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October 2011
Improvement is Booming
The New Leadership, Culture & Management Practices of High-performing Workplaces Report
10 Key Benefits of Owning a Franchise maxiom
What’s in this month’s Magazine?
Regular Features
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Page 2:
Welcome
Page 10:
Franchise Focus
Page 34:
Modern Franchise
Special Features Page 6:
What Franchises Can Learn From the Leadership & High-Performing Workplaces Report
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Franchise Consultants Backing the FCA on Opposing the SA Small Business Commissioner Bill
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Alternatives to Franchising
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Key Benefits of Owning a Franchise
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Can You Really Teach Your Customers How to Buy?
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What Employees Really Want
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Amazing Customer Service
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30 Profiles Page 10:
SafetyQuip
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Bedshed
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The Fortune Institute
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Articles Page 20:
What is the Definition of Turnkey?
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Protecting Your Brand Reputation From Damage by a Rogue Franchisee
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5 Steps to Finding the Right Franchise
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Finding Efficient Staff to Build a Successful Franchise
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How to Franchise Research
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Why Choose a Franchise & What to Expect
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Creating Urgency Without Giving Discounts
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The Modern Franchise with Mark Matthews Welcome to the October Issue of Modern Franchise Magazine. The Franchise Industry has set standards that others aspire to, so what can franchisors learn from the new Leadership, Culture and Management Practices of High-Performing Workplaces report? Franchising can learn much from this report. We take a look at what it means to franchises and compare it to the findings of the PwC Sector report
Staff Management
Features
We investigate how “what employees really want”.
In “franchise focus” we talk to SafetyQuip about their business and their plans for continuing growth and success, both in Australia and overseas.
We also look at how to find efficient staff to build a successsful franchise”. The South Australian Small Business Commissioner bill has it . detractors. Now leading franchise Looking for a franchise? consultants are adding their voice in opposition. But will it have any We look at the 5 steps to finding effect? the right franchise” and how to research franchise opportunities. Sales & Marketing Plus there is a great feature on Sales, marketing and customer the “10 key benefits of owning a service are vital to the success of franchise”. any franchise. In the last issue we learnt that the key is to “focus on We also ask “why choose a franchise and what to expect?” the customer” so in this issue we take a look at what it actually We look at what to do if you are takes to “provide amazing “competing for a franchise” with customer service:. other franchise buyers and We also look into what measures making sure you have “realistic profit expectations.” you can take to “protect your brand reputation from damage by a rogue franchisee”.
“Western Australian based Bedshed is making a concerted push into the Eastern States. We talk to them about growing their business in this competitive and challenging market in “Modern Franchise”. There are also a number a really great franchise opportunities advertised! Be sure to look out for the upcoming events listed at the back of the mag. And if you hadn’t noticed, on the next page there’s some information about our other B2B digital publications. Enjoy the magazine. All feedback is appreciated. Please visit our website: www.maxiom.com.au/feedback to have your say.
4 | Modern Franchise Magazine
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Modern Franchise Magazine | 5
WHAT FRANCHISES CAN LEARN FROM THE NEW LEADERSHIP, CULTURE AND MANAGEMENT PRACTICES OF HIGH-PERFORMING WORKPLACES REPORT The new Leadership, Culture and Management Practices of HighPerforming Workplaces report shows that companies that have a culture of high performance generally make greater profits. Better Outcomes This landmark report provides insights and evidence gathered from over 5600 Australian employees of what in our own everyday work experience is obvious; the better the capabilities and practices of the managers we work for, the better the performance of our organisations and the outcomes we produce. The study shows that leaders in higher performing organisations prioritise people management as a key priority, involve their people in decision making processes; are more responsive to customer and stakeholder needs; encourage a high degree of responsiveness to change and learning orientation, and enable their staff to fully use their skills and abilities at work. 6 | Modern Franchise Magazine
There is now a culture of More Profitable & Greater organisations that are high Innovation performing - and franchises can learn a lot from them. High performing organisations are not just much more profitable In monetary terms financial data and productive, they also collected shows that these high perform better in many important performing companies generally “intangible attributes�, such as have a correlation with higher encouraging innovation, profitability. leadership of their people, and creating a fair workplace The study found that high environment. This higher level of performing companies spend innovation encompasses more time and effort managing services and products, their people than leaders, have operational processes, clear values, have a higher managerial structures and occurrence of giving employees strategies, and marketing the opportunity to lead work methods. assignments, encourage employee development and This report is a call to action. It have a clear vision and goals for provides clear evidence that the future. improving the effectiveness at work and performance of our employees is and will be largely a function of our commitment to develop leadership and
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management capabilities across all organisations in our economy. It is time to invest in this vital and undervalued lever of Australia’s productivity performance.
improved staff performance and happiness, stand to benfefit right across their business and will achieve an excellent return on this investment.
Leadership skills has one of the strongest correlations with productivity, so focusing on those capabilities and management is a key characteristics of the higher performing companies.”
Franchisees that improve High Performing workplaces profitibility per employee will be have significantly lower levels of happier too! And remember this The report also points to higher levels of responsiveness to employee turnover and higher figure was the average, some changes in stakeholder and levels of job satisfaction. did much better. customer networks, higher levels of employee participation in But bigger financial benefits There is also a correlation decision-making processes, were identified. The report found between profitability and higher level of behaviour and a considerable difference happiness. In low performing skills flexibility in employees, between the profits of low workplaces, one in four and effective use of quality IT performing companies and high employees had symptoms of systems as aspects of higher performing companies. depression, while in higher performing businesses. performing workplaces, that “The profit margin difference ratio was just one in seven. between high performing We pay attention to the business workplaces and low performing The higher performing plan and finances and so on, workplaces is large and reaches companies have cultures where and that is important, but a staggering $40,051 per full- they care about the employees, leadership capability and time employee.” emotional stability are just as and they have that emotional crucial. support in place, and it comes In other words, the profit margins out in the financial data as well. So how do you become a high of High Performing Workplaces performing company? Oddly are nearly three times higher Focus on Leadership enough the answer is quite than their lower performing Training straight forward. counterparts. This report teaches franchises to This is a significant difference focus on leadership, and training There are just 3 things that and shows that franchise leaders to empathise with staff, generally differentiate high performing companies from low companies that invest in training in order to promote higher performing ones. that has a direct impact on performing workers.
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Modern Franchise Magazine | 7
1. High performing companies have strong leadership. The business owners and operators have learning and development programs in place that build leadership capability. 2. The second thing is training. Regular assessment of employees skills and achievements improved performance dramatically. 3. The third thing is amazing and delighting your customers. This is also centred around your employees‌and again the level of training they have undertaken to ensure that your organisation greatly surpasses customers expectations. How do you measure a high performing company from the others? The report goes into some details about how they formulated their results. But there is a proven simple method.
