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08 The Easiest Way to Solve Hard Problems

Stop wasting your time chasing the wrong projects. Instead, use this simple framework. by

JASON FEIFER

BUSINESS UNUSUAL

10 How to Tell Your Brand’s Story

A branding legend shares how to communicate all that your company does in a few powerful words. by JASON

FEIFER

16 Where to Work

Six entrepreneurs share where their teams have landed on the remote, hybrid, or in-person quandary.

18 What It Takes to Be ‘Made in the USA’

It’s not easy, but it’s possible. Three companies explain how they’re doing it. by LIZ

BRODY

24 Attract Amazing Talent

26 Confessions of a Former Retail Buyer

I used to place brands on Target shelves. Here’s what founders always get wrong about retail. by

MATT ADELMANN

30 Make Your Day Easier

New tech to streamline your work and travel. by

MARIO ARMSTRONG

Most startups can’t compete on salaries or perks. I found great hires anyway—by appealing to mission. by

NOOSHEEN HASHEMI

64 If Pictures Could Talk... The founders of Eventbrite, Angie’s List, and more share the photos that inspire them. by

BILL SHAPIRO

The Easiest Way to

JASON FEIFER

**Digital Sales includes 2024 sales via the web, app and aggregators

*As outlined in Item 19 of our Franchise Disclosure Document dated March 26, 2024, as amended October 11, 2024. Net Sales represents the average restaurants net sales for the combined top quartile of standard U.S. corporate and franchise restaurants in fiscal year 2023 that were open the entire year of 2023. The average Net Sales for all 2,863 standard U.S. corporate and franchise restaurants in fiscal year 2023 that were open the entire year of 2023 was $1,231,282, of which 1,282 restaurants (44.8%) met or exceeded the average. Of the 716 U.S. corporate and franchise restaurants representing the top 25%, 278 (38.8%) met or exceeded the average net sales of $1,787,418. Of the 716 U.S. corporate and franchise restaurants representing the bottom 25%, 415 (58%) met or exceeded the average net sales of $762,096. Results may differ. There is no assurance that you will do as well.

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FRANCHISE

68 The Franchise 500 Hall of Fame

Here are the most-ranked franchises of all time. Want to buy one?

82 From Rookie to Earner

She knew nothing about pools. Now she’s swimming in cash. by CARL STOFFERS

84 Brand-Building is Like Bodybuilding

Lessons from Hotworx, a very hot franchise. by CARL STOFFERS

86 A Work Ethic That’s Worth $3 Million

How a former cop built a top-earning franchise. by CARL STOFFERS

88 How to Be a PartTime Franchise Owner

It doesn’t have to be full-time work. Just follow this plan. by TIM PARMETER

99 The Fastest-Growing Franchises

Want to buy into a rocket ship? This is the place to start. by TRACY STAPP HEROLD

CLOSER

120 What Inspires Me

When my startup struggled, I learned to channel my inner Einstein. by

BIRNA DRÖFN BIRGISDÓTTIR

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→ THE STORY MASTER Donald Miller’s book, Building a StoryBrand, has sold more than 1 million copies. P.10

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How to Solve Hard Problems

We waste our time chasing the wrong projects. Here’s how to know what’s worth your time.

YOU’RE TRYING to solve a big problem. Nothing seems to work.

Hold up! Before you waste more time, you should consider a problem-solving framework called “the monkey and the pedestal.” It comes out of X, the innovation factory where Alphabet, Google’s parent company, takes its most ambitious bets, and it will save you a lot of time.

Here’s how it works.

Imagine getting a crazy assignment at work: You must teach a monkey to recite Shakespeare while standing on a pedestal. Now ask yourself: What’s the first thing you should do?

Maybe you say, “Build the pedestal!”

That sounds logical. The pedestal is what we call low-hanging fruit—the small, easy stuff that we love to tackle first, because it gives us a sense of progress. But that’s the wrong answer.

“There is no point in building pedestals if you can’t solve for the monkey,” writes behavioral researcher Annie Duke, whom I first learned this from. Because, sure, you could build an amazing pedestal—but what’s the point, if a monkey can’t learn to recite Shakespeare on it?

In other words, the monkey and the pedestal are two different kinds of solutions:

THE MONKEY is the pivotal part of any problem—and if you don’t solve for the monkey, nothing else you do matters.

THE PEDESTAL is everything

else you do to solve the problem—often because it’s easier, less scary, or more obvious than the monkey.

Now here’s our biggest obstacle: When we take on big projects, we often have what the hardest part is! That’s the point of this exercise. You must step back and ask yourself: What’s my monkey?

Before you go hunting for yours, it’s helpful to hear how other people found theirs. So here are a few examples.

Astro Teller, the CEO of X, once wrote about an interesting example. His team tried turning seawater into carbon-neutral liquid fuel, which is a potential game-changer of an idea. But before they spent too much time on it, they asked themselves: What’s the monkey here?

You might think it’s the technology that turns seawater into fuel, because that sounds hard. Surprisingly, it’s not. The tech is “relatively straightforward,” Teller writes, which makes it the pedestal. Instead, the monkey was this: Can seawater fuel be made cheap enough for people to buy it? Because if that’s not possible, there’s no point in developing the technology.

Ultimately, X realized the answer was no: The economics of the concept didn’t work. So it killed the project.

Here’s another example, on a smaller scale: I was recently talking with an entrepreneur

many experts, and stressing herself out.

We spent 30 minutes talking through her ideas. Then she revealed something: Her cousin has a different idea for a pivot, which Stephanie disagrees with. Because of this impasse, the cousins haven’t discussed the pivot in months.

“Wait a second,” I said. “Your cousin is the monkey.”

Pivots may be hard, but they’re also completely achievable—but Stephanie will never achieve a pivot until she’s resolved the tension with her cousin. That must be solved before anything else.

Now you see: The monkey isn’t always obvious. But it’s always critical.

If I

great success, what major change

neck did you clear out? What critical hurdle did you overcome? That’s your monkey.

You could build a million pedestals, but you won’t be remembered or celebrated for them. Your success is dependent on training monkeys. So stop banging your head against the wall. Stop spending endless time on potentially fruitless things. Instead, go get that monkey.

Jason Feifer jfeifer@entrepreneur.com

@heyfeifer scan for a message from me:

Jason

How to Tell Your Brand’s Story

Your company does many things, but you must communicate it all in just a few words. Donald Miller does that better than anyone. by JASON FEIFER

PHOTOGRAPHS

Founders

ounders struggle to pitch their brand. How do you distill a complex company into a single sentence that will compel customers to buy?

In 2017, Donald Miller published an answer to that: It’s a book called Building a StoryBrand, and it’s now sold more than a million copies and has cemented him as the king of brand storytelling. In it, he explains that brands must tell stories the same way that movies do: Your story must center on a hero (your customer) who needs a guide (your company), and the guide provides a plan, a call to action, and helps them avoid high-stakes failure. The story must engage emotional and philosophical elements. And it must do so simply and clearly.

to action, and marketing plans, and storytelling—being a guide!—and how to communicate your value in a sin-

Miller recently released an updated version of his book, along with an AI tool called StoryBrand AI, which can craft taglines, marketing plans, and more. In this conversation, he explains the most important part of brand storytelling—being a guide!—and how to communicate your value in a single, powerful sentence.

over and over. You’ve gotta be so sick of saying it. And once you’re sick of saying it, you just gotta keep saying it.

What’s an example of a sound bite that shows how powerful they can be?

Your framework begins with this important idea: The customer is always the hero of the story. Why is that? Many people come to me and say, “We’ve got such a great story.” But the place to tell your story is sort of like the third date in a relationship. What you really want to do on the first date is find out their story. Once the person senses that you’re interested in knowing them, they start to really like you. They have no idea who you are, but they know that you are for them.

So when we take the time to say, “Hey, what is our customer’s problem? How can our product help them solve that problem?” their subconscious realizes that you are their guide. The guide is a very strong and powerful character who helps the hero out of a hole. They exist in almost every story.

So if we want to grow a business, we have to say, “We’re

in this business because our customers are in a hole, and we have products that can help them out.” And customers know they’re in a hole. But if they encounter you as another hero—as a business saying, “Our brand has existed for 75 years, and we’re trying to increase our great-place-

standing at the top of the hole with a rope. And as soon as they realize that, they’re gonna be very, very interested.

So how do you help them make that realization?

Extremely clear, repeatable, and memorable sound bites. One kind is: What problem do

There’s a brand called Spectrum Brands. It’s run by a guy named David Maura. David is really good at finding distressed companies that he can buy for cheap, then fixing them and scaling them. So he bought a company that was dominating the fish food, fish aquarium, fish filters market at PetSmart, Petco. They’re doing about $100 million in things like that. So I went to Florida to meet with their executives. They’d flown in from all over the world, and they told me, “Look, we’ve got the hobbyists. We want families, and we’re not getting families.”

So I remembered my wife and daughter. We went to London, and in the apartment complex we stayed in, there was a fish tank in the lobby. We couldn’t pass by that fish tank without me rolling the stroller

GOOD MARKETING AND MESSAGING IS AN EXERCISE IN MEMORIZATION. YOU ARE CAUSING PEOPLE TO MEMORIZE THAT IDEA. REPEAT IT OVER AND OVER AND OVER AND OVER. GET IT INTO THE MIND OF YOUR CUSTOMER.”

to-work metric”—they may admire you, but they don’t want to do business with you. The reason for that is they’re a hero in a hole, and you’re a hero in a hole, and you’re in separate holes.

What they need to do is subconsciously realize they’re a hero in a hole, and you’re

you solve? As a business leader, you want to own a problem. Other companies may solve that problem, but I guarantee you they don’t own it. The only way you can own a problem is if you’re constantly out there saying, “If you struggle with X, you should buy Y.” And it’s gotta be exactly the same,

up to it for five minutes and trying to find Nemo. And I had a blast. So I said, “Have you guys tried just telling your customers that this is a good product for families?”

And they were like, “What do you mean?” And I’m like, “Well, just put ‘Kids love aquariums’ on everything. Put ‘Kids

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love aquariums’ on the aquariums, on the fish food, on the plants that you put inside the aquariums, on the signage, on the fish themselves. Put ‘Kids love aquariums’ everywhere.” And these guys looked at me— there was zero interest.

Like, “We’re paying you way too much money for ‘Kids love aquariums.’”

And I’m like, “Look, I’m just telling you, if you put ‘Kids love aquariums’ on things, you’re gonna sell a lot.” And it was very obvious they weren’t gonna do it. Because they get paid a ton of money, and they want to do A/B testing and market research.

I said in front of the group, “David, will you just put it in one test market? And then will you give all these people a raise if they don’t do anything else—if they just defend ‘Kids love aquariums’?” Because it’s really hard to keep a message simple. About three months later, David tells me, “In our test market, [we saw a] 99% increase in sales.”

Wow.

If they roll that out over a national release, that is a $100 million increase in sales with three freaking words. That’s how powerful this is.

MANY PEOPLE COME TO ME AND SAY, ‘WE’VE GOT SUCH A GREAT STORY.’ BUT THE PLACE TO TELL YOUR STORY IS SORT OF LIKE THE THIRD DATE IN A RELATIONSHIP. WHAT YOU REALLY WANT TO DO ON THE FIRST DATE IS FIND OUT THEIR STORY.” foods—so it needs to be refrig-

I’d love to see you think through this process in real time. So I’ll use an example. I work with a founder named Jana Goodbaum, whose brand, Happy Wolf, makes kids’ snack bars made from real, whole foods—so it needs to be refrigerated, instead of in the pantry. What would you do with that? Well, just off the top of my head, “Real food can’t live in a pantry”—or, “Real food has to live in the fridge.” It’s not necessarily

That takes a challenging aspect of the brand, and turns it into a selling point.

A line like that should make immediate sense. It’s a massive differentiator. And it’s a warning— about a villain. People are much more motivated to avoid negativity than they are to achieve positivity. You’re basically shutting out all the competition.

So you’ve got the line. What next?

an exercise in memorization. You are causing people to memorize that idea. Repeat it over and over and over and over. Get it into the mind of your customer. Our instinct is to make things very complicated, and they’re not complicated. Distill ideas into very basic fundamental concepts that make things come alive in

erators and product copy and product descriptions. Most of us—especially startup companies—are so deep in the trenches in what we sell and the nuances of the product that we haven’t got our head around that one basic idea that makes people attracted to us, so they want to know more. That’s the sound bite that you want to get.

Six Ways

Where Does Your Team Work?

Remote, hybrid, or in-person? For many founders, the answer keeps changing. We asked six leaders where they are now, and the calculations that landed them there.

1/ We followed our employees to hybrid.

“We’ve cycled through in-office, hybrid, and fully remote over the years. Recently, we made the move back to hybrid. We have employees across the U.S., so we always host larger team meetings online. But we have a large cohort of employees in San Diego who desired more in-person time. We find the hybrid blend to be perfect. Remote-first supports flexibility and autonomy. But we also have a central hub available for organic collaborations.”

—SAMANTHA PANTAZOPOULOS,

—SAMANTHA PANTAZOPOULOS,

cofounder, Vizer

2/ Remote is best for our team of parents.

“We are remote all the way! My team is made up of many moms, and being remote allows me to flex their schedules to fit their needs. They can be more present and spend more time with their families, and they do better work from home. There are some roles that can’t be remote, but anything that can be will be. We have an office employees can work from if they’d like, but only maybe one person works there a few hours a week.”

—LISA MASTELA, founder, Bumpin Blends

—LISA

3/ Hybrid gives us office culture and remote talent.

“The debate over returning to the office has been quite the ride. Before the pandemic, we were a close-knit, 20-person team in Scottsdale, Arizona, with some flexibility for remote work. When the pandemic hit, we went fully remote and expanded our hiring nationally to compete for top talent. But as the world reopened, we invested in our in-office culture, which resulted in remote employees feeling left out. This has been challenging. Today, we prioritize hiring in Arizona but remain open to remote talent, with flexible office attendance tailored to each team’s needs.”

—SASHA

ROBINSON, vice president of people operations, Trainual

4/ Real relationships happen in person.

“We have returned to the physical workspace, asking team members to come in at least three to four days per week. The risk of remote work is that teams can feel disconnected, or with new hires, never get to know each other. And because our business is largely in retail and within professional skincare salons and spas, relationships are core to our success. That said, we have also aggressively expanded our field sales and virtual classrooms. We call this combination a balance of ‘high tech and high touch.’”

—JANE WURWAND,

founder, Dermalogica

5/ Hybrid takes continuous effort, but it’s worth it.

“Remote working has some major drawbacks for employers. It’s more difficult to train and mentor young talent, and harder to create a strong workplace culture. Decision-making is also far quicker and easier in person. But the reality is that if you want to win, you have to foster a culture that welcomes and retains the best talent, and that means embracing flexible and remote working. As an employer with a hybrid workforce, it’s a continuous effort to overcome those drawbacks, but in the end, for us it’s worth it.”

—TOMÁS

FROES, founder and CEO, Kencko

—JANE FROES, founder and CEO, Kencko

6/ Remote work is the most efficient option.

“We run a fully remote operation, and it’s proven to be incredibly efficient. It lets us tap into talent from anywhere, allowing our team to choose the work environment and schedule that suits them best. While in-person work can streamline meetings and communication, we’ve recreated that digitally. We hold daily stand-ups, weekly goal-oriented meetings, and maintain constant communication via Slack and email to resolve issues swiftly. Remote work isn’t for every business, but it’s been key to our success.”

—AARON NOSBISCH, founder, Brēz

What It Takes to be ‘Made in America’

It’s a hot selling point, but easier said than done. Here, three founders share what they’ve learned trying to bring manufacturing back to the U.S. by LIZ BRODY

Ten years ago, “Made in America” was a niche claim, made mostly by craft-conscious entrepreneurs. But today, Morgan Stanley is hailing it as a $10 trillion opportunity. At a time when even diseases are politicized, most of the country agrees that we erred in outsourcing our manufacturing overseas during the last several decades—a mistake the pandemic shoved in our faces as foreign supply chains crumbled.

The Biden administration passed several initiatives to bring production back to these shores, and President Trump has started imposing tariffs and duties on imports to do the same. The momentum is not lost on early-stage investors like Jared Friedman, a general partner at Y Combinator (YC)—the Silicon Valley cultivator of startups like Stripe, Airbnb and DoorDash—who put out a call last fall for founders with ideas to innovate manufacturing in the U.S. “We’ve allowed ourselves to be outcompeted by other countries,” Friedman says. “It’s of paramount importance that we regain the ability to make stuff here.”

In many cases, this means going back to square one. Founders must piece together supply chains, manage those supply chains, and contend

with skilled labor shortages and higher wages. It costs more to make things in the U.S., so founders must also convince customers to trust their more expensive product.

“It’s very difficult to build these kinds of companies

in America now,” Friedman admits. But YC has funded a few businesses that have hurdled the obstacles. “What I’ve learned is that there is no playbook,” he says. “You don’t have to know any particular thing in order to start. You just need

to be willing to jump into the deep end and figure out each problem as it comes up.”

SO HOW DO YOU DO IT?

On the following pages, we take a look inside three very different companies that got it done. ▶

Scan the QR code to schedule a free demo.

Making affordable clothing in America by partnering with Walmart ▲

Bayard Winthrop is a guy who likes big dogs and the textural aplomb of a classic Woolrich flannel shirt. He spent his early career running sports-equipment and footwear companies, and it started to bother him that as soon as the businesses got going, he’d have to do what everyone else did—ship the manufacturing to another country, usually China. Finally, in 2011, he decided to get off that treadmill and start his own 100% American-made company that produced the clothing staples he grew up loving: flannel shirts, sweats, and cotton tees. He called it American Giant and started with a humble hoodie.

After rehabbing a knitwear cut-and-sew facility in Middlesex, North Carolina, one challenge followed another. But all along, the biggest obstacle has been the cost. “It’s just more expensive to do things in the United States,” says Winthrop, “and for good reasons, by the way, because you have to comply with human rights and environmental laws

here.” But that translates to higher price tags for American Giant’s clothes, with T-shirts running $40 to $65 and most sweatshirts $120 to $138. Despite the higher quality, the value proposition can get lost on consumers in the blinding dazzle of fast-fashion prices. And many folks simply can’t afford the brand. Winthrop kept banging his head on how to get the price down, hoping he’d achieve enough scale or enough something. “But in the last three to four years, I began to think we weren’t going to overcome that hurdle,” he says. Then in February, 2023—a year when only 11% of the apparel purchased in America was made domestically, according to the U.S. Department of Commerce—he was on a podcast called The Way I Heard It At one point, Winthrop was ranting against brands and big retailers—but paused to point out that Walmart had actually made a commitment to selling goods produced here, adding $350 billion on top of an earlier $250 billion to carry out the initiative. His comment made its way to someone at the retail behemoth, and Walmart invited Winthrop in to chat. Maybe they could collaborate on a line? “I had this inter-

nal battle of, like, Wait, isn’t Walmart terrible?” Winthrop admits. “Haven’t they hurt manufacturing and Main Street in ways that I’m trying to repair?”

He took the meeting anyway, and was happily surprised. The company offered him a durable commitment—“a longterm investment by agreeing to purchase a set number of shirts, providing American Giant the assurance to invest,” as a Walmart spokesperson described it.

Winthrop decided to go for it. The sudden leap in volume was daunting, but Walmart’s backing enabled him to start with a single T-shirt and scale up slowly. First, American Giant entered a joint venture with a manufacturing facility in Los Angeles—where skilled labor is much more available than in North Carolina—and they hired 75 operators. Next, the facility invested around $1 million to automate processes like fabric-cutting, screen-printing, and label-setting. Sixteen months after the podcast, American Giant had a T-shirt ready to sell at a competitive price: $12.98. It wasn’t as highend as the brand’s original tees, with their combed fine yarn that’s smoother to the touch and side stitching, but it was still the kind of hardy quality he could proudly stand behind. On it were the words “American Made,” and in a marketing coup, it landed in 1,700 Walmart stores on the 4th of July.

After the T-shirt got what Walmart called “an encouraging response from our customers,” American Giant launched a sweatshirt in January for $39.98, and plans to continue the partnership. The infusion of volume has helped Winthrop pull the com-

pany out of a post-pandemic slump: “2022 and 2023 were very tough,” he says. “And ’24 started slowly. But then just like, boom, boom, we were back to real growth, and this year is going to be really strong.” With north of 220 employees and four brickand-mortar American Giant stores, Winthrop is hopeful that as they continue to scale their Walmart line, they’ll be able to bring the brand’s prices down as well.

Making watches in America by rethinking labor training

When R.T. Custer set out to make watches in America, it seemed he was up against the impossible. This was in 2013, a year before Custer graduated from college, and he quickly discovered that skilled watchmakers are practically an extinct species in this country. Almost no one is making the components, either. But, he says, “I believe you have to start somewhere.”

For him, that place was the dusty drawers of pawnshops— where he discovered lots of American-made antique pocket watches in various states of disassembly. With a friend, Tyler Wolfe, Custer started buying the old parts and combining them with modern pieces and leather straps, and (with a little help from software and 3D printing) fashioning them into oneof-a-kind wristwatches. They founded Vortic in Fort Collins, Colorado, with $40,000 raised on Kickstarter. Twelve years later, Custer has a team of 10 people who create 300

Winthro

to 400 unique timepieces a year that sell for $4,000 to $5,000 on average. “It’s a nice American small business, and I could stop there,” he says. “But I want to build a big American watch company with multiple brands, like you see in Switzerland.”

In 2023, he took the first step. With another Kickstarter campaign, Vortic launched a new brand: Colorado Watch Company. This time, the mission was to make fully modern automatic wristwatches. The lack of skilled watchmakers, or horologists, has hardly gone away—a problem, apparently, even the Swiss are feeling. But he started finding talent in the most unlikely populations.

The first was disabled veterans. Custer came across

the Veterans Watchmaker Initiative in Delaware, a nonprofit that teaches former military members the skills of horology. Now a supporter, he has hired one graduate so far. His big break, though, was meeting Kunal Naik, whose FTS American Manufacturing in Mesa, Arizona, trains local high school students and adults, including those with autism, to make watches. Naik had discovered that most people aren’t attracted to these highly repetitive jobs that demand meticulous attention to detail and spot-on precision, but neurodiverse individuals often excel at them. By 2024, he had a whole team, including some with autism, building automatic movements—the fine machinery behind the face that

Custer desperately needed for his new brand.

Custer now buys the movements, fully assembled, from FTS, and customizes them in his Fort Collins facility where he also produces the outer parts like the face, case, and crown.

come from India, and figuring out how to manufacture them at scale domestically is an intimidating next step.

“The only way to solve that problem is to license or acquire the technology from

a Swiss or Asian movement manufacturer; doing it with American engineers and designers would take 10 times longer and cost 100 times [more],” says Custer. “But I’ve found a few potential foreign partners who seem open to helping Americans bring at least some of this high-tech manufacturing here. I’m confident.”

Making chemicals in America

by serving niche markets ▶

The phrase “Made in America” is often associated with consumer products. But it’s a powerful selling point in other industries too—like, say, chemicals.

Gaurab Chakrabarti and Sean Hunt have discovered this with their sustainable industrial chemical startup, Solugen—although their path to local manufacturing was unexpected.

Solugen itself was born from a longstanding poker game, where the two then-graduate students started talking about the technologies they were working on. They soon combined their expertise (engineered enzymes and metal catalysis) in a radical way to convert corn sugar and other plant substances into chemicals traditionally made with fossil fuels like petroleum—all with zero to low carbon emissions.

“Our original vision,” says Chakrabarti, who now has an MD and Ph.D., “was to build a traditional chemical facility with better technology and fit into the existing supply chain,” much of which comes from China. But without VC

money and at no scale to speak of, they were hardly in a position to build a plant or wrestle clients away from industrial chemical giants. First, they just needed to generate revenue from their innovation. And in trying to do that, they discovered the opportunity to manufacture in America.

