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July 2011
Improvement is Booming
THE FUTURE OF FRANCHISING
Why Franchising Is Still a Great Way to Do Business maxiom
What’s in this month’s Magazine?
Regular Features
50
Page 2:
Welcome
Page 6:
Franchise Focus
Page 40:
Modern Franchise
Page 52:
My Franchise
Special Features
45
Page 4:
The future of franchising
Page 10:
Franchising is still a great way to do business
Page 14:
Psychographics has replaced demographics
Page 38:
OHS management for franchisors
Page 34:
Auditing Your Brand
Page 50
Can Google+ change customer service - forever?
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4 Profiles Page 6:
SuperGeek
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Refreshing the brand - Fernwood
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John Brennan Hair
Page 64:
Building Up Consulting
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Articles Page 12:
What will Google+ mean for your franchise
Page 18:
Multi-generational teams are best
Page 26:
Take away food continues to be one of the fastest growing industries
Page 28:
Will the NFC make any difference?
Page 30:
Getting the most out of Casual Staff
Page 42:
Are owner operated franchises still attractive?
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The Modern Franchise with Mark Matthews Welcome to the July Issue of Modern Franchise Magazine. The Franchise Industry is under pressure to change its’ style of doing business. This issue explores the benefits this might have for the industry and how this will also help franchising to continue to shine. We also take a look at the “future of franchising” and the opportunities to tap into the next generation of young entrepreneurs.
The National Franchisee Coalition of Australia has suffered it’s first setback with the WA Legislative Assembly Economics and Industry Standing Committee Younger generations are highly recommending the Bill not be aspirational and demand results. supported a this time. We look at whether the National This makes them potentially Franchisee Coalition can great franchisees...but at what actually make a difference and cost? what its’ long term survival prospects are like given this Sales & Marketing setback. Sales, marketing and customer service are vital to the success There is an article by Vicki Prout of any franchise. We look at how about some different skills Google+ might effect customer franchisors need to what you may have been used to in service - forever. running your company owned operation, in the “3P’s of We take a look at Fernwood and how refreshing thier brand franchising”. keeps them at the top of their Staff Management industry. In a related article “Auditing Your Brand” we look at some simple but effective ways to manage your brand to ensure you are at the forefront of your market, industry or sector.
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Features In “franchise focus” we talk to SuperGeek about their franchise opportunity and their business goals. John Brennan Hair is also featured in “my franchise” and Fernwood Fitness in “Modern Franchise”. There is also information about some of our recommended providers...and a few ads, which is why you are reading this magazine, of course! We also ask if owner-operated franchises are still an attractive option? And if you hadn’t noticed, on the next page there’s some information about our other B2B online publications.
We investigate how you can “keep your part-time and casual staff motivated and engaged”, Enjoy the magazine. All “how to hire profitability” and feedback is appreciated. Joanne Solis looks at OHS for Please visit our website: franchisors and franchisees. www.maxiom.com.au/modernfra nchise/feedback to have your say.
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Modern Franchise Magazine | 3
THE FUTURE OF FRANCHISING. There have been many articles written recently about franchising and the challenges the industry is facing. In reality, the industry is strong and vibrant so regardless of any proposed law changes franchising is destined to continue to shine. Business Environment There were many people predicting tough times ahead over a decade ago when the Franchising Code of Conduct was introduced. What happened though, was the industry went through a prolonged period of growth. That ended with the GFC and since then the industry has plateaued. Now detractors are saying the introduction of state based legislation will not be good for the industry. The best scenario would obviously be properly enforced National Regulations, which would make compliance easier and reduce costs, so given we already have the Franchising Code and other National supporting legislation, many argue that state laws are unnecessary. This might be true if the National Regulations were enforced.
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Changes in technology, shorter generational spans and new ways of thinking have resulted the Franchising Code of Conduxt becoming somewhat obsolete.
the principles of “Good Faith” and “Fair Conduct” in all Franchise dealings along with ethical business and social responsibility risk becoming irrelevant and/or less valuable.
We are entering a new era of social responsibility which requires a greater transparency of business practices.
Franchisors shouldn’t need to be dragged kicking and screaming to comply with the proposed state based laws.
The rise of Social Media has contributed to this as has the environmental challenges facing our generations, something that we have never experienced before.
If they want to continue to be successful the chances are they will need to operate in such an ethical manner without coercion.
The Next Generations The younger generations want and expect, no in fact demand greater transparency, social responsibility and unwavering business ethics.
Tech savvy and connected under 45’s are unforgiving. These generations will quickly spread the word if they feel aggrieved in their business dealings.
With Social Media making such broadcasting so available, brands can be all but destroyed overnight. The ability to rebound These generations are the next will depend on the response of generation of franchisees. Some the franchisor, but some simply won’t be able to. The damage are already venturing into the will be permanent. world of entrepreneurship via franchising. Franchises that do not meet their expectations of
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There are enough challenges in business without having to struggle with poor or imbalanced franchisee/franchisor relationships. New Entries There are many new franchises under development or that have recently been launched. Some of these have bold aspirations. Some are based on socially responsible business. Some will become international brands, others not. Over the past few years the pool of potential franchisees hasn’t been as deep due to high employment and a strong economy. This is predicted to continue so there stands to be even greater competition for franchisees. Franchisors that adopt these ethical business standards are sure to have a competitive advantage. Socially responsible and outsourced services are predicted to be major growth industries over the next 5 years and there are new franchises appearing every month across these sectors.
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Outsourced Services
Food is still Franchiseable
As businesses and individuals become time poorer, outsourcing tasks to businesses that can deliver great service or advice at a reasonable price has become vital to business’ success and to individuals’ achieving their lifestyle goals.
Take Away Food is still a major growth industry, so there will be many new opportunities for enterprising franchisors that can find the right niche. Health & Wellbeing
The future looks exciting for this As we become more selective in industry. Franchises that are well how we spend both our business organised, ethical and based and personal time as well as our upon real science have resources, outsourcing to enormous growth potential. specialists makes perfect sense. Education & Information This market sector is predicted to expand at a rate higher than almost all others and with many industries struggling to find quality professional employees, who are increasingly being asked to work harder and longer, purchasing a franchise might look particularly attractive to many of these professionals. Some professional franchises are not restricted by area or other boundaries so can be transferred to wherever you want to be or wherever your customers are.
Predicted to be the number 1 growth industry over the next 5 years the opportunities for franchise growth here is almost unlimited. The Internet has made education and information services available to almost everyone, no matter where they are located. With the pace of technology development, this industry will appeal to a wide variety of people. It is clear franchising has a great future, particularly for those franchisors that hear what their markets are saying. Let’s hope that all franchisors are listening. Modern Franchise Magazine | 5
franchise focus USE YOUR IT SUPERPOWERS FOR THE BENEFIT OF ALL! SuperGeek is an exiting professional IT franchise opportunity in a growing, high demand industry. We take at look at what makes this franchise such an attractive opportunity. 1. What is inspiring about your business idea? It gives a person with technical ability but little or no business acumen the opportunity to be in control of their own destiny.
good business skills and these people employ technicians and manage the business. 4. What are the main reasons that someone would take on a Super Geek business?
2. How did you know franchising was right for you and what ultimately influenced your decision?
SuperGeek offers a franchisee the opportunity to go into business for themselves without all the trial and error and experience required to build and maintain a successful business. The opportunity to work with people with a different mentality For the technician who feels to that of the standard employee. restricted by working for an The prototypical franchisee is a employer but is not confident person who is looking to better they can handle all aspects of their life & work environment so starting their own business, the SuperGeek franchise model is the franchising model was a the perfect answer. natural fit. 3. What previous experience do your franchisees have before taking on a Super Geek franchise?
5. What was the driving force behind your decision to franchise?
Franchising gives us the Ideally they would have good opportunity to attract like-minded technical ability. We do have a people to our organisation, there couple of franchisees who have by strengthening the brand as a limited or no technical ability but whole. 6 | Modern Franchise Magazine
6. What process and support do your franchisees receive? Our unique SuperGeek-ina-Box gives them the hand holding experience from the moment they decide that SuperGeek is for them. Franchisees receive 4 weeks training, much of it’s conducted on the road so they can earn income whilst learning. For the first 90 days for their operation franchisees are assigned an independent business coach to assist them in sticking to their business plan. Full time customer service centre which books franchisees’ schedules for them into our unique SuperGeek database.
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Once up and running franchisees have access to the complete SuperGeek support system including field reps, marketing, regular meetings etc.
9. Who is the target market for your franchise?
11. Do you have any plans for overseas expansion?
Our target is anybody with technical skills and above all the desire to help people. SuperGeek are not looking for introverted people but people 7. What challenges did you with an outgoing personality or face in setting up your at least are open to learning people skills. Above all else, franchise? SuperGeek is a customer As SuperGeek has been heavily service organisation and the branded in the media, we have people we target would need to had many operators try to trade possess some of these skills. off our name, copy design of our vehicles etc. This was the driving A lot of our franchisees have force for us to purchase the 13 come from the corporate world back to their roots so to speak smart number (13GEEK – and just love what they do. 134335) and promoting that number heavily. 10. How many units of your franchise do you currently 8. Tell us about some of the have and how many do you expectations that you had. plan to establish in Australia? Have they been met?
No, not at the moment.
35 currently and would look to When we had started the take number to 100 Australia business our only expectation Wide in the next 5 years. was to have a few local vans operating, as we now operate in 3 states Queensland, New South Wales and Victoria our expectation have truly been meet and exceeded.
If you enjoy a challenge, are sick of working hard and not feeling appreciated and have the desire to be in control of your own destiny, then we have the answer. SuperGeek.
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12. What would you say to someone wanting to take on a SuperGeek franchise? If you have a desire to be remunerated for the hours you do, are not afraid to work hard and learn new skills and possess a passion for the IT industry, then SuperGeek could well be for you. You would need to be comfortable in a team environment as whilst you are working for yourself in your own business, you are also apart of all the other franchisees business operating under the same brand.