Repeat business and word of mouth promotion often has a higher profit margin over a longer term then new customers who just happen across a business. Because NPS is easy and straightforward, anyone can grasp exactly what it means and use it to improve customer service that will keep existing customers returning.
The outcomes of the Leadership, Culture and Management Practices of HighPerforming Workplaces report echo those in the PwC Franchise Sector Report. That is additional training in building ledership capacilty is required to ensure the continued growth and high peformance of the franchise sector.
While NPS is not a "passive" number, and making sense of the information requires realtime communication, on the fly alterations, and empowered employees who can put current customer feedback to direct use, it is basic enough that one need not look at the numbers as though it is a code that only a few have the ability to put to use.
Those organisations that employ greater levels of learning and development to improve leadership capabilities and employee performance are more likely to result in higher profits for both the franchisees and the franchisor.
The NPS is derived from answers based on a single question, "how likely is it that you would recommend this company or its’ products or services to a By measuring your Net Promoter friend or colleague?" with the answer being given on a scale Score or NPS. The NPS is actually very simple. The metric of 1-10. is designed to hold industry Many businesses now link accountable to their level of employee bonuses to their NPS. customer service.
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The Leadership, Culture and Management Practices of HighPerforming Workplaces report can be downloaded here
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Modern Franchise Magazine | 9
franchise focus A 2 BILLION DOLLAR NICHE MARKET MEANS A LOT OF ROOM FOR GROWTH. SafetyQuip's national revenue has grown on average by 32% per year over the past four years. As a result Business Review Weekly has included them on their 2010 and 2011 list of fastest growing franchises in Australia. 1. What is inspiring about your business idea? It’s unique. To our knowledge worldwide no one has ever franchised full-scope safety product distribution. The business model centres on multiple sales channels and has an extremely broad customer base offering considerable growth and capital gain potential.
3. What previous experience do your franchisees have before taking on a SafetyQuip franchise?
at our Noosa head office and then continue their professional development for the duration of their tenure with SafetyQuip.
While one franchisee came to us from an industrial distribution background the others have a variety of professional and work experience – from accountancy to farming.
Rather than safety professionals we look for people who are team-players with the drive and determination required to be business builders
4. What are the main reasons We’ve never believed that safety that someone would take on a SafetyQuip business? industry experience is a 2. How did you know prerequisite for success in a franchising was right for you SafetyQuip business. SafetyQuip appeals to the kind of person who wants to do more and what ultimately Safety knowledge can be than just buy himself a job – influenced your decision? learned and, indeed, we’ve someone who’s ambitious and invested heavily in a training wants a business that offers the It offered the best opportunity to potential for maximum growth expand the network nationally at program for franchisees specifically designed to teach and capital gain while providing the most affordable cost. them what they need to know a good income. Professional advice was what about safety. ultimately influenced my decision. All franchisees undergo an intensive 3-week training period
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It’s an ethical business that a franchisee can be proud of – one that offers a degree of status and standing in the community.
We also have a 24/7 intranet support forum for general enquiries.
The CEO, National Operations Manager and National Training 5. What was the driving force Manager each conduct an annual field visit with every behind your decision to franchisee. franchise? Basically the same reasons we knew franchising was right for us.
Additional field visits are scheduled if necessary.
While I wouldn’t characterise SafetyQuip as difficult business to manage it’s not the kind of franchise that would appeal to someone looking for a garden care franchise or dog washing business. Another challenge has been one I expect most franchisors face – finding enough venture capital to expand and develop the business.
One of the unique tools a 8. Tell us about some of the It offered the best opportunity to SafetyQuip franchisee has at their disposal is a purpose built expectations that you had. expand the network nationally at business-management software Have they been met? the most affordable cost. program. Except for the network not It also offered a very good return This fully-integrated program has expanding as rapidly as planned for franchisees that invested in proven indispensable in the daily all my other expectations have the business. management of SafetyQuip been met. We have focused on businesses where annual developing our systems well 6. What process and support turnover can easily exceed 2 ahead of the growth curve. do your franchisees receive? million dollars. 9. Who is the target market If you ask any of our franchisees 7. What challenges did you for your franchise? they’ll tell you the support they face in setting up your receive from head office team is franchise? When you think about it, there second to none. are very few businesses out One of the challenges was there that don’t use some kind of We respond by phone if it’s finding suitable franchisees. safety product. Panel beaters urgent. need welding masks hairdressers need disposable gloves.
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Modern Franchise Magazine | 11
Most of our customers are small to medium sized businesses who know that – by law – they have to provide a safe environment for their customers and employees, but who don’t always have the expertise in safety needed to comply with the law. That’s where we come in.
That may not seem like a large network, but our franchise territories have been tailored to provide the franchisee with the means to maximum the growth of their business. Large territories allow the franchisee to expand his business into multiple distribution outlets without paying additional franchisee fees.
11. What would you say to someone wanting to take on a SafetyQuip franchise? Most people buy a franchise because they believe it’s less risky than starting a business from scratch and to a large extent that’s true.
A person buying a franchise gets a proven system and profits 9. How many units of your from the experience of the franchise do you currently trailblazers, but at the same time It is one of the few franchises have and how many do you the franchisee has to commit to the business and accept plan to establish in Australia? where you are rewarded proportionately for the effort you responsibility for its put in. performance. SafetyQuip currently has a network of 15 franchises located in QLD, NSW, VIC, SA and WA 10. Do you have any plans for Getting a business off the overseas expansion? ground and making it a success turning over on average in – franchise or not – is hard work. excess of $1M per year and Seven franchises are planned It requires drive, determination, growing. for New Zealand and further patience and skill, but the international expansion at a rewards are more than worth it. We eventually want to expand to future date. 39 franchises within Australia.
24 12| Modern | ModernFranchise FranchiseMagazine Magazine
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Modern Franchise Magazine | 13
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Modern Franchise Magazine | 15
FRANCHISE CONSULTANTS BACKING FCA ON OPPOSING SA SMALL BUSINESS COMMISSIONER BILL Leading Adelaide based business development consultancy backs the Franchise Council of Australia’s call for the bill to be the subject of a Parliamentary Committee. With Naomi Walshe The FCA is mustering it’s forces to shout out in a united voice in opposition to the South Australian Small Business Commissioner bill. Adelaide based franchise and business development consultants Sherpa Group are the latest to voice their disapproval of the bill. Sherpa Group united with FCA to oppose SBC bill Adelaide multi-award winning business development consultancy, Sherpa Group, headed by Vicki Prout, who is also a franchisor with the brand Safe Kids In Daily Supervision (sKids), is united with the Franchise Council of Australia (FCA) and other prominent voices from South Australia’s franchise sector to strongly reject the SBC bill in its current form and believes the bill should at least be the subject of a Parliamentary Committee.