It started in 2017, when they took a trip to The Home Depot for a PVC pipe and other supplies, and cobbled together a prototype reactor. The first chemical they made was sustainable hydrogen peroxide, and they realized that—by adding some organic acid—they had exactly what float spas needed to clean their sensory deprivation tanks (a New Age fad revived by NBA player Steph Curry). The clientele wasn’t exactly who they’d had in mind, but these were customers who typically didn’t get great service from the huge chemical companies. That left the door open for Solugen to step in, offering a cheaper product along with a predictable supply and the ability to change the chemistry (say, to a lower pH) if needed.

“Pretty quickly, we were doing $12,000 a month in that business, which for two guys and a PVC pipe was pretty good,” says Chakrabarti. “The big insight was that this middle market is not small. The chemicals industry is $6 trillion, and at least $1 trillion of that is accessible through this type of model. I’m of the opinion that if you have a niche that you can win in because of your technology, you should go all in. Then tell the bigger story later, as you’re building up these profitable business lines.”

So that’s what they did. By 2021, they’d raised enough

money to buy a polyethylene wax distillery in Houston that had exploded, and refurbish it with their technology. In the beginning, their plant specialized in water treatment chemicals serving clients mostly around the state. “It wasn’t like we had this aha moment of like, Oh, we have to be the American chemical company,” says Chakrabarti. “We stumbled on it out of necessity. We had to take this more localized approach to be profitable. We saw that with our technology, we could service a pretty big part of this industry that no one else wants to take care of. And this was our kind of white space.”

It became increasingly clear, however, that “Americanmade” was a competitive selling point. With so many chemicals originating in other countries, especially China, Chakrabarti says it’s logical to ask: “Where could this become a national security problem and a supply chain problem?” Chemicals are used in weapons systems and defense, for example, as well as data centers. “It’s easy to slip a chemistry into that solution that effectively causes your whole entire server rack or GPU system to shut down.”

Solugen began manufacturing chemicals for both of those markets, along with renewable fuels. Its American sourcing helped lead to partnerships with global multibillion dollar companies like Kurita and Sasol, and today Solugen ships over 200 million pounds a year of more than 20 products to customers in the U.S. and South America, while on track to open a new 500,000-squarefoot plant in Minnesota. “Really understanding in intricate detail what the customer does on a day-to-day basis,” says Chakrabarti, “has helped a lot.”

For any entrepreneur looking to bring back manufacturing to America, whatever the product, Chakrabarti warns that it’s inherently a plodding business. If you’re an innovator trying to change the world fast, you’ll have to be patient. He also stresses that if you’re taking on a huge industry, don’t go in trying to disrupt everything. Start by finding the micro pain points that you’re literally the only person on earth trying to solve. “You know high density polyethylene?” he says. “Today it’s one of the most widely-used plastics in the world. And that market dominance all started with the hula hoop.”

TWO PENINSULAS. UNLIMITED OPPORTUNITY.

MICHIGAN

PURE OPPORTUNITY®

Welcome to the land of limitless opportunity. Where breathtaking natural beauty stretches as far as the eye can see, and high-tech industries power fresh ideas and pristine possibilities. Ready to seize your opportunity? Visit MICHIGANBUSINESS.ORG and discover why Michigan is the ideal state to live, work and prosper.

MACKINAC BRIDGE

How to Attract the Best Talent

Most startups can’t compete on salaries or perks—so how do you hire amazing employees? Here’s how I did it, by optimizing for personal connection. by NOOSHEEN

HASHEMI,

COFOUNDER OF JANUARY AI

We had an exciting idea for an AI company.

But we struggled to hire AI engineers.

The idea was this: We can use AI to help prevent chronic health conditions like diabetes. My cofounder and I developed a company called January AI, raised money from investors, and posted AI engineering jobs. But the candidates we saw were uninspired. They were more interested in the likes of OpenAI, where they could work on flashy tools with broad appeal, and not applications like health.

This problem is common

among smaller businesses: Everyone competes for talent against industry behemoths, who can offer the kind of glamour and benefits that we cannot. That means we must get creative, offering things that our larger competitors cannot.

In my case, we found a powerful offer—and it helped us recruit a talented, passionate team. The offer was this: Come work on something that’s personally meaningful to you. Although we paid well, the right candidates needed to see more than salary and benefits; they needed to see the lives and stories that their work could impact.

Most engineers are young and healthy, and haven’t expe-

rienced the impact of chronic health issues. To them, health can feel niche, and maybe even boring. I realized that I needed to stop chasing those people and instead start looking for engineers that personally connected with our mission.

How did I do that? It started with aggressive referrals. I tapped into my network, reaching out to trade groups, venture capital friends, and industry contacts. I spent hours on LinkedIn each day, searching for people who might be a fit. I also attended conferences and reached out to universities, seeking out individuals who were passionate about both AI and healthcare. Through this network-building approach, I was able to attract talented employees who were already aligned with the mission, or at least open to it.

During the interview process, I’d ask candidates if they were familiar with the issues surrounding chronic health conditions. Some would volunteer stories of being impacted personally, or of watching loved ones suffer. After each interview, I’d write my thoughts down in a journal—and although this sounds inefficient, I found it to be critical. The act of writing by hand forced me to slow down and be more intentional about the information I was capturing. Unlike a spreadsheet, which allows for unlimited entries and can become a cluttered list of facts, a journal has limits. You can only write down what stands out to you in the moment—what’s

truly important. This way, I was able to reflect deeply on each candidate’s story, their passion, and their alignment with our mission.

After interviewing a series of candidates, I’d revisit my journal entries. I could quickly identify candidates who were both technically skilled and also shared our personal passion and mission. Those were the ones we offered positions to.

The results have been validating: The people we hired through this process are genuinely passionate about the work, and they ended up being the most engaged employees. They’re the ones who help us innovate and grow. To them, just like to my cofounder and I, this is about more than just a paycheck. Our first technical hire was a cancer survivor and our second had a Ph.D. in microbiology and immunology—both super relevant for our work.

Hiring isn’t easy. If you’re doing it right, it’s a long, slow, tedious process. Many candidates will overlook you, and will choose bigger, flashier competitors who can offer them things that you cannot. But I am confident in saying this: You can offer things that those competitors can’t. You can offer a sense of purpose and personal fulfillment. Find the people who don’t just want to work for your company; find the people who come to make a real, lasting impact alongside you. That’s when meaningful breakthroughs happen.

Confessions of a Former Retail Buyer

I used to place brands on Target shelves. Here’s what founders always got wrong about retail—and how you can set yourself up for success. by MATT

ADELMANN

Ifeel bad saying this, but I have accidentally bankrupted many companies.

I didn’t mean to! I was a senior buyer at Target, which meant that I was one of the people responsible for identifying new brands, getting them onto shelves, and (hopefully) setting them up for success. I tried only working with brands that were truly ready for retail, but sometimes I got it wrong. Founders might have said they were ready and showed me evidence that they were ready, but they were not actually ready. I’d put them on Target’s shelves, and the impact would destroy them.

This is the stuff that founders never see. It’s what I want you to know before you make the same mistake.

I’ve spent decades working in retail, and I see the same problem repeatedly: Many founders think about retail all wrong. They view making it into a big store as an accomplishment—as if getting onto 100 or 10,000 shelves means victory. But it does not. Getting onto shelves is the easy part. The hard part is everything that comes next.

I’m not at Target anymore. These days, I get to see retail from two perspectives: I’m the vice president of food and beverage at The Genesis Company, where we help brands navigate the digital

and retail landscape. I’m also the cofounder of a green smoothie mix brand called Switchback Foods, which aspires to be on retail shelves nationwide—but only when we’re ready.

As a founder, I approach retail very, very carefully. You should too. Here are the three biggest problems to look out for.

Problem #1/

Cash flow realities

Retail costs money. A lot of money. Like, truly, much more money than you think.

Here’s a cautionary tale to explain it: When I was at Target, I looked at a readymade meal brand. They seemed great for our shelves, and they insisted that they

were prepared for retail. They handled their own manufacturing, and I went down to visit. Things looked good.

We gave them a test, putting them in 30 stores. They were excited. We sent them the purchase order (PO). They delivered the product. And two months later, they went bankrupt.

So what happened? Simple:

They didn’t have the cash. When a retailer sends you a PO, you need to produce and deliver a lot of product—probably more product than you’ve ever delivered before. That’s expensive, and it happens on your dime. Many companies stretch themselves thin or take out a loan, thinking that they only need to cover the PO. But that’s not true. Once the product is delivered, a brand needs to slam the gas on marketing (which is also expensive!) to make sure the product actually sells. A retailer will not do this work for you.

This is how brands end up in death spirals. A retail order stretches them thin. Then they don’t have the money to drive purchases. Then the retailer is disappointed and reduces the amount on the next PO. Now the company has its cash all tied up in inventory it can’t sell. And then it collapses.

Do not fall victim to this. Manage your cash wisely, and make sure you have enough to cover all the expenses of retail—which are a lot more than you think.

Problem #2/

More and more stores!

Retail can feel intoxicating. If you get into 100 stores, you immediately want to get into 100 more. But I urge you: Resist that feeling!

We talk about this a lot at Switchback, my smoothie mix brand. We recently landed in 400 Sprouts stores, and my cofounder—who doesn’t have retail experience—excitedly asked me, “How do we get the next 400?!” I told him to slow down, because right now, we shouldn’t want another 400. Instead of increasing our store count, we need to increase our store velocity.

That means focusing on the stores we have, increasing our marketing and activations in those markets, and driving sales, sales, sales. That’s what will make Sprouts happy, and that’s what will enable us to expand without falling into a cash death spiral.

Here’s a related mistake: Founders often start by pitching Target. They want to swing big and go national immediately. Please don’t do that! You’re probably not ready—and if you blow it with a retailer like Target early, you may never get a second chance.

As a buyer, I want one thing: I want product that sells. That means I care what customers think, and I want to see evidence of it—like data about where your brand sells, and what demographic it reaches. I want to know that your customer is also my store’s customer

Here’s an example: The typical Target shopper is a middleincome family. Sometimes, a founder would approach me and say something like: “Our brand is primarily consumed by families that have a household income of $70,000, and we’re selling especially well in the Sun

then furiously pump out new varieties. Don’t do that! Stay focused. Every time you expand something, you introduce operational inefficiencies and distract from building a strong brand presence with a core product lineup.

I’m living this advice every day. In theory, my brand Switchback has a tremendous advantage—because I know retail buyers everywhere! I could easily get us a meeting at places like Whole Foods, Costco, Kroger, and Publix. But I won’t call these people. I won’t ask for meetings. I don’t want to be on

MANY FOUNDERS THINK ABOUT RETAIL ALL WRONG. THEY VIEW MAKING IT INTO A BIG STORE AS AN ACCOMPLISHMENT—AS IF GETTING ONTO 100 OR 10,000 SHELVES MEANS VICTORY. BUT IT DOES NOT. GETTING ONTO SHELVES IS THE EASY PART.

Instead, start in your own backyard. Approach local retailers. Succeed there, then go regional. Build up experience and evidence. Develop the infrastructure you need. You should do this for five or 10 years before attempting to go national.

Problem #3/

Pitching the wrong way

Most founders don’t know how to pitch retail buyers. So here’s what to know: Buyers don’t care about your product or story. They want numbers. I saw this problem all the time at Target. Founders would tell me how delicious or ingenious their product is, and they’d rely heavily upon their brand story. I get it— that’s what you tell consumers! But it can’t be what you tell buyers, because buyers measure success differently.

Belt, and here’s my consumer research and e-commerce sales data to back that up.” Then they’d show me their consumer surveys, and Shopify or Amazon data with geographic trends. That stuff is very convincing.

When you make the buyer’s job easy, you’re way more likely to get in. Simple as that.

Here’s the bottom line:

For all its complexities, retail is really about simplicity. You need to know what you’re selling, who you’re selling it to, and how you’ll get it to perform. You will be constantly tempted to go bigger, and that’s when you’ll fail. This even applies to the SKUs: When I was at Target, founders would pitch me 20 different SKUs at once—or they’d get on shelves, and

their shelves…yet. Instead, I’m running a playbook that works: My cofounder and I are building our brand steadily, focusing on a few hero SKUs. We’ve invested in e-commerce, where we’ve refined our marketing and positioning, and we’ve identified the markets our products perform in the best. We pitched one major retailer (Sprouts), landed those 400 stores, and will now focus on making those a success— driving more sales there until Sprouts is excited to give us more, and we know that we can handle it. Then, perhaps years later, I’ll make the call to those other retailers I know. This kind of patience isn’t easy. But I know what the end result is, because I’ve seen it for thousands of brands: When you play things right, you’ll fly off the shelves.

MAKING HISTORY IN THE FRANCHISE 500® THE BIGGEST RANKINGS LEAP OF 2025—ACROSS ALL INDUSTRIES!

Make Your Day Easier

Streamline your work and travel—just use these five new tech finds from Emmy Awardwinning gear expert Mario Armstrong

1/ More intuitive headphones.

As headphones become more sophisticated, controlling them becomes more complicated. What does one tap mean again? What about two? The JBL Tour

One M3 with Smart Tx [$400; jbl.com] fixes that: It comes with a small, rechargeable touch screen to handle the basic headphone functions without opening an app or memorizing a pattern of taps and swipes.

The Smart Tx also plugs into the jack of your middle seat’s infotainment system, letting you stream content wirelessly while blocking out the guy snoring in the aisle seat. It releases in April.

2/ A universal smart lock.

With their chunky plastic housing, bulky keypads, and battery compartments, smart locks aren’t very discreet. But the matte black or satin nickel Level Lock+ (Matter-over-Thread) [$329; level.co] looks like a regular lock, down to the included keys. The Level works with all the smart home ecosystems you already have, pairing with hubs like some Apple TV, Nest, or Echo devices. With some basic DIY installation, you can keep your existing handle and use almost any smart device to lock and unlock the door, or even ask your virtual assistant to do it for you.

3/ The unlosable pencil.

If you’ve bought one stylus for an iPad, you’ve probably also bought a second— after losing the first one.

ESR Geo Digital Pencil [$30; esrgear.com] is much harder to lose: It works with Apple’s “Find My” feature, so you can use your tablet or iPhone to locate the pencil with a real-time map. The pencil recharges via USB-C in about 30 minutes. Shortcuts like single- and double-clicking the top button help streamline your workflow on the tablet.

4/ A true wireless TV.

When you buy a new TV, you must plug it in somewhere. That limits where you can hang it. But you don’t need to worry about that with the 4K OLED screen on the Displace Pro [from $4,000; displace.tv]. It uses an internal battery that you charge with a cord through a pop-out port, which provides up to 10 hours of viewing, while also powering suction cups on the back that keep the nearly 17-pound, 27-inch TV in place on a wall. It comes with a battery-powered soundbar and also connects to Wi-Fi—making it a truly detached experience.

5/ A backpack for overpackers.

Need to pack a lot, but still want to travel light? The Sandmarc Backpack + Compression Kit [$280; sandmarc.com] has an innovative solution: It contains a 17.7-by-11.4-inch nylon compression bag along with a cordless vacuum-blower. Just stuff your clothing in there, and then suck all the air out. You’ll be shocked at how much it all shrinks. The backpack itself also has external compartments to store items like a phone, and a zipper that bumps the capacity from 25 to 30.5 liters.

PERELL

Japan

GENERATING GROWTH AND HAPPINESS

The world’s fourth-largest economy, over the past eight decades Japan has established a reputation as a global leader in high-tech manufacturing and innovation, based on timeless traditions of craftsmanship and quality. Under the leadership of Prime Minister Shigeru Ishiba, who was appointed in October 2024, it has a government dedicated to boosting growth, encouraging investment and business expansion, and taking the lead in the digital and green transformations. The Ishiba administration builds on the work of that led by his predecessor Fumio Kishida, which aimed to create a “virtuous cycle of growth and distribution” and transition to a growth-oriented economy.

“My administration will continue and steadily develop this policy of Japan an asset-building nation,” Ishiba told the Asset Management Forum Japan in Tokyo last year. “In addition, one of the major pillars of our economic policy will be creating an investment nation that attracts investments from both within and outside the country including flows of money toward Japan’s regional economies.”

Ishiba’s government is committed to strengthening the competitiveness of export companies, enhancing value creation through SMEs in particular, and encouraging bold new investments by the public and private sectors working in unison.

The Invest Japan programme promotes and supports international investment in the country, and highlights several of the country’s long-term competitive advantages. Firstly, innovation. Japan boasts one of the highest levels of R&D expenditure to GDP in the world, as well as one of the world’s highest numbers of annual patent applications. It provides high added-value to companies both domestic and international. Secondly, the country’s business environment, economic strength, and location has attracted large numbers of multinational companies. As well as excellent infrastructure and business environment, it is a famously safe and enjoyable place to live and work. Thirdly, Japan is a world leader in the size of its economy, the sophistication of its consumer base, and the reputation of its products, yet still has enormous potential for growth in areas from tech to healthcare.

Building on Japan’s long tradition of innovation, and with an eye on the highly-competitive global market, in October 2024 the government pledged more than JPY10tn of fresh support for the semiconductor and artificial intelligence industries. The public stimulus is designed to generate public and private investment of more than JPY50tn over the next ten years, helping keep Japan at the forefront of the global semiconductor industry, generating broader benefits from the development of AI across the economy,

and boosting broader economic growth. Japan has also recently strengthened tax incentives for business investments in digital transformation, including software, equipment, and cloud-based systems. These incentives not only provide opportunities for growth in the tech sector, but will help Japanese companies retain their world-leading positions on export markets, and support the country’s demographic transition as its workforce continues to contract.

The investment environment for tech is further enhanced by tax incentives on startups and R&D, in which Japan is a regional leader.

“To accelerate the revitalisation and growth of the Japanese economy, we will promote pioneering development in frontier fields such as science, technology, innovation, and space, while continuing to strengthen support for startups,” Ishiba told the Japanese Diet soon after his appointment. “We are committed to steadily advancing the government’s FiveYearPlanforPromotingStartuptoestablishthelargeststartuphub in Asia. We will further bolster conditions conducive to AI research, development, and implementation, while also strengthening the government’s role in coordinating AI policy.”

The government sees ensuring energy security and stability as an urgent priority, and aims to enhance self-sufficiency while advancing decarbonisation. Energy conservation, the use of safe nuclear power, the exploration of domestic resources, and developing the optimal use of renewable energy are all key aspects of this policy; Ishiba has highlighted the high potential of geothermal energy in particular. Japan can also deploy its technological and financial capabilities to support the energy transition in other countries. Japan aims to reduce greenhouse gas emissions by 46% from FY2013 levels by 2030, and to achieve carbon neutrality by 2050, mobilising around $70bn of climate finance from public and private sources. The government has also enhanced tax incentives for investments in carbon neutrality, giving companies tax credits for investment in decarbonisation, for example in more energy-efficient production equipment or switching their power generation facilities to renewable sources, as well as installing solar generation for private use.

The government’s commitment to boosting growth across the board will further strengthen Japan’s case as a global investment destination.

“My goal is to achieve an economy that prioritises increases in GDP per capita in addition to overall national economic growth while also prioritising improvements in satisfaction and happiness,” Ishiba said. “To this end, we will have the public and private sectors together develop and share comprehensive indicators of ‘degree of happiness/degree of satisfaction’ and aim to create a society where each individual can thrive and be happy.”

Shigeru Ishiba Prime Minister

MODEC

DRIVING GLOBAL EXCELLENCE IN OFFSHORE ENERGY

Japan has long been synonymous with engineering excellence, boasting a reputation for precision, innovation, and efficiency that has established its companies as global leaders.

With the nation’s economic growth projected to accelerate in 2025—driven by rising wages, robust corporate profits, and increased household spending—its industrial giants are poised to play a central role in shaping the global energy landscape.

The offshore engineering sector, in particular, exemplifies Japan’s ability to lead complex, high-stakes industries, setting standards for quality and innovation.

At the forefront of this sector is MODEC, a company that epitomizes Japanese excellence and international reach.

Founded as Mitsui Ocean Development Engineering & Company, MODEC remains a part of the Mitsui Group, combining its deep Japanese roots with a global mindset.

Hirohiko Miyata President & CEO

For over five decades, MODEC has specialized in oceanrelated solutions, particularly in floating production, storage, and offloading (FPSO) units, essential to the oil and gas industry. It has established itself as a global leader in offshore production solutions, leveraging a wave of growth in the energy sector to deliver cutting-edge innovations and operational excellence.

“We are a truly unique Japanese company,” says MODEC President and CEO Hirohiko Miyata. “From the very beginning, our focus has been global. Nearly all our clients are based outside Japan, and our workforce of over 6,000 reflects this diversity, with only 5% of employees being Japanese. Our ambition is to operate as a fully global business, delivering world-class solutions to clients around the world.”

MODEC’s track record is exceptional, having delivered more than 50 FPSO vessels, particularly for deep-water operations. Its innovative technology and commitment to quality have secured partnerships with leading energy giants such as Petrobras, ExxonMobil, Equinor, TotalEnergies, Woodside, Eni, Shell and Galp. The company is acutely aware of the massive investments its clients make in developing oil fields and is dedicated to delivering solutions that maximize their success.

MODEC has gained a competitive edge in deep and ultra-deepwater reserves, focusing on key markets in South America, West Africa, and the Asia-Pacific region. In Brazil, it has partnered with Petrobras to develop the “pre-salt” oil region, a vast reserve trapped beneath a 2,000-meter-thick salt layer 200 kilometers offshore. MODEC has delivered over a dozen FPSOs to Petrobras, seven of which operate in the pre-salt region, providing the advanced technology needed to thrive in such technically demanding environments.

MODEC also sets itself apart in its multi-faceted offering. The company’s distinctive approach goes beyond engineering, procurement, and construction. Unlike many other engineering companies, MODEC offers comprehensive services, including operation and maintenance, ensuring long-term partnerships with its clients. With over 300 cumulative years of Operations & Maintenance experience worldwide, MODEC has established itself as a trusted industry leader. As a result, the global MODEC fleet produced approximately 1 million barrels of oil per day on average in 2024, accounting for roughly 1% of the world’s total oil production that year. Additionally, MODEC has recently accounted for over 25% of Brazil’s total oil output.

Its extensive experience with ocean-based floating operations is also driving its diversification into renewable energy markets. MODEC is now actively developing floating offshore wind power projects based on tension leg platforms (TLPs), which have a smaller footprint, minimize disruption to fishing and shipping industries, and offer exceptional stability to support wind turbines as large as 15 MW, with the potential to become a mainstream solution in the future.

Capitalizing on its extensive expertise in designing and demonstrating floating and mooring systems, MODEC is also conducting research and development for floating solutions in alternative energies, such as ammonia and hydrogen.

MODEC also offers advanced digital solutions for the offshore industry, leveraging analytics and machine learning for predictive maintenance, GHG emissions reduction, and safety barrier management. These innovations help better integrate its fleet, making operations safer and more efficient.

Miyata emphasizes the critical role technology plays in the energy transition and MODEC’s potential to lead it.

“We are deeply connected to the ocean, and our expertise in floating technology positions us to make a meaningful impact,” says Miyata. “The ocean holds a special place for us—it’s vast, untapped, and full of potential. When we think about offshore industries, we see the ocean as an infinite frontier of opportunities. We believe we can unlock its potential by providing unique floating solutions.”

MODEC’s expansion into renewable and alternative energy reflects its steadfast dedication to decarbonization and a sustainable future. The company is actively reducing emissions across its FPSO operations by adopting a Gas Turbine Combined Cycle (GTCC) power generation system and advancing the integration of carbon capture and storage technology on its vessels.

By embracing diversification and decarbonization, MODEC is poised to collaborate with a broader spectrum of partners across an expanding array of industries. “We aim to amplify our uniqueness,” says Miyata. “Opportunities are all around us. While our brand is wellrecognized in offshore industries, we are determined to be more proactive and visible, exploring new horizons beyond the FPSO sector.”

