more. When they click the ad, they go to a Landing Page which offers them Free Tickets to my event IF they leave their details. A Facebook Ad that has been getting incredible results is one that highlights my achievement of scoring 812,000

leads in one week for a client. This ad single-handedly filled 3 seminars in record time. And then at the event, I showed attendees the actual case study that involved my client, New Idea magazine and how I generated that many leads in just one week. So there you have it, avalanche leads might only be a Facebook Ad Campaign away for you! But remember, when using this incredibly targeted platform, you should go down the 2-Step-Sell path. Make sure you intrigue your prospects with a clever benefit driven headline, or maybe a contest. And when they click the ad, they go to a Landing Page where you collect their details. THEN you can start your selling process! n

John Dwyer is the owner of The Institute Of Wow & provides online & offline marketing advice to business owners across all industries. His website is at www.theinstituteofwow.com And his Coaching Program details are at www. wowmarketingacademy.com.au/promotion For marketing advice, call 07 55 919 566 or email info@theinstituteofwow.com

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LOCATING YOUR BUSINESS

WHERE TO PLACE YOUR FOOD BUSINESS

alfresco, casual dining or food courts? WITH LOCATION BEING ABSOLUTELY CRITICAL TO THE SUCCESS OF YOUR FOOD VENTURE, IT PAYS TO DO YOUR RESEARCH AND PLANNING… BY PETER BUCKINGHAM CFE CMC

f you are looking at joining a food franchise, doing the retail location planning for a franchise system or just opening your own restaurant, you need to think of what is growing, and what is slowing. The standard food court site seems to be a bit on the nose – as Luke Bayliss of Suma Salad is telling the major shopping centre owners – with his actions. What is HOT and what is NOT? Over the last 10 years there has been a steady increase in the growth of casual dining in alfresco areas, both in major shopping centres and some unique other areas across Australia. The major shopping centre operators (Scentre, Westfield, Federal Vicinity Centres and others) are building areas to house 200 – 300 seat restaurants together, and normally anchoring them with a mega screen complex. In my view this is the HOT at this time. 24

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From a simplistic viewpoint, historically we have had the following options in and around shopping centres: 1. FOOD COURTS – full of many different options – International brands through to individually branded operators. 2. KIOSKS AND FREE STANDING SITES – outside the food courts (normally coffee and cakes). 3. FREESTANDING QSR’S (often on the pads of the shopping centres).

There seems to have been a drive in the last few years to grouping the sites together into an alfresco / casual dining area, and attracting a more casual diner, happy to spend more time

in the evening, be able to have a couple of drinks, and coupling it with the adjoining entertainment areas. Sometimes systems may have their brand both in the food court and in the alfresco area, and we are seeing a desire from some of the large operators to leave the food court and replace it with the larger site in the alfresco areas. The business models of companies like Nandos, GYG and Grill’d are to have a licenced premise with around 200 seats (indoor and outdoor), so they are looking at having the client for a much longer time at the table, and hopefully spending more over that time. Roman Tepes, CEO of Rashays believes that casual dining – alfresco sites are the future for them, and are expanding their 20+ restaurant base across Sydney specifically into these opportunities.

Food courts may be reaching their limits! Food courts have become larger and larger, and whilst the rents have continued to rise, the number of food outlets in most shopping centres is also continuing to rise – with minimum increase in the total pedestrian count. Luke Bayliss of Sumo Salad took the drastic step in June 2017 of aligning his problem leases (all in food courts run by the major shopping centres – mainly owned by Scentre and operated by Westfield) into 2 separate companies. He then placed them into Voluntary Administration as a way to try and force the Shopping Centre managements to realise they were squeezing so hard the businesses were going to go broke. Luke’s tactic is seen as fairly drastic, but it may give him a better negotiating position on these leases, but I assume he has decided his future in most shopping centres will be very limited, as memories will be very long.

The formula is to attract the client in, come for a meal, low numbers over lunch, but a major destination over dinner” Time will tell how this tactic will work out for his future franchise network planning, as we assume solicitors are being briefed from both sides to sort out this situation. The other problem with food courts is they really are a lunch time service. They rely on people in the shopping centre spending about $10 for lunch, and have normally eaten and moved on in about 15 minutes. They are really not

a very pleasant place to hang out, very bright, quite noisy and sitting on hard seats in a communal area.