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Modern Franchise Magazine | 9
WHY FRANCHISING IS STILL A GREAT WAY TO DO BUSINESS. What seems to be overlooked recently with some of the negative publicity and state enquiries into the industry, is that franchising is still a great way to do business. By Geoff Hodges There are countless benefits to becoming a franchisee, which is why Franchising is one of the fastest-growing sectors of the Australian economy. If the franchise you are considering provides for all or most of the following then the chances are you will enjoy a successful franchise business: The franchisor provides comprehensive initial and onging training. The franchisee benefits from operating under the name and reputation (brand) of the franchisor, which is already well established, successful and positively perceived in the mind and eye of its’ market. The franchisee will usually need less capital than they would if they were setting up a business independently because
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the franchisor, through their pilot operations previous experience and buying power, will have eliminated unnecessary expense. The franchisor provides the advice and/or assistance in identifying suitable trading locations or operating territories for the franchisee. The franchisor is the expert. They know what areas or locations will be profitable and which aren’t. The franchisor helps the franchisee in lease negotiations, complying with planning laws, preparing store layouts, shopfitting and/or refurbishment, and provide general assistance in determining what the franchisee will require to launch the business.
The franchisor trains the franchisee (and the franchisee's staff) on a regular basis in all areas of the business including; manufacture, preparation, accounting, business controls, marketing, promotion and merchandising. The franchisor may negotiate better rates of finance, or more favourable conditions, for franchisees with financial institutions. The franchisee receives the benefit on a national scale (if appropriate) of the franchisors advertising and promotional activities at a lower cost than if they were to attempt such marketing themselves.
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The franchisee is able to leverage the bulk purchasing power and negotiating capacity made available by the franchisor by reason of the size of the franchised network. Strongly question any franchise that does not provide cost advantages for franchisees. The franchisee has access to use of the franchisor's patents, trade marks, copyrights, trade secrets, and any secret processes or formulae. The franchisee has the benefit of the franchisor's continuous research and development programs, which are designed to improve the business and keep it up-to-date and competitive. The franchisor provides a knowledge base developed from their own experience, as well as that of all the franchisees in the system, which
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would otherwise be impossible for a nonfranchised business to access. The franchisee has available to it the services of the field operational staff of the franchisor who are there to assist with any problems which may arise from time to time in the course of business. A franchisee can also speak to their franchisor and existing franchisees to discuss their business challenges or problems. Many franchise systems have advisory councils formed from high performing franchisees that are there to assist all franchisees and advise the franchisor of recommendations or improvements that will make the whole franchise system better for customers, franchisees and the franchisor alike.
The support and benefits provided by a Franchise system should greatly reduce a franchisee's business risks. What will make it an even better way to do business is provide franchisees with the necessary protection that many experienced industry participants are suggesting. Ethical franchisors (which are in the majority) have nothing to fear from these changes, in fact they will benefit from them. Their franchises will be more sought after and valuable. Franchisees will sleep safe in the knowledge that there is strong protection for their investment and significant repercussions for franchisors that don’t comply with these changes. Do your due diligence, make sure you 100% happy with your decision and are fully committed to the business, the franchise and the franchisor....then enjoy the ride!
Modern Franchise Magazine | 11
WHAT WILL THE LAUNCH OF GOOGLE+ MEAN FOR YOUR FRANCHISE? Google’s release of it new Social media platform, Google + looks like it might have just the right formula to challenge Facebook. With Facebook luring more online advertising spend away from Google’s cash cow, AdWords, Google has had no choice to respond.
You can group your friends into these shared interests, which means you can share things in a very targeted way with like-minded friends (and potential customers).
If Google can get enough people to join up it could mark the beginning of a Social media war between these two online giants.
There’s also an Android-based mobile app called Hangout, which allows you to chat with your friends in small social huddles.
First off is the ‘Circles’ feature, where you get to properly organise your family and friends, workmates and acquaintances into groups. This means you can make sure you’re sending a shared status update to the appropriate people.
But we should not forget though, that this is all about advertising.
reach with a partner program like Google’s AdSense. With Google+, the minute you start using the Sparks, feature you’ll be segmented for companies to deliver you targeted advertisements. Imagine the opportunities created by sending location-specific or interestspecific deals to your customers phone.
As you work your way through Google’s content text-work of One of the things Google hasn’t partner sites, you will probably been able to do with its advertising also find ads based on the is target demographics and interests you told Google about in interests very well. Facebook has Sparks, together with any other nailed this and that’s why it has interests they earn about you This feature will have definite become so attractive to along the way. benefits to businesses looking to advertisers. provide highly targeted information Google’s already offering to particular groups of customers. Google had a crack at something similar with its demographic targeting in Remarketing platform, so it won’t Even though Facebook offers Google AdWords - there’s a be too much of a stretch for it to friend lists and groups, hardly setting in your account which do the same thing with Google+. anyone uses these features and allows you to target people of status updates tend to be a lot certain ages and of either sex Google has a huge user-base of more of a broadcast. Circles through the Google Content people and businesses using its enables you to be more organised Network - but it hasn’t been various products, but they are all and on target. particularly successful. It certainly fairly fragmented. Google+ could doesn’t have the finely tuned just bring it all together. The other feature worth noting is targeting of Facebook Advertising. Sparks, where you can list your To make it truly successful all interests - be it cricket, hangOn the flip side, Facebook hasn’t Google will have to do is give it a gliding, SEO or bread tags. (yet) extended its advertising decent name!
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A Smart B2B Business for the Smart Operator Every now and then a business opportunity comes along that looks almost too good to be true. Fifo Capital is that opportunity. Thanks to a simple formula; proven finance business, reputable and widely accepted in a rapidly growing market, Fifo Capital has delivered triple-digit annual turnover growth since entering the Australian market in 2008. And, our franchisees have experienced success they’d only ever dreamed of. Fifo Capital is a B2B business capable of first year bottom line return exceeding the cost of entry. Not only this, it has few fixed outgoings beyond telephone line charges in the first year of trading. A business that can grow to whatever size you want. If you’re a professionally minded individual looking for a unique and proven business, talk to Fifo Capital today on 1300 852 556 or visit www.fifocapital.com for more information.
www.fifocapital.com maxiom
Modern Franchise Magazine | 13
PSYCHOGRAPHICS HAS REPLACED DEMOGRAPHICS Using psychographics, we know exactly who is likely to be interested in specific product or content recommendations at a specific time. By Chris Gregory
Demographics have defined the target consumer for more than half a century - poorly. Now, with emerging interest graphs from social networks, behavioural data from search outlets and lifecycle forecasting, we have much better ways of targeting potential customers.
But now, that entire system has broken down. The year that someone was born will not tell you how likely he is to buy your product.
small, so fragmented, and so temporal, that no overarching top-down approach could be successful at driving marketing performance.
Fragmentation is now the norm Marketers have responded by because the pace of change is adding more demographic accelerating. Generations have information to the mix, but even been getting smaller because that is a losing battle. Recently, a The rise of mass-produced there are fewer unifying company introducing a new consumer goods also brought characteristics of young people product, had identified a target the rise of mass-market today than ever before. For market of “connected advertising. With the launch of instance the “Baby Boomer” consumers.” Connected television in Australia more than generation lasted 18 year but consumers were 30-55 half a century ago, the goal was “Gen Z” only 10 years. professionals, had a household to aggregate the most possible income over $100k and read eyeballs for advertisers. In order With the advent of Social Media, business magazines. This target to convince consumers that an people self-select into groups so market represented 2.4 million advertising message was consumers. relevant to them, consumers had to buy the idea that they were Number of Years In Generations just like everyone else. Marketers created that buy-in by bucketing people into generations. When you lump millions of people into one group called “Baby Boomers” or “Gen X”, it’s much easier to sell them stuff, especially when consumers accepted their generational classification.
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Baby Boomers (1946 - 1964)
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Generation X (1965 - 1980)
15
Generation Y (1981 - 1994) Generation Z (1995 - 2005)
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They were targeting 2.4 million consumers to sell 2,000 units of their product - that means they were hoping for less than 1 sale for every 1,000 people with whom they connected through their marketing.
they don’t change careers, so someone who starts out studying accounting usually progresses to a long-term accounting career. What age group they are in doesn’t have a major effect on their career interests.
Social profile data, behavioural data and customer lifecycle data can now finally be leveraged to contact people who are ready to buy. Social Profile Data
Profile data from social networks consist of all the fields users grant permission for brands to use on their behalf. It’s possible through Most things that users track on psychographic profiling. social networks can be Demographic Overview: leveraged to create a closer Mum Psychographics look at the relationship with a customer. Age 24 - 34 mental model of the consumer in Fields like relationship status, Household Income - $85,000 education, interests and the context of a customer lifecycle. Amazon.com has long occupation can all be managed been a leader in this space, through social profile data Psychographic Overview: through innovations like management tools. Woman “recommended products” and Social profile data is the critical Working Professional “users like me also bought.” cornerstone of psychographic Children aged 1 & 3 years insights. The level of nuance and Spends $800/month online Its algorithms have learned to insight provided by social data, Lives 500kms from parents & predict its users, and what they when compared to standard In-laws are interested in. And now, there demographics, is the difference Lives within 2.5kms of are a number of tools that any between performing surgery with existing centre business can use to leverage a scalpel or a chain saw. psychographics. Previously unimaginable Psychographics provide much questions are now routine. Another factor is career. While more useful information about people change jobs more In addition, companies such users. There are multiple data frequently now compared to 20 sources making this possible as GraphEffect are measuring or 30 years ago, in the main, purchase intent by doing today. semantic analysis on Facebook What if, instead, you could get 500 sales from every 1,000 people you marketed to?
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Here’s how a psychographic profile might look different from a traditional marketing profile target for childcare:
Modern Franchise Magazine | 15
status updates. This type of qualitative analysis can move users into specific marketing funnels from their very first online experience with your brand.
Site content and product recommendations will also be informed by clickstream analysis. Companies such as RichRelevance, Certona, Baynote and Monetate all offer the ability to personalize Behavioral Data information to specific visitors based on their behavior. Retargeting advertising messages is gaining popularity Leveraging those alongside a payload of social profile data among marketers, but its very can turbocharge those services success has jeopardized its from the first moment a new user effectiveness. Ads that follow users around the web have been visits a site. implemented - usually poorly. Customer Lifecycle Data Every ad network quickly incorporated the ability to place Social profile data can also be cookies in users’ browsers, and used to predict customer display specific ads to them any lifecycle. Imagine knowing not time they visit a site that’s part of only if a customer has children, their networks. but the exact ages of those children. In addition, key The next generation of ad indicator purchases, like buying targeting will focus more on nappies for the first time, telling the customer a story over indicate a customer entering a time, based on specific new lifecycle. Other key behaviour triggers. That means indicators, like address ad networks and clickstream changes, first purchases of data aggregators will work furniture, or first purchases of together to trigger when a substantially higher-value goods customer moves forward in a can all indicate the start of a new mental model toward a purchase customer mentality and event. behaviour pattern.