Tokyo-listed MODEC presents a compelling case for investors, underpinned by decades of expertise, world-class technology in offshore operations, and a forwardlooking growth strategy. The company is well-positioned to leverage its specialist capabilities to expand into emerging business areas, driving innovation and

sustainability. Its backing by blue-chip investors further underscores its credibility. Its financial backing, including increased investment from Mitsui O.S.K. Lines in 2024 reflects confidence in its future. As the energy industry undergoes a historic transition, MODEC is leveraging its experience and pioneering spirit to expand into new markets and drive the global shift toward cleaner energy with floating solutions.

MODEC’s unwavering commitment to serving global clients and advancing the energy transition reflects broader shifts in Japan’s corporate landscape—shifts where MODEC is poised to lead. “Corporate Japan has finally realized it’s time for change,” says Miyata. “There’s a growing understanding of the importance of stakeholders, not just shareholders. For us, stakeholders mean people—employees, clients, suppliers, and society as a whole. Our goal is to create a setup that ensures as many stakeholders as possible feel supported and aligned with what we do.”

With its pioneering vision, global mindset, and resolute commitment to the ocean, MODEC is charting a transformative course to shape the future of offshore energy with its unique floating solutions and redefine the global industry through innovation.

For more information: https://www.modec.com

MrMax Holdings

100 YEARS OF REDEFINING RETAIL VALUE

After decades of economic stagnation, Japan is experiencing a remarkable resurgence, with the end of deflation, the strongest period of nominal economic growth since the 1990s, and a surge in corporate vitality. According to a 2024 report by Morgan Stanley, this renewed dynamism is transforming industries, and nowhere is this more evident than in the retail sector.

Wage growth, record-breaking tourism, and expanding international retail presence have made Japan’s retail sector “the booming outlier in Asia Pacific,” Savills reported in November 2024. Regional cities are thriving, and consumer spending is on the rise. Against this backdrop of opportunity, MrMax Holdings, a company celebrating its centenary in 2025, is solidifying its place in Japan’s dynamic retail landscape.

Founded in 1925 as a home appliance components shop, MrMax transitioned into a comprehensive discount retailer in 1978, driven by the entrepreneurial vision of its founder, Hisashi Hirano. Inspired by U.S. retail giants like Walmart and K-Mart, Hirano adapted their models to Japan, laying the foundation for the company’s success. Most recently, in 2023, MrMax launched an online store, capitalizing on the e-commerce boom accelerated by the COVID-19 pandemic.

“MrMax is a comprehensive discount store chain that aspires to be an essential support system for daily life in Japan, much like major U.S. discount retailers,” says Yoshiaki Hirano, President and CEO, and the son of the company’s founder, Hisashi Hirano. “Our philosophy is centered on enhancing customers’ daily lives—making them richer, more convenient, and more enjoyable. We strive to be more than a retailer; we aim to serve as ‘social infrastructure’ for our communities.”

With 57 stores across the Kyushu, Chugoku, and Kanto regions, MrMax offers flexible formats ranging from 2,300 to 6,600 square meters. Strategically located along major roads, these outlets are designed to accommodate busy lifestyles, allowing customers to shop quickly and conveniently by car. Each store features a wide range of daily essentials, from electronics and apparel to pet food, kitchenware, and beverages. Select locations also include fresh produce, such as meat and fish.

Specializing in non-food products, MrMax differentiates itself from many Japanese retailers that primarily focus on groceries. The company’s own-brand products currently account for 20% of total sales, with plans to expand this to 30% within five years. This aligns with MrMax’s commitment to delivering a seamless shopping experience that saves customers both time and money, encapsulated in its slogan: “smart shopping.”

“Our prices are lower than those of general supermarkets, yet we maintain exceptional quality,” Hirano emphasizes. “This stems from our origins as a home appliance parts store, where we worked with manufacturers like SONY and Panasonic, ensuring product reliability and quality. This legacy has shaped our company culture, driving our commitment to offering dependable products at competitive prices. It’s this combination of quality and value that truly sets us apart.”

Rooted in a century of history, MrMax continues to evolve with the times, offering innovative and affordable products while remaining agile in response to the changing needs of its customers. This adaptability is a cornerstone of the company’s growth strategy.

In the short term, MrMax is focused on modernizing its operations. This includes renovating existing stores to optimize customer experience, improving product placement to boost sales efficiency, and transitioning 80% of checkout counters

to self-service by 2025, reducing labor costs. Simultaneously, the company is expanding its online shop, enhancing product variety, and improving usability to capitalize on the growing e-commerce market.

Looking ahead, MrMax has ambitious medium-term goals. By 2029, it aims to achieve JPY200 billion in sales and an operating margin of 5%, a significant rise from JPY124.5 billion and 2.4% in the financial year ending February 2024. The company plans to open 25 new stores in Northern Kyushu and the Tokyo Metropolitan region over the next five years, while aggressively expanding its omnichannel e-commerce business to reach an annual target of JPY20 billion. These initiatives support its broader vision of becoming one of the ten most profitable companies in Japan and growing into a JPY1 trillion enterprise.

“Next year marks our 100th anniversary, but we are not ‘old men’—we are being reborn as a new and revitalized company,” says Hirano, underscoring MrMax’s innovative spirit as it embarks on its next century of growth.

In addition to driving organic growth, MrMax is actively pursuing merger and acquisition opportunities and building strategic partnerships to expand its reach. A key focus is Southeast Asia, where the company began a collaboration in Vietnam last year. Always learning from global leaders, President Yoshiaki Hirano regularly takes a team of over 30 members to visit Walmart and Target outlets in the U.S.,

drawing inspiration from their operational excellence. Hirano also admires the UK supermarket chain Tesco, incorporating best practices into MrMax’s operations.

MrMax’s consistent profitability and growing revenue reflect its strength and ability to adapt to evolving market demands. Its forward-thinking strategy points to a company poised for sustained growth as it transitions into its second century, capitalizing on opportunities within Japan’s sizeable market and beyond.

“Despite population decline, Japan remains a significant market with over 100 million people and a high standard of living,” Hirano explains. “The timing is favorable as Japan’s market is recovering from stagnation, bolstered by the yen’s depreciation against the dollar. Globally, economic uncertainty presents both risks and opportunities. By anticipating and adapting to these changes, we aim to seize opportunities, explore new possibilities, and contribute to the ongoing transformation of the global economy.”

As MrMax celebrates its 100th anniversary in 2025, the company stands ready to honor its rich legacy while embracing innovation and growth, paving the way for a future where it continues to enhance the lives of its customers and transform the shopping experience in Japan and beyond.

Yoshiaki Hirano President and CEO

Aichi Financial Group

AT THE HEART OF AICHI’S ECONOMIC GROWTH

Contributing 6.5% of global manufacturing output while accounting for just 1.5% of its population, Japan is a true industrial powerhouse.

Aichi Prefecture, located in central Honshu, is at the core of Japan’s manufacturing sector, which accounts for an impressive 35% of the prefecture’s GDP, according to official figures. Renowned as the nation’s manufacturing hub, Aichi hosts a diverse range of industries, including automotive giants like Toyota. It also leads the nation in the volume of goods shipped, solidifying its role as a critical driver of Japan’s economic and industrial success.

Aichi Financial Group (Aichi FG) serves as a hub for regional development in the prefecture. With more than a century of expertise in supporting regional businesses and households in Aichi Prefecture, the group strives to become the leading regional financial institution. On January 1, 2025, the company reached a significant milestone when Aichi Bank and Chukyo Bank united as one bank, marking the successful culmination of a merger process that began two years prior.

The merger in October 2022 created a company consisting of two regional banks—Aichi Bank, founded in 1910, and Chukyo Bank, founded in 1943,” explains Aichi Financial Group President Yukinori Ito. “The two banks had been operating in the same area for a long time, but due to a lack of workforce, expertise, and other resources, we recognized both the growth potential of the region and the challenges of achieving dynamic growth amid the increasingly diverse and sophisticated needs of customers. Now united as one bank, the group holds the number-one position among regional banks in the prefecture, with a 10% share of total deposits, amounting to JPY 5.950 trillion. We are dedicated to supporting the regional community through our financial services operations. Our corporate slogan, ‘Closest to You,’ reflects our commitment to being the first and most reliable partner in the region.”

Aichi Financial Group (Aichi FG) is deeply embedded in its home region, Japan’s second-wealthiest by GDP per capita (after Tokyo) and its fourth most populous, with nearly 7.5 million residents. Aichi FG plays an integral role in this thriving ecosystem, supporting businesses of all sizes, empowering entrepreneurs, and enhancing the lives of communities. Moreover, it serves as a trusted financial and consulting partner for international companies seeking growth and development in this highpotential region while expanding overseas.

Aichi FG distinguishes itself with a unique value proposition for clients and partners. Beyond traditional banking services, the group has, since the 2022 merger, adopted a consulting solutions-based business model. This innovative approach addresses the increasingly complex and diverse needs of customers and communities by offering services such as asset building, employment placement, digital transformation, carbon reduction, sustainability management, and business succession. Continuously expanding its consulting offerings, Aichi FG is redefining the role of financial institutions in supporting regional and global growth.

“In the First Medium-Term Management Plan, we have been working to prepare for a complete transition to a consulting solution-based model by creating the new Aichi Bank. To establish this consulting solutionbased model, it is essential to develop and train human resources capable of addressing the various issues faced by customers. We have been promoting a large-scale shift of employees to align with the type of human resources required for the new business model. As of September 2024, we have trained 492 individuals in preparation for the successful completion of our merger next year,” says Aichi Financial Group President Yukinori Ito.

The group has recently unveiled a medium-term business plan under the theme, “Going beyond conventional banking to offer total support.” This

Yukinori Ito President

strategic roadmap is built on three pillars: deepening the consulting and solution business model, strengthening the group’s management base to create synergies, and accelerating digital transformation (DX). Aichi FG’s acquisition in April 2024 of four companies from the independent software development firm AAST Group will contribute significantly to the future development of its DX strategy. With offices in Aichi and Tokyo, AAST provides advanced system services, bringing cutting-edge technology and expertise in the IT field to Aichi FG. This acquisition enhances the group’s ability to deliver sophisticated solutions and consultancy while advancing its DX initiatives across branches and offices. These efforts aim to elevate customer experiences and operational efficiency, positioning Aichi FG as a frontrunner in fintech and digital banking.

Aichi FG is also broadening its reach beyond Japan, actively supporting Japanese manufacturing companies in their international expansions. “We’ve already extended our support services to companies in Thailand and Vietnam,” notes Ito. “We plan to further strengthen this aspect of our business. At the same time, we aim to develop services for foreign companies looking to establish a sales base in Japan.”

Listed on the Tokyo Stock Exchange, Aichi Financial Group (Aichi FG) presents a compelling opportunity for investors. Built on a foundation of trust and guided by a forward-thinking leadership team, the group is wellpositioned for sustained long-term value creation. As synergies take effect, Aichi FG’s prospects look even brighter, with plans to increase its ROE from 2.9% in March 2022 to approximately 6% in the medium term.

“Our stock offers a consistently high dividend, and that trend will continue,” says President Yukinori Ito. “Now is an ideal time to invest, as our stock price is set to rise. The merger required substantial investment, which impacted profits, but with the process nearing completion, the share price can only move upwards. We deliver an annual dividend of 100 yen per share as a minimum, with a target total return ratio of 30%. Even if the Bank of Japan maintains its current interest rate policy, by the end of FY2023 we anticipate generating profits of around JPY 200 billion. Should the Bank revise its rates, our profits will grow even faster.”

With its deep regional roots, forward-looking strategies, and innovative approach to banking and consulting, Aichi Financial Group is poised to play an even greater role in shaping the economic future of Aichi Prefecture.

Amvis Holdings INNOVATION,

FOCUS, SUSTAINABILITY

Stronger wage growth, rising private investment, and a return to rising consumer spending all powered the Japanese economy in the second half of 2024, according to Deloitte. Trade is also looking up, with semiconductor machinery exports up more than 50% in the year to August, and Deloitte expecting a rise in vehicle exports.

Rising incomes and broader economic growth should help Japan’s healthcare sector, which is a huge part of the economy, and growing due to the country’s aging population. Healthcare expenditure has topped 10% of GDP in recent years, according to the OECD.

Amvis Holdings, Inc. (Amvis) is a trail-blazer in the Japanese healthcare sector, a pioneer of a facility- based hospice care to solve the critical social issue of gaps in healthcare access and affordability through the creation of new medical infrastructure - a network of hospices. The core of its business is providing services in areas where there are not enough medical resources, such as a shortage of doctors. Founded in 2013, the company’s chain of Ishinkan hospices has expanded rapidly since its inception and now number more than 100 nationwide.

Keiichi Shibahara CEO

“Amvis provides palliative care and other comprehensive care, mainly for people with terminal cancer who had to be discharged from hospital, using the power of business to solve a key social challenge in Japanese healthcare,” says CEO Keiichi Shibahara. “Amvis’s innovative approach focuses on providing 24/7, 365-day-a-year facility-based nursing care for individuals with terminal illnesses, particularly those in the advanced stages of cancer. In an aging society with a declining birthrate and the need to reduce healthcare costs, the government is pushing policies to drastically shorten the length of hospital stays. This hospice business model directly addresses the increasing societal pressure to expedite hospital discharges for patients who require continuing medical care. Amvis’s solution offers a humane and effective alternative for patients, ensuring high-quality care and secure end-of-life in specialised facilities.”

Many rural areas of Japan lack adequate healthcare infrastructure, while having a similarly aging population to the rest of the country. Hospitals in these regions often have operational inefficiencies that affect their effectiveness and the quality of care they can deliver. This leaves a significant elderly population without reliable access to medical services.

The company name Amvis is a contraction of “ambitious vision”. When working part-time on night shifts at hospitals in underpopulated areas suffering from a shortage of doctors, Dr Shibahara witnessed operational inefficiencies and the underutilisation of doctors. Although doctors are on-site 24 hours a day, they were rarely called in during the night shift to care for terminally ill patients. Dr Shibahara realised that even without doctors on-site 24 hours a day, it is possible to enhance care delivery through a “nurse-centric model”, supported by on-demand outsourced doctor consultations, ensuring high-quality care while optimising the allocation of local medical resources. This enhances care while also improving efficiency and reducing costs.

Amvis’s flexible model puts the patient’s needs first, while moving away from unnecessary dependence on physicians, and reducing costs. For patients with chronic diseases or terminal illness, for whom the

diagnosis is confirmed and treatment protocols are largely established, the primary need is watchful and tender-hearted nursing care. Amvis’s system delivers nursing care effectively at the facility, with doctors visiting only when needed for diagnosis or critical interventions. The comprehensive nursing care at the facility improves the quality of life and comfort of patients. The facility does not require a doctor to be on-site 24 hours a day, which contributes to the efficient allocation of doctors in rural areas of Japan, where there is a severe shortage of physicians. This robust system delivers care to thousands of Japanese people who would otherwise not get the support they need towards the end of their lives. Ishinkan accepts around 8000 cancer patients a year. The company operates using Japan’s medical and nursing care insurance systems, so patients can easily use Amvis’s services. From hospitals’ point of view, Amvis’s services can also function as one of the places where patients can recuperate after their treatment has ended, which can promote the discharge of patients. Amvis’s services thus align with national policy of hospital discharges in Japan, where long-term hospitalisation has been a problem.

Amvis has grown rapidly in the 10 years since its founding, bringing a new business field to Japan: the hospice industry. Dr Shibahara is largely responsible for this rapid development. After graduating from the Faculty of Medicine, he worked as a junior medical researcher at Kyoto University, where he contributed to ground-breaking cancer research that led to the Nobel Prize in Physiology and Medicine awarded to his mentor in 2018 for the development of immune checkpoint inhibitor therapy. After a career path leading from this role as junior medical researcher to becoming an entrepreneur, he founded Amvis, and created a new medical platform for patients with terminal cancer who are less able to live independently, providing important end-of-life support that focuses on “how they want to live”.

“The creation of Amvis represents the culmination of a lifelong commitment to advancing healthcare and improving patient well-being,” says Dr Shibahara. “Amvis is driven by a profound mission: to help people achieve their life-long aspiration of health and longevity, free from the anxieties of illness. We strive to make this dream a reality, to meet the needs of society. This commitment guides our actions and informs our three core principles: a relentless pursuit of innovation, a laser focus on critical issues, and a commitment to sustainable profitability.”

Amvis’s success has also led to it attracting top medical talent. As it grows, it is continuing to hire the best and brightest to deliver topquality care – and to develop the business in new areas. High-level onsite nursing skills and supervision by excellent doctors is a key competitive advantage. Ishinkan hospices provide specialised care, and provide flexible responses to residents needs 24/7. Recruiting and retaining is clearly central to the company’s success, and it recently launched a new programme of expanding its personnel structure and enhancing education and training. Amvis’s core mission and dedication to innovation resonates with a growing number of young professionals seeking to make a meaningful impact on society.

With roots in successful model projects in rural areas, and a dominant market share in Eastern Japan’s hospice care sector, Amvis is growing

nationally. In the fiscal year ending September 2024 , it opened 28 facilities, and plans to open another 28 in the fiscal year ending September 2025, bringing the total to 132. It is also expanding its coverage into western Japan. The company’s mission is to address the significant and unmet need for comprehensive hospice care countrywide, furthering its mission of ensuring equitable access to its services for all in need. Dr Shibahara hopes to contribute to the realisation of a society in which everyone can enjoy the benefits of innovative advances in medicine that will come 10 to 20 years from now.

Amvis sees its next goal as managing and turning around Japanese hospitals in financial difficulty by leveraging its unique business model with sufficient resources, know-how, and financial strength acquired through its success in the hospice field. Community healthcare is under pressure not only from Japan’s aging population, but also rising capex costs, growing deficits in medical business, and indeed aging ownership, with the majority of hospitals not having a succession plan. This has led to frequent bankruptcies, with 41 hospitals and clinics declaring bankruptcy in 2023 alone. Amvis is able to dispatch excellent physicians with management skills and highly-trained nurses to senior management positions, providing operational management and funding, and apply its know-how from Ishinkan. In October 2023, Amvis started providing management support to two loss-making medical corporations, leading to improvements in their financial health, and has now succeeded in

“We envision expanding into technology development and operations in the medical field more broadly, creating a vertically integrated model that enhances our service offerings and strengthening our market position,” says Dr Shibahara. “To achieve this ambitious goal, we are actively seeking strategic partnerships with technology experts. Collaborations will allow us to accelerate technological development, reduce costs, and achieve our shared objective of improving healthcare access and quality. We believe that joint ventures focused on technological innovation represent a particularly promising avenue for collaboration.”

The company is also open to joint ventures and other partnerships that will allow its knowhow, concept, systems, and operation to be replicated around the world.

growing them into excellent businesses with operating profit margins of more than 15%.

As Dr Shibahara says, the challenges faced by the Japanese health system and its patients are not unique – there are many countries with aging populations and inadequate healthcare provision in remote areas. Amvis has a proven business model and a scalable system that can be expanded globally to meet the growing market. Although health insurance systems differ from country to country, Dr Shibahara says the versatilities and the possibilities for the role of nurses at home or in facilities are the same worldwide.

The company’s growth plans, and its relentless emphasis on technology, will see it increasingly leverage tech including AI and digital transformation to enhance efficiency and quality of care. Amvis will continue to deploy technology to compensate for resource limitations, but it also expects to develop as a technology provider in its own right.

Tokyo-listed Amvis also presents an opportunity for investors to tap into the growth of one of the world’s most important industries, one that is likely to continue growing for many years to come – and one of the strongest companies in the sector, with global ambitions. Amvis is committed to maintaining an EBITDA margin of at least 20% to 2030, and aims for further growth in the future as it evolves into a comprehensive medical company.

“By investing in Amvis, you become a part of our team, sharing in our vision and contributing to a future where compassionate and effective end-of-life care is accessible to everyone,” says Dr Shibahara. “We invite you to join us on this journey, confident that your investment will yield both financial rewards and the profound satisfaction of contributing to a more humane and compassionate world.”

Investors will also be participating in a new and innovative business of a sort that is showing real dynamism in Japan.

“For those considering investment or partnerships in Japan, focusing on dynamic, early-stage companies – in the growth phase - may be more advantageous,” says Dr Shibahara. “These companies possess the agility and fresh perspectives needed to overcome regulatory barriers and achieve rapid growth, offering potentially higher returns and less arduous paths to international markets than incumbents.”

Kyowa Leather Cloth

90 YEARS OF

Japan should experience steady growth through 2025, supported by accommodative monetary policy from the central bank, the Economist Intelligence Unit has said. An expected boost in public spending should also support an economy seeing an uptick in consumption.

Domestic demand, the strong Japanese automotive sector, and a growing international trend towards greater sustainability are expected to boost the synthetic leather industry in the coming years. Japan’s domestic synthetic leather market will grow by a CAGR of 8.15% between 2022 and 2032, according to SPER Market Research.

Established in 1935, Kyowa Leather Cloth Co. celebrates its 90th year in business in 2025. The company produces synthetic leather and decorative films for a range of industries, including fashion, housing and construction, and automotive. The company became a member of Toyota Group in 1973, when the carmaker took a stake in the business; the automotive giant remains a leading customer. In recent years, Toyota encouraged Kyowa to reinforce its core competences and establish an individual identity and vision.

“We have been committed to quality and technology for nine decades, and our products are always improving,” says Mikio Hanai, president of Kyowa Leather Cloth. “We have defined our framework of values and our purpose in society. We make materials for cars, for the interior of buildings, and we want to create materials that are kind to the environment. It’s a transformational time for us. We want to be a leader in the circular economy, and grow in and promote the circular economy internationally. We are on the way to becoming a company which contributes to a sustainable society.”

The company’s success is based on three interlocking areas of key strength: material technology, design technology, and manufacturing technology – a vertically-integrated model of excellence through the value chain. Kyowa’s long history of supplying materials that meet the stringent quality requirements

Japanese automobile manufactures have kept it at the top of the Japanese automotive interior composite skin material market. Automobile interior material accounts for 87% of sales, and the company has the leading market share in synthetic leather materials for the sector in Japan, and is among the top suppliers in the world. While its brand may not yet be a household name for consumers, its products are familiar to people who have bought luxury cars such as Lexus. In the building materials segment, Kyowa supplies durable films for kitchens, bath units, entrance doors, and so on. And its fashion and lifestyle business involves commercialising synthetic leather for bags, boots, and women’s clothing, among other items.

As part of its medium-term plan, Kyowa has been engaged in a costcompetitiveness drive, including the acquisition of new machinery to improve productivity. The company is also working on its digital transformation to improve

internal processes and delivery for customers.

With market growth slowing in key markets such as Japan, China, and the US, Kyowa is turning its attention to growth in the rapidly-expanding Indian market. India produced 4mn automobiles in 2020, a number which is set to increase to 7m by 2030, with the number of midpriced SUVs rising from 200,000 to 1mn. The growth of the middle of the market in particular is promising for Kyowa, as its products are largely used in the seats of sedans, minivans, and SUVs in the $30,000-$50,000 segment. Currently, much of the polyurethane leather and high-end PVC used in India is imported from overseas, facing high import tariffs and transportation costs; Kyowa plans to establish manufacturing capacity in India around 2027 to avoid these factors.

Another key element of the company’s strategy is the development of Sobagni, its fashion and lifestyle line, which epitomises its commitment to the circular economy and sustainability. This B to C business launched in 2021 and produces consumer products, particularly “ethical leather” bags, from synthetic leather scrap from Kyowa’s automobile business. The bags are high quality and durable – as one would expect from automotive industry-standard materials, lightweight, and water and stain resistant. Sobagni even has a bag made using matcha, the Japanese green tea, which smells of matcha, and more than 50% of the inputs for which are natural.