Coffee and cake shops throughout the Centre There has been a big expansion in the more casual “coffee and cake” shop in the middle (walkways) of shopping centres. Companies like Gloria Jeans, Jamaica Blue and many others look to have a good space with their own seating, and service the casual coffee and cake market. These sites are normally much more comfortable than in the food court for chatting, meeting others for business or pleasure or just to hangout.

Freestanding QSR’s We have seen the likes of KFC, McDonalds and many others populate the pads of shopping centres as it gives them access to the shopping centre patrons combined with good access to

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LOCATING YOUR BUSINESS

sell a high % of their products through the drive thru. These sites combine all options such as drive thru, walk in and take away and some form of casual dining. I believe these will remain viable in most cases as there is many different customer segments and many options for how that customer wants to be served – be that pick up at the drive thru, eat in or take away.

The formula is to attract the client in, come for a meal (low numbers over lunch, but a major destination over dinner), and have them sit down for a meal with alcohol licenced to be sold in most cases. Many of our well-known brands are heading in this direction, at the expense of moving out of some food courts, or just not becoming so involved in those upgrades. Some operators like Nandos

and Rashays (new Sydney casual dining brand) now see this as their prime business model for expansion.

Summary If you are looking at joining a food franchise, think very carefully who you wish to partner with, but also think what type of food business you wish to run, and maybe a larger casual dining – alfresco location may be the best for you. n

The new breed in Alfresco - casual dining The Alfresco – casual dining areas have been growing rapidly over the last 10 years. I recently visited Westfield Knox Shopping Centre and see there are more new casual dining operators about to open in their expanding Ozone section. The core of most of these alfresco – casual dining centres is a very big cinema complex in most cases. The restaurants can service the theatre goers, and the many other people who are attracted to the great casual food dining on offer.

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Peter Buckingham is the Managing Director of Spectrum Analysis Australia Pty Ltd, a Geodemographic and statistical consultancy. Peter is the Go To person as to where to open new stores in Australia. Peter is both a Certified Franchise Executive (CFE) and a Certified Management Consultant (CMC). To contact Peter email peterb@ spectrumanalysis.com.au or visit www. spectrumanalysis.com.au

FEATURE – FREIGHT AND LOGISTICS BUSINESS

We all know that e-commerce logistics is going ‘gang-busters’ WE ALL SEE SO MANY PARCEL DELIVERIES HAPPENING ALL AROUND US – HERE’S HOW IT’S GETTING DONE. BY GLENN WALFORD

s business models large and small, scramble to adapt to a rapidly changing market, one thing is certain – how you get product into the hands of consumers in a B2C or B2B environment, is becoming almost as important as the product itself. The experience of the delivery journey and how that is managed for the purchaser, is a key influencer on the overall experience of the product – even after it arrives! The combination of ease, speed, cost and reliability of chosen shipping options by a seller, can literally make or break a business. “PACK & SEND is at the forefront of the explosion in internet shopping!”, according to Network Growth Manager, Greg Prussia. “It’s so exciting because internet shopping already accounts for $1trillion+ in sales globally per annum, which is making parcel and freight delivery one of the top growth

industries of the future.” “We are already the number 1 franchise in Australia for freight and logistic solutions with 100+ locations, which creates instant credibility, and brand recognition for any owner to build a business on.” Enhancing their proprietary technology solution to leverage the global freight options, no matter your location, has been a key focus for PACK & SEND for some time now. “When we get people using our software suite in their business, it is really exciting how it works and what it does. Our platform identifies our customers best-fit freight options in a seamless manner, and according to their specific needs.” “When compared to others in our market, we offer a full-suite of software products, as opposed to the single solution provided by others. What this means to our franchise owners, is that you have a much broader product and service base of

freight and logistic solutions to offer your market.” The PACK & SEND business is a retail based business, but also offers online solutions. “We are retail in that we have a ‘shop front’ and our franchise owners grow their business through a mix of; • Walk in retail, • Online, • Phone sales.

The model is built around the physical service centre (shop-front) location during business hours. Effectively, the business is still running 24/7 via the proprietary technology solutions on offer. “There is no other freight and logistics model in the world that matches what PACK & SEND is offering.” n More About PACK & SEND franchisebuyer.com.au

BROKER

TIPS FOR BUYING A BUSINESS A SHORT, SHARP LIST OF TIPS FROM AUSTRALIAâ&#x20AC;&#x2122;S LARGEST NETWORK OF BUSINESS BROKERS. BY THE FINN GROUP

DETERMINE THE TYPE OF LIFE AND INCOME YOU WANT When searching for the right business for you, start by determining the minimum amount of income you are willing to earn. If a business you are interested in cannot deliver that income, cross it off your list. Next, decide how much time you want to spend on the business. Narrow down your list even further by removing the businesses that cannot deliver the lifestyle you want.