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These patterns are predictable, so you know future behaviour by looking at current behaviour. By using demographics alone, all people in one broad group would be marketed to identically. Using psychographics, we know who is likely to be interested in specific product or content recommendations at a specific time. This vision is starting to gain traction among serious marketers. Using psychographic data, you don’t have to waste any impressions. We have seen a similar upheaval in marketing before. In the 1960’s, marketers who embraced the power of television, broad-based insights into psychology and demographic data created world-class brands and billions of dollars in value. At that time, if you didn’t advertise on TV, you lost. Today’s new tools offer a similar choice. Build a deep understanding of your customer, or risk irrelevance.
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Goodes & Co The unique Goodes business model enables you to work from home or our offices with minimal overheads, access to marketing campaigns and head office support to grow your professional services business across a varitey of disciplines. An excellent return on their investment No Staff to manage No premises to rent No inventory to acquire No long or unsocial working hours No extensive business travel No custom designed equipment or signage
Goodes & Co
When you want someone to deliver the “Goodes� for your business. www.goodes.com.au maxiom
Modern Franchise Magazine | 17
WHY MULTIGENERATIONAL TEAMS ARE BEST A balanced team that includes the strengths and weaknesses of all age groups gives organisations greater ability and flexibility. Multi-generational teams function better and are proven to produce better results. By Elise May With baby boomers now often living apart from their extended families, many young people have less interaction with people outside of their own age group. Until that is - they get to work, where new entrants to the workforce brush shoulders with many generations in close quarters. Conflicts naturally arise with young people being labelled lazy or self-involved, and younger staff complaining about the stodgy ways of senior team members. But despite the usual sniping and complaining, multigenerational teams actually display greater efficiency, cohesion and perform better. Every generation has its blind spots. By having a multi-generational workforce these blind spots can be avoided to a large degree. A clear example is the issue of technology.
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The young bulls want to have technology, technology, and more technology. The older bulls can put a quash on making the company technology based for technology’s sake. This vital tension means that essential technology will be implemented, but non-essential technology will not…at least ideally. It allows each generation to safely shine.… younger workers are more likely to take risks that can benefit the company if there is a “safety net” of older workers to catch them if they fall. Conversely, older workers can rapidly fall behind the times and be beat by competitors if they don’t keep up.
A multi-generational workforce lets each generation do what they do best, without a fear that something will be missed. This leads to greater creativity and a better flow of ideas within the company. On top of external concerns like avoiding age discrimination cases and having a broad range of employees to provide insights on a broad range of customers, multi-generational teams function better and are proven to produce better results. A balanced team that includes the strengths and weaknesses of all age groups gives organisations the ability and flexibility to achieve their business aims.
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Are you passionate about your job? Is it rewarding? Do you have the flexibility to create balance in your life? Can you see yourself in the same job in 12 months? 2 years? 5 years? Are you making the income you want?
If you no longer bounce out bed in the morning, what are you doing about it? The Real Learning Experience is the only Australian corporate training franchise. Our franchise partners receive: A business ready for you to walk in and start working Comprehensive induction and support Freedom to work where you want, with who you want and when you want An exciting and rewarding new career A business with high margins, low overheads and high income potential You don’t need any formal qualifications. If you’re a professionally minded individual looking for a unique and proven business, then call us today!
The Real Learning Experience
1800 24 11 33 franchising@reallearning.com.au www.reallearning.com.au
We are committed to helping individuals and teams fulfil their potential maxiom
Modern Franchise Magazine | 19
WE CALL IT PART-TIME .......OUR CLIENTS CALL IT PERFECT! Looking to hire an additional staff member, or need to outsource a particular job or project? Having a committed, responsible & educated professional join your workforce part-time, to complete or manage a project, or on flexible work arrangements offers the ideal solution for many organisations looking to employ additional staff but without the added cost or risk of a full-time employee. Casual Careers are the experts in recruiting educated professionals looking for a more flexible work environment or for outsourced projects. Employers Ever wish you had an experienced, intelligent, capable person in your office without spending valuable funds hiring another full-time employee or using an uncommitted temp? Having a committed, inspired and educated professional join your workforce part-time offers the ideal solution for many organisations looking to employ additional staff but without the added cost of a fulltime employee. With more and more companies looking for high calibre staff and more job seekers looking for a better balance between work and lifestyle, Casual Careers offers the perfect solution to meet your needs. We have the highest calibre of professionals - high achievers all who are seeking a more flexible or part-time work environment. We can provide you with a
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professional, experienced, parttime employee that meets your needs . You can even leave the Human Resource issues to us Ÿ We search all our proprietary databases to find just the right person to fit your needs Ÿ We handle all Payroll (inlcuding Payroll Tax, Superannuation & Workcover) Ÿ We bill you weekly only for actual hours worked Ÿ You have to option to employ directly for a fraction of traditional recruitment fees at any time Ÿ Perfect for long-term or short-term staffing needs and special projects
Looking For Work? Ever wish you had a job that met your work/life balance requirements? Looking for something flexible that still fits in with your lifestyle? Casual Careers has the perfect answer whether you are looking for work or looking for a new member to join your team.
Casual Careers Casual Careers Pty Ltd Level 2, 710 Collins Street Docklands Vic 3008 Ph: (03) 9097 1606 Fax: (03) 9097 1607 info@casualcareers.com.au www.casualcareers.com.au
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We call it part-time...
Looking for Staff
Looking for Work
Have a Question
...Our clients call it perfect!
Contact a Consultant
welcome Casual Careers specializes in placing educated professionals into long-term, part-time careers. Having a committed, responsible & educated professional join your workforce part-time offers the ideal solution for many organisations looking to employ additional staff but without the added cost of a full-time employee. With more and more organisations looking for high calibre staff and more job seekers looking for a better balance between work and lifestyle, Casual Careers offers the perfect solution to meet your needs. Casual Careers offers both the employer and job seekers the ideal solution between staffing needs and work/life balance. We even look after the Human Resources issues to help make it even easier for you.
Educated
Professional
Flexible
Experienced
Solutions for Employers
Solutions for Employees
Why we’re Different
Ever w ish you had an experienced, intelligent, capable person in your office w ithout spending valuable funds hiring another full-time employee or using an uncommitted temp?
Ever w ish you had a job that met your w ork/life balance requirements? Looking for something flexible that still fits in w ith your lifestyle ? CasualCareers has the perfect solution.
Whether you are an employer or w hether you are looking for w ork Casual Careers is all about solutions that suit YOU.....thats w hy our clients call it “PERFECT!”
www.casualcareers.com.au maxiom
Modern Franchise Magazine | 21
RECRUITMENT SOLUTIONS THAT DON’T COST THE EARTH We believe many recruitment solutions are overpriced. Finding you excellent candidates shouldn't cost the earth. Given the high calibre of our talented community, our costs & services provide fantastic value for money. Our Candidates
Your Opportunity
The Cost
Our members are top performers; high-fliers looking for challenging, meaningful and fulfilling careers opportunities.
If your opportunity fits the bill we'll bend over backwards to help you find excellent candidates from within our community.
We believe many recruitment solutions are overpriced. Finding you excellent candidates shouldn't cost the earth.
We're talking the top 2% - high achievers. Thousands of ambitious young professionals with widespread corporate experience & training.
Unlike job listing sites and many traditional recruitment companies we focus on quality over quantity. Listings get a manageable number of exceptional applications.
Given the high calibre of our talented community, our costs & services provide fantastic value for money.
What distinguishes these people is that they don't want to be small cogs in large machines. They want to do work that matters, they want to have a significant impact in their organisations. They want to Do Something Different. They want to make a difference. In fact, they want to BE the difference.
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Modern Franchise Magazine | 23
A CREATIVE FRANCHISE WITH A COMMERCIAL EDGE MWA Design is one of the world’s fastest growing graphic design & web development businesses and has a strong commercial culture. Founded in 1995, over the past 16 years MWA has become a leader in great design and the latest web technologies . Designing across most media including the internet and digital media, traditional litho and digital print, advertising, exhibition graphics, packaging, photography, video and magazine publishing.
Each franchisee has access to a pool of talented graphic designers, artists, web designers, web developers and photographers whom are expert in developing creative and tailored design and online solutions for small to medium businesses, national companies and multi-national corporates alike.
For more information about MWA Design and our franchise opportunity visit our website: www.mwadesign.com.au
With a history in the print industry, education, creativity and design MWA offer franchisees a world of experience and an business oportunity limted only by your drive for commercial success.
As a MWA franchisee, you will use your business and sales skills to develop your own client base with the back-up and support of a talented and experienced group of professionals who will assist you in delivering the highest quality solutions to your clients.
MWA offer competitive and well put-together package that is designed to encompass all the basic requirements to create an on-line audience for business, as well as the more traditional print media and promotional materials.
You will also have access to our international clientelle and the benefit of local, national and international marketing campaigns to help you achieve your business goals.
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MWA is a low cost and low overhead business that can be run from your home office, in your own hours to suit your lifestyle, personal and business aspirations.
or email: mark@mwadesign.com.au
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MWA Design
Brand Design | Print Design | Web Design | Web Development
Keeping it clear and simple. MWA Design can help you get your marketing message to your target clients in the most effective way to boost your sales and your profit. We are not just interested in great design and the latest web technologies we’re interested in your business, your customers and your commercial success too. Established in 1995 and with offices located in the UK, Australia & New Zealand, MWA has the experience to provide quality service and outcomes for any business big or small. Our franchisees also enjoy great head office support along with: Low cost of entry No staff to manage Work from home No inventory Work your own hours No extensive business travel No restrictions on business growth
www.mwadesign.com.au
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Modern Franchise Magazine | 25
WHY QUICK, QUALITY TAKE AWAY FOOD CONTINUES TO BE ONE OF THE FASTEST GROWING INDUSTRIES In an industry that is often maligned, there are more and more high quality, healthy and nutritious alternatives for us to choose. By Richard Wozniak According to IBISWorld, Take Away Food retailing is projected to grow at 5.8% annualised over 5 years to 2013 making it one of the top 7 growth industries in Australia.