Kyowa entered the Indian market in partnership with Krishna Group, an Indian diversified business, and as it looks to further expansion, it will seek likeminded partners for strategic alliances in a range of areas, building on its track record of partnerships with top companies, including some of the world’s leading automakers.

“The first step is creating artificial leather materials which are kind to the environment,” says Hanai. “The second is establishing a supply chain for recycled materials. And the third is to expand our brand name, to communicate to customers directly.

Partners that understand that concept, and have the capacity to deliver it, we’d be very happy to hear from.”

Tokyo-listed Kyowa’s focus on sustainability makes it an attractive investment for investors increasingly keen on identifying companies that meet social as well as financial goals. And Kyowa should deliver on the latter, with its long history of delivering high-quality resin to demanding markets, and its plans for strategic growth.

“Japanese manufacturing’s strength is in its materials – each component is strong,” says Hanai. “We have created products that appeal to the world. We know we have to go outside our country, to the rest of the planet.”

www.kyowale.co.jp

of

Mikio Hanai President

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SJade Group

AN INTERNATIONAL FASHION AND LIFESTYLE COMPANY

teady growth and a renewed corporate dynamism are powering Japan’s economy and boosting its stock market,” international investment bank Morgan Stanley reported in 2024, noting that the Asian champion is seeing its best period of nominal economic growth since the 1990s. Combined monetary, fiscal, trade, and industrial policy are lifting economic productivity and enhancing sustainability, Morgan Stanley said.

The bank sees the technology sector as one of the best-placed to benefit from the new wave of growth. Japan’s highly-developed digital infrastructure provides the backbone for what is the world’s fourth-largest e-commerce sector, according to the UN International Trade Administration. The ITA reports that the covid19 pandemic saw Japanese e-commerce sales rise by nearly a third between 2020 and 2021 alone, and identifies the sector as one of the most promising for investors.

Jade Group has established itself as one of Japan’s leading e-commerce businesses. Focusing on shoes and other fashion goods, Jade Group has three business segments: its online shopping malls; a logistics and IT infrastructure B2B platform; and a brand management business which operates both as a brand manager for international brands, and a brand developer in directto-consumer business, in collaboration with influencers. The businesses have excellent synergies, and are mutually supportive. Its “e-malls” include flagship Locondo; d fashion, which is jointly operated with NTT docomo, Japan’s largest cell phonecompany;andapparelspecializede-mallMagaseek.Althoughthesewebsites are all different, the IT and logistics infrastructure behind them is centralised, so that Jade Group can operate multiple e-malls efficiently while ensuring they are attractive and deliver excellent user experience. In addition, all the company’s IT, including its warehouse management system, its e-commerce systems, management screens, and all services available through its platform business, are 100% developed in-house, highlighting the group’s tech strengths. The various businesses’ ability to share inventories and logistics and IT infrastructure creates efficiencies, and each part of the group builds models of best practice that can be applied more widely. It also helps Jade Group make post-merger integration a smooth process, which has proved beneficial in its M&A activities, powering inorganic growth.

Tanaka has ambitious plans for Jade Group, aiming to double the company’s gross merchandise value to JPY100bn and increase operating profit to JPY10Bn in the next five years, partly through bringing in more subscribers and more brands, and leveraging its understanding of consumers’ evolving needs. And there is huge potential on the Japanese market, on which only around 20% of people by clothes online, compared to 30-40% in the US. As a market leader, Jade Group can drive e-commerce penetration up and increase its own revenues while doing so. Tanaka also aims to expand internationally, successfully launching operations shipping products directly to overseas markets from Japan this year. Expansion on the domestic and international markets will bring opportunities for the company to execute further mergers and acquisitions, and strike strategic deals with other businesses.

“Our company is very open to international partnerships,” says Tanaka. “We are not a typical Japanese company - we are very open, and our business narrative follows current global trends. We are open to options that partners can bring. So far we’ve acquired ten companies through M&A, have a very strong track record in delivering ROI from M&A, and we have business partners in that field. Expanding on the international market will be much easier with partners, and we’re flexible about working with them in different ways. We’re also open to brands that would like to distribute through our e-malls. Through our three business areas we can be a partner of choice for brands in shoes, apparel, bags, household goods, and cosmetics.”

“I got the idea for the business when studying in theUS,andfounded the company 14 years ago on returning to Japan,” says Jade Group president Yusuke Tanaka. “We’re all about fashion and lifestyle. I wanted to start a business offering fun shopping with free shipping and free returns. We make online shopping easy. Our main feature is free shipping, but there are many advantages that encourage people to buy from us online. All three of our ecosystems complement each other, and the platform grows ever stronger. We rely on our relationships with our clients and our brands.”

Those successful relationships include partnerships with leading international companies Reebok and Mango through M&A, testament to Jade Group’s strengths on the Japanese e-commerce market. They also reflect the global mindset embraced by the company and Tanaka himself, who worked for international management consultancy leader McKinsey, and took an MBA at UC Berkley’s Haas School of Management.

Jade Group is listed on the Tokyo Stock Exchange, and offers a unique opportunity for investors to gain exposure to the fast-growing Japanese e-commerce market. Jade Group’s unique portfolio covering three business areas makes it more diversified than other e-commerce companies, giving investors access to a range of segments while capitalising on the synergies that the group structure creates.

The company has seen its gross merchandise value rise from JPY5bn in the 2014 financial year to nearly JPY50bn in 2024, and continues to post surpluses since the FY2020, yet its stock is currently trading at a price that suggests undervaluation.

Jade Group epitomises the dynamic younger companies now emerging from Japan, which build on the country’s longstanding technological excellence, talent pool, and global recognition as an industrial leader, but offer a new energy.

“For a long time, Japan has been slow and steady, but now there’s only opportunity to grow,” says Tanaka. “Japan has a unique culture, with strong people and “Japan” itself is the global brand. The products and brands can only get stronger. The current government is focusing on startups and entrepreneurship, the climate is changing – and now is the time to get into this unique market.”

Yusuke Tanaka President

Kanro

WE SWEETEN THE FUTURE

Consumption underpinned by wage growth will drive Japan’s economy in 2025, according to a recent report from the IMF. Rising salaries will support the food sector, one of the world’s largest, which is worth upwards of $400bn.

Established in 1912, Kanro is one of Japan’s leading confectionary companies, a household name. The company tops the market in hard candy, while its Puré gummy are the best-selling gummy brand in the country. The company has three factories in Japan, one in Yamaguchi at the western tip of Honshu, where the business was founded, and two in Nagano in the heart of the island. A new gummy line came onstream in 2019 and the company continues to expand its capacity.

“When we talk about our history, what predominates is our product development – it’s always been important for us,” says Kanro president and CEO Tetsuya Murata. “As a company that has lasted more than 100 years, we have had to deal with changes in society, and we’ve had to change our company as well to meet changing needs – that is the key to our success. As our slogan says – we sweeten the future.”

Kanro now wants to take this success global. It already has partners selling its products in China, Taiwan, and Hong Kong, and it is now seeking a sales agent to take Puré gummy to the United States – and, after that, worldwide.

“We want to see how Puré gummy is accepted in the US, and then perhaps produce over there,” says Murata. “So there are possibilities for partnerships as sales agents and production. We believe our brands and products will be powerful globally. We have a track record in working with international companies, and local partners with local knowledge can help us sell and develop our products in new markets. Collaborations are key.”

Ultrafabrics

THE BEST OF BOTH WORLDS

Japan’s economy will rebound in 2025 as consumption is driven by rising wages, according to the IMF. The country’s economy has long been known for its powerful and high-value manufacturing sector, which accounts for 20% of GDP.

Ultrafabrics, which produces sustainable leather alternative, epitomises innovative and quality-focused Japanese industry.

“There are many companies in the world that produce polyurethane leather,” says Ultrafabrics president Noboru Yoshimura. “They supply their products to one industry – automotive, or aviation, or furniture. But we supply all these sectors, and that’s unique. If there’s someone looking for a premium alternative to leather, we produce that product.”

Another distinguishing feature of Ultrafabrics’ business is that it exports almost all its production, with the exception of a few blue-chip Japanese clients such as Japan Airlines. Ultrafabrics prides itself on its commitment to top quality and attention to detail, from the materials, through the design to production. It embodies the spirit of kaizen, a Japanese term meaning continuous improvement.

“We are very focused on craftsmanship and process, which is one of the strengths of Japanese companies,” says Yoshimura. “We customise our products for each client, depending on their needs, and always discuss product development with them.”

While rooted in Japanese excellence, Ultrafabrics is an international business. It has been working in the US for nearly three decades and in 2017, the Japanese mother company, DKK, merged with US-based Ultrafabrics, taking on the latter’s name. This reinforced the business’s presence and sales platform in the US, while ensuring a continuity of Japanese design and quality.

Kanro is a publiclylisted company - rare for a Japanese specialised candy manufacturer not in the chocolate market. Over the past two and a half years, it has strongly outperformed the benchmark TOPIX index, rising from JPY750 per share in April 2022 to a peak of JPY3580 in October 2024. This rise is based on the company’s striking commercial success. Its net sales have risen from just over JPY20bn in 2019 to a forecast JPY30bn in 2024, with operating profit surging from JPY900mn to JPY3.8bn.

Tetsuya Murata President CEO

Domestically, the growth outlook is strong: Gummies only became popular in the country in the 1980s, so are still seen as a relatively new product. Kanro’s growth path will be guided by its Vision 2030, which aims to put ESG and sustainability at the heart of its value proposition, as well as encouraging digitalisation – and the international growth from its base in Japan, an excellent springboard to the world.

“Japan has a unique culture, food and lifestyle,” says Murata. “We are the fourth-largest economy in the world, with a very big consumer market. And we’re the centre of Asian business – we need to show our leadership and communicate all these strengths.”

Noboru Yoshimura President

The company is looking to further international expansion, and is open to a wide range of opportunities for partnerships as it does so. Ultrafabrics, with its internationallyexperienced management, achieves a balance of its Japanese approach and an international business culture that ensures that all stakeholders are equal, listened to, and understood. The company prides itself on its transparency and open communication with offices and partners around the world; it looks on suppliers as equal partners in a mutually-beneficial relationship.

“We are very interested in developing our business in Europe,” says Yoshimura. “We have some business in Europe in the automotive, furniture, and aviation segments, but there’s a lot of room to expand. We want to build our brand recognition globally.”

This expansion provides an opportunity for investors in Tokyo-listed Ultrafabrics. As Yoshimura notes, studies suggest that the global synthetics market will grow by 7% a year over the next ten years, and this is a market in which his company is already a leader, with a premium product. The company’s stock currently looks undervalued, given this outlook, and the strength of the Japanese brand as an exemplar of quality.

“We are very proud of our Japanese origin, particularly from a technology and manufacturing standpoint,” says Yoshimura. “International investors can trust us.”

Infcurion

SHAPING THE FUTURE OF JAPAN’S FINTECH REVOLUTION

Japan’s fintech sector is undergoing a rapid transformation, driven by a surge in digital payments adoption, advancements in open banking regulations, and a growing demand for seamless financial services.

Traditionally reliant on cash transactions, Japan has seen a significant shift towards cashless payments, accelerated by government initiatives and changing consumer behavior. At the heart of this evolution is Infcurion, a fintech pioneer that has been instrumental in bridging the gap between legacy systems and modern payment technologies.

Founded in 2006, Infcurion delivers cuttingedge solutions, including digital wallets and credit card platforms, empowering businesses and financial institutions to adapt to Japan’s rapidly changing financial landscape. With an IPO anticipated after 2025, Infcurion is set to further strengthen its leadership position, drive technological innovation, and expand its role in shaping Japan’s financial future.

Hiroki Maruyama Co-founder, President and CEO

“The inspiration to start the company came because payment methods in Japan were very behind the times – there was no network or infrastructure,” says Infcurion Co-founder, President, and CEO Hiroki Maruyama.”At the time, I was working for an international credit card company, and I felt it was time to step up and address Japan’s underdeveloped cashless situation. Since then, our goal has been to modernize the country’s payment infrastructure for future generations.”

Infcurion has played a pivotal role in driving financial technology advancements across Japan’s traditional banking landscape, providing innovative systems to established financial institutions. Maruyama has been instrumental in shaping fintech policy in Japan, not only as Infcurion’s founder but also as the first chairman of the Fintech Association of Japan, established in 2015.

One of his most significant contributions was influencing Japan’s 2017 banking law amendments, which promoted cooperation between banks and tech companies. These reforms required banks to develop and open their application programming interfaces (APIs), allowing seamless integration between financial systems.

“Open APIs have enabled us to connect institutions and significantly advanced Japan’s fintech sector,” says Maruyama.

Infcurion’s Xard platform has quickly become Japan’s fastest-growing modern card infrastructure, empowering fintechs, financial institutions, retailers, and web service providers to seamlessly issue their own Visa and JCB cards. Through API integration, clients can embed Xard’s advanced functionalities directly into their services, enabling tailored payment solutions that align with their unique business needs. This flexibility not only streamlines payment processes but also underscores Infcurion’s commitment to delivering scalable and reliable B2B partnerships.

Maruyama identifies two key competitive advantages that set Infcurion apart in Japan’s intricate payments ecosystem. Firstly, Japan’s payment infrastructure is notoriously complex, requiring a deep and nuanced understanding to navigate effectively. With nearly two decades of industry experience, Infcurion possesses unmatched expertise and insight that few competitors can rival. Secondly, as a pioneer in Japan’s payments industry, Infcurion’s systems are trusted by both established incumbents and emerging players alike. This widespread adoption speaks to the robustness and reliability of Infcurion’s technology.

With a long-term growth strategy in mind, Infcurion is preparing for its IPO after 2025, a milestone that will mark a new chapter in the company’s journey. The capital raised will be strategically allocated to strengthen its

payment infrastructure across Japan and support an ambitious M&A agenda aimed at broadening its technological capabilities and market reach. This vision follows a landmark deal in September 2024, in which Sumitomo Mitsui Financial Group (SMBC Group)—one of Japan’s largest financial institutions—invested roughly JPY 8 billion ($53.8 million) in Infcurion through a capital and business alliance.

Under this partnership, Infcurion will play a central role in SMBC Group’s payment strategy, with both entities working collaboratively to build Japan’s leading payment platform. The partnership is poised to transform business operations, enhance payment ecosystems, and drive sustained growth in Japan’s fintech landscape. Importantly, while SMBC Group brings strategic strength and resources, Infcurion retains its independence, with its capital and management structures firmly anchored by its founding leadership team—the same team that built the company into a leader in the Japanese fintech space. The alliance ensures that Infcurion can pursue its IPO at an optimal time, backed by a stable foundation and a powerful strategic partner.

The upcoming IPO will serve as a gateway for global investors to participate and support Infcurion’s growth story, contributing to its market leadership, robust technological ecosystem, and clear strategic direction under Maruyama’s leadership. The company projects a profitable financial year ending March 31, 2025, driven largely by the success of its Xard card platform, which continues to see strong adoption across diverse industries. This anticipated success positions Infcurion as an attractive investment opportunity for international stakeholders looking to gain exposure to Japan’s thriving fintech market.

The SMBC Group alliance underscores Infcurion’s unique strengths as a strategic partner. The company’s deep understanding of Japan’s embedded finance and fintech markets, combined with Maruyama’s forward-thinking leadership, allows Infcurion to serve as an ideal counterpart for both domestic and international enterprises seeking to enter or expand within Japan.

“We are very interested in international collaborations,” says Maruyama. “We already have a partnership with Coca-Cola Japan, where our system facilitates seamless and cashless sales, integrating payment and marketing through vending machines. This model has significant potential for global scalability. Joint ventures, M&A opportunities, and strategic alliances are all areas of interest for us, especially as we prepare for our IPO. Even without a formal joint venture structure, Infcurion can act as a service provider and growth enabler for global businesses looking to establish themselves in Japan’s complex fintech ecosystem.”

Looking ahead, Infcurion is not just focused on cementing its leadership in Japan, where it has been a driving force behind the nation’s fintech revolution, but is also strategically expanding its footprint on a global scale. Leveraging its deep expertise in one of the world’s most complex financial markets, Infcurion is primed to set new benchmarks in fintech excellence worldwide. With a relentless focus on sustainable partnerships, strategic international alliances, and cutting-edge innovation, the company is not just adapting to the future—it’s actively shaping it, positioning itself as a global leader in financial technology and a catalyst for transformation in the global fintech landscape.

Your Sales 10X

Want to increase your sales? Stop chasing every lead. Focus on impact. On the following pages, explore the strategies that are working today.

THE Top 10 Trends IN Small Business Sales

What’s the best way to drive sales today?

Our experts share their predictions.

by RACHEL DAVIES

Top Trends

Direct-to-consumer will be a bigger piece of the marketing pie.

For years, brands with new products had a simple playbook: Drive sales on Amazon. That’s where customers were, after all. But now, small businesses are renewing their focus on direct-to-consumer (DTC) strategies, instead of trying to win the Amazon game. “There is huge, huge competition on Amazon, and new entrepreneurs are finding it’s really hard to invest all this money to be in the first pages,” says Hope Khoury, a cofounder of Go Vertical, which has worked with over 250 inventors on developing their products and launching their small businesses. “They are relying on [other] sources so they can boom and

have brand awareness elsewhere.”

In order to incentivize more DTC sales, small business owners are getting strategic about differentiating what they offer on their own sites versus what’s offered on Amazon. For example: Tubby Todd, a small business that makes bath products primarily for babies and children, only offers bundles on Amazon—but on its own website, it also offers other opportunities.

“Amazon is for a specific Tubby Todd customer,” says Tubby Todd cofounder Andrea Faulkner Williams. “If you want to buy the bundles with two-day shipping, you can do that. But if you want to get the products at a slightly lower price, you might have slower shipping, and you can get loyalty points and other limited-edition

things that are only on TubbyTodd.com.”

Differentiators like these will draw more customers to shop directly with their favorite brands in the coming year.

Micro-influencers will make a bigger impact.

Influencer marketing is huge, but huge influencers aren’t always the best marketers. Their audiences are too broad, and their pitches can feel inauthentic. “That’s where micro-influencers crush it,” says Makena Finger Zannini, founder of The Boutique COO, a business advisory and social media strategy firm. “The more authentic, the better. That’s what people respond to, and you

see that in analytics on social media success in the last year or two.”

Michael Michalowicz, a speaker, consultant, and author of eight books on small business, agrees. “The microinfluencer knows the language of their community; they can speak with true experience and authenticity,” he says. “The macro-influencer doesn’t have that intimacy.”

Faulkner Williams prioritizes working with influencers with less than 100,000 followers for Tubby Todd content. “We always look for the mom and dad who have, like, 5,000 followers, who are working their heels off to create the best content,” Faulkner Williams says. “They’ll send you a Dropbox full of content, and they’re going to be so much more motivated than [a big-name influencer].”

Having trouble finding the best micro-influencers to work with? There are now marketplaces to help you do it, like Kale (kalecard.com) and Hummingbirds (hummingbirds.com). Both make it easy for small, hyperlocal creators to find your brand and partner with you.

3

Strategic offers will replace extended discounting periods.

Remember the 2024 holiday season?

Our inboxes were full of discount promotions, with every brand running earlier-than-ever Black Friday/Cyber Monday promotions. And what good did that really do?

“A discount code encourages the immediate transaction, but it dissuades loyalty,” Michalowicz says. “Groupon is probably the best expression of that. If I want to use Groupon, it’s not like, ‘Oh, I’m trying to find the local plumber to be my plumber forever going forward.’ It’s because I have a plumbing project and that’s one of the cheapest deals. That’s the mentality people are going in with [when using a discount code]: not seeking a relationship, but seeking a price.”

This year, we may see a correction. Finger Zannini predicts that, instead of relying on seasonal discounts, small busi-

nesses will start incentivizing customers with free add-ons—and they’ll do it throughout the year. That could mean offering a bonus item to DTC buyers, or a service enhancement to certain customers. “I think offering more value keeps your credibility, but still incentivizes people when you want to incentivize them,” says Finger Zannini. “I’ve seen quite a few clients looking into that and switching away from discounts.”

Tubby Todd’s Faulkner Williams agrees, and is approaching her own promotions with more focus. On Instagram, her brand posts monthly calendars showing exactly when promotions and new products will drop. For instance, in November, Tubby Todd had a four-day window for the Black Friday sale at the end of the month, plus three giveaways and one day where customers would receive a gift with their purchase.

4

Bold ideas will counter the digital noise.

AI slop is everywhere: on your social feeds, in your inboxes, and in your web searches. So how can a small business break through to customers? Michalowicz has an answer: Surprise them.

“People want something that’s different,” Michalowicz says. “So a restaurant that does a goth theme is going to be far more successful than Macaroni Grill. Any brand that really leverages their own unique style, where people can use it to express themselves, will find success.”

How can you find ideas that stand out? Michalowicz recommends finding your answers by asking: How are you unique? And how does your uniqueness align with what makes your customers special? “The new thing is to understand your own idiosyncrasies, desires, interests, and passions,” he says. “Then see how that can serve communities just like you.” For example, in-person businesses can offer spaces for people to immerse themselves in a unique experience. Online, businesses can offer eccentric or custom goods that allow people to show off their uniqueness.

Personalization will drive loyalty.

Imagine that you run a local HVAC business. You adopt an automated system which sends clients an SMS reminder about two hours before your technician arrives at their home. “A system does this, but it feels like you’re being given good service,” says Barry Moltz, an advisor who’s hosted the Small Business Radio Show for 15 years.

This may sound simple, but it’s an important way that AI and automations can help small businesses grow. “Think about how well Amazon does this,” Moltz says. “I log on, it greets me by name, it knows what I bought before. Technology allows even the smallest businesses to do that now.”

Michael Khoury, the second cofounder of Go Vertical, agrees. “This year, we will witness more AI introduction into everything that we do in business,” he says. The way he sees it, this can have a leveling effect—allowing small companies to engage meaningfully with more customers, even if they have a fraction of the staff that their larger competitors do. “It’s going to help these small business owners get their foot in the door.”

5 6

Communities will be monetized.

For years, businesses were told the same thing: Build your community! This meant many things, from cultivating a social following to hosting recurring events. But now, Finger Zannini says, it’s not enough to just have a community. “You have to monetize it,” she says. It can be a big, but important, mental leap to go from caring about the size of the group to prioritizing its value. “There are some people who are still vanity-metric inclined, but a lot more people come to us and say, ‘I want to understand how to convert the people that I do have [in my online community], rather than hunting for new people just for the sake of it.’”

The best way to do it, Finger Zannini says, is to connect directly with your followers, and offer unique products or services that’ll make them feel special.

This isn’t just for digital businesses or for social media. Michalowicz says it can

Top Trends

work in retail too—by returning to some oldschool tactics, like naming products after loyal customers or featuring photos of customers in the store. “If you have a deli shop, name some of the sandwiches after your customer,” Michalowicz suggests. “‘Mike’s sandwich.’ You know what sandwich I’ll get all the time, and I’ll be writing to my friends, ‘You got to go get Mike’s sandwich.’ It’s now part of my identity.”

Sustainability will become an even greater focus.

Sustainability is not exactly a new trend, but as the effects of climate change become harder to ignore, experts predict that consumers will seek out even more sustainable product options. In 2024, The Economist Intelligence Unit reported a 71% rise in online searches for sustainable goods globally over the previous five years, and PricewaterhouseCoopers’ 2024 Voice of the Consumer survey found that customers were willing, on average, to pay 9.7% more for sustainable goods.

“We are seeing this request more and more,” says Hope Khoury. “Clients want to create a sustainable product and to be using sustainable materials. I believe what’s driving this is the awareness. Inventors are becoming more and more aware of the impact of products that aren’t sustainable and the value of products that are.”

Michael Khoury anticipates that more products will be made with sustainable materials, as well as more refillable products. He also expects an increase in small businesses of all stripes reporting their sustainability initiatives to customers, like GoVertical has to inform its own decision-making. “Our own Sustainability Index forces us to consider the markets that we step into,” he says.

many more companies have launched subscription models, drawn to the predictable recurring revenue and the ability to build ongoing customer loyalty. As a result, consumers are now willing to pay for many more kinds of subscriptions—and the list will continue to grow.