UNDERSTAND THAT BUYING IS LESS RISKY THAN STARTING FROM SCRATCH - Buying an existing business means receiving an operation that is already creating cash flow and profits.

HIRE A BUSINESS BROKER There are a lot of choices you face while deciding what business to buy. Business brokers know the market inside and out, offer professional insights; help you narrow down the list of businesses to buy, and guide you through the whole buying process. They also have access to silent listings: a type of listing that has no marketing program and is only presented to suitable buyers

CREATE A DREAM TEAM WITH YOUR BUSINESS BROKER Your business broaker can recommend experts in law, business accounting and finance to help ensure you get the best deal and the most efficient business transfer possible.

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CONDUCT A THOROUGH AND OBJECTIVE INVESTIGATION Once you have found a business you would like to buy, it is imperative you research important information about the business before starting negotiations. Be prepared to sign a confidentiality agreement, ensuring you will only use the information provided to you to decide whether or not you want to purchase the business. Your Finn Business Sales Broker can help you to understand contracts and leases, financial statements, tax returns and other important documents used to operate the business.

DETERMINE A FAIR PRICE - Determining a price is the most emotionally charged part of the whole buying process. The seller will have one idea of how much the business is worth, while you, the buyer, will typically have another. Many factors go into determining a price, but usually the party who is most prepared has the most leverage. Your business broker will prepare a Business Profile Document and Due Diligence Package for the business you are interested in buying to help you determine a fair price.

HAVE A FAIR PRICE - Since businesses already have an established brand and reputation, you must come to the table with a set plan to continue the success of the business. Demonstrate how you plan to grow business by planning this presentation ahead of time and conducting your research.

BUY AT A FAIR PRICE - Business appraisals are a mixture of art and science. While it may seem difficult, there are ways of estimating a fair price. If you would like the expert in your corner to help you accomplish this, then the Finn Buyers Advocate Service will help you along the way. The Finn Buyers Advocate Service will help you review the business information in order to highlight your negotiation opportunities. If you choose to go at it alone, then this process could prove to be much more difficult.

GETTING FINANCE - Use a professional commercial finance broker who will guide you through the financing process. They will prepare your application and find the best deal for you. Approaching your local bank directly about business finance can often result in an unnecessary knockback. Ask us for the best way to get finance from the major banks.

START THE TRANSITION PROCESS BEFORE THE DEAL IS COMPLETE - To ensure a smooth transition, start working in your new business with the existing owner before the deal is complete. Take the time to talk to employees, customers and suppliers, and verify you are properly trained in operating the business. www.thefinngroup.com.au franchisebuyer.com.au

FINANCE

Understanding WORKING CAPITAL AS THE LIFE-BLOOD OF YOUR BUSINESS, YOU NEED TO UNDERSTAND THAT NOT ALL CASH IS EQUAL! BY JAMES SCURR

orking capital and cash flow both play an important role in establishing the financial viability of a franchise business. A first important step is to understand the difference between working capital and cash flow, as although the concepts are closely linked, they are different.

CASH FLOW Cash flow, at its most basic, is how much money moves in and out of a business. Representing the amount of money made by the business that can then be used to pay operating expenses in a typical week or month.

WORKING CAPITAL Working capital on the other hand goes further, taking into consideration

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your assets and liabilities. A working capital report outlines what assets can be liquidated to pay out existing debts, and often spans a 12-month timeframe.

flow. On the other hand, a business can have a positive cash flow but have a large number of loans, resulting in low working capital.

THE DIFFERENCE

When starting up a new franchise business it can be difficult to determine exactly how much working capital one should have. New businesses can turn to industry benchmarks as a guide, and can gain valuable knowledge from talking to existing franchisees. However, the most varied element is sales, meaning franchisees should never rely on financial figures from another location to determine what their working capital should be. Another common mistake is being dependent on quick sales growth in the early stages of the franchise, as this is not guaranteed. In many cases the working capital

The key difference is that working capital gives insight into the current situation of the franchise business and its ability to pay its debts, whereas cash flow represents the franchises ability to generate cash over a period of time. Often business owners incorrectly use the terms interchangeably, or assume that positive working capital and a positive cash flow go hand in hand. However, this is not always the case. A new business may have a large amount of working capital saved, whilst their business is still in its early stages and now generating a strong cash

HOW MUCH IS ENOUGH?

