December 2008 Archives

Age saw two quiet children
Go loving by at twilight,
He knew not whether homeward,
Or outward from the village,
Or (chimes were ringing) churchward,
He waited (they were strangers)
Till they were out of hearing
To bid them both be happy.
"Be happy, happy, happy,
And seize the day of pleasure."
The age-long theme is Age's.
'Twas Age imposed on poems
Their gather-roses burden
To warn against the danger
That overtaken lovers
From being overflooded
With happiness should have it.
And yet not know they have it.
But bid life seize the present?
It lives less in the present
Than in the future always,
And less in both together
Than in the past. The present
Is too much for the senses,
Too crowding, too confusing--
Too present to imagine.

-- Robert Frost

HAPPY NEW YEAR!!!

Donald Trump gives some great advise in his book: Think Big: Make It Happen in Business and Life.

Specifically:

• Find your passion and love what you do.
• Do not do things you don't like just for the money.
• Do your best, be passionate, and good things will come to you.
• Give your goals values that are not monetary.
• Know that passion conquers fear.
• Serve your passion by taking action every day.
• Take great joy in doing a great job.
• Focus on the solution, not on the problem.
• Handle pressure by learning not to dwell on negative thoughts and opinions of others.
• Learn from mistakes, but do not let them take you down.
• Be mentally tough and never give up.
• Push yourself our of your comfort zone.

As he further writes: "in the game of life, money is how you keep score.Yet the real fun is not in simply scoring; rather it is in the excitment you will have coming up with creative ways to get the ball in the goal. Find your passion in doing something useful for people and the money will follow."

Based on results from the 2008 NatWest/BFA Franchise Survey:

From the franchisee's perspective, there is a slight discrepancy between the turnover achieved and the projected turnover initially predicted by their franchisors. A quarter (25%) claim they were led to believe that turnover levels would be higher than the current levels achieved.

Based on results from the 2008 NatWest/BFA Franchise Survey:

Franchisees operating from a shop or retail premises report the highest level of turnover at £463,900. Conversely, those operating from a van or from home clearly make up the bulk of the smaller franchise units by turnover, with sales averaging £150,900.

Based on results from the 2008 NatWest/BFA Franchise Survey:

Store retailing continues to perform strongly, posting the highest average sales of £588,000, followed by Hotel & Catering (£380,000) and Transport & Vechicle Services (£348,000). Business & Commercial Services remains the smallest sector by average turnover, with two-fifths of the franchisees selling less than £50,000 annually.

Note: These figures are based on three year averages to dampen data fluctuations due to the relatively base sizes at a sector level.

Based on results from the 2008 NatWest/BFA Franchise Survey:

The average turnover of franchised units in 2007 was estimated to be £360,000; an increase of 11%. Nearly a quarter of franchisees report a turnover in excess of £500K, compared with rougly a fifth last year. However, 20% clear less than £50K annually.

Franchising has succeeded, in part, by being a broad church open to all shapes and sizes of businesses.

"A simple rule dictates my buying: Be fearful when others are greedy, and be greedy when others are fearful."

—Warren Buffett

Every business owner, particularly those running SMEs - needs to have a coach; especially during these difficult economic times. This is not a luxury but a necessity.

Below are three sources to help you find a suitable coach:

ActionCoach
The world's number one business coaching firm, with more than 1,200 coaches in 26 countries. Coaches work with the owners of small and medium sized businesses to help them make more profit, work less hours, achieve goals and build strong teams.

E-Myth Worldwide
Based on the business development model created by E-Myth Worldwide founder and bestselling author, Michael Gerber, E-Myth Worldwide® is a leading innovator of coaching for small business owners around the world.

Rockstar Group
The Rockstar Group of companies provides a wide variety of services to UK entrepreneurs including business mentoring and support to grow or bring an idea to the market.

During recessionary times, the number of people who explore franchising significantly increases. Not surprising really, as people who have lost their jobs but still have the economic means are more open to options that will give them greater control over their destiny.

However, not all franchise brands see an increase in activity. Entrepreneur Magazine highlights 8 categories that hold promise for 2009. Based on my own work with franchisee candidates, there are no surprises on the list. Ultimately though, whether or not the franchise brands in these sectors are right for a franchisee candidate, depends on their background and more importantly, the vision they hold of their desired future.

Franchising Hot Spots

Which franchise categories hold the most promise for 2009? We break it down and give you the first look by Sara Wilson, Entrepreneur Magazine - January 2009

The world of franchising is as dynamic as ever. Every year, new franchise concepts emerge, existing ones expand and opportunities abound for individuals interested in getting into business for themselves via franchising. The constant ebb and flow of franchising keeps us riveted year after year as we study the patterns revealed through our surveys and rankings. This year, we've uncovered eight franchising categories that hold promise for 2009. So sit down and hold on as we take a closer look at our top picks.