Sarpino’s menu, for instance, is a healthy and delicious pizza range approved by Rachel Holding an Accredited Practising Dietitian/Accredited Nutrtionist.
subsequently opportunities for this industry.
From a franchising perspective, picking a winner may be more difficult. This will depend on the individual franchisor’s Many predict this pattern of There are many other healthier determination and ability to deliver of their franchise growth will continue for years to take away food alternatives “promise”. The best advice is to come. being launched around choose a segment that is not Australia. already saturated and do your With more and more of us research and due diligence into becoming financially more Another example is Salty affluent and time poor, take Rooster, a Sydney based burger the market, the segment and the away food provides a simple, franchise. While the name might franchise. available and affordable not suggest it, Salty Rooster’s solution. menu has been developed as a With more and more brands nutritious and healthy alternative becoming international, the Like most industries some take to its’ better known competitors. opportunities for franchising in this market will continue to grow, away food niches are over Their vision is to be the “most maybe at the independent serviced and may be for some recognised healthy fast food operators’ expense, but at the time...like we need another service provider around the end of the day it’s what Mexican fast food chain! globe”. We’ll see, but at least they are thinking about what we customer’s demand and expect that is important. What is and will continue to be in as consumers want from our more demand is healthy and take away food options. Unless we provide consumers better quality take away food options. The same trends can be seen in with the brand experience they the US and UK, in fact Australia have been promised then they will go elsewhere, regardless of Some enterprising take away has been probably lagging food outlets have begun to behind, so in a life cycle sense, whether you operate in the most successful or best run franchise incorporate healthy recipes into there should be quite a few system.....or not. their existing menu. years of growth ahead and
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Modern Franchise Magazine | 27 maxiom
WILL THE NATIONAL FRANCHISEE COALITION MAKE ANY DIFFERENCE? Franchisees have long needed a powerful voice to promote their cause and to help push for legislation that will give more protection for their investment. The National Franchisee Coalition has honourable goals but can it deliver on them? We look at where they are headed and what advantage or otherwise this may have for franchisees. The National Franchisee Coalition of Australia wants to get some balance back into the franchisee:franchisor relationship.
So what confidence can a franchisee or prospective franchisee have in the FCA to protect their interests?
principles of “Good Faith” and “Fair Conduct” in all Franchise dealings should give franchisees heart. And ethical franchisors having nothing whatsoever to fear from this.
Its’ mantra of “opportunity not opportunism” reflects this.
This is the ground the The National Franchisee Coalition of Australia So why is the FCA dead against wants to occupy. this? Maybe it is concerned that It says the Franchise Council of should a franchisee association Australia is tightly aligned with the They see the West Australian become successful then the FCA bigger franchisors and does little state franchise legislation as the could potentially lose valuable to assist franchisees when first step in taking control of this membership fees. problems arise. ground. There is still a long way to go as the Legislative Assembly The challenge for the National One example put forward of how Economics and Industry Standing Franchisee Coalition will be if it is the FCA is aligned with franchisors Committee has recommended the seen not to succeed in helping is its’ highly successful “dont sign Bill not be supported a this time, secure better protection for without this sign campaign”. but there is a determination franchisees then it could take amongst those backing the some time before franchisees put Despite this campaign and the legislation to see it through. their faith any organisation set up promotion of FCA membership as to help them. an acknowledgment of an ethical If they are not successful the franchise, franchises like the now question will be, “can they What is important though, is that exposed Sensa Slim scam have maintain this determination?” the franchise industry is still a been granted membership of the vibrant and successful one, and FCA, able to display the FCA sign. The National Franchisee Coalition that to maintain this success, states the “viability and success of there must be a balanced and In fact, as at the date of franchising is reliant on profitable harmonious relationship publication, Sensa Slim is still outcomes for all stakeholders”. between franchisors and listed on the FCA website as a franchisees. current member and therefore in Their determination to lobby for the mind of a prospective legislative reform to promote the franchisee, approved franchisors. benefits of a transparent relationship based on the
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Run with the big dogs...and WIN!!! Consistently Win New Customers Be Seen as THE Experts in Your Industry Strengthen Your Client Relationships Expand Your Database by Thousands or More... Develop Profitable Alliances Look More Professional Build Your Brand Optimise your ROI
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Modern Franchise Magazine | 29
GETTING THE MOST OUT OF PART-TIME AND CASUAL EMPLOYEES Many franchises need to employ part-time or casual staff. Motivating these staff members can be challenging particularly when few see the job as a long term career. However, there are a few things you can do to keep your top employees happy and motivated. Many franchises rely on part-time and casual employees…and for most of these they are the face of the franchise business. They greet and serve customers and are essentially the cornerstone of your customer service efforts. So it only makes sense that if you've gone to the effort to recruit the right employees that you would want to make sure that you keep those top employees happy and motivated. You might be surprised how poorly some franchise operators actually are when it comes to motivating their casual employees. Every organization has its share of overachievers and underachievers and franchising is no different. But one of the secrets to operating a successful franchise year after year is creating an environment where a core group of employees share
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your vision and buy into what you're doing. Do this and you're on your way to not only getting the most out of your employees, but getting the most out of your franchise business. Money is always one of the first topics of discussion when it comes to motivating employees. But chances are, as a franchise business operator, you've only got so much that you can devote to wages. Pay as well as you can and then look for other ways to "compensate" employees. One good technique is to have every employee complete an employee rewards checklist. Just create a simple checklist that gives each employee the opportunity to rate the kinds of things that motivate them. It might include money, gift
cards/certificates, additional responsibility, more training opportunities, and written or verbal affirmation, among other things. Armed with this knowledge, you can now customize your incentive arsenal to each employee based on what they've told you motivates them most. One good strategy is to look for other local businesses that you might trade products or coupons with. Say you operate a fast food franchise, look for a nearby movie theatre that might be interested in trading food/coupons for movie passes. Now you have something to offer above and beyond your hourly pay constraints. When employees go above and beyond the call of duty, reward them with a couple of movie passes.
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Incentives can help create higher These get-togethers also can expectations and more allow employees to spend time motivated employees. away from the business and have some fun while they're at it. Here's another strategy. Don't skimp on prizes and Chances are your casual contests. employees are going to need time off on occasion. Make time to visit with, and more importantly, listen to your Make it a point to create a employees. Encourage culture where that's possible. feedback. Be open with your You may have a lot of high goals, expectations, and school students who are objectives. involved in sports or other extracurricular activities. If you need help with employee recruitment, training Be prepared for this and be able management, recognition to move work schedules around programs or any human to accommodate these resources issue, the first point of requests. call should always be your franchisor. After all they have Maybe you even have to work a been through all this before and shift yourself. What better way to should have highly developed set an example of sacrifice and systems in place to help dedication for your crew. franchisees with all these issues. Parties and public recognition are other tried and true ways that have been proven to motivate employees. Christmas/holiday/seasonal parties offer a great chance to recognize employees through awards and recognition.
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The key to motivating casual employees is to let them know that you appreciate them and to identify ways to encourage them. Likewise, expect the worst and you'll meet your expectations. Be authentic. Your attitude and enthusiasm will breed a likeminded culture. As a franchisee, it's so very important to be committed to your employees. Demonstrate a willingness to take care of and sacrifice for the very people that can make or break your operation. Expect the very best from your employees and you may just be surprised with what you get.
Alternatively, there are many great agencies that specialise in part-time and casual staff, including all the human resource and employment issues that accompany casual employees.
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REFRESHING THE BRAND FERNWOOD Keeping your brand fresh and relevant is vital to the ongoing success of every business. We take a look at how Fernwood is keeping it’s brand at the forefront of the health and fitness market in Australia. Ensuring your brand is seen as fresh and relevant to an ever evolving market is essential to the ongoing success of any business.
How do you think women’s expectations have evolved over the past 21 years? Do you still approach meeting these expectations in the same manner?
How does Fernwood continue to set itself apart from its competitors?
By being different and in front of the market. If you do something well, others will copy so we have to keep changing and improving. When we started out opening a women only health club had never Currently we are introducing Cell been attempted before in Australia. IQ which is a low level laser fat We faced some unique challanges reduction treatment. Combined with exercise and healthy eating, in those early days. This involved a refreshed look this fantastic new technology can throughout the entire business. help women reduce fat from It is now widely accepted that specific parts of the body. women’s health clubs are an The introduction of new sevices, option for women to get fit and the improvement of existing ones, healthy. Up until now your body decided plus a new fresh look and feel to where you lost fat from when Fernwood’s fitness centres all exercising, but now we have this Challenges we face today are contribute to the refreshing of amazing new technology getting different, but a part of business Fernwood’s market leading brand. that’s exciting. If we didn’t have great results for our members. challenges there would be no need “Fernwood is now a nationally to make changes and keep What will Fernwood look like in recognized brand and the name improving. the future? is synonymous with women’s health and fitness in Australia” With a push to embrace a We will continue to grow, we are says Fernwood founder Diana younger market what do you looking currently at regional cities Williams. think Fernwood can offer young around Australia as well as continued expansion in the major women that other gym Women understand the need for a metropolitan cities. franchises can’t? health club like ours which offers a high standard of service, along Fernwood prides ourselves on our If you wish to make an enquiry with all the special touches that service and services we offer our about franchising opportunities women appreciate. at Fernwood, please click here. members. We don’t just sell memberships, we look after our Our “brand” encapsulates members and give them lots of everything our customers different options to get the results experience with Fernwood. they are looking for, We have a wide range of programs and services to suit every woman’s needs. Fernwood, Australlia’s leading women’s health and fitness franchise has “refreshed its’ brand” to ensure it stays at the forefront of this highly competitive industry.
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Modern Franchise Magazine | 33
AUDITING YOUR BRAND MEASURING CUSTOMER EXPERIENCE These days managing your brand has never been more important. But it can be complex and time consuming. There are so many options and so much advice, many small businesses simply don’t know where to start. By Steven James Your brand represents your level of success so ensuring you constantly develop and improve across all areas of business is essential to maintaining your market leadership.
programs that measure, protect, and enhance their brand.
While the meaning of "brand" is still debated by some who teach its theories, in practice it is vital to all businesses, in particular franchises. After all that is what a franchisee is buying into...the “brand”.
For example, larger businesses spend huge sums on customer survey metrics that match their brands to competitors while local shops might focus on positioning identity with select events or causes - carving out a customer experience that is unique in its "promise."