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Prout who has over 15 years’ experience in the franchising sector, strongly believes the current federal code adequately covers both the franchisee and franchisor. Introducing state based laws is a detriment to franchising stating this proposed bill in its current form will have a significant negative impact on business growth and the economy in South Australia.
As franchisor for sKids, Prout states she would seriously consider moving the head office from SA to NSW to remove the uncertainty, fear and potential legal mind field that the SBC bill will bring. “If the bill is kept in its current form, it will likely result in ceasing the development of the sKids franchise in South Australia,” Ms Prout said.
“I have no problem with a small business commissioner based on the successful Victorian model but we do not need statebased franchising legislation in South Australia when we already have federal legislation under the Competition and Consumer Act – Franchising Code of Conduct,” Ms Prout said. “It’s alarming and concerning that what was originally put out for comment is vastly different to what we now see before Parliament.”
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Modern Franchise Magazine | 17
ARE THERE ALTERNATIVES TO FRANCHISING THAT PROVIDE FOR STABILITY & GROWTH The recent PwC sector report showed that franchise industry performed better than most but are there other viable alternatives worth considering? By Aiden Williams One way of growing a brand name or a company's products or services is to expand via franchising. While this is an excellent way to see some tremendous growth, the key to this process is not just following the letter of the law, but more importantly, it is about making sure that franchising is the right move. If it is, then so be it, but if it isn't, for whatever reason, you might want to look into certain franchising alternatives. What is commonly understood is that while franchising is a good and proven way to grow, there are some other ways to go about it.
How it is typically defined is in three steps, the use of a common trademark, the availability of training or support and the collecting of fees over a designated period of time. The reason why knowing this is so important is because the low cost franchising alternatives will tend to only vary slightly from what a standard franchising agreement would be. Probably the biggest factor that leads people to franchise is the level of control. While an alternative strategy like licensing is really very similar to franchising there is the fundamental difference of control.
technology but you hand over control of the brand to the licensee. One of the biggest
disadvantages of allowing someone else to represent your brand is when something goes wrong, it reflects poorly on your brand. That is why so many companies find it more agreeable to go with company owned growth instead. While requiring more capital than franchising it is one of the Franchising Alternatives. In the end franchising offers a great mix of control while enabling strong growth without trying up so much of your valuable capital.
Many of the biggest franchisors use a multi-channel distribution With franchising you have a much strategy combining franchises with greater level of control over how company owned units, electronic your franchisees run their branch channels and upstream The first thing you will want to or branches of your business, diversification . This is the way understand about franchising represent your brand in their these larger franchisors achieve alternatives is to first understand dealings with customers, profit maximisation. what the textbook definition of a suppliers, employees and of franchise is. course, yourself. With licensing you are licensing the right to use a trademark or
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Goodes & Co
When you want someone to deliver the “Goodes� for your business. www.goodes.com.au maxiom
Modern Franchise Magazine | 19
WHAT IS THE DEFINITION OF TURNKEY? We often hear the term “turnkey� business or franchise, but what does this actually mean? In basic terms the definition of a "turnkey" business is a business that includes everything that you need to start making money, and hence turn the key.
While a franchisee will be resposible for running their franchise unit(s), it is the franchisor management that plan and execute the overall business strategy.
There are a lot of businesses, both online and offline, that claim Other forms of turnkey to be turnkey but few of them are businesses have risen in recent really turnkey. years with the introduction of the internet and automation. This A turnkey business should have made it possible to gain every part of the business leverage that had never been covered, and should enable you seen before. to start making money immediately. This not only The problem with this though is includes everything you need to that it has created an abundance start operating your new of online business opportunities business, but also the operating claiming to be turn key business system itself. systems that simply are not. Most turnkey franchises are heavily built around clearly defined systems that are easy to follow and implement. A business owner does not need to make decisions on how to run the business, because it is based around proven system that have stood the test of time. A Turnkey business sometimes refers to a business in which the high level management of a firm is in charge of the planning and execution of all business strategy.
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The low cost of doing business on the internet has seen new companies coming out of the woodwork with loads of hype and clever marketing. Any business that claims to be a turn key business system should provide a world class marketing and operating systems. This is where the franchise business model has a clear advantage over buying into or starting a stand alone or other form of business, turnkey or otherwise.
A business that is being sold as a turnkey business would include tangibles such as inventory and equipment through intangibles such as a previously established reputation and goodwill. In the case of franchises, a turnkey business often includes a building that has been constructed to the franchise's specifications (such as a McDonald’s or Red Rooster etc), and an exclusive territory. Entrepreneurs considering buying a turnkey business should always do their due diligence and be sure they know exactly what a particular turnkey operation includes; not all turnkey businesses are created equal!
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Modern Franchise Magazine | 21
PROTECTING YOUR BRAND REPUTATION FROM DAMAGE BY A ROGUE FRANCHISEE There has been some media recently about rogue franchisees and how to best effectively deal with disgruntled and rogue franchisees. By Stuart Marshall The worst thing that could happen in a franchise relationship is a franchisee which has been terminated seeking revenge. Often, if the termination is not done right it can severely hurt the brand name of the franchise company. It's even more critical today than it ever has been considering social networks, and other online avenues and the viral nature of negative comments on the internet or in Social Media.
A rogue franchisee which has been in a franchising system for a while knows the ins and outs of the franchise, and there are many ways that they can anonymously attack the franchise online, or have a friend post information which will be detracting to the franchisor, perhaps spilling the beans of a failed product launch, or an upcoming change within a franchise company.
There have been franchisees which have created websites such Franchisors have often been as "this Franchise Sucks dot com" criticized by when settling legal though in this case the franchisor disputes and demanding a can have that website removed confidentiality clause or other legal because it violates their requirement with penalties Trademark and copyright, as it attached that the franchisee never uses their company name in the discuss or make pubic the website domain. negotiation or the termination, or any of the details Nevertheless, it takes time to get that done, and by then the damage Many believe this goes against has already hurt the brand name. free speech, however in business law, the parties can agree to And even if the franchisor can anything they wish, and generally it soothe a rogue franchisee or get is a stipulation to prevent the the website closed down, the franchisee from causing financial chances of them collecting any harm to the brand name (which damages are slim because a ends up harming remaining former franchisee that has been franchisees as well). terminated, probably doesn't have any money.
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In any case, it isn't about the money! It's about the strength of the brand, and if the franchisor's brand name has been disparaged and damaged enough, it will be difficult for them to sell new franchises and it will hurt the existing franchisees and devalue the business for everyone. It seems that at some stage in their franchise life that almost every franchisor has had a situation similar to this somewhere along the line and generally it is from a disgruntled or post termination franchisee seeking to cause harm to the franchisor. Sometimes it is necessary to termnate a franchise. It would be wise for a Franchisor that has to terminate a franchise, to do it in the most professional manner, and with lots of warning prior to termination to prevent these sorts of things. As a franchisor you can't prevent upsetting some people, but it is amazing how much you can prevent if you are open and fair in your dealings, even when terminating a rogue franchisee.