Senior care: Topping our list year after year, senior care is far from a newbie, but it's a category that remains as vibrant and vital as ever. What's driving the opportunity? Growth is largely due to demographics. The U.S. Census Bureau projects that there will be a substantial increase in the number of seniors between 2010 and 2030, after the first baby boomers turn 65 in 2011. So take care of, cater to or provide services for America's aging population, and you might just have a booming business. America's seniors will soon be in need of lots of helping hands.

My favourite entrepreneur video at cmypitch.com is that of Wilfred Emmanuel-Jones - The Black Farmer. In fact, I have watched and listened to this video quite a few times.

I like this video because from the start, he talks about the need to have a dream -- a clear vision of your future as motivation for moving forward and ultimately becoming successful with any business venture.

To be exact, he says:

"One of the most important things I believe you need to have in life is to have a dream because with a dream it gives you focus which then gives you the confidence which then gives you hope and with that hope you can make things comes true."

Other key points from the video:

• Entrepreneurship is all about focus and sacrifice
• Don't wait to be invited to the table
• Small businesses are the heart of the country
• More people in government should have small business experience
• Success is about managing fear -- you can't predict the future so need to come to terms with it. Worry about the things you have control over and not worry about the things you don't have control over.
• Chase success, not money

To watch Wilfred's video in full, click here.

Lately, I find myself reading a lot of books and articles related to franchising. Not surprising really, considering the nature of my work. I have also been watching a lot of videos online focused on entrepreneurship. A favourite source is: cmypitch.com which is "a social network for small businesses, connecting entrepreneurs with each other, investors and service providers."

I came across cmypitch.com about a month ago as I met Emmett Kilduff, founder and chief executive at a networking event. Since then, I've been hooked on Entrepreneur TV which has a good selection of videos featuring well known British entrepreneurs (like Sir James Dyson, Charles Dunstone, etc.) talking about how they got to be where they are today. While the videos vary in length, from each you still get a good sense of the entrepreneur along with a firm understanding of how they built their business. And oh yeah, there's usually a good number of tips in each for entrepreneurs who have just started their journey.

On a daily basis, I work with people who have been recently made redundant. Helping them to explore opportunities beyond the corporate world. However, to learn that more than 1million people in the UK are currently claiming unemployment benefits due to job loss is just astonishing. Furthermore to hear that economists except this number to reach 3million by the end of next year, well leaves me almost at a loss for words. These really are interesting times.

UK jobless claimants breaks one million barrier

Rosie Lavan, Times Online, 17 December 2000

The number of people claiming unemployment benefit has soared past one million for the first time in eight years, after rising at the fastest rate since 1991.

The number on jobseeker's allowance rose by 75,700 in November - the fastest monthly rise since 1991 and 42 per cent higher than the 44,000 increase in claimants economists had forecast for November.

In October, the number rose by 36,500, less than half of the surprise 75,700 rise announced today. Total claimants in the UK has now hit 1.07 million and is the highest number since January 2001.

Today's figures also show that the total number of people out of work in the UK rose by 137,000 to 1.864 million for the three months to the end of October, the highest rate since June 1999.

It means that 6 per cent of the British population is now unemployed, a 0.4 per cent rise on the previous three months and up 0.7 per cent on the same period in 2007.

The figures, from the Office for National Statistics, measure the number of people who claimed unemployment benefit during November.

They also record the total number of unemployed people in the UK for the three months from August to October.

Sterling hit a record low against the euro shortly after the figures were released at 91.03p, while sterling also hit a session low against the dollar, dropping to $1.5493.

The pound was also depressed by minutes from the Bank of England, which showed the Monetary Policy Committee had considered a more drastic rate cut in November than the 1 per cent reduction. The minutes showed the committee's decision to take the rates to 2 per cent was unanimous.

Despite the fact that there are over 800 different franchise systems in the UK generating £12Billion in revenue, many people in the wider population still know very little about franchising.

As such, over the next few weeks/months, I plan to highlight some of the key findings published in the NatWest/BFA Franchising Survey 2008. This report in its 24th year summarises the results of surveys done with a stratified random selection of both franchisors and franchisees.

From the Management Summary:

• Over the last ten years the franchise industry has grown and matured into a significant element of the UK economy, contributing an estimated £12.4 billion to the country's GDP last year.


• Franchising has outstripped the UK economy for the second year running with an impressive growth of 15% over the national GDP of 3.1%. Government (Office of National Statistics) data indicates that economic growth is slowing but the strong performance of franchising is positive for the economy.


• The number of active business format franchise systems identified in 2007 is 809.


• The number of franchise units increased by 8% taking the total to 34,200, the highest number since tracking began in 1984.


• Franchising is a major employer in the UK, employing 1.3% of the working population, 383,000 people. Employment in the sector increased by 3% last year compared with 0.1% nationally.


• Europe remains the main target for overseas expansion. A third of UK franchise systems operate internationally, nearly all of whom have developed on the continent. Other markets include the US, Australia and New Zealand.


• Franchising is gradually moving away from the white, male dominated stereotype. Increasingly, franchising is attracting more women and people from ethnic communities. The British Indian community is particularly prominent among new applicants becoming franchisees.