Most businesses today understand what brand is not. It is not a logo, a name, or a look what is often referred to as “the Image”. Some say it represents the "promise" of an experience. The best definition aligns brand with the sum total of a customer's experiences with a given product, service, or company. Companies that rely on their brands to compel customers need to have deliberate
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Usually, the size and nature of your business will determine the scope of such a policy.
For franchises, both these strategies are important. Head Office deals with the “bigger picture” while franchisees must implement local marketing tactics that deliver on the “promise”. It is also essential for both franchisors and franchisees to understand the importance of “brand” and how it effects the whole organisation, how each franchisee contributes to the
“brand” and how they can both work together to deliver the “promise” to the customer. The concept of a brand was once determined by advertising. Today it's more complicated and complex to manage. The potential for success more viral, and the risk of failure more public. Companies are now empowered to drive their brands to local, national or global audiences through the Internet and Social Media. A brand can become world famous or implode overnight through the Internet and Social Media. Consider just a few of the marketing trends now driving businesses, large and small:
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Online: Integrating Web Sites, email marketing, online advertising though many different avenues such as search engines, including PPC and Adwords, digital magazines, and newsletters. Social Media: The opportunities presented by blogs, Facebook, LinkedIn, Twitter and shortly Google+; and their inherent promises of new and greater revenue for companies - will drive businesses to leverage new value.
lost time quickly with 24/7 access and technology. Customer retention programs: Business owners know that it's easier to keep than to find a customer, so owners are investing heavily in relationship management, hoping to drive customer lifetime value results.
Already used for more than a decade in Japan, consumers can scan or read a QR code with an iPhone, Android, or other camera-enabled Smartphone and link to digital content on the Web, activate e-mail, IM, and SMS, or connect to a Web browser. Psychographics:
Understanding the mental drivers to customer purchasing decisions and habits has become vitally important to the Mobile phones, tablets and other growth and success of modern devices are displacing random business. browsing and coupons as Using psychographics to tailor shoppers go from Web Sites your sales message to the directly to online and in-store They will also equip managers needs of particular consumers deals. QR, or quick response, with rapid crisis management codes - two-dimensional matrix has become the most important response, employee marketing tool used by business barcodes that can hold communications tools, customer thousands of alphanumeric today. psychographic profiling and characters of information - are immediate investor access. becoming increasingly practical This knowledge combined with the technology to deliver the for small businesses. A diverse global consumer information in a timely and secure manner will go a long base: way to helping your business deliver on the �promise� and Today's brands must appeal to keep your brand at the forefront an increasingly far-flung and of the consumers mind. diverse population, building and enhancing a buying experience for new customers who, although new to your brand, will make up
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Mobile and high-tech marketing:
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Consumers love to deal with businesses that understand them. So, in the wake of all that's happening in the world of marketing, carefully managing your brand is more important than ever. But while the temptation exists to adopt some of these new technologies and take off, the best place to start managing your brand is with a simple brand audit. A brand audit compares your current brand position to that of your competitors and examines its effectiveness by typically addressing several key questions: 1. How well is your brand strategy working? 2. What are your internal strengths and weaknesses; external opportunities and threats? 3. What is your employment brand? Can you attract the talent needed to achieve your business aims and enable you to deliver on the “promise”?
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4. How competitive are your prices and costs? 5. What is your competitive position? 6. What strategic issues are facing the business? To accomplish this, the audit examines trends in your market share, profit margins, return on existing investments, and established economic value, as well as overall financial strength and credit rating. It assesses your image and reputation with customers, suppliers and employees and measures your business or sector leadership in service, technology, innovation, or other metrics that your industry's customers use in making purchasing decisions. Most important, a comprehensive brand audit will assess your strengths, especially your expertise, human assets (including your ability to attract top talent), achievements, and competitive attributes.
All of this, of course, should be measured in the context of your business aims. For those of us old enough to remember how we were “told” to buy products in the 60’s & 70’s, since then the changes in marketing tactics have been swift and often, while our shopping habits in another 20 or 30 years will follow technologies not yet invented. Today and in the future, a brand audit is the first step in moving your business in a different or faster direction.
Steven James is the CEO of Goodes & Co (Australia), a specialist consultancy in marketing, procurement and cost analysis for business. For more information of on auditing your brand or any of the other services offered by Goodes & Co Email: info@goodes.com.au
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Modern Franchise Magazine | 37
TAKING THE HASSLES OUT OF OHS MANAGEMENT FOR FRANCHISORS AND FRANCHISEES ALIKE Franchisors will have to make some big changes to OHS Policy and Operations Manuals to meet the complexities of the new National OHS Standards. With only 6 months left until the new National OHS Standards are introduced, Franchise participants will need to ensure that they have “all their ducks in a row” when it comes to OHS Management and record keeping.
compliance and management across their franchise network.
Some significant key changes to note are:
National Organisations to Benefit from new Standards.
The Codes of Practice will be admissible as evidence in court as to what is reasonably practicable behaviour and businesses can only vary their compliance regime where it is equal to or better than that within the code. Businesses will have to be familiar with the Act, regulations and Codes of Practice which now represent thousands of pages of legislation and supporting documentation.
Of course for most franchise systems, a harmonised set of rules will make it much easier for With fines of up to $6,000 for businesses that operate across incomplete documentation or state borders to understand and failing to keep record keeping comply with the Model OHS Act. up to date, and $36,000 for With this consistency in place, it signage breaches, franchisees should also make it much easier will also have greater to train and educate franchisees responsibilities under the new and employees on OHS Standards. requirements in Australia, as they will only need to learn about Franchisor OHS Policy and The good news for all franchise one set of rules. Manuals will need to be updated participants, is at Building Up and franchisees and staff we introduce a simple and The bad news is that the rules trained. effective OH&S solution that are complex, and will require ensures your workplace changes in your OHS policies With employee representatives and Safety Management complies with the new National having the right to intrude on systems, so it’s important to get Standards. Building Up will Head Office’s decision making it right from the start. Businesses develop and assist in process and management of now have a little over 6 months implementing an OH&S system OHS policy, Franchisors will to fully review their OHS safety to best suit your franchise’s need to pay particular attention systems, documentation, needs. Ensuring you’re to ensuring best practice in OHS training and education to be compliance doesn’t have to be complicated or expensive. compliant on January 1, 2012. 38 | Modern Franchise Magazine
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New National OHS Laws coming into effect soon WILL require you to make significant changes to your OHS practices, manuals & training. The good news is that you will only need to learn about one set of rules. The bad news is that the rules are complex, and will require changes in your OHS policies and Safety Management systems, so it’s important to get it right from the start. There is now just over 8 months to fully review your OHS safety systems, documentation, training and education to be compliant on January 1, 2012 At Building Up we make it our business to ensure your risks are minimised and your potential maximised. We hold the solutions to your OHS problems, so you can rest assured that your business is able to tick all the boxes.
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Modern Franchise Magazine | 39
modern franchise FOR OVER 20 YEARS FERNWOOD HAS BEEN ONE OF AUSTRALIA’S FRANCHISING SUCCESS Fernwood is now a nationally recognized brand and the name is synonymous with women’s health and fitness in Australia. Fernwood’s Founder Diana Williams talks about the evolution of the Fernwood brand and why they have become the market leader. 1. What were the challenges you faced in establishing a point difference in such a competitive market? The main challenge I faced was overcoming the objections to having a single sex business. It had never been done before in Australia and we had many objections, and on more than one occasion had to appeal to the Equal Opportunities Commission to allow us to operate.
2. What previous experience 4. Do you have any plans for do your franchisees have overseas expansion? before taking on a Fernwood Whilst we are open to the idea Franchise? of international expansion, it will only occur if a suitable Many of our franchisees have had no experience in the fitness expression of interest is received by an over seas party. industry and come from many diverse backgrounds. We will train you and your staff in every 5. Who is the target market for your franchise? aspect of the business
Our target market for new franchisees is wide open to those people who demonstrate a passion for health & fitness, a Most of the objections came passion for customer service, a from men, but women passion to own their own Currently we have 75 clubs understood the need for a health operating through out Australia, business and want to make a club like ours which offers a high our strategy is to expand further difference to the lives of our standard of service, all the especially in regional Australian female members. special touches that women towns but our focus is not about appreciate. Some level of business acumen how many clubs but more so maintaining the credibility of the and ability to lead their staff by brand and ensuring franchisees walking the talk is what we look for in franchise partners. are successful. 40 | Modern Franchise Magazine
3. How many units of your franchise do you currently have and how many do you plan to establish in Australia?
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Of course franchisees do not need to be female as over 50% of our franchise partners are male. In regards to our target market at consumer level. Fernwood attracts all age groups. Our marketing strategies appeals to all and has resulted in significant rise in members in the 20+ age group.
We value transparency and encourage prospects to have a “look see day� which provides an opportunity to experience a day in the life of a franchisee.
impact & contribution this opportunity provides is unique in any business. Our point of difference cannot be copied by competitors, it is the culture, the warmth and the professionalism in the manner which we conduct our business is experienced by our members.
Prior to any franchisee coming on board, we will complement the recruitment process with profiling tools which enables prospects to understand their strengths and weaknesses 9. What are the main reasons which raises their awareness of that someone would take on 6. What qualities do you look themselves which hopefully a Fernwood business? for in a franchise operator? Is assists in ensuring success. this industry for everyone? Two main reasons why some Fernwood conducts an initial 3 one would invest in a Fernwood week training both at National The most important quality our franchise, the rewards of Support Office and club level. Franchisees need is people contributing to lives of others but skills. Everyday our Franchisees Commencing a new business also to create a successful maybe a stressful time, but if our are communicating with financial business with a brand new franchisees have a level of which has stood the test of time members and staff and so people skills and a great attitude confidence & competency for over 20 years and to this day before they are actually are vital to their success. still evolving and improving. responsible for running their own 7. What process and support business, their early days as If you wish to make an do your franchisees receive? franchisees will be extremely enquiry about franchising exciting. opportunities at Fernwood, Prospective franchisees are please click here. 8. What is inspiring about guided & assisted through out the process. It maybe a daunting your business idea? process but we endeavour to make the process stream lined What is inspiring - it really is about making a difference to the as possible. lives of women, the enormous 24 | Modern Franchise Magazine maxiom
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ARE OWNER OPERATED FRANCHISES JUST NOT PROFITABLE ENOUGH TO ATTRACT THE BEST FRANCHISEES? With fierce competition for top franchise operators, potential franchisees are looking for the best ROI. By Kristin McNicol An interesting statistic out of the U.S. and the U.K is that over 50% of all franchises are owned by multi-unit operators. This means that in effect each franchise is run “under management” similar to if it were a company owned branch or store. This trend is growing quite rapidly. What it also says is that franchises that don’t offer reasonable returns when run as a company owned outlet, should not be sold as franchises in the first place. Some franchisors have been accused of selling franchises at sites that simply cannot sustain the franchisee as an owner operator, let alone a managed operation, simply to get the numbers up to fund head office and the advertising required for the whole network. In the longer term this is unsustainable and usually reflects the ego of the franchisor director(s).