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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 | 23
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 | 25
10 KEY BENEFITS OF OWNING A FRANCHISE There are many advantages of owning a franchise over starting your own business or buying a stand alone one. Here are some of the primary benefits of owning a franchise, some which are often touted, others that sometimes get overlooked. By David Marks Risk The most important reason why anyone would consider a franchise is that it comes at a much reduced risk of failing compared to starting your own business.
You don't need to do the hard work of creating a brand awareness because it is already done for you.
Franchises can compete with established corporations simply because of the economy of scale.
The initial phase of any business Quick and Easy to Start is trying to establish itself and it can be a very steep curve. Getting down on your feet and starting your own business might With a franchise, you skip over sound exciting but there are Growth this tough initial phase and can tremendous risks and the odds are usually stacked against you. In addition, there is ample scope concentrate directly on how to gain more business instead of for aggressive growth without trying to convince people that In addition, you will need a long having to start from scratch your product is actually good. time to set up your business, because someone else has gain popularity and start making already done the homework, money. This whole process is taken the risk, succeeded, and Tapping into Economies of Scale condensed by a great deal with wants to help you succeed as a franchise. well. Franchises are huge These businesses know what Growing by taking on more businesses. They have all the works and chances are that you franchise units is also an great advantages that come with are not the first franchisee option once you’ve proven being huge. interested in the business. yourself and you understand the business. Tapping into the economies of A franchise knows how to set up scale is easy for franchises a business quickly and Brand Recognition because they are well established and have a working profitably. This is one of the most important solution to a problem. Because it is a win-win situation, aspects of owning a franchise you get the help of a very With a franchise, this solution that provides immediate comes at a reduced price with a established business which benefits to the franchisee. guarantee of quality, which small makes your job much easier and businesses will always find hard quicker. People recognize common names - McDonald's, Subway, to match. Jims, etc. 26 | Modern Franchise Magazine
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It is not unusual to see a franchise taking less than 10% of the time needed to start a business from scratch.
Stand alone businesses just Financial don;t have this extensive support network. Some franchises have their franchise accredited with major Strong Employment Brand banks or other financiers that Franchising Outperforms enable an incoming franchisee other Business Models Attracting and retaining the best to obtain funding for their staff is what makes any business more easily. business successful. Franchises Even during the challenging generally have superior Some franchisors may provide times over the past 2 years some funding themselves. franchising has achieved double employment brands making a franchise a more attractive place digit growth which is further for an employee to work. In general, franchises are more evidence of a robust business financially stable than stand model and thriving sector, even alone businesses. in retail, where other businesses Most franchises have well established training and career are struggling. development programs that These are only some of the build leadership capability and many other benefits that you get Strong Support from within provide greater opportunity for by owning a franchise. Always the Industry employees. remember to weigh in your different options and make a The franchise industry has over Well established, refined and decision carefully. the past 30 years built its’ own very strong support network. The innovative marketing With the numerous advantages Franchise Council of Australia No matter what business you go of owning a franchise, it is highly runs many learning & into the ultimate success of your lucrative to many who want to development courses as do work for themselves while relying numerous independent service venture is determined by the on a more established partner. quality of your marketing. providers to support the Without great marketing, any franchise sector, help business will struggle. franchisees and franchisors prosper for mutual benefit. While franchisees enjoy the support of Franchises offer anyone entering into business a ready their franchisor, this support network also exists outside their made and proven marketing plan to kick start your business. franchise system.
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Modern Franchise Magazine | 27
CAN YOU REALLY TEACH YOUR CUSTOMERS HOW TO BUY? A recent email I received from Sonia Simone, CMO of Copyblogger Media, about how to use education to cut through the advertising clutter, explains how taking a less aggressive and more creative approach to marketing can build better customer loyalty, attract new clients and add value to your franchise business. First things first - why teach? You may wonder what’s so great about teaching in the first place. The answer is, teaching your customers (and potential customers) is one of the best ways to cut through the “information clutter” that makes marketing difficult in the 21st century. Once upon a time, you could buy attention in the form of mainstream advertising. When there were only three channels, buying an ad on one of them was expensive - but it brought you amazing results. It reliably got your message in front of thousands if not millions of buyers. These days, advertising and marketing is on everything from websites to park benches to the nappies we buy for our kids.
what it takes to help them reach their goals. Because we’re in an era of incredible change, all of us have become students again … and we’re looking for great teachers. Technology is changing us. The way we relate to one another is changing. The way we make a living is changing. We all need help navigating this change - and whenever you see a lot of people who need help, you’ll see a lot of tremendous opportunity that goes with that. Here are three of the many ways you can use teaching to bring in revenue. The “End of Days” model This is the classic educationbased model, which looks a bit like a paid newsletter.
And we ignore virtually all of it. Teaching your audience (instead of marketing to them) breaks through the noise and clutter. It creates a deep rapport with your audience. It helps them to “know, like, and trust” you. And it shows that you know your stuff - that you have
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Every month, you add valuable content that keeps your members up to date in their field (or their hobby, or their passion).
You keep your customers until they get bored or until they stop needing the information (for example they find a new profession or a new hobby). This model is a good fit if your target market has an information demand that is unquenchable. It is even better if you products or services are ever evolving to meet constant changes in say technology or an industry or profession. These customers need the latest and greatest information or service on the topic - and they need that information to be constantly updated. They’re also willing to pay for the information. Fitness, continuing professional education, business, financial and investment knowledge, evolving technology, and golf are all proven winners for this model. And there are thousands more. If this is the model you want to pursue, that’s excellent, because there are lots of opportunities. But it’s not the only way to use education to build a great business or add even more value to your existing one.
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The “Affiliate Marketing Squared” model
Building out rich educational content like e-courses, private websites, and engaged Affiliate marketing used to be pretty communities is an evolutionary simple - find a program with a fat next step beyond a good blog or website. affiliate payout, optimise some bare-bones content for the right keywords, and stick a few ads on An interesting twist on this model is that you might well create a it. superb course that you give away for “free” - because you can make Successful marketers used to build thousands of these “mini web more in affiliate commissions than you would through direct revenue. sites,” which could make significant income when pooled If you have the expertise, you can together. also blend affiliate offers with your own products and services. The best and brightest affiliate marketers are going in a new For a franchise this offers direction - they’re creating ultra enormous opportunities to develop high-quality web sites with a a new customer base of online recognizable brand (even if it’s fanatics who will help you grow only recognized within a tiny your brand beyond the traditional niche). bricks & mortar shop front. They’re then using these highThis model can be structured in authority, high-quality sites to lots of different ways, but if you make offers for a variety of remember to keep your eye on the products. Their customer prize (providing value for your loyal becomes the loyal reader who shows up for information, not the audience first), this model can provide an excellent additional affiliate program, products or services that happens to be paying revenue stream as well as many new customers. a good return. Education is one of the best ways to entice a loyal niche audience and keep them coming back for more. Yes, it starts with an informative blog to attract attention, but you can take things much further than that.