Examples abound. Customers are subscribing to more products, coaching, memberships, and beyond. Finger Zannini points to a small salon that specializes in hair and makeup for events. “They’re killing with their subscriptions because people want that subscription,” she says. The Khourys shifted their own consulting business to a subscription model. They used to offer a project-based pricing structure, but now offer ongoing services at a recurring rate. “Now that we have this subscription model, we have some sort of financial stability, which allows us to plan growth strategies easily,” Hope Khoury says.

The key to offering a worthwhile subscription, these experts say, is making sure the value to your consumer is clear. If customers see the subscription as a deal—enabling them to lower their costs and increase their convenience for something they’d have otherwise spent more money and time acquiring—then you might have product-market fit.

8 9

Subscription models will become more important in new categories.

Consumers are used to paying subscription fees, but only for certain products, like software as a service or recurring meal kits. But in response to years of inflation,

Niche marketplaces will drive meaningful sales.

Amazon may be the e-commerce behemoth, but niche online retailers are thriving too—and becoming a legitimate source of sales for many small businesses.

For example: Faire sells goods from independent brands to retailers at wholesale prices. Sober(ish) carries nonalcoholic beverages. Poshmark offers fashion, home decor, and beauty products. When you sell your products through these marketplaces, Michalowicz says, you might reach fewer people—but they’re more likely to be the right people, and you’re competing against less noise.

“If I market a suntan lotion on Amazon, so do 10,000 others,”

Michalowicz says. “If I do it at the grocery store, now I’m talking about maybe 200 or 300 options. If I do it at the surf shop, maybe I’m talking 50,” Michalowicz says. “Ironically, the least expensive marketing is for the more unexpected links, and I do see business owners looking for those.”

Quality products will move to the fore.

After years of chasing low prices, customers are more willing to spend on higher quality products. Finger Zannini thinks that consumers are more swayed by quality because they’re feeling squeezed financially and being more thoughtful about spending on the whole. “I think people are so over the Shein era of cheap, fast things,” she says. “If you can tell a good story about why your product is the best, and price it in a way that reflects that value, I definitely think people are spending on those types of items. It’s because they’re being more intentional overall about their spending.”

Just making a quality product isn’t enough, of course. This year, successful small business owners will be those who have also created compelling ways to communicate their product’s unique attributes.

Michalowicz points to a recent success story—in a company that makes wool dryer balls. “You can go on Amazon and there’s countless knockoff versions, but theirs is pure wool, and it sells for $5 more. It’s basically double the price, and they are selling at a higher rate,” he says. “We are seeing that the customer is more selective, because they’re seeing their source of income dwindling. They’re realizing, If I make this purchase now, I might not be able to afford it again three more times this year.”

Barry Moltz adds, “There’s always going to be those people who just go for the lowest price, but I think folks do pay for value and customer experience. I tell small business owners that you really should have a high-value product, because not everybody will buy it, but some of your customers will.”

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The True (Sales) Power of Social Media

It's an obvious marketing tool. But Glow Recipe has mastered social media strategically to build their K-beauty brand into a $300 million a year business–and they love to share.

by LIZ BRODY

For most companies, social media is a given. You hire a team, pump out content, try to channel the viral spirits, maybe hire some influencers. It’s a lot. But if that’s all, you may be missing out on social media’s greatest business potential. When you’re fully strategic, your social media can become a virtuous cycle where customers buy, speak, are heard, and see themselves integrated into the product—which they then buy more of, shout louder about, and share like crazy. When that happens, “community” isn’t just an overused buzzword; it becomes the capital that fuels your growth.

Sarah Lee and Christine Chang, founders of Glow Recipe, have pulled that off. Their K-beauty brand has 1.6 million followers on TikTok, who directly fuel their $300 million in annual sales. Social media is “a core part of our business DNA,” as Lee puts it. More than a tool to boost sales, it’s a strategy that defines their road map, marketing, and brand direction. “We’re not just putting out products that look beautiful and hoping for the best,” she says. “And we’re not just having a one-way conversation. We want feedback from our customers—and a lot of it is incorporated into our next steps. We call it our recipe for success.” Here are the ingredients.

Build systems to hear your customers.

Social media’s power can also be its weakness. As a place where people say anything, you can get honest customer feedback. But “anything” also means a lot of noise—and that can drown out valuable voices and insights. That’s why you can’t just rely on employees casually checking the comments. You need systems, and Glow Recipe has two.

To appreciate these systems, it helps to know Glow Recipe’s founders. Lee and Chang were born in South Korea and loved bonding with family and friends at public bathhouses; that’s where they’d splash spoiled milk on their faces, soothe rashes with watermelon rind, and swap tips and strategies together.

The two women met working at L’Oréal in Seoul, and then transferred to New York, where they discovered a very different skincare culture: In America, people tend to apply cosmetics alone in the bathroom, not in public at a bathhouse. So when they decided to start their own brand—pooling $50,000 in savings to build Glow Recipe around fruit-based skincare products—they wanted it to be defined by that sense of warm belonging they’d loved at the bathhouses. Social media became the way to do that, and they prioritized hiring digital natives.

So how do they systematize their social media use?

First, they make it central to their internal discussions. The company’s Monday morning meetings always start with the customer care team sharing users’ comments and DMs. Then they talk about implications for the business. For example, if many people react the same way on an Instagram post, should that be factored into developing a new product or changing a marketing strategy?

Of course, social media moves faster than a weekly Monday meeting can—so that’s why they have a second system: a Slack channel called “#tiktok-ig” where the team shares notable commentary from social media 24/7.

Both systems have helped shape product development. In one Monday meeting, for example, the team noticed a recurring theme in the comments: Consumers kept asking about acne. “Can I use this on acne-prone skin?” one person wrote. “Any products for pimples?” another asked. That led Glow Recipe to develop a formula for adult breakouts. Launched last September, it’s called Blackberry Retinol Blemish Serum, and firstyear sales are projected at $15 million.

Another example: Glow Recipe has a product called Dew Drops, which gives your skin a “dewy glow.” Customers started to mix it with their own makeup bronzer and post their results on social. Glow Recipe had nothing to do with this trend, but immediately noticed it—and took action. The brand hired a chemist to make a dewy serum that also delivered a hint of tint, exactly the way that users on social media said they liked it. The result was a new product called Hue Drops, which debuted last February and it's on track to do $30 million in first-year sales.

TACTIC #2/ Never hide, always respond.

Aconsumer survey by Sprout Social found that the No. 1 most memorable thing a brand can do is respond to customers. Glow Recipe believes in that deeply. “If you leave a comment on our social media, you will be getting a response from our team,” says Chang.

Then they take it a step further.

For example, not all comments are warm and fuzzy, and the bad ones travel fast. Rather than ignore them, Lee and Chang see those moments as an opportunity to engage with their community by responding with the right comeback.

For example, they once launched a product that over time developed an unexpectedly bad smell. Some users compared it to ham; others to hot-dog water. Kathleen Lights, a beauty influencer with over 2 million Instagram followers, described it as “rancid dog-piss.”

“We were upset, obviously,” says Lee— and they knew they needed to respond.

So first, Glow Recipe fixed the product. Then it needed to announce the updated formula, but with the right sense of humor. To do that, the brand posted an edit of Lights’ original video, where she repeatedly insulted the product’s smell (but praised what it did for her skin). “It brought us so much engagement,” Lee says. “I think our community really felt that their feedback was taken seriously.”

TACTIC #3/ Use imperfections to build trust.

In the early days of Glow Recipe, Instagram grids were neatly curated, with carefully posed and skillfully polished posts. But the #nofilter movement soon took off, with more raw, authentic, “catch me in a messy moment” content. Consumer expectations shifted as a result: The less fancy the editing and professional finessing, the more trustworthy a post or video seemed to be.

Glow Recipe tapped into this trend early. They stopped retouching their imagery years ago, and their models don’t wear makeup— baring dry, broken-out, and uneven skin.

In 2023, Lee and Chang doubled down on this approach. For their big annual ad campaign, they held a casting call for their customers—and chose people without ever seeing them. Instead, Glow Recipe just asked for essays about how these customers related to their skin. Lee and Chang worked with a third party to blind anything that could potentially lead to unconscious bias, like names and locations. Not only did it build trust and a sense of shared values with their customers, but the marketing basically said: Our products look great no matter who you are, so we’ll show it on regular people like you.

Three thousand people applied, and 10 were chosen. Lee and Chang saw the winners for the first time over Zoom. One of the winners had written about having Down’s Syndrome. “I remember that call the most,” says Lee. “It was just her in the beginning, but when we announced that she was the winner, her whole family who’d been hiding under the screen stood up—and her mom, the siblings— they were all crying. I mean, I had to turn off my Zoom, it was so incredibly emotional.”

The campaign was such a success that they did a second one last year, with 4,000 applicants. Will they repeat it in 2025? Lee and Chang hedge. After all, for any good social media recipe, the final ingredient is: You’ve got to keep switching it up.

TACTIC #1/

AI Made His Marketing. He Made $70K on the Promotion.

Learn how to build a powerful promotional campaign using free and low-cost tools like ChatGPT.

by DAN S. KENNEDY AND PARTHIV SHAH

AI Marketing

Ever wish your business could go for bigger marketing opportunities, but you simply don’t have the employee bandwidth or extra budget to hire an outside agency? You may be right about the resources. But you’re wrong about pursuing those opportunities.

These days, with a few handy tools like ChatGPT or Claude AI, which are free or around $20 a month depending on your usage needs, you can quickly create a highly effective, standout promotional campaign targeted expressly to the audience you want to reach—no need for a marketing team. Once you’re familiar with generative AI’s potential, there’s no end to how imaginative and profitable you can get. To see how this can play out, consider the following case study.

Jeff J. Hunter is an entrepreneur who helps companies use AI and build virtual teams to enhance productivity; he has also hosted a podcast called Savage Marketer. But even with all this expertise, when one of his former students, Samuel Young, asked, “Got any plans for Black Friday?”

Hunter said no. Between running his business and managing high-ticket consulting contracts generating over $300K annually, he felt too busy to orchestrate a sales campaign himself. Young, now a fellow marketer, pushed. “I have a plan for how we can use AI to fully automate and optimize

an entire Black Friday promo,” he said. “And I think if we work fast, we can hit $50,000 in sales—in one day.”

Hunter was naturally intrigued. He agreed to move forward, and he brought Young onto the project. By then it was November 4—less than a month before Black Friday. To do something ambitious would be a furious race against the clock. And it was. But ultimately, they would surpass Young’s expectations.

As you read how they did it, keep in mind that, while Hunter’s product was a course about using artificial intelligence, it could

have been anything. A fancy backpack for hikers. Software for architects. A new collection of handbags or jewelry or dog raincoats. And although Black Friday and Cyber Monday have passed, the tactics Hunter and Young used can be applied to building all kinds of campaigns, from Mother’s Day to a 10th anniversary sale to Pride Month.

Check out their game plan and test drive your own version for similar innovations and results.

Begin with lead generation.

Hunter and Young tackled this question first: How could they generate high-quality leads? They knew that would be the key to their campaign’s success. The best way to go, they decided, was to create a super compelling lead magnet, such as a free asset or special deal offered to customers in exchange for their contact details.

What could it be? To brainstorm a concept, they turned to Claude AI (similar to ChatGPT, but better for training on large datasets and copywriting). They gave it information about the AI-related course they were selling, which is called the “AI Persona Method.” Then they asked: “Provide me with five lead-magnet ideas.” Among the several options Claude suggested, the one that most resonated was “100 AI-Powered marketing prompts,” which aligned perfectly with their promotion’s focus. But instead of just running with Claude’s initial phrasing for the prompts, Hunter and Young refined them extensively by hand to ensure maximum quality. This hybrid approach enabled them to tap into AI for ideation while still delivering a polished, human-crafted marketing asset. Once finalized, the prompts were placed behind an opt-in form as a free downloadable resource.

Now Hunter and Young needed to drive traffic to this lead-capture landing page. Once again, they called Claude AI to the task. They fed it their new asset and wrote this prompt: “Create an opt-in page for my lead magnet below. Lead magnet: ‘100 Marketing Prompts.’ Do not use the word ‘Lead Magnet’ in the copy; it should be referred to as prompts. Follow the StoryBrand Framework [a seven-part process using narrative principles to clarify a

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AI Marketing

brand’s message] to create the copy.”

Next, Hunter and Young focused on stirring up excitement by enticing their contacts, including those they gathered from the lead magnet, to join a waiting list for their upcoming promotion. They used ChatGPT to generate email copy and social posts for this list-building outreach effort.

Within days, hundreds of people subscribed to their waiting list, clearly signaling high anticipation for their Black Friday launch, whatever it might be. Hunter and Young had yet to nail it down.

Get a crystal-clear view of your audience.

Rather than just guessing what their audience might want from a Black Friday deal, Hunter and Young decided to go directly to the source and survey customers about their needs.

They used ChatGPT to generate the questions and chose these seven:

1

/ What are the top three most time-consuming tasks in your business?

2/ What are the top three biggest expenses in your business?

3/ What are one to three things that would help you grow your company that you do NOT have time for right now?

4/ What are your top three questions about AI?

5/ What are the top three things you want to learn about AI?

6/ What challenges have you had with AI in the past, if any?

7/ What is your total budget for the next 12 months for AI training if it helped you save a lot of time and money?

The questions were open-ended, allowing respondents to explain their own contexts and interests in detail. Over 140 people completed the survey, drawn in by the lead magnet incentive. While openended questions provided richness, analyzing all that qualitative data would be time-consuming for a human. Instead, Hunter and Young had AI take on the job by creating a dedicated ChatGPT data analysis persona.

gate,

They’d bolted out of the gate, getting AI to handle time-consuming processes like copywriting, design, and video production, but didn’t stop there.

An AI persona is basically a simulated virtual employee with specialized skills. (This, of course, is exactly the thing that Hunter teaches in his business.) To create one, just as you would train a new human team member, you feed a tool like ChatGPT information specifically related to the task you want completed. For example, you could provide frameworks, datasets, and other contextual and experiential materials. To create their AI data analyst, Hunter and Young shared survey results so that the AI tool could quickly analyze and recognize customer patterns and extract insights. They would train several AI personas for their campaign, convinced that by doing so, they’d enable superior performance for each workflow need versus taking a blankslate generic AI approach.

Once they were satisfied with their AI data analysis persona, they prompted it: “Analyze this new research survey with data from my audience. Summarize the resulting data and create a list of the top three most common answers in each category.” ChatGPT came back with a wealth of information, capturing metrics like:

→ The most frequently cited time-consuming tasks

→ Top business expenses

→ Budget ranges and willingness-to-pay levels

Typically, Hunter sold his training for between $29 to $297 in special promotions, but the data told a different story about what potential customers would be willing to pay. Respondents shared that they longed for more robust, higher-priced solutions aligned to real pain points versus shallow insights at a discount.

Convinced, Young proposed disregard-

ing conventional wisdom and creating a premium, AI-powered bundle packed with value and bonuses that could command top dollar. Seeing the figures himself, Hunter agreed to bet against his Black Friday pricing assumptions and aim higher, designing a high-end offer anchored at $997.

Craft an irresistible deal.

Now that they had quantitative data on their audience’s needs and constraints, Hunter and Young were ready to formulate the offer. But rather than just relying on their own ideas, they wanted to tap into time-tested direct-response principles. Once again, they turned AI into the expert they needed, taking the novel approach of actually training ChatGPT on the fundamentals of high-converting offers. They gave it the “$100M Offers” training by Acquisition.com cofounder Alex Hormozi; to do this, they uploaded transcripts that covered multiple hours of Hormozi’s video content. This enabled ChatGPT to internalize Hormozi’s frameworks on risk reversals, fast action bonuses, and stacking value. With ChatGPT now trained on structuring offers, Hunter and Young could incorporate their survey data and intended core program to script the perfect promotion.

Once they had a draft offer, they ran it through one more AI-based analysis. To see how it stood up in the real world, they uploaded lead offers from their competitors onto ChatGPT and had it compare them to their proposed deal. ChatGPT provided additional suggestions for improvement, which they used to further refine specifics around the deliverables and bonuses they were including.

Ultimately, they settled on bundling

The Technology Behind the Next Generation of Medicine

Few startups begin their journey rooted in Nobel Prize-winning technology, but ONI is not your typical startup. While the world buzzes about AI and the latest social media apps, ONI was born with a purpose: to take decades of complex, groundbreaking super-resolution microscopy research, once reserved for elite labs with vast budgets—and make it accessible to everyone.

From the very start, ONI set a bold vision: to accelerate human discovery and combat disease by enabling scientists to see and understand the microscopic intricacies of life. This vision has remained steadfast since 2017, driving every decision and innovation along the way.

Microscopy

Reimagined: A Bold New Standard

To grasp the scale of ONI’s ambition, consider this: the team sought to create a microscope capable of visualizing molecules 5,000 times smaller than a single human hair, all within a desktop system so intuitive anyone could use it. They wanted to democratize a tool once considered inaccessible, turning it into a workhorse for labs around the globe.

The journey began humbly in a small Oxford lab, where a team of engineers and software developers worked tirelessly. In those early days, ingenuity was key—solutions involved RC helicopter parts, water bottle caps, and even paper clips. With limited resources but limitless determination, ONI embraced a scrappy, innovative spirit. They may not have known how to navigate manufacturing, fundraising, or people management, but they knew how to build, iterate, and dream big.

From Scrappy Beginnings to Scientific Excellence

Through relentless iteration, ONI rapidly gained traction. Hardware and software improvements came in waves, each refining the user experience and advancing the technology. This iterative process cultivated a growing customer base and deepened ONI’s connection to the scientific community.

Today, ONI’s focus is sharper than ever. The company has evolved from simply providing cutting-edge hardware to delivering a complete solution centered on customer outcomes. This shift opened doors to partnerships with

leading pharmaceutical companies, offering tools that address critical research gaps and empower groundbreaking discoveries. By combining scientific expertise with a deep understanding of customer needs, ONI has positioned itself as a key enabler of innovation in drug development.

A New Era of Discovery

Scientific progress often depends on technology, and over the past two decades, advances in research tools have accelerated at an unprecedented pace. Yet the development of more effective therapies remains a slow and inefficient process. ONI believes the next leap will come from a deeper understanding of biology—by seeing and measuring life in its native state.

This approach promises to transform how we understand disease progression, unlocking new insights that will fuel breakthroughs in cancer treatments, gene therapies, and vaccines. With every iteration of its technology, ONI has stayed true to its mission while continuously refining its offerings to meet the needs of its customers.

Behind Every Breakthrough

Behind every new vaccine, life-saving cancer drug, or gene therapy lies a microscope—and behind that microscope, there are scientists pushing the boundaries of discovery. ONI is proud to play a role in these groundbreaking moments, empowering researchers to uncover insights that could lead to fewer side effects, better treatments, and longer, healthier lives.

As ONI looks to the future, it remains inspired by the possibilities its technology unlocks in the hands of its customers. The journey that began in a small Oxford lab has grown into a global mission to revolutionize science and transform the way we fight disease.

AI Marketing

Hunter’s foundational AI Persona Method training with over a dozen hours of supplementary trainings in areas like marketing, copywriting, and social media growth. These modules directly addressed the time-intensive activities and expensive optimizations their survey data indicated customers needed the most help with.

With the core offer in place, Hunter and Young added limited-time “fast action” bonuses for those who were first in line, like one-on-one strategy consultations with an AI consultant and a live lead-generation workshop. They capped these extras to the first 10 and 25 customers, to further crank up the excitement and evoke FOMO among people still on the fence. This strategy played a key role in accelerating sales velocity out of the gate.

The final step was to construct two upsells to increase the average cart value. They decided on Hunter’s AI consulting program for $1,497 and high-ticket consulting for $9,000, both of which would dramatically increase profits during the sale.

Here’s how they presented it.

Create a video sales letter.

The next step focused on converting visitors to buyers. Hunter and Young knew that having an exceptionally compelling video sales letter (VSL) would be critical. But writing an effective 10-minute script and filming high-quality footage would normally demand extensive resources, not to mention time, which they were running out of.

Luckily, AI could automate the heavy lifting as long as they provided enough relevant training data. They used ChatGPT to create a dedicated VSL creator persona. To do this, they trained it on a framework by Kevin Anson, an expert on video ads, along with other sources to internalize high-level sales psychology and storytelling. They also uploaded Hunter’s own materials to help ChatGPT capture his distinct personality, voice, and positioning. After sufficient priming, ChatGPT was ready to script an initial VSL outline. After a few rounds of revisions, Hunter and Young arrived at the final story arc they felt flowed logically while embedding their core offer details.

AI Tools Used in the Campaign

Here’s a quick glance at the AI products Jeff J. Hunter and Samuel Young deployed to create their successful Black Friday promotion.

Claude AI/ An advanced natural language model capable of generating longform, humanlike content—with minimal editing needed—from raw outlines. Claude is better than ChatGPT for training on large datasets and copywriting.

ChatGPT/ A popular conversational AI that can dynamically understand and respond to multifaceted prompts. Leveraged for ideation and creation across assets and analyses, ChatGPT is great for a fast workflow and handling multiple tasks.

Descript/ An audio/video editing application with integrated AI speech to text allowing seamless voice overdubbing and manipulations to footage by editing the transcript.

Captions/ A cost-effective video service that uses AI to auto-generate text captions and enables footage augmentation like eye and head movements.

Envato Elements/ A stock media marketplace providing ready-made digital assets to incorporate in video and other projects. You can use the AI search tool to find exactly what you need for your video project.

Facebook Ads Manager/ Facebook’s advertising platform features advanced targeting capabilities powered partly by AI, enabling fine-tuned and optimized ad delivery.

With the script locked in, they were ready to tape it—but that would normally take ages. So rather than memorize lines or use cue cards, Hunter simply read the words off his computer to get the VSL recorded before the end of the day. The only catch? This meant that he was staring at his screen, and not into the camera lens. Two additional AI tools came to the rescue here: They used Descript, an audio/video editing app that transcribes speech to text, and Captions, which, among other magic, can correct eye contact in post-production. (Descript has this feature too, but they pre-

ferred Captions’ version of it.) Using footage of Hunter looking directly at the camera for a few seconds, these apps overlaid his glance into the clips so his gaze held viewers’ focus. Simple lighting adjustments reduced any uncanny valley effect, which is that creepy feeling that something’s almost human, but not quite.

Young also used Descript to effortlessly insert pickups and overdub lines, and tweak verbiage after the fact instead of refilming parts of the video. Envato—which provides stock media and other readymade digital assets—helped spice things up

PuroClean

AI Marketing

with slick graphics and editing effects in between cuts of Hunter speaking. By blending AI and human creativity into an impactful final cut, the 10-minute VSL went live just days before the Black Friday launch.

Generate traffic.

With their sales page and VSL complete, Hunter and Young now turned to driving traffic across media assets. They repurposed sections of their VSL transcript into email sequences and social media content. Rather than just using what they had, they asked AI to tweak the content for each marketing channel. Once again, they created a special AI persona that could specially tailor emails. For this one, they supplied ChatGPT with training data on successful copywriting approaches and summarizing key patterns from their market research. This allowed them to communicate their offer’s applicability toward resolving recipients’ precise pain points and challenges with further personalization. These emails aimed to progressively warm up the audience, showcasing solutions, highlighting benefits, and finally ushering visitors to the sales page once it was live. Here’s an example:

Hey [first name],

I know what you’re thinking . . .

“AI sounds complicated.”

“I don’t have time to learn it.”

“It doesn’t work for my business.”

“AI-generated content sucks and makes me sound like the Terminator.”

Believe me, I’ve heard all the objections before. But here’s the truth: My method makes AI simple and practical for any business. As a business owner myself, I know you don’t have time for overly complex technology. My method breaks AI down into easy-to-implement steps tailored specifically to your business needs.