FINANCE

required is underestimated, and as a result, lack of working capital is one of the most common reasons a franchise business fails. During a slow sales period or when the franchisor is calling for a refurbishment, franchises lacking in working capital struggle to stay afloat.

‘ENOUGH’ BRINGS OPPORTUNITY Maintaining a positive working capital gives franchisees the freedom to consider new ideas, growth and expansion when the opportunity arises. A lack of working capital can leave a franchisee short when an opportunity appears and can stall the growth of an otherwise well performing business. Another important consideration when discussing working capital is resilience. If a franchises working capital exceeds its debts, then it is able to manage any unexpected costs and not fall behind on loan repayments, this ability classes a franchise as resilient.

MAINTAINING A LEVEL OF WORKING CAPITAL Retaining a level working capital where possible is key for a healthy business. Sourcing other forms of funding for things such as equipment and fitouts allows for working capital to be used in areas of business development to promote growth. A prime example of this is marketing, if a franchisee is investing all their working capital into funding 100% of a store refurbishment, they leave themselves little to no cash to invest in marketing to promote the

store re-opening. Finding a balance between relying solely on borrowed funds and depending on internally generated cashflows will help franchisees achieve a ratio that works for their unique business. As mentioned above, utilising loans for large assets such as equipment, whilst investing working capital into soft costs such as marketing is a strategy that helps maintain a healthy level of working capital. n Cashflow ® It can help you finance your business.

James Scurr is the founder of Cashflow It. Only servicing franchises, Cashflow It funds the assets your business needs, so you can retain hard-earned capital for growth activities.

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FEATURE – MOBILE TRADES SERVICES

AND THE NAME OF THE GAME IS

INNOVATION!

Innovation is the name of the game for a business that is cleanly re-defining how we get rid of construction waste from constructions sites and our home DIY renovations. Jacob Spencer, MD of Mobile Skips, explains his approach. BY GLENN WALFORD

nquestionably, innovation is crucial to sustainable success in business. According to Jacob Spencer, Franchisor of Mobile Skips, the level of innovation he has armesd the business with “…means we are batting well and truly above our league in terms of the ability of our systems and the impact they have on operating our franchise. These systems and innovation is what makes a great franchise system, parallel as a great individual business on the ground for a franchise owner.” Like any business, of course you still

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have got to get out there, face-to-face with customers and prospects to build it and drive it forward. “Our goal was to build on and improve the systems we already had in place, to make them even more effective for our franchise owners so they can focus on the areas that actually drive growth.” Jacob explains further, “For our franchisees, our proprietary cloud based management system handles most of the administration for them, including the book keeping. Crucial for a modern business, customers are able to

book mobile skips via the main website, and our owners are immediately alerted via SMS that a booking has been made on their behalf.” But innovation is not limited to technology. According to Jacob, the business went about identifying the opportunities to differentiate from the competitive market, from known aspects of the way people dispose of building and domestic (DIY construction type) waste. This process, guided innovation in all areas of the business, resulting in;

n A full Online Booking System - a website where customers book online, rather than having to call, n Clear, Real-Time Availability – The system identifies trailers available or unavailable for selection in real-time across the country, n Credit card payments online – Always looking to remove any friction to the sales process, n Maneuverability in Logistics – As a mobile skip on a trailer, this presents a logistics advantage as trailers can be quickly moved around the inner city, n Leverage and Re-Imagining the Process - We don’t empty our skips, our waste disposal suppliers come to us – at a fixed location and empty up to 15 of our skips into a single garbage truck. No ‘juggle’ of skip bins on the back of a truck with multiple dump fees.

Although the business is always in a mode of innovation in some way according to Jacob, “The point we are at now, is one where we have built a sophisticated operation that is entirely based on simple principles of operation. When you put it all together, and work

it, this is a simple, profitable and enjoyable business to run – and that’s pretty much what we’re all looking for aren’t we?” n More About Mobile Skips franchisebuyer.com.au

Refurbishment Finance for your franchise with

Refurbishing your store is a fact of life in franchising. Whether it’s required under your franchise agreement or under the lease of your premises it typically occurs every 5 to 7 years. The stress and downtime of a store refurbishment is enough to put most

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Competitive rate Preserve previous capital 24/7 customer service Fast application process 100% tax deductible repayments Terms start from 12 months Flexible end of term options

can be a great looking store and an increase in sales revenue. unique solutions for franchisees to access acquire new or existing stores.

Apply now at or call us on 1300 659 676 to get a quote and discuss your funding requirements today.