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credentials, and even their built-in audience, by entering into a joint venture or licensing arrangement. This model works because some of the most brilliant minds in virtually any topic (up to and including business education!) have no head for running an actual business. Even if your expert has the business knowledge, she doesn’t have the time. Experts are busy, and typically they prefer to spend most of their time on their own topic. A partnership with you allows them a great additional income without doing a lot of additional work that’s unrelated to their passion. And everyone loves that. There are definitely a few refinements and “best practices” to making this work. In the end it’s about adding value to your customers experience in their dealings with your business. If you forget that you’ll miss the mark.
Learning is a fundamental human need. Get creative about how you can meet that need and build a better business for you and your What if you are in or want to expand into a profitable niche - say franchisees. related to health and wellness - but you don’t have the credentials you Creative businesses have used need to establish your credibility? education to sell almost anything you can think of - from cake mix to Simple. You make a deal to software to $1000 scarves. “borrow” an authority figure’s The “Ghost Teaching” model.
Modern Franchise Magazine | 29
5 STEPS TO FINDING THE RIGHT FRANCHISE We have gathered up 5 tips that can help you find the right franchise business and start making good money. By Mike Burnside We have gathered up 5 tips that can help you find the right franchise business and start making good money. Finding the right franchise takes a lot of time and research. If you are lucky you find the right business and start getting excited about the possibilities. You also need to understand that buying a franchise does not guarantee that you will make any money no matter what their track record seems to be. However, by following these 5 tips you can increase your chances of finding the right franchise and making money. 1. Seeing Yourself in a Franchise Most experts will tell you that to be successful in a franchise you need to choose one that you can believe in. The franchise that you are looking to buy needs to one that closely matches your interests and your skills. That will mean that you need to take a good look at yourself and decide what your strengths and weaknesses are before buying. Investigate other owners of franchises you are interested in and see if they have similar personalities as yours.
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Offer to buy them coffee and ask 4. Franchise Complaints them about any inside information they are willing to give you about Another part of investigating a owning a franchise business. franchise to buy is to look for complaints. By checking the 2. Stay Away From Fad Internet you may find complaints Franchises from current or former franchise owners. This could be information that is important to you in your As everyone knows, fads will decision to buy that business. come and go. Investing your money in a franchise that will only be a flash in the pan and not have Remember though, you will always find some complaints a long-term future is foolish. about a business. If there are only Franchises that are hot now could a few of them you can usually cool off just as quickly. Stay away chalk it up to a few disgruntled from franchises that have a lot of former owners. imitators in the market. That kind 5. Avoid the Start-Up Franchise of competition will probably keep you from being successful. Starting up a new business can be 3. Search for Successful tough especially if that franchise is new. All you have to do is look over Franchises the history of franchises to see that many start-ups have come It is all about the sales and you and gone. want to invest in a franchise that has good sales numbers. To increase your chances of being successful look for a well If you find that a particular franchise has a lot of units up for established franchise, one that sale that could mean the company has been in business for at least is having problems and you should five years. A well established franchise will reduce your risk and steer clear. you will have the benefit of other One way to verify is to check out owners that have good business plans you can use. franchise brokerage websites to see if other franchise businesses Do the research, read the are selling, especially at low franchise documents very closely, prices. and get introduced to those owners that are in the business. If you do all those before signing on the dotted line, your chances to be successful are almost guaranteed.
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Modern Franchise Magazine | 31
FINDING EFFICIENT STAFF TO BUILD A SUCCESSFUL FRANCHISE By Mike Krutza Employees play a vital role in a successful business that's why the right hiring tips are important. Effective management of time, funds, and people must be accounted for when employing people. In all the threats and weaknesses of a business, an efficient team will help surpass challenges.
You can't find a staff that is as meticulous and efficient as you. You can't have an exact replica of yourself.
Organize Your Job Hiring Well Organizing a job hiring requires time for the whole process. You should not rush when you are searching for the best applicants.
Find people whom you can get along with, those people who have similar work habits and principles as you have.
You need to plan it through. From advertising of your hiring endeavours, to interviewing of applicants, and up to training of the selected ones, you need to be Next, you have to be certain about meticulous until you find the most Therefore, you need to single out the job description you wish to notable people for your team. the best applicants when you are establish for your personnel. When you finally find them, hire hiring. Consider these hiring tips. them right away. Formulate specific job related Before going through a hiring descriptions instead of utilizing Confirming employee data through process, you first need to subjective data. Determine your background checks are necessary determine what type of manager goals so that you could create to avoid attempts of fraud and you are. What is your style of what you really expect to come up incompetence. When you have work? You have to make sure that with. finally gathered your new hires, you compare your convictions, take time to fully orient your attitudes and traits with that of your Do you need reliable people to people. Discus the policies you personnel. attend to your appointments if you have formulated. are not available? Do you seek Don't hire an applicant who is an employees who could do more Emphasize issues on independent thinker, when in fact, than their job? Do you want to absenteeism and poor you are strict about sticking to the create a team who can do performance. These disciplinary rules. overtime jobs and other and review processes are vital. extracurricular affairs? These hiring tips are very useful. You and your staff will get along pretty well if you complement each Select the best people whom you You ought to use these other. can have a mutual agreement suggestions so that you could with. Make sure that you have bring the right people to your correctly established your Hiring Tips: Applicants' Skills company. expectations to your prospects. And Personalities A team with proficient workers makes up a profitable business, When you are a hiring, you must so find the best employees by be open-minded about individual following proper hiring tips differences.
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modern franchise
BEDSHED SETS ITS SIGHTS ON THE EASTERN STATES TO GROW ITS SUCCESSFUL FRANCHISE NETWORK Already having a strong presence with 40 stores, the West Australian based Bedshed sees a significant opportunity for expansion. Bedshed, one of Australia’s specialist bedding franchises is poised for a new phase of growth and is actively looking for new sites and new franchise partners to share in its success. With an already impressive network of 40 stores, Bedshed says there is significant potential for the brand in New South Wales and Queensland – home to more than half of Australia’s population.
Bedshed’s Chief Operating Officer, Gavin Culmsee. “Unlike businesses with market saturation, we can expand our presence without cannibalising our existing store network,” he says. “And that means greater profitability for our franchisees.”
Culmsee says while previous bedding experience isn’t essential, potential franchisees should be prepared to work hard in the first few years of opening “The eastern seaboard offers us their own store. a large new customer base and room for our expansion,” says
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“It’s your business to drive and grow, and like most things in life, the reward is contingent on the effort you put in,” he says. “While it’s your show, you’ll also enjoy the benefit of a strong brand, national buying power and marketing support and have expertise and advice on tap from other franchisees and our experienced executive team.