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Even worse, it has been known for My advice is, walk away now companies to commence before you lose your shirt. franchising as an exit strategy for One question to ask a prospective unprofitable outlets. franchisor is how many of your franchisees own more that one The average wage in Australia is franchise. If the answer is several now around 85K, so for a or most, then chances are you’ll franchise to be attractive it must be able to fund the wages of each be investing in a profitable of the operators plus a reasonable franchise. If the answer is only a few or none, then think twice return on investment. For franchises that are nothing more before signing up. Remember the average in the U.S. & U.K. is over than buy a job franchises, this makes recruiting new franchisees 50%. just that little bit more difficult. If a franchise cannot sustain a Multi-unit franchise development I have seen too many cases model then there is also limited where people have spent 300K, 400K or even 500K on a franchise growth opportunities for franchisees within the franchise, that returns no more then 100K so make sure you are aware of the p.a before owners wages. If the longer term opportunities as well franchisee has had to borrow to as the earnings potential. fund the franchise then this is simply not a sustainable franchise. In a business sense becoming a There is a simple rule I ask all my franchisee is like being the a supplier of outsourced operations clients to follow (where the services to a client (the franchise is for a 5 year termfranchisor), so think like a regardless of any possible renewals), and that is unless the business person and ask your self, would I want to bid for this franchise can return its’ client and win this contract? Will it investment in 12 to 18 months plus owners wages, then it simply return me a profit for my investment and efforts. If not. isn’t worth investing in. Forget it!
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Modern Franchise IntelBuildMagazine Magazine| |43 3
THE 3P’S OF FRANCHISING. By Vicki Prout
Becoming a successful franchisor requires some different skills to what you may have been used to in running your company owned operation. In our May issue we discussed the difference between franchising and licensing and what these growth models entail and which is the best model for expansion. From our point of view it depends on only one factor – the level of CONTROL. Making the decision to expand your business is not an overnight decision or process, nor a get rich quick scheme; it is a committed long term strategy. We also discussed the models for expansion, now the next step is to assess the psychic and mentality needed to expand your business. Franchising is when you (potential Franchisor) say to someone: If you have passion for my business and if you agree to do your best to follow my tested rules, I will grant you the right to run a copy of my business (franchisee drives business);
We will give you the tools to do the job; We will support you in your efforts to do it; Together we will grow this business to be bigger and better than the sum of its individual parts; and You will pay a fair price for the brand, goodwill, support and training and in return you should make a return on your investment.
Franchising is not a business itself but a way of doing business. By rethinking the traditional methodology of the “F word” you can expand your business in an innovative and refreshing way. As a successful Franchisor you have to be ready to be a mentor and possess great communication skills to liaise with your staff, franchisees basically your entire stakeholder network.
Purpose Committed to
To achieve
Person
People influences
We will show you what you need to do; 44 | Modern Franchise Magazine
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As a Franchisor a positive attitude is imperative, those around you will want to see a vibrant person that they want to be associated with. “A positive attitude conquers all” as it will grow the individual and drive the entire network. You know what they say it takes 17 muscles to smile and 42 muscles to frown. A Franchisor is also a leader, a person who influences others towards achieving a goal. As a leader, one of the models I follow is the 3P’s - Person, People and Purpose. In any leadership role, whether you see yourself in a role as an Entrepreneur, Franchisor, or Manager to name a few, you are a person who needs to be motivated, driven, enthusiastic, and passionate about your role as you are in a position to motivate and inspire others to achieve success and reach the desired heights.
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1. Person committed to purpose:
suggestions, have the ability to try new things (take risks) and not be afraid to make mistakes, A good leader excites a network but more importantly learn from the mistakes made. of people to follow their business and in a strategic way My final piece of advice to those where the network follows the looking to expand their business business and the leader is to follow my mantra: Blame because they want too not no-one, Do something, Expect because they have too. nothing. 2. Purpose to achieve Vicki Prout is Chief Sherpa at people: Sherpa Group, leading franchise and business growth I see franchising as a tool to specialists. Vicki has been motivate people to build and grow, I am so enthusiastic about awarded the FCA - SA this I have coined the phrase, Franchise Woman of the Year “HUMAN AGRICULTURE”. 2006, 2007, 2008, 2010. 3. People to influence: A remarkable leader is one who has gotten their hands dirty and who is willing to get their hands dirty just the same as any other staff member or franchisee.
For more information contact Vicki on +61 2 9267 6277 or vickiprout@sherpagroup.com.au
A leader can then lead from the front effectively and with respect. It is also important for a leader to have the ability to listen to constructive criticism, be openminded to feedback and
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TRAINING YOUR STAFF WITH CLARIFY TRAINING Wouldn’t it be great if all your staff had the same passion and vision for your business and you? Clarify Training can help you create a dynamic culture where your staff thrive enabling you to reach your business goals faster. Our organisation has a deep commitment to you and your people and offers a unique service based on the values of Accountability, Respect and High Performance. Our professional services are tailored to be tightly aligned to the commercial aims of your business: In line with your organization’s strategy, we will formulate, lead and implement a learning framework that is linked to business performance, maximise individual capability and builds leadership competence. Coach business leaders in your organization so as to ensure the optimal delivery of all tactical people programs and to ensure business results are achieved.
As accomplished practitioners your business to ensure business they can help your people display results are achieved. effective influencing skills, the Attract & Recruit the Best ability to inspire and engage others Talent and the capability to lead and Provide an Environment empower change in a for Your Talent to Thrive performance driven setting. Optimise Individual Capacity With extensive experience in Build Influencing Skills and helping organizations analyze their Leadership Capacity needs and design strategic Ensure Business Results learning and development Are Achieved solutions, our highly qualified See the Results in Your consultants will work closely with Bottom Line you to determine your company’s individual requirements. We can design tailored solutions for individual employees, project teams, departments and entire companies.
We will help you implement a suite We can also help you develop a of HR practices and policies to learning culture, while fitting in with reflect contemporary, consistent the overall strategic goals of your best practice. organization. Our consultants are individuals Our programs are strategically who have carved their careers within leading, complex business aligned to the commercial aims of environments.
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If you want to optimise your business, give Clarify Training a call.
CLARIFY T R A I N I N G
CT
Clarify Training Pty Ltd Level 2, 1 Riverside Drive Melbourne Vic 3000 Ph: (03) 9982 4545 Fax: (03) 9982 4546 info@clarifytraining.com www.clarifytraining.com
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DON’T LET YOUR COMPETITORS OVERTAKE YOU!
Wouldn’t it be great if all your staff had the same passion and vision for your business and you? Clarify Training can help you create a dynamic culture where your staff thrive enabling you to reach your business goals faster. Attract & Recruit the Best Talent Provide an Environment for Your Talent to Thrive Optimise Individual Capacity Build Influencing Skills and Leadership Capacity Ensure Business Results Are Achieved See the Results in Your Bottom Line
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Modern Franchise Magazine | 47
ARE YOU A BUILDER LOOKING TO GET OFF THE TOOLS? When you stop and think about it, as a builder you will use many types of coatings during the construction of even the most basic home. Whether its the interior or exterior paints, renders, texture coatings, timber stains, decking oils, waterproofing membranes, sealants, primers, bonding agents, impact coats, concrete sealers, patterned concrete toppings and many more, you will most likely be dealing with multiple suppliers, different trades, different products and all the while diluting your buying power and costing valuable time scheduling and managing all these different companies and trades on site. How would it be if you could deal with one company that took care of all these coating procedures for you with one phone call! PowerCoat are the only company in Australia, that has the expertise and experience to successfully project manage all your coating requirements. We can even take care of wall system installation, full wet area waterproofing and seamless flooring applications regardless of the product or system specified, with very few exceptions. No matter whether you are a builder of homes, units, high-rise developments or industrial and infrastructure, PowerCoat will tailor a coatings solution to suit your business, preferred products and construction schedule. Franchise opportunities now available Australia wide.
48 Franchise Magazine 10| Modern | Careers Magazine
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Specialists in construction coatings since 1989 Residential Commercial Industrial Infrastructure www.powercoat.com.au
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Modern Franchise IntelBuildMagazine Magazine| |49 3
CAN GOOGLE+ CHANGE CUSTOMER SERVICE FOREVER? The launch of Google’s new Social Media platform, Google+ has the potential to make an immediate and profound impact on how customer service is delivered. While we are still learning about some of the new features, what is apparent is that companies will need to be on top of their game. By Aiden Williams
Even though we don’t know a lot about Google+ yet, the recently released social media initiative launched last Tuesday, one thing is certain, if only half of the promised features are widely adopted by Internet users, it could change customer service forever; and for the better.
Each of Google+ features could Hangouts have an impact on service. This is a set of communications tools that allows real-time chat, Circles incorporating some of the features of Google’s nowThis feature that allows you to defunct Wave service - which group your online connections was years ahead of its time so you can share information with only that group. It will allow including instant messaging and groups of up to 10 people by you to create a group of likevideo. Google has made several failed minded users instead of broadcasting everything to the attempts at social networking, While Hangouts could be an same group of friends or including Buzz and Wave. But excellent platform for resolving followers, like you would from what we know so far, this disputes between several on Facebook or Twitter. seems to be different. parties, it will be used primarily Creating a “circle” is far easier by customers who are Many of the early reviews say leveraging social media for than setting up a group in Google got it right this time. better service. Facebook. Within seconds, a Most of the reviews are positive disenchanted customer could and there is a tinge of rally a group of friends to protest Combined with Circles, it could excitement. bad service – or gather a cluster give consumers unprecedented organizing power to pressure of fans to support a new Over the past decade we seen product, service or company. intransigent companies into doing the right thing. social media level the playing field for customers and overall, With Google+, everything is in This feature could also be used Google+ looks as though it has “the now”! by disenchanted franchisees to the potential to level it even garner support and action for further. their plight.