It’s been tested now by a couple hundred business owners. You’ll be able to start small by automating repetitive tasks like content creation. Then build up your AI capabilities as you become more confident. I can’t give you all the details of what I’m

When you speed toward an event, it seems far more exciting. Your customers feel it too.

Going that fast is tough, but it’s a lot easier now if you use AI.

you toward an event, it seems far more Your it’s a lot easier use AI.

working on just yet...But I can tell you that spots will be extremely limited! If this sounds like something you don’t want to miss then here’s the deal: Reply “AI” back to this email to join the waiting list today and be one of the first to learn about my crazy Black Friday offer. When you join right now, I will send you my 100+ Proven AI Marketing Prompts so you can start leveraging AI right away. Reply “AI” back to this email to join the waiting list today!

Jeff J. Hunter Founder of

the AI Persona Method

Along with the emails, Hunter and Young got extra exposure through Facebook and Instagram retargeting ads, which automatically show customers the most relevant promotion asset or product based on their previous interaction with your business. This cross-channel effort enabled them to reach their audience at multiple touch points when visibility and conversion inclination were highest.

As new customers purchased the product, Hunter and Young kept fine-tuning aspects of the funnel as well as audience targeting across media channels for maximum response. For instance, they expanded their retargeting beyond just past site visitors to incorporate look-alike audiences that mirrored their existing customer profile. New visitors from these expanded pools proved highly qualified.

All this paid off. Hunter and Young saw over $50,000 in sales—and that was before Black Friday even arrived. By the time the deal ended, over 50 additional customers were acquired, generating over $70,000 in total sales.

Looking back, in only 25 days, they’d car-

ried out an ambitious promotion with just the two of them. They’d bolted out of the gate, getting AI to handle time-consuming processes like copywriting, design, and video production to hit their deadline, but didn’t stop there. They also used the technology to come up with creative assets and drive exposure. Then they combined all that with carefully crafted scarcity and urgency elements, again sharpened by AI to knock it out of the park. There’s something about a sprint like Hunter and Young did that creates a dynamic effect. When you speed toward an impending event, it seems far more exciting than if it were happening over a long period of time, and your customers feel it too. Going that fast in business is tough, but it is a lot easier now—if you intelligently use AI to build a hyper-efficient marketing machine. And the more you train the tools, the faster and better they get for the next promotion.

This essay was adapted from the book No B.S. Guide to Successful Marketing Automation, by Dan S. Kennedy and Parthiv Shah, published by Entrepreneur Press. Find it at entrepreneur.com/bookstore.

The Rule of One

When you try to do too much, you reach nobody. This strategy helps you focus and boost sales. Here’s how it helped one entrepreneur go from $0 to $4,985 in a month.

by JUSTIN WELSH

Your business will take off when you nail two parts of an important equation: You must have something valuable to offer, and you must present it in a way that attracts the right buyers. Once you find that sweet spot, revenue should start to accelerate.

This may sound obvious. But let me emphasize the words that entrepreneurs often overlook: the right buyers. Many entrepreneurs chase any buyers, or hope that, by blasting their message out across every possible channel, the right buyers will simply reveal themselves.

It doesn’t work like that. Instead, you must strategically simplify who you’re talking to and how you’re talking to them. I call it the “Rule of One.”

I’ve seen this work for companies large and small. I was once the director of strategic sales at Zocdoc, then the chief revenue officer at PatientPop. Now I’m an advisor and an investor, and I spend most of my time helping entrepreneurs build strong online businesses.

One such entrepreneur approached me recently. His focus

was helping companies improve their e-commerce systems, and he clearly knew what he was doing. But he had zero revenue for three consecutive months. He was frustrated and questioning whether he should continue with what he was doing.

By following the Rule of One, he made $4,985 in one month.

Here’s how it works.

sequence issues that keep Shopify store owners up at night.

And at the end of each social media post, we agreed he’d make an offer: “I’ll audit your email sequences for free.”

The idea was simple: Get some free clients, prove you can solve the problem, and then use those results to attract paying customers.

you hire to fix your store’s email sequences? Someone who “does digital marketing” or someone who specializes in “fixing email sequences for Shopify stores just like yours”?

The answer is obvious, and it’s exactly why I often harp on the importance of being the “it” person in a small niche.

The hidden benefits

The zero-revenue reality

The

The entrepreneur’s name is Paul.

When we first started talking, I asked how he was spending his time. Sure enough, he revealed a very common problem: Paul was trying to be everywhere, serve everyone, and sell everything.

Here’s what his typical day looked like:

→ Scheduling Instagram posts at 7 a.m.

→ Writing LinkedIn content at noon

→ Recording TikTok videos in the afternoon

→ Commenting on hundreds of other posts in between

This guy was exhausted, frustrated, and not making any money. There’s no worse combination than that.

The Rule of One solution

Iencouraged Paul to break from his routine and try something different— the Rule of One.

For 90 days, I asked him to commit to one platform (LinkedIn), one specific offer (fixing email sequences for e-commerce stores), and one specific customer type (Shopify stores doing $20K to $50K in monthly revenue).

No other platforms. No other offers. No other customer types.

Most people would look at this strategy and say, “I’m limiting my opportunities!” And that was Paul’s hesitation too. But after some convincing, he agreed to give my strategy a try.

The 90-day transformation

For the first month, Paul zeroed in on one thing: sharing email marketing problems that Shopify store owners face every day. No generic marketing tips. No broad e-commerce advice. Just specific, painful email

And it worked. Three store owners took Paul up on his offer, giving him the opportunity he needed to demonstrate his expertise. And even more importantly, it gave him real results he learned from and can now share with future prospects.

From free to paid clients

The next month, that’s exactly what Paul did: He started sharing real results that put concrete numbers behind his work, including:

→ A pet store boosted repeat purchases by 22%

→ A small fashion brand doubled its welcome series conversion

→ A craft soup company increased cart recovery by 34%

And after nine weeks, something interesting started to happen. Store owners began reaching out to him. And not for brain-picking calls, either. Or free audits. They were asking for help with their email sequences.

So Paul opened his calendar for short discovery calls—but only for stores in the specific target range we agreed on: $20K to $50K per month in revenue.

Over time, Paul streamlined these calls to make sure they followed the same path: review the current email setup, identify gaps, and, if they were a good fit, offer his $997 program.

The results

After 90 days, Paul had five clients at $997 each, a waitlist of three more, and a small reputation as “the Shopify email person.”

This approach created more opportunities, not fewer. Because when you’re known for solving one specific problem really well, people remember you, and refer you to other people with the same problem.

Just think about it. Imagine you’re a Shopify store owner. Who would

The Rule of One doesn’t limit opportunities. It creates them. And there are several other benefits that come from niching down:

→ Paul’s content got better because he focused on one specific topic

→ His expertise deepened because he solved the same problem repeatedly

→ His positioning became clearer because he wasn’t trying to be everything to everyone

How to implement this for yourself

Ready to try the Rule of One? Remember, the concept is simple:

1/ Choose one platform where your ideal customers actually hang out.

2/ Choose one offer that solves a specific, expensive problem.

3/ Choose one customer type to target—defined so narrowly that most people are automatically disqualified.

Then commit to this focus for 90 days. No platform-hopping. No offer-tweaking. No audience-shifting.

The hardest part will be resisting your urge to expand. But even when you start seeing success, stick with your “one” until you’ve mastered it and gained some good traction. Believe it or not, this is fun work. Because by simplifying your message, you get to focus on improving your message—instead of frantically blasting it in every direction. By shrinking, you finally get to grow.

Justin Welsh shares tips like this every week in his newsletter, The Saturday Solopreneur. Subscribe at justinwelsh.me.

hotos

If These Photos Could Talk

Do you have a photo that speaks to you? One that you look to for inspiration? Four successful founders showed us the photos they love, and shared the inspiration they draw from it.

Here are their stories. as told to BILL SHAPIRO

WHY THIS PHOTO INSPIRES ME

Julia Hartz Cofounder and CEO, Eventbrite, says…

In a dark-paneled room, around an imposing conference table, sit 22 middle-aged men and one dynamic, gorgeous figure at the front—wearing a brilliant aqua-blue dress, hands folded in her lap, and a look of confidence, determination, and perhaps a little bit of terror behind her eyes. This is Katharine Graham in 1975, and to me, this photo is a symbol of a CEO leading The Washington Post through some of the most tumultuous times it’s ever seen.

I first saw this picture about a decade ago, when I read Graham’s memoir. She had never run a company before, and she never imagined she’d be the CEO, but after the unexpected death of her husband, she stepped in and stepped up. And one of the biggest things she had to handle was Watergate. Yes, she had some trepidation about her role—she wrote that she would do things like practice saying ‘Merry Christmas’ over and over again before a work holiday party. That resonated with me because I feel like, at times in my career, I’ve been two to three times

more prepared than the average person. But the other thing that spoke to me is that everybody has to be a first-time CEO, and the realization that, even if it doesn’t always feel natural, after years of learning and growing, you’re actually ready.

Looking at this picture, I feel grateful for people like Katharine who carved a path for women to lead big companies and sit at the boardroom table. It reminds me that in 62 years, we’ve come a long way. I mean, the scene in this picture couldn’t be farther from what you’d see at an Eventbrite board meeting. Our board is 87.5% female, and there’s racial diversity, diverse backgrounds, diverse ways of thinking. But this photo also reminds me—given how low the numbers are for female representation in both public company CEO positions and on public company boards—how much further we have to go.

Anytime I’m in a position where I need to influence others through principles and I need to be resolute, I think about leaders like Katharine. And I ask myself, ‘What would Katharine do?’

Kind of kidding…but not really.

No, I’m actually not kidding.

To me, she’s the epitome of grit and resilience, of grace under pressure. I’m inspired by her strength.”

Blake Scholl

Founder and

Founder and CEO, Boom Supersonic, says…

This is the very first Concorde test flight in Britain in April of 1969, as it was getting ready to land in Gloucestershire, England. You can see that lots of people—families, kids—had come out to see what everyone thought would be the future of air travel. About a decade earlier, we’d gone from propeller planes to the first jet airliners that were literally twice as fast, and now here comes the Concorde, which was supposed to be the next great leap forward.

And yet when I look at this picture, the dominant emotion I feel is sadness. Really deep sadness. Because this is an aspirational view of the future of flight that no longer exists. And not because we’ve replaced it with something better, but because we never figured out how to take it mainstream. At the same time, staring at the photo, I feel driven to finish what was started.

I began thinking about supersonic travel in 2004, when I was visiting a museum in Seattle. One of the last Concordes was on display, and I remember seeing the airplane and thinking, ‘What happened? Why is the most impressive passenger plane ever built in a museum?’ About 10 years later, when I started Boom, I came upon this photo. It instantly became a motivator for me. I wanted to restart the supersonic innovation machine and fix the things that were wrong about the Concorde—like its lack of affordability, sustainability, and convenience—and pick up where it left off. For me, there’s both great inspiration and motivation in this photo, and I use it in talks to illustrate that a faster and more sustainable future of travel is overdue and well within our reach.

This photo also reminds me of another first flight: the one made by the Wright Brothers. They were bicycle mechanics— complete outsiders—and no one expected them to invent the airplane. One of the advantages outsiders have is that they haven’t spent an entire career learning all the stale, conventional wisdom. I didn’t have time to go get a four-year degree

in aerospace, let alone a whole career in the field. I had to get to the ‘first principle’ truths [boiling a problem down to what you know to be true, and starting again from there]. When I did, it stripped away what everyone else believed to be true and allowed me to focus on what could be. The question of ‘Who thinks in first principles?’ has been hugely influential for us as we build this company. It’s one of the key things we look for when we hire because if a couple of bicycle entrepreneurs can invent the airplane, we can’t write anybody off. Innovation can come from anywhere.”

WHY THIS PHOTO INSPIRES ME

Miguel Garza

Cofounder, Siete Foods, says…

Angie Hicks

ngie Hicks

Cofounder, Angi (formerly Angie’s List), says…

I took this picture of a sunrise at an Angi’s offsite in Miami, and every time it pops up on my phone, it reminds me that I get to start anew. When you’re running a business, it’s important to say, ‘OK, whatever didn’t quite go right yesterday, or did go right, let’s learn from it, and see how we’re going to change things.’ It might even mean doing the exact same thing, but trying it in a slightly different way, because you want to get to success today.

I remember the early days of starting Angie’s List, now 30 years ago. I was just out of college, and things were not going well. One day ran into the next, and they were all hard. Honestly, I was pretty upset. I was only selling maybe one membership a day and I had this realization: This was not a summer job. This was my career. This was it! So I called my cofounder, who was more of an advisor, and we met at a bakery down the street from the office, and I was like, How do I get through this? He gave me a pep talk, and I didn’t say much, but I did tell him I wasn’t going to quit. I learned early on that starting a business is a marathon. Sure, you’ll have your big wins down the road, but if you’re not celebrating those small wins, those everyday wins—and if you don’t treat every day like a chance to have a win—you just burn yourself out. So now I think about work in little moments rather than the big milestone moments.

I waited a while to take this picture. I was hoping those rain clouds would clear and that the barge would move out of the frame. But that didn’t happen, and in the end, both made the photo better. And those footprints at the bottom of the picture? In a way, they’re like work: Sometimes we get caught up in something that didn’t turn out as planned—but watching the tide wash them away made me realize that not any one of them is so important that it has to rule the day. I often say to our team, ‘Let’s make sure that we’re keeping things in perspective. We’re not running an ER here.’”

This photo captures one of life’s little moments that you might just gloss over, but when you look at it through the lens of understanding what Siete has become and who our family is, it’s almost prophetic. The picture was taken 32 years ago at the kitchen table in the home where we grew up, in Laredo, Texas. There’s my sister Veronica getting ready to blow out her birthday candles on her 11th birthday—seven years before she was diagnosed with multiple autoimmune conditions—and me, the annoying little brother. I’m getting ready to, well, let’s say I’m getting ready to ‘assist’ her with the candles. In the picture, you can see my sister, a seasoned older sibling with Ninja-like reflexes, pull back her hair, cover my mouth, and continue with her mission. Siete is a family business and, yes, I’m the leader, but in the family hierarchy, I sit at the bottom. I’m still the baby. And when I look at this photo with her hand covering my mouth, I’m like, ‘This still happens today!’

The picture reminds me that even though I run the business, we would not be successful if I was the only one speaking. One thing we talk a lot about in the organization is humility. As a leader, you’re not infallible, so to me, the metaphor of somebody putting their hand over my mouth says a lot. If someone stops me or alerts me to something I may have done wrong, they’re actually doing right by me because they’re helping me to listen, understand, and then subsequently be better fit to lead. Encouraging people to do this gives them permission to participate and challenge and be a part of the organization. What’s it like working with family? Well, a lot of the answer is in this photo. For one thing, we’re gathered around the table, which we do today—we still eat lunch together. The moment is centered on food, and, of course, our business is building a better-for-you Mexican-American food brand. But our core values are also present: ‘Family first, family second, business third’ and ‘juntos es mejor’—or ‘together is better’—really does embody the culture we try to cultivate within Siete. Looking at this old photo, you realize how much influence you get from life’s simple moments.”

Bill Shapiro is the former Editor-in-Chief of LIFE magazine.

WHY THIS PHOTO INSPIRES ME

Garza Foods, says…

500 Franchise

HALLOF FAME

Want to buy a franchise that’s tried, true, and tested? This list is for you—because it’s 46 years in the making.

Entrepreneur has been producing its Franchise 500 for 46 years, and during that time, we’ve seen hundreds of franchise brands come and go. To have staying power, a brand must succeed out of the gate, maintain momentum over time, and constantly adapt and evolve to remain relevant and resilient. Few can do that— so the ones that can deserve a close look.

That’s why, every year, we publish this list—a chronicle of brands that have outperformed the industry for decades, and have become a constant presence on our Franchise 500 ranking. To appear in our Hall of Fame, a brand must have ranked

in the Franchise 500 consecutively for 25 years or more. For brands that have made the ranking less often than that— between 10 to 24 years on the list—we acknowledge them in what we call the “10+ Club.” We also recognize the brands that have ranked No. 1 in their categories for 10 or more years.

If you’re looking for a brand with a long history and a strong track record of success, this list may serve as a great starting point in your franchise search, but it should not be taken as an endorsement of any particular company. As we say with all our lists and rankings, it’s vital that you do your own careful research to find the opportunity that will be best for you. So read the company’s legal documents, consult with an attorney and an accountant, and talk to current and former franchisees before investing.

HALL OF FAME

ASK A FRANCHISE LEADER/

What is the key to long-term success in franchising?

THREE ANSWERS/

Jiffy

YEARS

“Franchising success comes from understanding the business from all perspectives. Starting as a franchisee before becoming CEO gave me invaluable insight into the challenges and opportunities our operators face, allowing me to lead with empathy and a shared vision. Equally important is having a product that stands out, and above all, staying true to a clear mission and vision.”

—Wan Kim, CEO, Smoothie King

Anago

“Having open and direct communication within your system is critical for the sustainability of your franchise. Make this a part of your culture so franchisees are always clear on the vision and goals of the brand. It’s important they are on board with the direction of your franchise, but let them own their local decisions and local impacts.”

—Chris Rowland, CEO, Pet Supplies Plus

“The key to long-term success in franchising boils down to two things: People and processes. You can’t win with just one piece of the puzzle. But if I had to choose just one, it would be people.”

—Jeff Oddo, owner and CEO, City Wide Facility Solutions

Franchise

THE 10+ CLUB

Anytime Fitness Ranked 20 years

Cinnabon Ranked 20 years

Papa Johns Ranked 20 years

Spherion Staffing Ranked 20 years Ace Hardware Ranked 19 years

15–19 YEARS Ranked For

Baskin-Robbins

Franchise

THE 10+ CLUB

Continued from previous page

Primrose Schools

Ranked 18 years

Senior Helpers

Ranked 18 years

Bojangles

Ranked 17 years

Chester’s

Ranked 17 years

Camp Bow Wow

Ranked 16 years

H&R Block

Ranked 16 years

Pearle Vision

Ranked 16 years

Ziebart Ranked 16 years

ASP-America’s Swimming Pool Company Ranked 15 years

BrightStar Care

Ranked 15 years

CULVER’S → RANKED 15 YEARS

CMIT Solutions

Ranked 15 years

CPR Cell Phone Repair Ranked 15 years

Culver’s Ranked 15 years

Jet-Black/Yellow Dawg Striping

Ranked 15 years

L&L Hawaiian Barbecue Ranked 15 years

The Learning Experience Academy of Early Education Ranked 15 years

Pop-A-Lock

Ranked 15 years

Rainbow Restoration Ranked 15 years

School of Rock Ranked 15 years

Transworld Business Advisors Ranked 15 years

ASK A FRANCHISE LEADER/

How do you keep an established brand like yours fresh and innovative?

THREE ANSWERS/

“One of our guiding principles is ‘franchise members first.’ By actively seeking and incorporating feedback from our franchisees as well as their customers, we ensure our services, technology, and marketing are industry-leading.”

—Mike Cline, chief development officer, Allegra Marketing Print Mail and Image360

—Mike chief officer, Allegra Print Mail and Image360

“Innovation has been in our DNA since day one. When I founded Cruise Planners in 1994, I took a risk on a home-based model, long before remote work was mainstream. Today, we stay fresh by continuously improving our processes and investing in smarter, more efficient solutions. In 2025 alone, we launched 25-plus marketing, training, and technology initiatives.”

—Michelle Fee, founder and CEO, Cruise Planners

—Michelle founder and Cruise Planners —Jo Primrose Schools

“We are committed to research and innovation, while also remaining anchored to our mission. We are continually enhancing our curriculum and evolving our franchise model to adapt seamlessly into any community to meet the need for high-quality early education and care.” —Jo Kirchner, CEO, Primrose Schools

THE 10+ CLUB

from previous page

10–14 YEARS

ASK A FRANCHISE LEADER/

How has the franchise industry changed since your brand began franchising?

THREE ANSWERS/

“Franchising has evolved to become more diverse, inclusive, regulated, and innovative. There is now a greater emphasis on advanced technology, enhanced training and support, and a stronger focus on brand consistency and cohesiveness across the industry.”

—Kathy George, president, Spherion Staffing & Recruiting

“The franchise industry has become more crowded, offering countless options. To stand out, brands must cut through the noise and clearly showcase the value and support they provide to franchisees. Authenticity and transparency have never been more important.”

—Kristen Pechacek, president and CEO, MassageLuXe

Kristen Pechacek, and CEO, MassageLuXe

“The industry has experienced significant changes, especially in technology and customer expectations. Digital tools have transformed how we connect with guests, from online reservations to loyalty programs. Customers today seek personalized, sustainable dining experiences, challenging brands like ours to adapt and innovate while staying true to the essence of Japanese BBQ.”

—Aki Yamaguchi, COO, Gyu-Kaku Japanese BBQ Restaurant

Franchise

Huntington Learning Center is proud to be honored with Entrepreneur’sHall of Fame Award. As a trusted leader in tutoring & test prep for nearly five decades, our commitment to shaping students’ bright futures has earned us the reputation of excellence — year after year. Make an impact in your community as a Huntington franchise owner — because our mission “to give every student the best education possible” stands the test of time.

WHY HUNTINGTON?

• Over 45% higher average revenue than our closest competitor

• Low initial investment starting at $163,521

• $5 billion industry and projected to grow to $18 billion by 2028 (Source: Grand View Research)

• Close to 50 years as an industry leader in tutoring and test prep

Aziz Kabani

Huntington Learning Center Multi-Center Franchise Owner, Orlando, FL

Franchise

THE 10+ CLUB

ASK A FRANCHISE LEADER/

What do you think the future holds for the franchise industry?

THREE ANSWERS/

“The industry will continue to grow as entrepreneurs seek opportunities to own businesses with established support systems. The key will be adaptability. The entire industry will have to be open to embracing innovation while maintaining a clear vision of what makes our different brands unique.”

—Heather

—Heather Nykolaychuk, president, Budget Blinds

“The incorporation of artificial intelligence into every franchise model is a given. AI is becoming a game changer on streamlining processes, reducing costs, and enhancing efficiency.”

—Jen Chaney, vice president of franchise development, Right at Home

“The future of franchising will be shaped by the growing demand for authentic experiences and meaningful connections. While technology will continue to advance, successful franchise systems will be those that maintain their human touch while embracing innovation, that can adapt to changing consumer preferences while staying true to their core values and mission.”

—Brian Britton, president and CEO, Kilwins

—Brian and Kilwins

Franchise

#1 IN CATEGORY

A Child

Kona Ice Ranked No. 1 in category 10 years

A $3 Million Pool-Cleaning Business

You don’t need to be an expert to be a successful franchisee. Just look at Tiffiny Consoli, a pool rookie who is now Pool Scouts’ top franchisee. by CARL STOFFERS

Tiffiny Consoli is thriving in the pool industry. She was the first-ever Pool Scouts franchisee, and now operates a $3 million business with 23 vehicles and 19 routes in the Raleigh, North Carolina, area. Given her success, people are sometimes surprised to learn: At the start, she knew nothing about pools.

Instead, Consoli came from a career in retail management. She loved customer service, but wanted to run her own business. She started looking for a franchise to buy, and in 2016, she took the leap and joined Pool Scouts. As she’d discover, a lot of her old skills proved valuable in her new business—often in ways she didn’t necessarily expect. Here, she explains how she learned the ropes, and why she believes the home services sector is an excellent fit for women entrepreneurs.

You were Pool Scouts’ first franchisee.What gave you the confidence to dive into a field that you had no experience in?

I first looked at a Mosquito Joe franchise, which at the time was owned by [parent company] Buzz Franchise Brands. The timing and what they had available in my area didn’t work for me, but when I went in to talk to them, I gained a lot of confidence. They had great people working for them. About a year later, they said they were starting Pool Scouts and I called them immediately. I was the first one in the door.