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“It’s a very different proposition to flying solo. Our franchisee partners tell us they enjoy the benefits of a big organisation without losing the flexibility and input one has in an owner-operator business.
“Owning and operating a Bedshed franchise is an opportunity to secure your financial future and enjoy the work and lifestyle benefits most people only dream of.
That means taking time off when you want and in many cases being able to juggle work and family without the challenges of working for someone else,” he says.
It’s the ideal combination of autonomy and centralised, practical support.” Culmsee says Bedshed’s democratic nature also gives franchisees plenty of opportunity to have their say. “Our franchisees are closely involved in selecting our bestselling range, they join us on overseas buying trips and they are a very real partner in our joint success,” he says. Not surprisingly, two of the greatest benefits of running your own franchise are lifestyle and financial security, says Culmsee. Bedshed’s strong brand closely involves franchisees in selecting their best selling range. Franchise opportunities are available along the East Coast now!
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Modern Franchise Magazine | 35 maxiom
HOW TO FRANCHISE RESEARCH Finding the perfect franchise takes a lot of research and patience. It's imperative you do your research before signing any dotted line. By Andrew Brown This process will help you find out which franchises are profitable and which ones will fit your personality and lifestyle. Find out some of the things you should look for when researching a business opportunity. Here are some of the most helpful tips for Researching: Is Franchising for You? One of the many places an entrepreneur will look to when finding a way to become selfemployed in Franchising.
What Franchise Industry is the best to get into? Every industry has their ups and downs. Deciding on an industry is based on what you can see yourself doing for some time. Everyone has a different opinion on what the perfect job would be; do you like working inside at an office or do you prefer to dirty and be outside? Franchising has a large span of industries, ranging from Automotive, Retail, Food, and Medical (among many others).
The best way to decide what industry works for you is to Franchising is a very successful choose a few that initially spark way to live but it's not for your interest. Take these everyone. Is franchising for you? industries and find what franchises are available, what Start by finding out information profit margins they have, and if about franchising, fees involved, they're available in your territory what industry franchise their business models, etc. Another Who should I meet with? great way to find out about One thing that should never be franchising are magazines, skipped when researching online articles and franchise potential franchises, is meeting expos. with the franchisor and current franchisees. Get in contact with After you've done extensive the potential franchisor through research into the franchising email, phone, or even better, go business model, you'll have a visit the company's better understanding and can headquarters. decide if it's right for you and your family. Never go into a business decision without looking at all 36 | Modern Franchise Magazine
possibilities. Meeting with the franchisor allows you to ask questions that aren't on their website. Find out how long the company has franchised it's business model and with what success rate. You should also meet with current franchisees. Although meeting with the franchisor is helpful, franchisees can provide you with information about the franchisor, such as support and how long it took them to create a positive cash flow. Franchisees should be looked at almost like teacher; they have all the information you need, use this to your advantage. Remember, going into a business decision, you should have a clear understanding of the whole picture. In franchising, you should know every detail from where you're located to franchising fees. Find a few industries that spark your interest and actively research businesses in those industries. Talk with the franchisor and franchisees, as they will provide you with important information not readily available. Most importantly, always seek legal advice before signing any documents.
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WHY CHOOSE A FRANCHISE AND WHAT TO EXPECT When an entrepreneur starts looking to start a business, a franchise is one of the top choices looked into. By Joel Russell With franchising, you are not buying a brand name but rather you are buying a proven business system.
One of the biggest reasons why a franchisee may fail in the short run is not following the system put in place or changing a few small things around (these add Although many entrepreneurs up). Make sure you are ready to will want to buy into a name follow a proven system for at brand, remember this: buy into a least one year before you proven system that supports change anything around. This your lifestyle and family needs. If helps the franchisors provide a franchise does not reduce your you with the highest chance of risk of starting a business, then successful. If you start changing you should stop looking into it. things around, the outcome isn't as predictable and may result in bad business. There are many reasons why you should start a franchise, lets take a look at some of the major Support reasons: Going into a franchise, an entrepreneur should expect a lot Proven, Reliable system of training and support. With When you buy into a franchise, training in place, franchisors are you not only by the name, which dramatically reducing the may be recognizable, you also learning curve of almost all new buy a proven business system. business owners. All franchises should have an extensive This allows you to start your training program in place, many business without making the taking place over a few weeks same mistakes that have period. already been made. Chances of success as a franchisee because the business cycle can be predicted easier than if it were a start-up
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Marketing Marketing is one of the great benefits to buying into a proven, recognizable business system. Half the marketing has already been done for you!
Many larger franchises have national marketing campaigns, TV commercials and radio spots. All of this corporate marketing will save you thousands of dollars. As a side note, many franchises ask you to pay a monthly franchising fee or royalty fee. This fee usually includes a small amount set aside to help pay for national campaigns, staffing, and any other overhead costs. But without paying these minimal fees, you wouldn't have access to a strong brand name. Although you initially may see this as a con, the price is well worth having national exposure. Although in almost all cases starting a franchise is thought to be easier, a potential franchisee still has to put in the effort. Make sure you understand that there is a learning curve and hard work. As with a start-up, you may not see profit until after the first few months or year. Stick with it, as the end is worth the work put into it.
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Modern Franchise IntelBuildMagazine Magazine| |39 3
WHAT EMPLOYEES REALLY WANT What is the difference between what an average employer provides and what a great employer provides? The answer is not higher pay, better benefits, more extensive training, or greater opportunities. Recently I noted something at the primary school my youngest daughter attends. The percentage of migrant children is quite high. I’m not sure of the exact figure but it is nearly half in her class and would be similar throughout the whole school. In fact, some of the children had never spoken English before attending school and still don’t speak it at home or in other family situations.
In a work place setting, including some I’ve worked in, many adults including supervisors and managers, some from nonEnglish speaking backgrounds themselves, derided the appearance of some cultures, made jokes at their expense and were dismissive of their questions.
There was an exhaustive recruitment process prior to selecting the successful candidates, but on the first morning they started, the trainer (again from a non-English speaking background himself) told three African women who were wearing a Hijab, that they couldn’t start the course because of their appearance they would scare the patients.
Now this was in a recruitment Agency…a very large National one that was supposed to embrace Now you can imagine the uproar diversity!
over that one!
This disrespect for people transferred to job applicants and candidates, which should never happen.
We had delegates from the local African community, a reporter…everything but the 60 minutes cameras.
Yet it did. For example, after an information session a Somali man While the school has mandatory asked about where he should place the documentation they was uniforms, some of the students left over from the presentation and wear variations that match their the Branch Manager said, “don’t
cultural background or religious beliefs, making them stand out even more. What really struck me though was the way the school - the teachers and students - treated these non-English speakers.