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Instant Upload This does exactly what it says. Once a picture is taken, it’s in the cloud. Companies used to be able to negotiate with a customer who photographed evidence of bad service, like a mould in a hotel shower or a cockroach in your meal, but no more. Once the picture is taken, it’s as good as shared. Businesses have always relied on a technology-induced delay to dissuade would-be photo sharers or YouTube posters from uploading images of their questionable products to the Internet. With that lag time gone, they’ll have to get it right the first time. Huddle This takes many of these features, like Hangouts and Circles, and takes them mobile, while also adding other location based services like Google Latitude.
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Again, this adds a sense of immediacy to the customer service equation. If a group of well-organized customers can find each other while they’re still in the store, then it gives the term “mob” a whole new meaning.
Another way this could impact your business is if a competitor gets hold of the upload. The parody of bad service that could eventuate could cripple your business for some time. Facebook and Twitter had an almost immediate and profound effect on how customer service was delivered.
What Google+ means for businesses of all types is that if you don’t get your customer Google+ could do easily have a service right and don’t deliver on bigger effect. “the promise” then the world will know about it instantly. Imagine the damage an immediately uploaded review or even a video of a disengaged, disinterested or rude sales assistant could do to your business or even your entire franchise network. Ensuring your staff are properly trained, engaged, motivated and on-the-ball will have never been so important. Franchisors and Franchisees will both have to be vigilant in training and monitoring staff performance to ensure service meets customer expectations.
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MY FRANCHISE A FRANCHISE THAT ALLOWS YOU TO WORK “ON YOUR BUSINESS, NOT IN IT,” IS TRULY RARE. “Having grown to 6 outlets prior to franchising taught us how important it was to develop a franchise that enabled the franchisee to run a profitable business without having to work in it every day”, says John Brennan. 1. What inspired your business idea? John Brennan Hair is a Franchise Business model where Franchisees can ‘work on’ the business and don’t necessarily have to ‘work in’ the business. There are twice as many Franchise owners that run their businesses outside of their primary source of employment when compared to owner/ operators. 2. How did you know franchising was right for you and what ultimately influenced your decision? Having grown the John Brennan Hair brand myself to 6 outlets, it was a natural progression to grow the brand after a few years of developing and perfecting the Franchise business and operating systems that are still effective today. 3. What previous experience do your franchisees have before taking on a John Brennan Hair franchise? Plain good business sense! They have either owned their own business before or still currently do. They have experience in Marketing or events, Finance or Communications, quite a mixture.
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7. Who is the target market for your franchise?
John Brennan’s modern salon fitout helps attract all types of customers. “Our prices are appealing but best of all our services offer quality and value to everyone”. Sara Saadinam, JBH Franchisee, Westfield Chatswood, NSW
4. What are the main reasons 6. What process and support that someone would take on do your franchisees receive? a John Brennan Hair business? Franchisees complete an induction program to help them set up owning/ operating a A business that already exists, salon. The systemised that has procedures and systems in place which can help approach is structured in a way that guarantees you will be able make goals realistic and to work 'on' your business rather attainable. Sharing knowledge than 'in' it. with other Franchisee peers, with ongoing industry education The system provides detailed at your fingertips and reduced information on monitoring staff stock costs adding to better performance and identifying margins. training gaps. It also removes any ambiguity and streamlines 5. Can someone own more the appraisal process. These than one franchise? proper systems are the key drivers for increased productivity Yes, a few of our Franchisees to help achieve your ultimate own or have owned more than one salon. It is a testimony to the goals and success. quality of our business model.
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Actively searching individuals, previously self-employed or current business or franchise ownership or with some business skills. Active investors or business investors, 30-50 years old ideally with a Bachelor degree or Diploma education. Motivated to improve lifestyle or work/ life balance. 7. What would you say to someone wanting to take on a John Brennan Hair franchise? You don’t have to know Hairdressing or be a Hairdresser to run the system, you do need motivated and well trained staff. We place business, staff management and marketing skills ahead of other criteria. If you are serious about a business that offers you the opportunity to work on it, not in it, then you should take a good look at a John Brennan Hair franchise. To enquire about a John Brennan Hair franchise call John Brennan direct on 0416 007 760 or email enquiries@jbhair.com.au
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NEW BUILDER PARTNER PROGRAM Builder Partner Program We are seeking quality registered builders to build our designer homes in your region. Design & Marketing
By joining Micheal Polo Designer Homes, you can take on the big guys with strong marketing campaigns and access to national buying rates as well as access to a community of like minded local builders and industry professionals.
Micheal Polo Designer Homes offers a sales, marketing, design and estimating service that will ensure enough genuine opportunity to build a good profitable business within your own region.
How does it work?
Intensive initial training program and ongoing professional development
Micheal Polo Designer Homes Your Local Builder gives you an opportunity, at a low cost, to develop your own business, backed by a comprehensive design and marketing structure and professional company culture.
We know and understand what good small builders do best, build good homes.
Local state office assistance for the franchise lifetime
Time is often lost on the small things. Time that could be better spent driving your core business, building homes.
Professional Marketing & Sales
Responding to the building markets need for designer homes at an affordable price, we have developed a unique business structure that enables regional building partners, across Australia access to our unique designer homes and design services, building group buying rates, and our strong marketing and lead generation service. With over 30 current design plans, with new plans coming online regularly, and a strong web presence, you can be sure of strong business growth in your unique region.
National Purchasing Many builders feel that they have agreements and trade to do everything within their own sharing business, often spreading themsleves thinly and working To find out more, simply click the many extra hours, just to get link below and fill in the “become things done. a Micheal Polo Designer Homes Builder enquiry form�. Being part of the Micheal Polo Designer Homes team means having support structures in www.michealpolohomes.com place so that your time is best used doing what you do best and freeing up your time to spend with your family and friends and more time doing the things that you want to be doing. Michael Polo Homes
The opportunity to become part of an innovative market leading home builder has arrived.
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Estimating service
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MICHAEL POLO HOMES
DESIGNER HOMES BUILT ON TIME AND TO BUDGET...EVERY TIME! BECOME A BUILDER PARTNER NOW maxiom
Modern Franchise IntelBuildMagazine Magazine| 55 |3
ACHIEVING THE BEST RESULTS FROM EVENTS! The tactic of marketing to bring qualified sales leads into your business and reduce the cost of sales has never been more important than it is today. With the growth and reach of the Internet, you can communicate with more potential customers and existing customers than ever before. One thing to remember though, is that the internet can be quite impersonal. So what is the most effective way of peronalising your online marketing? Combining it with events gives you the perfect solution that can be tailored to suit your individual business aims and maximise the return on your marketing dollar. Event Marketing is proven to provide the greatest ROI due to the face-to-face interaction that it yields. Now more than ever, companies are finding that the results produced by event marketing far outweigh the return from other marketing platforms, such as print advertising, tv, radio, public relations and even Internet Marketing. Studies have shown that the conversion rate can tripled as a result of face-to-face events and meetings. The profit from your next event or meeting can be considerably higher, if you know what steps to take. Combining Internet Marketing and Events can provide you with an extraodinary ROI compared to all other forms of marketing. Building stronger and lasting relationships, converting prospects, retaining customers, and investing in people are the key reasons for which companies hold eventsand meetings. Our online marketing, meeting and event management specialists are trained to recognize the specific needs of each client and will work along side you to ensure that your meeting includes all vital elements, NWE Events will focus on creating a customized marketing campaign designed to meet your business aims are achieved and that the maximum results are achieved.
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Events with Impact! A lifestyle business that’s full of life and has plenty of style Our meeting and event planners have one of the most exciting and rewarding lifestyles assisting in creating an unforgettable experience for our clients and their attendees. Product Launches Charitable Causes Meetings Conferences Corporate Events Awards Nights Marketing Events
Join one of the world’s fastest growing industries and have fun at the same time If you’d like to help create a memorable, lasting impression on your client’s attendees and you have a professional outlook and a desire to build your own lifestyle business, then this opportunity could be for you. Our franchisees enjoy a comprehensive induction and ongoing training, low establishment costs, great head office support plus a lifestyle and rewards that most people envy. For more information or to receive a franchise kit visit our website:
www.nweevents.com or email: franchise@nweevents.com NWE EVENTS
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Modern Franchise Magazine | 57
HOW TO SAVE TIME AND MONEY. How many times each week do you think to yourself I wish I could get someone else to do that? Well now you can. Outsource Resource is the one place you will find hundreds of outsourced specialists who will take on those jobs you hate or that cost you money by having to do them when you could be making more profit doing something else.
This provides you with the peace of mind that comes with being certain that the required services will be professionally executed in a timely manner, without additional in-house hiring.
When you outsource your bookkeeping or accounting More opportunities to requirements, is your accountant outsource an expert in your industry? If not One of the biggest issues facing what could you be missing out business owners and managers on? is, who are the best people to Having a resource to locate the outsource my work to? best outsourced specialists is There are plenty of businesses invaluable to your business. willing to take your dollar, but how many can really provide you You can be sure that the businesses referred by with great value for your hard Outsource Resource can do the earned cash? job; after all, they have been referred and referenced by your Ideally a successful outsource peers. relationship enables you to outsource administrative or operational activities that are not Outsource Resource can help you find the best person or part of your normal day-to-day business to suit your needs. Our business, or for which you motto of “bringing the best require additional resources. together� is what we are all about.
Businesses Can Outsource Almost Anything. Some of the Most Common Types of Business Outsourcing are: Transport & Logistics Facilities Management Business services (Accounting & Legal) Knowledge services (IT, Data, Consulting) Cleaning & Maintenance Catering & Events HR services (Recruitment, Staffing & Training). Security Call Centres/CRM services Operations (via Franchising) To find out how Outsource Resource can help you find the best people to help your business succeed:
CLICK HERE
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WOULD YOU LIKE MORE TIME & INCREASED PROFITS? THERE’S AN OLD SAYING, “IF YOU CAN MAKE MORE MONEY IN AN HOUR THAN IT COSTS YOU TO PAY SOMEONE TO DO IT FOR YOU, YOU ARE LOSING MONEY!” Finding the right people to outsource your needs is important.