Did your background in retail management help you as a new franchisee?

As a store manager, I had a budget to adhere to through-

out the year, and was reporting to a director that held me accountable to those numbers— but I also had customers coming in the door every day that I wanted to satisfy. I learned a lot in terms of working with people, understanding the importance of relationship building, and managing financials.

What were some of the hardest lessons you learned in the early years of running your franchise?

First, you’ve got to get customers. But you also have to have employees to support those customers. Now you’ve got to hire, but you have to train those employees and maintain them year after year. And if you are in a seasonal business, it’s hard. In the beginning, I didn’t realize those things would be so challenging.

What advice do you have for aspiring franchisees when evaluating opportunities?

in the brand itself. There has to be synergy there. I think some franchisees miss the fact that you’re responsible for the success of your business. The franchisor is not responsible for that. They will give you the template to be successful, but at the end of the day, it falls on you to do everything they have set out for you to do.

If someone was considering the pool service industry, what

would you tell them?

need to be every day. So I think that makes it more accessible for women and those that are balancing a career and family.

What’s your biggest piece of advice to potential franchisees?

Don’t do it just because you think you’re going to make a lot of money. It requires so much determination and tenacity that it better be something you really enjoy doing.

Be a Doer, Not a Dreamer

How do you build a great brand? The same way you build a great body. This former championship bodybuilder (and Hotworx founder) explains. by CARL STOFFERS

Some people dream of being an entrepreneur.

Others actually become one. So what separates the two? “The difference is the level of self-discipline and commitment,” says Stephen Smith, a former champion bodybuilder and serial entrepreneur.

“That’s what it takes.”

Smith has both, and he’s needed it. His first franchise was a tanning salon called Planet Beach, and he grew it to hundreds of locations—until the foundations of the business changed, and he couldn’t recover. (More on that below!) But instead of quitting, he channeled those lessons into a new franchise: It’s called Hotworx, a fast-growing fitness brand that now has more than 730 locations in the U.S., Ireland, and the Middle East.

Hotworx combines two hot activities: sauna and fitness classes. Users choose between 30-minute isometric sessions and 15-minute high-intensity interval training (HIIT) workouts, both conducted in specially designed infrared saunas. The idea is to promote detoxification and rapid calorie burn, while building muscle and flexibility.

Here, Smith talks about coming back from crises and how to make the most of a big idea.

What happened with your first franchise?

Planet Beach grew to nearly 400 locations around 2007, at its peak. Then the financial crisis happened in 2008 and started the decline of the industry and the brand. In 2010, a federal excise tax was passed by Congress on tanning. Ten percent of all indoor tanning services had to pay into that, and still have to. So that put the nail in the coffin.

How did you move forward?

That sent me into the Dark Ages of my career as an entrepreneur. Then, in 2014, I started doing

Bikram yoga. I was traveling, and an exercise physiologist friend suggested doing yoga in a sauna. It was the proverbial light-bulb moment for me

How quickly did you start working on your idea for Hotworx?

I went right back to New Orleans and started working on a design. We spent about 10 months getting a prototype to market and have not changed the dimensions or basic design since. When you recognize an opportunity as an entrepreneur, you do what it takes to get spectacular results.

What is the biggest challenge in scaling Hotworx?

It’s leadership at the unit level—finding the right location managers. The last two or three years have been tough to recruit talent. They don’t have to be an all-star gymnast or former NFL player, but they need the athletic mentality, an attitude of being hungry to succeed. One of my favorite questions to ask candidates is to rate their work ethic on a scale of 1 to 10. If they don’t say, “I’m a 10,” it’s a no.

What’s a lesson you learned that other entrepreneurs looking to innovate should know? You’re not going to have everything perfect, but don’t launch unless you feel like your product is stellar. Think hard in the beginning, because it all starts with the product. You don’t have anything if you don’t have a good product.

What do you need to be successful in franchising?

Having passion is not enough. You need the self-discipline to go out and execute. You learn from athletics what it takes to win; a lot of it boils down to that discipline. You might have a great group as a team, but if you can’t be coached to have the discipline, you’re not going to succeed.

What do you see as the biggest challenge to the fitness industry in 2025?

Overzealous expansion, premature IPOs, and the continued lack of attention paid by franchisors to the profitability of their franchisees. There’s smart, scaled growth, as opposed to just going all out and suddenly, at the end of the year, you’ve got 100 more franchises—but 50 [of those] people shouldn’t even be franchisees.

A Very Profitable Work Ethic

How do you run a brand’s highest-grossing franchise location? This former cop has an answer: Get your hands dirty. by CARL STOFFERS

Larkin Combs was always a hard worker. During his childhood summers, while his friends went to the Jersey Shore, he worked on his grandparents’ farm in Georgia. “Ten hours a day, from when I was seven until my teenage years,” he says.

He eventually spent 25 years as a police officer in Union County, New Jersey. That’s how he met Jason and Steven Parker, founders of K9 Resorts—a dog boarding and daycare franchise that was founded in 2005, now has 40 units and 130 in the works, and often runs community initiatives like donating Kevlar vests to local police departments.

franchise that

When Combs retired in 2019 and prepared to move to Apex, North Carolina, to be near his elderly mother, the Parkers asked if he wanted to open a franchise there. Combs said yes, and he turned his business into the brand’s highest-grossing franchise location—with nearly $3 million in revenue in 2024, and two more locations on the way.

So how did a former cop end up as the top franchisee of a pet care franchise? He followed these three strategies:

1/ The buck stops with you.

Do whatever it takes to succeed, because the responsibility is on you. “For four years straight, I didn’t miss a day,” Combs says. “And during COVID, I was answering the phone; I was running around with a sponge, cleaning. It was rough.”

2/ Go a step above.

As the old saying goes: Treat people the way you want to be treated. “But there’s a step above that—treat them how they want to be treated,” Combs says. “Not every customer wants to be treated the same. Recognizing that gives you a higher level of service.”

SUCCESS TIP FROM THE FRANCHISOR:

3/ Invest in employees.

Having patience and empathy can go a long way, and reduce turnover. For example, one of Combs’ employees made some mistakes, but Combs understood it was because of a mental health challenge. “I’ve worked with them for three years, and they’re now a supervisor. They can grow.”

What’s the secret to Larkin Combs’ success?

According to K9 Resorts co-CEO Jason Parker, franchising requires “all-in” long-term dedication more than industry background. “Larkin reminds me a lot of myself and my brother when we were starting out: For a good five or six years, we worked seven days a week,” Parker says. “No customers could walk into our location and not see us at the front desk. And that’s the same thing with Larkin. He’s committed, the customers know and like him, and they know he’s there.”

YE YES S, Y YOOU U CAN BE A PAR PARTT--TIME

OWNER

TIME

Most franchises are full-time work. But some can be side hustles. Here’s how to create a money-cranking side gig.

by TIM PARMETER, founder and CEO of FranCoach

Can you keep your job and start a franchise?

It’s a good question that many people don’t even think to ask. But the answer is yes.

This is what is commonly referred to as being a “semi-absentee owner.” It’s a fancy way of saying that your role as a franchise owner is part-time. Most semi-absentee owners have another commitment, typically a corporate job. But some people own multiple businesses and take on semi-absentee roles in all of them. Others are partly retired and make a little money with a franchise as a side hustle.

So what does semi-absentee ownership look like?

It can differ greatly from one franchise to the next. The first thing to know is that “semiabsentee” is one of the most poorly defined terms in the industry. If you ask 10 franchisors to define it, you will likely get 15 different answers. Second, their policies about it are all over the map. For example, not every franchise is open to it, while other brands seriously focus on it; some even have a fairly even split between semi-absentee and full-time owners.

Confusingly, these differences are not industry-specific. You could find two franchises that do the exact same thing— and while one of them loves semi-absentee owners, the next requires every owner to work full time. Even when franchises allow semi-absentee owners, there are usually major differences in what that means. For one brand, you might have to commit to 10 hours per week; the next may require 20 to 25 hours per week. Again, this can happen with two franchises that are similar in just about every other way. You might also run

into a franchise that says it is open to semi-absentee owners but doesn’t really have any experience with that model.

Unfortunately, information about semi-absentee ownership is not something that you can typically get with a Google search. To find out where a franchise stands, you pretty much have to talk to them. Or you can get guidance from a

franchise coach who has a deep understanding of the space and can give you a behind-the-scenes look at the options.

What’s the big appeal?

Most people who go the semiabsentee route have financial reasons. In some cases, it’s simply an extra revenue stream. In others, it’s a step toward the freedom of becoming your own

boss. Maybe you’re the breadwinner of your household and find it too difficult to ditch your steady paycheck and jump straight into business ownership, but you still have the goal of gaining more control over your life. For you, owning the franchise as a secondary revenue stream and growing it to the point where you feel safe leaving your job can lead

to your eventual exit strategy from the corporate world.

Another inviting scenario is using semi-absentee ownership as a strategy to diversify your financial assets. Whether you have a good job that you plan to stay in or are an entrepreneur juggling multiple ventures, a semi-absentee franchise is a way to have an impact on the return you get on investments. People with this mindset see a 401(k) or stock market investment as a conservative option—but one which they have no control over. A franchise, however, is completely within their control. There is the potential to reap higher rewards than if the return is left up to the volatile market.

Are you cut out to be a part-time owner?

There are a few things to think about here. How big of a control freak are you? Do you always have to make every single decision, regardless of how big or small it is? Can you delegate, or are you a micromanager? Can you multitask? Do you really have the time to commit to the franchise? And, more importantly, will you commit that time?

As a semi-absentee owner, your main role will be managing the manager who runs the dayto-day operations of your franchise. If you are not comfortable with this, then semi-absentee ownership is not for you.

If it still sounds like a possibility, consider the following:

#1/ Time

I’m the founder and CEO of FranCoach, a company that helps aspiring franchisees find the right brand for them. When our team talks to clients about semi-absentee ownership, one

of the biggest topics we discuss is time. How many hours a week can you dedicate to your franchise? This does not mean being physically present at the location (if there is one)—it just means that, if you say that every day from 8 a.m. to 9 a.m. you are going to focus only on your franchise, can you really do that?

Again, most of this time can be remote. Semi-absentee ownership could look like checking sales metrics on your laptop while sitting on your couch in the evening, or ordering supplies while you sip coffee on your patio on a Saturday morning. But either way, you have to put in the required amount of effort.

At a minimum, I would say that an aspiring semi-absentee franchise owner should be able to dedicate 10 hours per week to the franchise. Again, much (and sometimes all) of this can be remote.

#2/Accessibility

You will have to hire a manager, but if they need you, how quickly can you reply? If they call you at 10 a.m. on a Tuesday, how often will you

Slack message within an hour or two, we have worked with a few clients who cannot always be that responsive. For instance, we had an airline pilot who became a semi-absentee franchise owner. I really want to believe that he was not up there in the cockpit flying the plane while making calls and texting people about his franchise. Everyone knew that while he was flying, there was no way he would be available for his manager. Other days, when he was not working, he would be very involved with the business. His particular accessibility needs had to be considered in finding the right franchise—one that had systems in place to make this semi-absentee ownership model possible.

#3/ Owner goals

After you get a handle on the amount of time per week you can honestly commit and your accessibility, then it’s crucial to consider what you want to do. Just like an owner who will work full-time in their franchise, you also need to think about the “Get Out of Bed Test.”

Maybe you really love

your time will be focused on general oversight of the business and keeping a close eye on the financials. Whatever the case— hey, you’re the boss!—it is crucial to be honest with yourself about what you want to do, what you enjoy doing, what you don’t enjoy doing, and if you can accommodate everything as a semi-absentee owner.

#4/ Future role

It’s also important to think through what will likely happen in a few years—and if those options sit right with you and fit into your long-term life plans. Say, for example, your franchise grows to the point where you feel safe leaving the corporate world, or that among your multiple businesses, you now want to spend more time running this one. Then what? Do you meet with your manager, the person who worked like crazy to build your franchise to the point where you can quit your job, and say, “Thanks for everything, but I’ve got it from here...you’re fired!”? I mean, you could. But typically, that is not the right thing to do.

IN SOME CASES, IT’S SIMPLY AN EXTRA REVENUE STREAM. IN OTHERS, IT’S A STEP TOWARD...BECOMING YOUR OWN BOSS.

GROWING [THE FRANCHISE] TO THE POINT WHERE YOU FEEL SAFE LEAVING YOUR JOB CAN LEAD TO YOUR EVENTUAL EXIT STRATEGY. YOUR OWN BOSS.

be able to answer the phone? If you cannot pick up, how long will it take you to shoot them a text? An hour? A day? A week? It doesn’t matter what the answer is, as long as it is honest. The crucial thing here is to make sure that proper expectations are set for everyone involved.

While most people could reply to a call, text, email, or

connecting in the community and networking. Well, some of your 10 hours per week might be spent getting out there and doing that type of work for your franchise. On the other hand, maybe that sounds awful—and in that case, you might hire a general manager who is good at networking.

Maybe you are more operations-driven, so much of

Generally, there are two paths—and in both, the manager stays on. In the first, the owner keeps everything running smoothly with the existing franchise and then finds a second franchise to launch. Perhaps they run that second franchise full time, or perhaps they hire another manager and essentially become the semi-absentee owner of two franchises. The

more common path is that the owner focuses on growing the existing franchise and adding more locations or territories. At that point, the owner may choose to be much more handson and dive into the minutiae, but usually, they will stay at a high level, managing all of the pieces on the board.

If all this sounds attractive to you, and you end up deciding to be a semi-absentee owner, then you’ll join many others who have found it a successful and fulfilling path. Because the details differ greatly from one franchise to the next, it’s important to find the model that best aligns with your ideal role, available time, and accessibility as an owner. There’s one that’s exactly right for you.

This essay was excerpted from the book Becoming a Franchise Owner by Tim Parmeter. Buy a copy at amazon.com.

Here’s How One Couple Does It

When Varune and Karie Maharaj bought a Bodybar Pilates franchise in Katy, Texas, they knew nothing about Pilates. They hadn’t ever even taken a class.

So why’d they buy? The franchise allowed semi-absentee owners, which they needed to be because Varune works full time in the energy industry and travels often, while Karie has paused her career to raise their three daughters ages 6 to 13. Also, the couple had been living in Trinidad, where they’re from, and could only fully move to Houston nine months after the business opened as they awaited the necessary paperwork and appointment to immigrate. They became semi-absentee owners in 2023. And today Varune puts in about 15 hours a week and Karie 20, mostly working on the big-picture aspects of the business, like strategy, retention, and member appreciation. In March, they’re opening their second studio. Here’s how it’s going.

Are the hours what you expected to put in?

VARUNE: The thing we learned is that to get the business off to a great start, you have to put the work in up front. Regardless of if you’re semi-absentee or not—but particularly if you are looking to have a business on the side where you don’t have to dedicate full-time hours to it—you do need to put the time in and get this thing up and running. There were times we were in the studio every day at the beginning. Now there are many days we never go in.

What would you advise someone considering semi-absentee ownership?

KARIE: If anyone is thinking about a franchise, do so carefully; don’t rush into it. Understand what you’re signing on for, because a lot of franchises do not provide the support that Bodybar does. Speak to other

studios or other franchisees there. Look at the infrastructure that’s in place and make sure you understand the numbers.

And what have you learned about being semi-absentee owners?

KARIE: One of the biggest things that people, I think, overlook when they expect to be semi-absentee is the dependence on their staff. Our staff is like our family. They are treated that way, and their opinions matter. We are constantly trying to develop them. It’s not just about coming and answering the phones at the front desk, right? We give them opportunities outside of that to build their skills.

VARUNE: You have to have good people. When you get the right people in there, you can be as absentee as you want.

Move Forward WithYour Business Goals

Aspiring to become a business owner? Discover what these franchises have to offer to help make your dreams a reality.

Beyond Burgers: QSR Owners Find Success in MassageLuXe

If you’re a franchise owner looking to diversify into a high-reward, low-stress business model, MassageLuXe offers the perfect solution. Savvy franchisees in industries like QSR (Quick Service Restaurants) are already reaping the benefits of shifting and/or diversifying into the wellness industry with MassageLuXe.

Take Amrish Patel as an example. A former Checkers franchisee with a background in gas stations and liquor stores, Amrish converted one of his Checkers locations into a thriving MassageLuXe spa.

“I realized that food wasn’t my passion. I wanted to enjoy what I do, and MassageLuXe gave me that. I love going to my locations—this is one of the best businesses I’ve ever done.”

About MassageLuXe

MassageLuXe is a premier franchise opportunity in the thriving wellness industry. With recurring revenue from membership-based massage, facial, and body services, our model is designed for simplicity and profitability. Backed by proven systems and support, franchisees enjoy unmatched growth potential. MassageLuXe

 Startup Costs: Low initial investment compared to QSR franchises.

 Niche Benefits: Recurring membership revenue and high-demand services.

 Ease of Operation: No inventory of perishable goods or specialized skills required.

 Proven Success: Over 100 locations and growing nationwide.

Why MassageLuXe? Unlike food franchises, MassageLuXe is easier to operate. There are no high capital requirements for equipment, no food costs, and no prior industry knowledge needed. The primary cost is labor, allowing franchisees to focus on customer satisfaction and business growth. Plus, the recurring revenue from membership-based services positions for consistent cash flow.

As a MassageLuXe owner, you’ll tap into a growing demand for wellness services. Beyond massage therapy, there are expansion opportunities in skincare and body treatments, making it a robust and versatile investment.

About Freeway Insurance

Freeway Insurance, founded in 1987, offers nationwide coverage through a “click, call, or come-in” approach. As part of Confie, the nation’s leading personal lines distributor, Freeway provides a variety of auto, home, and business insurance options. Discover franchising opportunities at www.freewayfranchise.com.

Freeway Insurance Facts

 Startup Costs: Standard franchise fee of $25K/unit. Veterans’ fee is $15K.

 Niche Benefits: Non-standard insurance with multiple carriers. Present in underserved communities.

 Incentives: Veterans, employees, and multi-unit discounts.

 Number of National/Global Franchise Units: Fifty franchise locations in operation and multiple locations in various stages of development.

“At Freeway, we empower customers with choices—offering multiple carriers and plans to ensure they find coverage that fits their needs and budget.”

– Cesar Soriano, CEO of Freeway Insurance

Franchise with Freeway: Expanding to Meet Rising Demand

With auto insurance costs rising—by as much as 54% in some states—drivers are searching for affordable options and turning to agencies and brokerages that offer more choices. Freeway Insurance, a division of Confie and the nation’s largest personal lines insurance distributor, is meeting this demand by rapidly expanding its franchise network. Franchise locations have surged 118% in just two years, making Freeway the fastest-growing auto insurance franchise.

Freeway’s reputation for excellence continues to grow. For the ninth consecutive year, Insurance Journal has ranked Freeway Insurance as the #1 personal lines agency in the U.S. based on total 2023 revenue among independent agencies and brokerages.

“Many drivers are facing challenges with major carriers because they have fewer options,” said Cesar Soriano, CEO of

Freeway Insurance. “At Freeway, we provide access to multiple carriers and plans, helping customers secure coverage that fits their needs and budget—especially in states where prices are rising the most.”

Freeway’s proven franchise model is attracting ambitious entrepreneurs who bring leadership and a mission-oriented mindset to business ownership. Honorably discharged veterans can own a Freeway franchise for just $15K—a significant discount from the standard $25K fee. Multi-unit and employee discounts are also available.

“Veterans possess the discipline and drive that make them exceptional franchise owners,” Soriano added. “We’re proud to help those who serve build successful businesses with our trusted brand.”

With more than 1250 retail locations

and many more in development, Freeway Insurance is poised for continued expansion in 2025. Franchisees benefit from a recognized, growing brand, and customer trust is evident, with Freeway earning an impressive 4.6-star rating on TrustPilot®

“Auto insurance is complex, with ever-changing state regulations,” Soriano said. “Our franchisees find it incredibly rewarding to help customers navigate their options and find the right coverage.”

About Döner Haus

Döner Haus is redefining QSR with a takeout-focused concept bringing authentic German-style Döner Kebabs to the U.S. Founded in 2023, it serves 100% filler-free, Zabiha halal meats in fresh Turkish pide bread. With a tech-driven, efficient model, Döner Haus delivers bold flavors at speed and scale.

Döner Haus Facts

 Döner Haus does one thing & does it rightserving authentic German-style Döner Kebabs

 Döner Kebabs are the next big thing in food, coming over from Europe and set to take the US by storm

 Döner Haus offers efficient, streamlined operations with a very focused menu primarily for takeout and delivery

 Extremely fair 3% royalty rate and 2% brand development fund to allow franchisees to grow with the company

Hottest New Franchise: Döner Kebabs Take America

Delicious, portable, and a staple of European street food culture, authentic Döner Kebabs from Germany are set to take the U.S. by storm, and Döner Haus is leading the charge. With a commitment to quality and a nationwide distribution system already in place, Döner Haus gives franchisees a ground-floor opportunity to introduce this iconic food to the market at half the franchise fees of competitors.

STREAMLINED AND FOCUSED MENU

Döner Haus has a simple mission: do one thing and do it right. Their commitment to authenticity and quality sets them apart, from 100% filler-free, organic halal meat to custom-made pide bread made just like in Germany. Every step of the process is designed to deliver the bold, authentic flavors that have made Döner Kebabs a staple across Europe.

With a focused menu offering Döner Kebabs in a sandwich, wrap, or box, Döner Haus stays true to what it does best. The result is a healthy, delicious, and truly authentic Döner experience, bringing a taste of Germany to the U.S. market.

THE DÖNER HAUS DIFFERENCE

Döner Kebabs are Europe’s number one street food and a $6 billion industry in Germany alone. Launched in 2023 in New York City, Döner Haus has quickly proven its success, with annual revenues exceeding $1.9 million at its initial launch. The company has built a 50 state distribution system to ensure consistency across all its stores, with robust proprietary technology to back it up. And with a focus on take-away and delivery, Döner Haus stores have reduced footprints and overhead that allow franchisees to

secure prime real estate in high-traffic areas other concepts cannot afford.

FRANCHISE OPPORTUNITIES

Döner Haus provides a streamlined, turnkey franchise model with fees set at half the industry standard. The concept is designed for efficiency, eliminating unnecessary overhead while maintaining high operational standards. Franchisees receive support with location selection, staff training, branding, and day-to-day operations, ensuring a smooth launch and sustained success as you enter an untapped street food market.

The Fastest-GrowingFranchises of 2025

Looking to buy a popular franchise? Start with this list—and find the rocket ship that’s right for you.

by TRACY STAPP HEROLD

If you’re buying a franchise, you’ll want a brand with great growth potential. Here’s one way to assess that: Look at the ones already growing the fastest. Growth can be a sign of a successful brand—whether it’s a new concept that caught on quickly, or an older one that continues to evolve and adapt. That’s why each year, we like to look at the data we collected from our annual Franchise 500 application process and identify the brands that are growing the fastest.

On the following pages, you’ll find the top 150 fastest-growing franchises for 2025, based on their net franchise unit growth in the U.S. and Canada from July 31, 2023, to July 31, 2024. Altogether, these brands added a combined total of 11,294 North

American franchise units during that period. That’s a 9.5% increase over the total growth we saw on 2024’s fastest-growing list—a sign that the franchise industry as a whole is ramping up its growth!

Keep in mind as you look over this list that it is not intended as a recommendation of any particular franchise. Growth can be one indicator of a strong franchise system, but there are many other factors to consider as you do your own careful research. Before investing in any franchise opportunity, you should always read the company’s legal documents, consult with an attorney and an accountant, and talk to current and former franchisees to make sure the investment is right for you.