I successfully sorted it out, but the company never really changed. Consequently I moved on to an employer that treated worry about the mess, it’ll still be it’s staff and clients with dignity. a lot cleaner than what you’re used to where you come from.” Which brings me to my point. As I walked away I thought, “I would never treat anyone that way.” In another case we had sent around 10 people to be trained in aged care whereafter they were guaranteed jobs.
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In many ways we are all guilty. How many times have we rolled our eyes or exchanged smirks and knowing glances. I know I’ve responded to suggestions or comments with sarcasm not just
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because an idea lacked merit but also because I wanted to show how smart, witty and insightful I was by comparison. I’m guessing you have, too.
If you make me feel stupid, especially in front of others, I will never forget. (And I’ll probably never learn from my mistake because I will only focus on how you treated me).
Employees aren’t equal. Some Dignity is a lot like trust: Once are less smart. Some work less lost, it’s almost impossible to recover. hard. Some make more mistakes. Some simply can’t cut it and deserve to be let go.
And don’t assume pay or benefits or opportunities make employees feel valued.
Sure, those can have an impact - but treat employees with a lack Regardless, each deserves to of respect and no pay or other be treated with respect. benefit can overcome the Sarcasm, eye rolling, and biting damage to feelings of self-worth. comments shift the focus away from performance and onto the The way you treat your employees reflects on your person instead - and dignity is brand, not just as a company, the casualty. but as an employer, as a business owner, entrepreneur If you talk with me about a and community leader. mistake I made I may be embarrassed but I will quickly forget, especially if I learn from Looking the other way when a supervisor or manager lacks that mistake. respect for your employees is the same as doing it yourself in your employees eyes.
I ran into a couple of the aged care workers few months later in my local shopping centre. They made a special point of thanking me as one put it for “changing their lives”. They now had dignity and the respect of their community, not just because they had jobs, but because they were doing something that made a difference. Something that helped others retain their dignity. When I think about it, the company I worked for let us have jobs… but they did not let us have dignity.” The most important thing you provide employees is not a job it’s dignity.
One question to consider is, does this also transfer to the way your employees treat your customers?
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Modern Franchise Magazine | 41
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 | 43
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.
44 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| |45 3
HOW TO PROVIDE AMAZING CUSTOMER SERVICE - IT'S ALL ABOUT THE CLIENT EXPERIENCE By Andrew Ludlam Whenever I initially ask a business owner, "What makes you special?", or "Why should I buy from you?", one very common response is "Well we provide excellent customer service". Most companies promise “excellent customer service” and will position their uniqueness by this notion, however, how many actually deliver on this promise, or in fact over-deliver? Excellent customer service these days is a given; we all expect it. This quality simply gets you into the game these days. Secondly, it's simply not enough to differentiate yourself from the rest of the competition. Customer service needs to be something much more effective, demonstrable and above all tangible. That's why I'm keen for you to explore and develop what I refer to as the “client experience'”. So why is the client experience so important? You see from the very moment a potential client first makes an enquiry, to the 46 | Modern Franchise Magazine
time at which they receive the end result; you and your company are on trial. Therefore you must always aim to create the optimum client experience.
moment someone makes an initial enquiry with your business. This affords you a tremendous opportunity to make a real impact on the prospect, from the very start.
Let's imagine the conversation that's going on inside your I believe there are three key potential client's head. They areas that you, as a business owner must focus on, to deliver a might feel wary, sceptical and/or threatened. Who knows, maybe consistent client experience. your prospect has dealt with These are as follows: someone from your industry in the past, and was promised all Before the sale; manner of help that didn't During the sale, and; materialise. After the sale The fact is, you have a So let's discuss each of stage in tremendous opportunity to reset your prospect's perception detail. of you, your business and the results you can provide from the Before the sale moment they make that first In today's fast paced world, we initial contact. are confronted with more choices than ever before. Or to You see, whilst the competition might follow-up an enquiry with, put it another way, your say, a standard letter and/or put prospective client has many more choices than ever before. a brochure in the post; you won't offer much more. So keeping this in mind, you need to create the ultimate “client experience” from the very
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So here are two very powerful strategies I want you to adopt: Offer an education up front Treat the prospect as if they are already a client I believe that as a society as a whole, we have all become very good at “filtering” or simply ignoring the many marketing messages that come our way, each and every day. Particularly those messages that do not speak to us on a personal level. So one way to ensure your message cuts through all of this clutter, is to offer a tremendous education up front. That is, rather than using a very “sales orientated” message, you begin to educate your audience from the very start, as to how you can appreciate their concerns and frustrations. You begin to offer some valuable insight that will enable them to have much greater confidence in buying from you. So before any transaction has taken place use every opportunity to demonstrate your expertise.
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The second part of this strategy During the sale involves treating the prospect as if they are already a client. Building on the above concept, it's important to see how you can Simply put, because you offer a better client anticipate gaining their business experience during the sale. at some stage, you don't hold back on the initial advice and Now how you do this will depend guidance you're able to provide. on what you offer, however, here is one very simply strategy you Now I don't believe one moment can implement. I call this you “give it all away”, after all you the “Added-Value Ladder”. have a business to run! Simply put, you need to plot However, because there is an every interaction you have with a expectation - that in time - the client during the delivery of your prospect will turn into a client, product or service, and then see you treat them as one and the how you're able to same. offer greater value at each stage. It's really a shift in your mindset; because you anticipate the If you're stuck for ideas, I would prospect's business at some urge you to not worry so much point, you ensure you offer the about the “how” at this stage, best guidance and insight from that is, how you are going to the very start. offer this added value. For the time being, concentrate on the Again, notice how both these “what” i.e. what can you bring to concepts go far beyond simply the course of the transaction. following up an enquiry with a standard letter, email or For example during the course telephone call. Ultimately people of delivering your product or buy from people they like, and service, where are the typical so this approach will do wonders “pain points” for your client? for your PR!
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Let your mind come up with all manner of opportunities and then see which are the most practical and cost-effective for your business.
So look at how you approach your “after sales service”, or for that matter, look at how your industry or sector approaches this.
After the sale
Do you simply deliver the product or service, and then leave the client to it? Do you keep in regular contact after the sale, and maybe offer additional help? Again you need to be mindful of what you feel the market would be most receptive to.
Finally, how can you add more value to your client's experience after the sale? Now this is where many business owners fail to capitalise and often miss out.
Many a business has gone to the wall in recent times, and I believe much of it was due to an expectation that regardless of the service provided, the customer was always going to be there. Today, more than ever before, we have so many choices and options. Or to put it another way, your potential client has many more options and businesses competing for his or her attention.
You see your client never really buys your product or service; they buy the result of that product or service. Or to put it another way, they are buying an “outcome”. They will have engaged your services for the purposes of gaining a solution to a problem they have. This being the case, it's critical that you follow-up after the sale.