The # 1 reason why people do not move forward with investing and running a franchise -- despite their admittance that they "really want to own their own business" is fear and anxiety.

This "fear and anxiety" tends to manifest itself in two areas:

1. LACK OF INFORMATION about something new to the franchisee candidate - causing them to jump to conclusions prematurely, or simply to feel anxiety over not "being in control."
2. SELF-DOUBT - the franchisee candidate is moving out of their comfort zone and becomes filled with doubt that they can't do the work required and that, as a result, THEY WILL FAIL (and thus fail their family or other responsibilities).

This fear and anxiety is further exasperated by the current meltdown of the global financial markets, increased job losses, the decline in property prices, etc. However as billionaire investor Warren Buffett and James Caan of Dragon's Den fame more recently point out: "it is much easier to be part of the crowd than not, but an entrepreneur may need to swim against the tide." Thus during difficult times, observe the masses and do the opposite. Do not allow yourself to fall prey to the herd mentality.

This does not mean that you should move ahead with every investment or business opportunity. Furthermore, do note that it is natural to experience some level of fear and anxiety when considering a major investment. However, while the masses go off into hibernation and wait for the financial markets and everything else to bounce back, smart investors and budding entrepreneurs need to maintain a high level of confidence in their desired vision of the future. Particularly as during down markets, there are quite a few opportunities that normally wouldn't be available in a bull market.

Thus, continue on with the investigation - pretend if necessary, that you are merely a reporter writing for a local paper and so need to gather all the facts. You may in the end decide to walk away, but at least you'll do so knowing that you have collected all the necessary information to make an educated business decision. In the end, if the opportunity is right, as Susan Jeffers wrote so eloquently in her book 20something years ago -- Feel the Fear and Do it Anyway.

Franchising is a lot less risky than starting a new business from stratch. And with the economy slowing down, more and more people are looking at franchising. This bodes well for my franchise consultancy business.

Take the plunge by going for a franchise

Andrew Stone, The Sunday Times, September 7, 2008

It's easier to get started in business if you are working with an established brand

While taking a break from her career as a human-resources manager to have her first child, Gabrielle Lixton spotted a business opportunity in the swimming classes she attended with her baby.

Water Babies, the company running the classes, had just started selling franchises and Lixton jumped at the chance to buy one in Berkshire, her local area.

"I had been thinking about whether to go back into corporate life or whether to run a business of my own. Water Babies seemed like a tried-and-tested business, so I spoke to the franchise owners and was really impressed by them. I decided to buy one."

Within two and half years she had grown the business by more than five times, bought a second franchise in Oxford and sold her first one for 15 times what she paid for it.

Buying a franchise offered Lixton the chance to run her own business but with less risk than starting from scratch on her own. "The advantage of buying a good franchise is that you get help with things like marketing, human resources, PR and health-and-safety matters. Water Babies offered me a complete system and loads of support, and that let me concentrate on growing the business," she said.

Franchising is continuing to grow in popularity because it offers budding entrepreneurs a proved concept and a business that can be grown rapidly with less risk than starting up on your own, according to the British Franchise Association (BFA).

As the economy slows, interest in franchise businesses is increasing, according to Tom Endean of the BFA. "We asked our members how they were doing as the economy slows and they reported more enquiries than ever from prospective franchisees.

"Whether people are taking redundancy or making a career change and thinking about starting their own business, franchising is a safer option than going it alone. The survival rate of franchises is much higher than other start-ups and this makes it easier to secure finance from banks."

The turnover of franchise businesses grew 15% last year and they are likely to grow healthily even if the economy slides into recession, said Endean.

"Franchising is a proven model now, combining the best of motivated local businesses with the back-up and cost savings offered by a large company."

Even big business is using the franchise model. Leading brands are using it to expand all over the world, offering substantial opportunities to local business people.

Hilton is one group that is using franchises to expand as it introduces two American brands -- Hampton and Doubletree -- into Europe as part of a plan to double its number of hotels over the next decade.

I write a monthly column for Women Unlimited on the franchising industry. Below is an excerpt from the first article.

The Future is Bright for Women in Franchising

by Ursula Barzey, Women Unlimited, 6 December 08

As more women consider entrepreneurship to take great control over their destiny, not all will start a business from scratch. More and more women are investing and running a franchise business. The reason for this is that franchising has become so broad-based that almost every conceivable business can be franchised. This has given women more opportunity to pick a business that they can not only be passionate about, but one that allows them to achieve greater work/life balance.

Franchising is simply a network of interdependent business relationships that allow a number of people to share a brand, a successful method of doing business, a proven marketing and distribution system, buying power and most importantly to enjoy lower risk and higher profits (and resale values).

The key players in this relationship include the franchisor and the franchisee. The franchisor's role is to increase awareness of the brand, create processes, systems, structures, products, marketing campaigns, training and support to help the franchisees increase market share. The franchisee's role is to follow the proven operating system providing excellent service to their target customers in their respective local territory that is consistent with the original intent of the franchisor. Overall, the franchise relationship works best when there is mutual respect between franchisors and franchisees.

To read the full article, go here.