3

4

Jersey Mike’s Subs Subs and Philly cheesesteaks TOTAL UNITS (Franchised / Co.-Owned) 2,825/36

U.S./CANADA FRANCHISE GROWTH +296 STARTUP COST $203.6K-$1.3M

5 Corvus Janitorial Systems Commercial cleaning TOTAL UNITS (Franchised / Co.-Owned) 2,253/0

U.S./CANADA FRANCHISE GROWTH +294 STARTUP COST $7.6K-$32.5K

6 Wingstop Chicken wings, tenders, and sandwiches, fries, sides

TOTAL UNITS (Franchised / Co.-Owned) 2,300/52

U.S./CANADA FRANCHISE GROWTH +245

7

Wireless Zone Wireless devices, services, and accessories

TOTAL UNITS (Franchised / Co.-Owned) 743/0

U.S./CANADA FRANCHISE GROWTH +242

STARTUP COST $190K-$445.5K

8

Cruise Planners Travel agencies

TOTAL UNITS (Franchised / Co.-Owned) 2,961/1

U.S./CANADA FRANCHISE GROWTH +242

STARTUP COST $1.9K-$20.5K

U.S./CANADA

14 Kona Ice Shaved-ice trucks

TOTAL UNITS (Franchised / Co.-Owned) 1,810/4

U.S./CANADA FRANCHISE GROWTH +166

STARTUP COST $173.4K-$222.1K

15

Hotworx 24-hour infrared sauna fitness studios

TOTAL UNITS (Franchised / Co.-Owned) 729/5

U.S./CANADA FRANCHISE GROWTH +156

16

Tropical Smoothie Cafe Smoothies, salads, wraps, sandwiches, flatbreads TOTAL UNITS (Franchised / Co.-Owned) 1,463/1

U.S./CANADA FRANCHISE GROWTH +152

COST $300K-$720.5K

17 Club Pilates Reformer Pilates classes

TOTAL UNITS (Franchised / Co.-Owned) 1,082/0

U.S./CANADA FRANCHISE GROWTH +149 STARTUP COST $196.5K-$458.6K

18

Scooter’s Coffee Coffee, espresso, smoothies, pastries, breakfast items

TOTAL UNITS (Franchised / Co.-Owned) 776/24

U.S./CANADA FRANCHISE GROWTH +146 STARTUP COST $894.5K-$1.4M

19

Buildingstars Commercial cleaning TOTAL UNITS (Franchised / Co.-Owned) 1,187/14

U.S./CANADA FRANCHISE GROWTH +145

COST $2.4K-$53.2K

The Fastest-Growing Franchises

20

StretchLab

Assisted stretching TOTAL UNITS (Franchised / Co.-Owned) 514/0

U.S./CANADA FRANCHISE GROWTH +135 STARTUP COST

$156.2K-$386.1K 21

TOTAL UNITS (Franchised / Co.-Owned) 5,712/253

U.S./CANADA

$602.4K-$1.99M

/

$290.3K-$508.9K

23 Del Taco Mexican/American food

TOTAL UNITS (Franchised / Co.-Owned) 458/138

U.S./CANADA FRANCHISE GROWTH +118

STARTUP COST $1.3M-$3.1M 24

Top Rail Fence Residential and commercial fencing TOTAL UNITS (Franchised / Co.-Owned) 166/0

U.S./CANADA FRANCHISE GROWTH +115 STARTUP COST

$112.9K-$213.4K 25

Planet Fitness Fitness clubs

TOTAL UNITS (Franchised / Co.-Owned) 2,358/259

U.S./CANADA FRANCHISE GROWTH +111

STARTUP COST $1.5M-$5.2M

26

The UPS Store

Shipping, packing, package management, mailboxes, printing, faxing, shredding, notary services

TOTAL UNITS

(Franchised / Co.-Owned) 5,678/15

U.S./CANADA FRANCHISE GROWTH +110

STARTUP COST

$100.9K-$495.9K

27

Take 5 Oil Change Oil changes

TOTAL UNITS

(Franchised / Co.-Owned) 405/672

U.S./CANADA FRANCHISE GROWTH +109

STARTUP COST $232.8K-$2M

28

Five Star Bath Solutions

Bathroom remodeling

TOTAL UNITS

(Franchised / Co.-Owned) 203/6

U.S./CANADA FRANCHISE GROWTH +99

STARTUP COST

$125.5K-$266K

29

GameDay Men’s Health Men’s hormone replacement therapy and wellness services

TOTAL UNITS

(Franchised / Co.-Owned) 103/6

U.S./CANADA FRANCHISE GROWTH +94

STARTUP COST

$227.1K-$386.5K

30

Nothing Bundt Cakes Bundt cakes and gifts

TOTAL UNITS

(Franchised / Co.-Owned) 595/17

U.S./CANADA FRANCHISE GROWTH +94

STARTUP COST

$585K-$1.1M

31

Zoomin Groomin Mobile pet grooming

TOTAL UNITS

(Franchised / Co.-Owned) 134/0

U.S./CANADA FRANCHISE GROWTH +91

STARTUP COST

$95.9K-$188.1K

Travelin’ Tom’s Coffee and beverages

(Franchised / Co.-Owned)

FRANCHISE GROWTH

Fire, water, and other damage cleanup, restoration, and reconstruction

(Franchised / Co.-Owned)

FRANCHISE GROWTH

38 Playa Bowls Acai, pitaya, coconut, chia-pudding, and oatmeal bowls; smoothies, juices

TOTAL UNITS (Franchised / Co.-Owned) 239/24

U.S./CANADA FRANCHISE GROWTH +74

STARTUP COST $188.7K-$636.5K

39

Dave’s Hot Chicken Nashville-style hot chicken

TOTAL UNITS (Franchised / Co.-Owned) 205/6

U.S./CANADA FRANCHISE GROWTH +70

STARTUP COST

$619.8K-$1.96M

40

Dog Training Elite

(Franchised / Co.-Owned)

FRANCHISE GROWTH +83

STARTUP COST

$173.6K-$203.3K

35

Soccer Stars

Youth soccer programs

TOTAL UNITS (Franchised / Co.-Owned) 127/9

U.S./CANADA FRANCHISE GROWTH +80

STARTUP COST

$73.3K-$106.3K

36

Fastest Labs

Drug, alcohol, and DNA testing, background screening

TOTAL UNITS (Franchised / Co.-Owned) 230/1

U.S./CANADA FRANCHISE GROWTH +79

STARTUP COST

$111.5K-$185.5K

37

The Joint Chiropractic Chiropractic services

TOTAL UNITS (Franchised / Co.-Owned) 837/127

U.S./CANADA FRANCHISE GROWTH +75

STARTUP COST

$254.3K-$520.8K

Fyzical Therapy & Balance Centers

Physical therapy, balance and vestibular therapy, preventive wellness services

TOTAL UNITS (Franchised / Co.-Owned) 535/60

U.S./CANADA FRANCHISE GROWTH +69

STARTUP COST $145.8K-$509K

41

Valvoline Instant Oil Change Oil changes and preventive maintenance

TOTAL UNITS (Franchised / Co.-Owned) 926/881

U.S./CANADA FRANCHISE GROWTH +68

STARTUP COST $193.4K-$3.5M

42

Caring Transitions Senior transition and relocation, online auctions, and estate liquidation management

TOTAL UNITS (Franchised / Co.-Owned) 344/0

U.S./CANADA FRANCHISE GROWTH +66

STARTUP COST $63.6K-$108.6K

→ ZOOMIN GROOMIN

The Fastest-Growing Franchises

Franchise expansion has become increasingly international in the last few years. Here are the 25 brands with the greatest franchise growth outside of the U.S. and Canada from July 2021 to July 2022.

GROWERS ACROSS THE GLOBE

INTERNATIONAL EXPANSION is important for many franchises. While our main list focuses on North American growth, here are the 25 brands with the greatest franchise growth outside the U.S. and Canada from July 2023 to July 2024.

50

Kumon Supplemental education

TOTAL UNITS (Franchised / Co.-Owned) 25,390/28

U.S./CANADA

$73.8K-$165.9K 51

Qdoba Mexican Eats

Mexican food

TOTAL UNITS (Franchised / Co.-Owned) 494/166

U.S./CANADA FRANCHISE GROWTH +58

STARTUP COST

$489.2K-$1.3M

52

Prime IV Hydration & Wellness IV therapy, nutrient injections, NAD+ infusions, peptide therapy, and wellness plans

TOTAL UNITS (Franchised / Co.-Owned) 133/3

U.S./CANADA FRANCHISE GROWTH +57

STARTUP COST

$164.5K-$610.1K

53

Spark by Hilton Premium economy hotels

TOTAL UNITS (Franchised / Co.-Owned) 55/0

U.S./CANADA FRANCHISE GROWTH +54

STARTUP COST

$3.1M-$5.4M

The Fastest-Growing Franchises

Window covering sales, installation, and repairs

Wetzel’s Pretzels Soft pretzels, lemonade, TOTAL UNITS (Franchised / Co.-Owned) 388/38

GROWTH +50 STARTUP COST $110.5K-$144.7K

59 Scoop Soldiers Pet waste removal

TOTAL UNITS (Franchised / Co.-Owned) 95/11

U.S./CANADA FRANCHISE GROWTH +49

TOTAL UNITS (Franchised / Co.-Owned) 97/0

U.S./CANADA FRANCHISE GROWTH +49 STARTUP COST $1.1M-$2.7M

TOTAL UNITS (Franchised / Co.-Owned) 102/7

STARTUP COST $68.6K-$118.8K 60 Friendly’s Family restaurants

U.S./CANADA FRANCHISE GROWTH +49 STARTUP COST $112.5K-$399.5K

/ Co.-Owned) 104/1

U.S./CANADA FRANCHISE GROWTH +49

U.S./CANADA FRANCHISE GROWTH +46

68 Wendy’s Burgers, chicken sandwiches, breakfast sandwiches, sides

TOTAL UNITS (Franchised / Co.-Owned) 6,870/412

U.S./CANADA FRANCHISE GROWTH +46 STARTUP COST $310.1K-$2.8M

/ Co.-Owned) 242/0

U.S./CANADA FRANCHISE GROWTH

→ WENDY’S

Baguette

The Fastest-Growing Franchises

76 Cold Stone Creamery Ice cream, sorbet, ice cream cakes, shakes TOTAL UNITS (Franchised / Co.-Owned) 1,373/1

U.S./CANADA FRANCHISE GROWTH +42

STARTUP COST

$322.7K-$627.8K

77 Papa Johns Pizza

TOTAL UNITS (Franchised / Co.-Owned) 5,501/570

U.S./CANADA FRANCHISE GROWTH +42

STARTUP COST

$272.9K-$989.4K

81

American Family Care

Urgent care/primary care centers

TOTAL UNITS (Franchised / Co.-Owned) 293/0

U.S./CANADA FRANCHISE GROWTH +41

STARTUP COST $1.2M-$1.8M

82

Smoothie King Smoothies and smoothie bowls

TOTAL UNITS (Franchised / Co.-Owned) 1,212/65

U.S./CANADA FRANCHISE GROWTH +41

STARTUP COST $320.6K-$1.3M

83

Rolling Suds Power washing

TOTAL UNITS (Franchised / Co.-Owned) 47/2

U.S./CANADA FRANCHISE GROWTH +40

STARTUP COST $164.2K-$263.1K

84

Jeremiah’s Italian Ice

Italian ice, gelati, soft ice cream

TOTAL UNITS (Franchised / Co.-Owned) 140/19

U.S./CANADA FRANCHISE GROWTH +40

79

Bumble Bee Blinds Installation and repair of blinds, shades, and shutters

TOTAL UNITS (Franchised / Co.-Owned) 45/0

U.S./CANADA FRANCHISE GROWTH +41

STARTUP COST

$163.6K-$196K

80

Amada Senior Care Home care, medical staffing, assisted-living placement

TOTAL UNITS

(Franchised / Co.-Owned) 197/6

U.S./CANADA FRANCHISE GROWTH +41

STARTUP COST

$116.8K-$278K

86 Sola Salons Salon studios

TOTAL UNITS (Franchised / Co.-Owned) 661/67

U.S./CANADA FRANCHISE GROWTH +40

COST $924K-$1.96M

87

Tommy’s Express Car Wash Car washes TOTAL UNITS (Franchised / Co.-Owned) 192/11 U.S./CANADA FRANCHISE GROWTH

STARTUP COST $350.6K-$721K

85

Freddy’s Frozen Custard & Steakburgers

Frozen custard, steakburgers, hot dogs

TOTAL UNITS (Franchised / Co.-Owned) 497/34

U.S./CANADA FRANCHISE GROWTH +40

STARTUP COST $897.8K-$2.8M

Zaxby’s Chicken wings, fingers, sandwiches, and salads

UNITS (Franchised / Co.-Owned) 815/145 U.S./CANADA FRANCHISE GROWTH

At The Joint Chiropractic,

99

Transworld Business Advisors Business brokerages; franchise consulting

TOTAL UNITS (Franchised / Co.-Owned) 485/1

U.S./CANADA FRANCHISE GROWTH +36

STARTUP COST

$96.7K-$122.5K

The Fastest-Growing Franchises

HOT CATEGORIES

These are some of the fastest-growing franchise industries represented in this ranking:

Commercial Cleaning

Six brands ranked on this list, adding a total of 1,847 units in the U.S. and Canada.

Fastest-growing brand/ Stratus Building Solutions (No. 1)

Chicken

Five brands ranked, adding a total of 607 units. Fastest-growing brand/ Wingstop (No. 6)

Coffee

Four brands ranked, adding a total of 489 units. Fastest-growing brand/ Dunkin’ (No. 10)

Travel Agencies

Two brands ranked, adding a total of 446 units. Fastest-growing brand/ Cruise Planners (No. 8)

Mexican Food

Four brands ranked, adding a total of 432 units. Fastest-growing brand/ Taco Bell (No. 12)

Fitness

Six brands ranked, adding a total of 378 units. Fastest-growing brand/ Hotworx (No. 15)

Restoration

Seven brands ranked, adding a total of 297 units. Fastest-growing brand/ Servpro (No. 33)

The Fastest-Growing Franchises

100 Marco’s Pizza Pizza, pizza bowls, subs, wings, salads, cheese bread

U.S./CANADA

$285.6K-$804.9K 101

U.S./CANADA

STARTUP COST

$54.4K-$234.9K

105 Mac Tools Automotive tools and equipment

TOTAL UNITS (Franchised / Co.-Owned) 1,183/0

U.S./CANADA FRANCHISE GROWTH +34

STARTUP COST

$121.3K-$344.3K

106

McDonald’s

Burgers, chicken, salads, beverages

TOTAL UNITS (Franchised / Co.-Owned) 40,238/2,168

U.S./CANADA FRANCHISE GROWTH +34

STARTUP COST

$1.5M-$2.6M

107

Shrunk 3D

Mobile 3D scanning and printing studios

TOTAL UNITS (Franchised / Co.-Owned) 48/0

U.S./CANADA FRANCHISE GROWTH +33

STARTUP COST

$187.5K-$267.2K

108

Tippi Toes

Children’s dance classes

TOTAL UNITS (Franchised / Co.-Owned) 69/2

U.S./CANADA FRANCHISE GROWTH +33

STARTUP COST

$67.1K-$83.5K

109

CarePatrol

Senior living placement, referral, and consulting

TOTAL UNITS (Franchised / Co.-Owned) 193/0

U.S./CANADA FRANCHISE GROWTH +33

STARTUP COST

$60.1K-$130.97K

110

Woof Gang Bakery & Grooming Pet stores and pet grooming

TOTAL UNITS (Franchised / Co.-Owned) 212/0

U.S./CANADA FRANCHISE GROWTH +33

STARTUP COST

$179.2K-$419.3K

111 Mint Condition Commercial cleaning, building maintenance

TOTAL UNITS (Franchised / Co.-Owned) 428/0

U.S./CANADA FRANCHISE GROWTH +33

STARTUP COST $4.6K-$32.4K

112

First Choice Business Brokers Business brokerages

TOTAL UNITS (Franchised / Co.-Owned) 103/2

U.S./CANADA FRANCHISE GROWTH +32

113 Handel’s Homemade Ice Cream Ice cream

UNITS (Franchised / Co.-Owned) 136/6

→ MY SALON SUITE

118

Pet Supplies Plus Pet food and supplies, bathing/grooming services

TOTAL UNITS

(Franchised / Co.-Owned) 500/232

U.S./CANADA FRANCHISE GROWTH +32

STARTUP COST

$498.3K-$1.98M

119

The Maids Residential cleaning

TOTAL UNITS (Franchised / Co.-Owned) 1,486/142

U.S./CANADA FRANCHISE GROWTH +32

STARTUP COST

$80.9K-$158.9K

120

Granite Garage Floors

Garage floor coatings

TOTAL UNITS (Franchised / Co.-Owned) 50/0

U.S./CANADA FRANCHISE GROWTH +31

STARTUP COST

$199.3K-$400.4K

121

Lindora Medically guided weight management programs

TOTAL UNITS (Franchised / Co.-Owned) 30/0

U.S./CANADA FRANCHISE GROWTH +30

STARTUP COST

$272.4K-$491.8K

122

Body Fit Training Group strength training

TOTAL UNITS

(Franchised / Co.-Owned) 305/0

U.S./CANADA FRANCHISE GROWTH +30

STARTUP COST

$328.3K-$519.5K

123

X-Golf Indoor golf entertainment venues

TOTAL UNITS (Franchised / Co.-Owned) 114/1

U.S./CANADA FRANCHISE GROWTH +30

STARTUP COST

$993.5K-$1.9M

124

Destination Athlete Equipment, apparel, fundraising, and performance solutions for youth, high school, and college athletic teams

TOTAL UNITS (Franchised / Co.-Owned) 259/0

U.S./CANADA FRANCHISE GROWTH +30

STARTUP COST

$28.3K-$93.6K

125

Spray Foam Genie Spray foam insulation services

TOTAL UNITS (Franchised / Co.-Owned) 38/0

U.S./CANADA FRANCHISE GROWTH +29

STARTUP COST

$323.5K-$545.2K

126 Up Closets Custom closets and home organization services

TOTAL UNITS (Franchised / Co.-Owned) 43/1

U.S./CANADA FRANCHISE GROWTH +29

STARTUP COST $67.3K-$169.8K

127 Best Option Restoration Disaster restoration TOTAL UNITS (Franchised / Co.-Owned) 68/0

U.S./CANADA

Krystal Burgers,

134

Alloy Personal Training

Small-group personal training

TOTAL UNITS (Franchised / Co.-Owned) 51/1

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$213.4K-$528.1K

135 DRYmedic Restoration Services Disaster restoration

TOTAL UNITS

(Franchised / Co.-Owned) 54/22

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$187.97K-$311.8K

The Fastest-Growing Franchises

136

Grand Welcome Vacation rental property management

TOTAL UNITS

(Franchised / Co.-Owned) 71/6

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$67.8K-$169.8K

137

Hello Sugar Waxing, sugaring, and laser hair removal

TOTAL UNITS

(Franchised / Co.-Owned) 78/14

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$95.9K-$614.9K

138

Pizza Inn

Pizza, pasta, salads, buffet

TOTAL UNITS

(Franchised / Co.-Owned) 104/0

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$412K-$1.4M

139

Frios Gourmet Pops Frozen pops

TOTAL UNITS

(Franchised / Co.-Owned) 113/1

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$66.5K-$95.5K

140

Rita’s Italian Ice & Frozen Custard Italian ice and frozen custard

TOTAL UNITS (Franchised / Co.-Owned) 561/5

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$293.2K-$782.9K

141 Tire Pros Tires and wheels; automotive services

TOTAL UNITS (Franchised / Co.-Owned) 647/0

U.S./CANADA FRANCHISE GROWTH +27

STARTUP COST

$11.99K-$503.7K

142

Vital Care Infusion Services

Infusion drugs, supplies, and equipment, infusion nursing, and related services

TOTAL UNITS (Franchised / Co.-Owned) 97/2

U.S./CANADA FRANCHISE GROWTH +26

STARTUP COST $545.9K-$1M

143 Snapology STEAM education programs

TOTAL UNITS (Franchised / Co.-Owned) 182/2

U.S./CANADA FRANCHISE GROWTH +26

STARTUP COST $75.3K-$541.5K

144

Mr. Electric Electrical services

TOTAL UNITS (Franchised / Co.-Owned) 237/0

U.S./CANADA FRANCHISE GROWTH +26

STARTUP COST

$152K-$314.5K

145 Crunch Fitness centers

TOTAL UNITS (Franchised / Co.-Owned) 423/35

U.S./CANADA FRANCHISE GROWTH +26

STARTUP COST

$918K-$6.7M

Budget Blinds Window coverings, window film, rugs, accessories TOTAL UNITS (Franchised / Co.-Owned) 1,498/0

U.S./CANADA FRANCHISE GROWTH +26 STARTUP COST

$100.5K-$211.3K

147 Bumble Roofing Roofing

TOTAL UNITS (Franchised / Co.-Owned) 25/4

U.S./CANADA FRANCHISE GROWTH +25

$163.5K-$260.3K

148

The Great Greek Mediterranean Grill Greek and Mediterranean food

TOTAL UNITS (Franchised / Co.-Owned) 53/7

U.S./CANADA FRANCHISE GROWTH +25

STARTUP COST $582K-$1.1M

149

Clothes Bin Clothing, shoe, and textile recycling bins

TOTAL UNITS (Franchised / Co.-Owned) 63/4

U.S./CANADA FRANCHISE GROWTH +25 STARTUP COST

$141.3K-$196.4K

150

Furry Land Mobile Grooming Mobile pet grooming

TOTAL UNITS (Franchised / Co.-Owned) 73/0

U.S./CANADA FRANCHISE GROWTH +25

STARTUP COST

$136.5K-$309.2K

One of these opportunities could mark the turning point to owning a business of your own, realizing your personal dreams and securing true financial independence. So go ahead, make your first move by considerw ing all that they have to offer in this Opportunity Spotlight. Then make your first call.

I Asked the Wrong Questions

by Birna Dröfn Birgisdóttir, founder and CEO, Bulby

Everyone said they wanted my product, but nobody bought it. Why?

Here’s the context: I am currently a Ph.D. candidate who studies creativity. I explore how it works, and how people can become more creative. Companies have hired me to speak about this for years, because creativity is one of the most sought-after skills in today’s job market. Then I started to ask clients: Would you want a tool to boost employee creativity? They all said yes, so I made one. It’s called Bulby. But when I showed it to clients, they suddenly lost interest.

I felt stuck, confused, and frustrated. I knew the product was good, so why didn’t people want it? Then one day, I looked at a figurine of Einstein on my desk—and I realized my problem.

My father gave me that Einstein figurine many years ago. At the time, it felt like a simple celebration of science. I am a scientist, and Einstein is the ideal. But over time, he’s become something greater. He is my reminder to think scientifically— because when you work on something you care about, it’s often hard to remain rigorous.

When I developed Bulby, for example, I had developed a hypothesis: Managers wanted to enhance employee creativity. But I had not properly tested this. I realized this when I stumbled upon a book called The Mom Test by Rob Fitzpatrick. It says that when you share your business idea, people often say it’s great because they don’t want to offend you. To truly understand customers, you must ask open-ended questions without leading them to a specific answer.

Once I started doing this, a different pain point emerged: Nobody was concerned about “creativity,” but they were concerned about brainstorming. Idea-generation meetings were time-consuming and frustrating, especially for remote teams. So I repositioned Bulby, talking about it as a “time-saving brainstorming solution.” That’s when clients said yes and the product took off.

Einstein was a brilliant thinker, but above all, he was a brilliant question-asker. He considered what he didn’t know, and he took no assumptions for granted. These are the ideals I strive for, both as a scientist and an entrepreneur, and it’s why his figurine will always stay on my desk. To get the right answers, we must make sure we ask the right questions.

WHAT INSPIRES YOU?

Tell us about a story, person, object, or something else that pushes you forward, and we may include it in a future issue. And we may make you photograph it, too. Email INSPIRE@ENTREPRENEUR.COM with the subject line “WHAT INSPIRES ME.”

→ LITTLE AL

The Einstein figurine that stands on the author’s desk.