This is not a strategy whereby Therefore if you want to get you consistently harass the client noticed, and ultimately position for more custom. your company as the preferred choice, it all starts So having explored each stage with providing an incredible of the client's experience i.e. client experience. before the sale, during the sale, and after the sale; see how you Andrew Ludlam is the owner of can now bring greater value to Maverick Marketing each step. Consultancy, and is recognised as a leading expert on advanced marketing strategy and tactics. Again this small shift in how you As a marketing consultant, approach “customer service”, trainer and author, he has will present you with so many advised many hundreds of opportunities. business owners one-to-one, and many more have attended For example, you may be in a his private training programmes. position to offer a cross or upsell to a complimentary product or service.
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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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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.
We're talking the top 2% - high achievers. Thousands of ambitious young professionals with widespread corporate experience & training. 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.
Unlike job listing sites and many traditional recruitment companies we focus on quality over quantity. Listings get a manageable number of exceptional applications. Our team are experts in their field of specialty, most having over 10 or 15 years experience in that field before becoming a recruitment expert.
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. See our ad -on the next page or visit our website: And see what a difference we can make to our organisation!
This way we can help you get the best people who can make a difference to your business.
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www.metrica.com.au RECRUIT AS MANY STAFF AS YOU WANT FOR ONE LOW MONTHLY FEE Full Service Recruitment For as long as you are a member we will replace any staff that leave regardless of the reason free of charge No Hidden Costs Your Own Recruitment & People Management Mentor Professional Recruitment Specialists
www.metrica.com.au maxiom
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HOW YOU CAN CREATE URGENCY WITHOUT GIVING DISCOUNTS It's a well-known sales technique to create urgency in order to get prospects to make a decision For instance, a salesperson To be perfectly blunt, I hate might say "Buy in the next 30 discounts for a number of minutes, or the price will go up!" reasons. First, everybody offers discounts, so claiming that you're offering a discount really does nothing to differentiate you from all the other salespeople Rather, they'll say something like out there. "Let me think about it." Even if their intentions are good, once Second, by offering discounts, you cut into your profits or they get back home and days pass, other concerns enter their commissions. lives, and before they know it, Finally, you begin attracting they've completely forgotten cheapskates for clients, people about your product or service. who will never buy from you unless you keep lopping off the But if people have incentive to price again and again. make a decision immediately, then it greatly increases the So, how can we create urgency chances of sales. without offering discounts? A few ways come immediately to The problem that I see with mind. urgency, though, is that a lot of salespeople seem to think that the only way to create urgency is 1. Instead of subtracting from through offering discounts. your price, add to your product! The reason why creating urgency works so well in sales is because very often, people won't make immediate decisions.
You can tack on nice bonus products, or you can give special additional customer support or services. Instead of making the discount your limited-time offer, make something your prospects genuinely want the limited-time offer that drives them into giving you their sales. 2. Use fear-based tactics. Point out how much money your prospects are losing by not investing in your product or service. Each day that they fail to make this investment is a day where they are leaving money on the table.
Another way to use a fear-based tactic is to casually bring up that you've talked with your prospects' competitors (and mention the competitors by name); you may mention that their competitors are about to Instead of offering 20% off the price, why not add 20% more to implement your product or service in order to get a leg up your product or service?
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on the rest of the market (just make sure to be honest; don't claim a competitor is investing in your product or service if they aren't).
4. Limited Availability
Being able to create urgency without having to give away your Similarly to taking your product profit margin is key to business off the market, creating a limited success. availability means that the customers has to act now or risk Creating urgency is a timeless You can create urgency by method that salespeople have missing out. getting your prospect to used to make their sales soar, recognize that their failure to act There are a number of variations but remember that there are so immediately will cost them sales to this technique such as “we many more ways to create of their own only have so many at this price urgency than through giving before it goes up”, or “that’s the discounts. 3. When you're taking a last one in that colour”, etc. Be creative, and it can only help product or service off the your sales. These are just a few ways that market, announce ahead of time the exact date that it will you can create urgency, but there are no doubt many more no longer be available! ways to go about doing so. What's a bigger source of Training your staff to react to urgency than if the product or customer enquiries to create service your prospect is urgency will definitely increase considering will soon be gone your sales. for good? Announcing that you're taking a product or service off the market will get people to act while they still can!
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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
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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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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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NEW MEDIA SOLUTIONS THAT BRING RESULTS 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 300,000 subscribers to our online you to incorporate rich media such publications, and growing daily, the as links to your web site, video & opportunities for our clients to audio, including YouTube, Flash, exploit permission marketing are and our publication are now html5 enormous. and JSS javascipt coding enabled which means that almost anything Sponsoring a magazine relevant to can be included on a magazine your industry is a terrific way to page. Plus each page and each been seen in the market place. article is catalogued so that you With many more companies can post them or share them via targeting email marketing it is social media. sometimes easy for your message to get lost amongst the Advertisers also get the same plethora of messages received interactive functionality, meaning everyday. readers can immediately click through to your site for more By publishing an informative and information or to take up your offer. appealing online magazine, businesses now have an online Maxiom offers enhanced communication with your target
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market and is supported with email marketing campaigns and other Internet marketing tools all included in the packages available. Every publication has its own dedicated account manager and marketing mentor whose sole function is to assist our clients maximise the effectiveness of their New Media marketing solutions. 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
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The Siimon Reynolds Strategic Entrepreneur
THE AUSTRALIAN MARKETING EVENT YOU SIMPLY CAN’T AFFORD TO MISS! This is the business workshop of the year. They have organised a lineup of expert business speakers over the three day event. These are the professionals that Siimon Reynolds uses to create businesses online and in the real world. They have a multitude of disciplines involved and will cover everything from copywriting, pay per click advertising, exit strategy, backend systems, search engine optimization, webdesign, sales technique, social media, remarketing, public relations, franchising, online marketing and raising finance. You name it - they have an expert that specialises in it!
The Next Siimon Reynolds - Strategic Entrepreneur Seminar will held in Melbourne - coming soon! Stay tuned for the dates... AND YOU WON’T BELIEVE THE PRICE!
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“This is the best investment any Australian business can make in their future� FREE BOOK DOWNLOAD & 7 FREE VIDEOS When They Zig, You Zag by Siimon Reynolds
Complimentary gift Thanks for taking the opportunity to grab this fantastic book! Simply go to our website and fill in your details and we will immediately email you a copy of Siimon's book. We will also send you our bonus series of short business building videos that are packed with tips and tricks for success. Over the last 25 years, Siimon has created multimillion dollar businesses from the ground up and is now teaching other entrepreneurial business people his systems for success. He started the Photon Group and grew that company to be worth over $500 million while employing over 5000 people so he can definitely help grow your business. Siimon has a passion for helping entrepreneurs build and grow so definitely read his book and check out his short videos asap.
For more information, to download the book or watch the videos visit our website https://fortuneinstitute.infusionsoft.com/go/zigzag/Maxiom/ 24 | Modern Franchise Magazine maxiom
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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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