“Bringing the Best Together” Outsource Resource is the only place you’ll find hundreds of experienced, proven and reference checked outsourced contractors that are there to help you achieve you business aims. Whatever service or product you need to outsource you’ll find it in our directory of quality organisations who would love to help you. If you’re not sure what to outsource and what to keep in house we can analyse your business to find the best options for you. And we GUARANTEE that our recommendations will benefit your business or we’ll refund the full cost of the consultation! Outsource Resource Level 2, 710 Collins Street, Melbourne Vic 3000 Ph: 1300 688 768 Info@outsourceresource.com.au www.outsourceresource.com.au Melbourne |Sydney | Brisbane | Adelaide | Perth | Hobart
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WOULD YOU LIKE A CONSTANT FLOW OF NEW CUSTOMERS? No matter what your business or industry we can help you consistently gain more customers and build your business and your brand - FAST!
Run with the big dogs...and WIN!!! Consistently Win New Customers Be Seen as THE Experts in Your Industry Strengthen Your Client Relationships Expand Your Database by Thousands or More... Develop Profitable Alliances Look More Professional Build Your Brand Optimise your ROI
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HOW TO WIN MORE CUSTOMERS Would you like to promote your business to pre-qualified customers regionally, nationally or internationally? Once upon a time advertising to a marketing tool that many more wide audience was limited to only readers are interested in receiving the largest of companies. and will open every time it hits their inbox. The Internet has changed that forever. The playing field, at least After all they have asked us to as far as the Internet goes, is far send it to them! more level and enables almost any business to promote and market All our magazines are FREE to themselves regionally, nationally or subscribers meaning that more internationally at a very small cost. people are likely to subscribe and more people will see and hear SME’s now have the opportunity to your message. take advantage of Internet Marketing and grow their business All magazines are compatible with in a manner to meet their business iPads & Smartphones and are aims. structured in a way to maximise the readership via mobile media. Maxiom is an Australian leader in the field of online publications and Being an online publication has Internet Marketing. With over many other advantages, enabling 120,000 subscribers to our online you to incorporate links to your publications, and growing daily, the web site, video & audio opportunities for our clients to presentations, including YouTube, exploit permission marketing are PowerPoint presentations, RSS enormous. Feeds, blogs, social media links all of which can be accessed from Sponsoring a magazine relevant to any computer, laptop, iPad or your industry is a terrific way to Smartphone. been seen in the market place. With many more companies Advertisers also get the same targeting email marketing it is functionality, meaning readers can sometime easy for your message immediately click through to your to get lost amongst the plethora of site for more information or to take messages received everyday. up your offer. By publishing an informative and appealing online magazine, businesses now have an online
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other Internet marketing tools all included in the packages available. Every publication has its own dedicated account manager and marketing consultant whose sole function is to assist our clients maximise the effectiveness of their Internet marketing. We earn the bulk of our revenue from selling advertising in the publications which means most companies that partner with Maxiom to deliver their online message, earn a very healthy return on their investment. You can find out more about how Maxiom can help your business grow by contacting one of our consultants:
maxiom Maxiom Group Pty Ltd Level 2, 710 Collins Street Docklands Vic 3008 Tel: (03) 9097 1606 Fax: (03) 9097 1607 Email: info@maxiom.com.au www.maxiom.com.au
It offers instant and constant communication with your target market and is supported with email marketing campaigns and
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HOW TO HIRE AND NURTURE A TRUE CULTURE OF PROFITABILITY By Kristin McNicol Profitability is what keeps us in business. It’s the reason we run a business, so we can make a profit. Profits fund employees wages, bonuses and benefits. Profits drive opportunity and safeguard jobs.
If you are uncomfortable about giving them the actual dollar figures, then talk about gross margins.
Employees generally reflect the attitude of the boss. You end up getting the behaviour you demonstrate and tolerate.
Maintaining your profit margins demonstrates operational efficiency. Improving them demonstrates operational excellence!
Pay attention to your staff. Everyone on your organisation should be aware of and on the lookout for profit opportunities.
Culture of Profitability
So it surprises me that many businesses don’t connect profitability to employees the same way they connect sales and customer service.
To create a culture of profitability, you have to hire profitability.
Involving staff in discussions about profitability has several positive effects.
Every person you hire must be invested with you in building the business.
They become more engaged. It makes them feel valued and as if they are a key decision maker in your business It makes then accountable to the business It shows them what works by giving them the data behind it.
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It is about who you hire and how you manage them.
At Maxiom we hire on attitude. Attitude is everything!
Like any skill, this requires information and training. The more information and knowledge we have the better decisions we make. Train you employees to identify profit drivers. It is also up to us to establish standards of accountability. This is simply about delegating. If you haven’t assigned responsibility for a task it won’t get done. If you assign the task to more than one person you have effectively made no one accountable and it most likely it will not get done.
First, you must define the attitude you want from your staff, the hire it, nurture it, guide it and celebrate Of course you will have to it! delegate authority to the person who is accountable for the task.
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Without authority to make decisions needed to complete the task the employee accountable is not really accountable.
The same can be said for your business. Without a shared goal, sense of purpose and common benefit, you’re all going in different directions.
We instil values, shape attitudes, create awareness and structure accountability.
The key is getting it right from the recruitment stage. Hire on attitude, with a sense of profitability. Nurture that attitude. Train and develop your employees skills and leadership competency and delegate responsibility, then you are on the right track to building a company with a culture of excellence.
None of those things will get you very far though, unless you have provided your employees with the authority to make decisions that will impact both transactional and lifetime profitability. Authority must be earned, but you need to give employees the opportunities to make mistakes and learn from them. Align with Your Business Aims For all of the foregoing, none will impact profitability unless you have a shared goal. The adage about driving the most powerful car in the world won’t take you anywhere unless the wheels are pointing in the same direction.
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Accountability, responsibility and authority are not just words but actions that instil confidence and a sense of self worth in your employees. Not only does this lead to greater financial success for your business, it also improves job satisfaction and loyalty from your employees helping you retain top performers, experience and knowledge.
At a time when many SME’s struggle to attract and retain the best talent, this is one area that they should be able to compete and outperform larger companies. With work life balance and job satisfaction more important than job security SME’s that can invest their employees in building their business with them have a clear advantage in attracting and retaining the best talent. If you are unsure where to start, talk to a recruitment consultant that specialises in your industry. There are also many excellent training organisations that help you with ongoing staff development and strategies to keep them invested.
It is about investing your employees with you in building your business.
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“HOW I CAN HELP YOU” This month we welcome integrated OHS, HR, Recruitment & Training Provider - Building Up Consulting to our franchise specialist network. We take a look at the serious business of OHS which is about to undergo some significant changes with new National Laws coming into effect soon. Building Up Consulting provides businesses with “peace of mind” says Joanne. Knowing that their OHS systems, manuals and training comply with legislation provides business owners with the confidence that their employees can go about their business with minimal risk to themselves, others and their employer. “At Building Up we make it our business to ensure your risks are minimised and your potential maximised. We hold the solutions to your OHS problems, so you can rest assured that your business is able to tick all the boxes” Joanne proudly states. With new National OHS Laws coming into effect from January 1, ensuring you tick all the boxes is important. As a former HR & OHS manager in the building industry, Joanne says that clear communication and training is the key factor in ensuring that employees follow safe work practices.
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The new legislation makes that even more vital to minimising risk to business owners, directors and managers as well as employees.
Outsourcing your OHS to experts like Building Up is the ideal way for SME’s to ensure they do tick all the boxes.
So in the end it’s about managing risk?
For no more than a few hundred dollars a year, you can have an OHS expert review your Safety In the end, says Joanne, a Management Systems and OHS workplace accident can have a Policies & Manuals. “Building Up devastating effect on the employee provide standard policies and involved and their future, family manuals to suit most small and health, so employers have a businesses from as little as lot of responsibility in this area. $99.00 a year, includung updates” When employers don’t take their says Joanne. responsibility seriously enough and an accident happens, then the Complete Safety Management new Laws will see some very Reviews start from a lttle over significant penalties imposed. $700 so there is really no reason why any business shouldn’t make So minimising risk to everyone sure they tick all the boxes. involved is paramount, says Joanne. If you would like some more information about OHS for your The new rules are quite complex, business you can contact Joanne and will require changes in your at jsolis@buildingup.com.au or OHS policies and Safety call (03) 9001 0265 Management systems, so it’s important to get it right from the start. The new rules will also have particular effect on the franchise industry.
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Building Your Future After 16 years of proven performance internationally, IntelBuild is now delivering superior franchise solutions to the building industry in Australia. IntelBuild Platinum is the ultimate in building industry franchise programs. Visit our website to find out why.
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Modern Franchise IntelBuildMagazine Magazine| 65 |3
About Modern Franchise Magazine Publisher Maxiom Group Pty Ltd 2/710 Collins Street Docklands Vic 3008 Australia www.maxiom.com.au Editor Tam Hannan Digital Magazine Created By Modern Franchise Magazine Online www.modernfranchisemagazine.com Advertising Enquiries (03) 9097 1606 (within Australia) + 613 9097 1606 (International) modernfranchise@maxiom.com.au Editorial, Media Releases & Article Submission editor@maxiom.com.au
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PRIVACY POLICY: Modern Franchise Magazine is published as a service to subscribers. We adhere to strict Privacy Policy concerning all subscribers on our database and will not disclose your details to any third parties without your prior written permission. If you have any queries about our privacy policy or this magazine, please contact our office on (03) 9707 1606 or email privacy@maxiom.com.au. A full copy of our Privacy Policy is available on our website at www.maxiom.com.au/subscribers/privacypolicy. In the meantime, thank you and we trust you enjoyed this issue of Modern Franchise Magazine!
DISCLAIMER Information published in this online magazine has been compiled with due care and attention, but it does not clam to be exhaustive. Maxiom Group and/or Modern Franchise Magazine cannot be held responsible for the content of external sites reached via a hyperlink from this site. We accept submissions from outside contributors, and whilst great care is taken, the author of the submitted article is responsible for what they write, and Modern Franchise Magazine will not be liable for any loss or inaccurate information or any other omission or error by outside contributors. This online magazine is provided for information only. It is not intended to replace a consultation with a qualified industry professional. Modern Franchise Magazine does not accept responsibility for any loss, damage or injury that arises from the use of this online publication.
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Maxiom Group Pty Ltd Level 2, 710 Collins Street Docklands Vic 3008 Ph: (03) 9097 1606 Fax: (03) 9097 1607 info@maxiom.com.au www.maxiom.com.au
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