Best Practices

"What's your best advice for women in business?"
It's a question I hear frequently as more and more women strike out on their own, whether it's to start their own company, write a book, turn their great idea into a product, or otherwise monetize their talents. The number of women-owned businesses in this country is growing 1.5 times faster than the national average. From 1997 to 2011, they increased by 50 percent.
I love seeing this surge of confidence! Putting yourself out there is risky, but it's better to try and fail then to spend a lifetime wondering, "What if?"
Yes, I do have a favorite piece of advice for women in business but first, a word about self-employed women. Did you know that our businesses added 500,000 jobs over 10 years while other privately held firms lost jobs? That in 2007, we accounted for $1...

Over the years we have encountered hundreds of successful business owners who have made the statement "I have it all done," as they describe how well they have planned and documented their business succession plan. Unfortunately, in most cases these business owners were referring to the work they have done to implement their wills, trusts, buy/sell agreements, and life insurance, which we would constitute as business continuity planning. You may be asking yourself, what is the difference?
Business continuity planning addresses transferring a business to the next generation, whereas business succession planning addresses transferring a business through> the next generation. Frankly, achieving business continuity is a relatively simple transactional project addressed within your will, trust, and/or buy-sell agreement to transfer your business to your children or partners...

Productivity is enhanced and empowerment achieved when leaders solicit, then act upon employee feedback, ideas, and concepts. Soliciting and acting upon feedback is the essence of leadership. The proper use of feedback allows leaders to build consensus among their employees and give them ownership of the ideas and concepts to be implemented within the organization.
There are critical differences between managers and leaders. Managers tend to direct and control without soliciting feedback and building employee consensus. Leaders, on the other hand, build their strength from group consensus, acting as facilitator rather than controller. They understand the power and synergy of combining ideas and working together to achieve mutual goals...

As of 2012, there were about 1,300 franchised food brands operating in the U.S.; roughly two thirds started offering franchises in 2000 or later.



In 2011, these food brands operated an estimated 176,700 franchised locations. The largest industry by number of franchised units is QSR, which accounted for 72% of franchised units in 2011, followed by baked goods (9%) and retail food (8%).



To estimate the growth rates in franchised food units, FRANdata created a sample of 488 brands for which consecutive data for 2004 through 2011 was available. In 2011, the sample operated 163,054 franchised locations, about 92% of the estimated total. From 2004 through 2011, the number of franchised food locations in this sample increased at a compound annual growth rate (CAGR) of 5%...

In some companies, under the premise that they will be perceived more meaningful, rewards and recognitions are given so infrequently as to in fact be meaningless. In order to be effective in generating long-term, concrete results, such rewards, recognitions, and motivation must be given liberally, frequently, and publicly. They should be fun, uplifting, and encourage all members of the workplace.
A critical aspect of leadership is the manager's role as cheerleader. Leaders need to keep their employees motivated and emotionally prepared to do business in a marketplace fraught with intense competition, rejection, and failure.
There are both tangible and intangible aspects of motivation. The intangible aspects of encouraging words and pats on the back, although not insignificant, can be quickly forgotten, while the tangible aspects are visible and durable...

Employee theft is a common crime that is not even regarded as such by most people who commit it. Taking an odd pen or few sheets of paper home is regarded by many as being a right rather than a crime and something that even the most senior managers can be found guilty of.
It's estimated that 95 percent of all companies suffer from employee theft, but it's probably closer to 100 percent. Serious theft, however, is a different thing entirely. There is a world of difference between the theft of a few pens and the steady depletion of stock through organized crime within a large organization. This sort of employee theft is estimated to cause more than 30 percent of all company bankruptcies, and many companies are in desperate need of a means of controlling it...

In all likelihood, 2013 will feel a lot like 2012. Only two significant factors could change the economic environment in 2013 from the past two years of choppy, but painfully gradual improvement.
One factor--global conditions--is unpredictable and largely out of the control of any of us. Global weaknesses are outside our control, but weigh heavily on the recovery. And it's unlikely many positive shocks are looming in the next year or two internationally. We can't expect much from Europe any time soon. BRIC countries are unpredictable, led by China's apparent slowdown.
The other factor--our own Congress--is within our country's control. Unfortunately, I don't have very high confidence in a positive outcome. If the politicians in Washington somehow are overwhelmed by a strong dose of common sense (I hold out very little hope for this), the influence a compromise will have initially is big, in that it removes uncertainty...

Personal credibility is based upon a leader's character and integrity and the actions and behaviors that stem from them. Far from perfect, many of the influential American leaders I surveyed possessed character flaws and displayed at times, questionable ethical behaviors. Yet their personal credibility remained intact.
So it is safe to ascertain that perfection is not humanly expected and attainable as a leader, but self-awareness of one's strengths and weaknesses is essential. It reflects both maturity and authenticity, which only then serves to enhance a leader's personal credibility.
An observance of the absence of self-awareness resulted in a strong emergence of arrogance and hubris that diminished and ultimately destroyed credibility on all levels...

"What are your goals?" is the common question I present to clients and prospects.
"We want to grow," is the common response I get from business owners who have found a way to make decent money in indecent times. And as though we were talking about buying filters for an air conditioner, they continue with, "and we would like to pick up a couple, three maybe four more locations. We know the management formula; all we need are the deals."
This has been happening so frequently that I rarely pursue dialogue on the subject as if I did, it would take up all my time. I just generally state, "That's impressive. Good luck, as I understand from first hand experience that growth can be fun, and growth can also be a challenge." In light of more pressing subjects on the agenda, I rarely press my opinion regarding succession and growth...

Three families succeed where many have failed

Operating a successful franchise business is challenging enough. Add in family members and things can get really interesting. Who's the favorite child? Who gets to be CEO, president, COO? When does the founder let go of the reins (and what if he won't)? Issues such as control or favoritism can sink an otherwise healthy enterprise. And then there's the problem of taking the business home or leaving it at the office. Here are three stories of family-run franchises showing that potential problems with family dynamics not only can be overcome, but can be the source of unique strengths that can be channeled into building a prosperous, healthy enterprise--and family.

His three sons
Ever since his sons can remember, Matt Holker has been an entrepreneur...

What kind of value do you provide your customers?

I am often asked how I define exceptional customer service. Here it is in a nutshell: Speed, price, and technology--all built around service. That definition is especially appropriate today, given the fast-paced life we live and the budget constraints many of us face. When we are looking to make a purchase, we want to do it conveniently, we want it now, and we want it at a good price. That is true whether we are purchasing a car or carpet cleaning, an air conditioner or airline tickets.
How do you provide that exceptional service? Take a good look at how you deal with your customers, from initial contact to closing the deal. Are you welcoming, whether customers walk through your physical doors or virtual doors? Do you call them by name? Do you have a smile on your face and in your face? Do you provide the information that will help them make an informed decision regarding their purchase? Do you deliver what you say you will as quickly as possible?
Let me give you examples of three companies that go above and beyond to not only meet, but exceed, customer expectations...

Millennials provide a unique challenge for businesses today. Many business operators are struggling to understand this generation and how to get the most out of the employer-employee relationship. Here is a quick guide to those born after 1980 and how you can turn them into some of your biggest fans and assets.

Communicating: They do it differently than you. Let's start there. Veterans like face-to-face meetings, Boomers like phone calls, Generation X prefers email and Millennials do most of their communicating via cell phone, text messages and social media. Interpersonal skills and presentation skills often need work, so be prepared to explain what is important to you and expected in your line of work. But be open to letting them develop relationships through the channels they're most comfortable with...

Litigation is America's fastest growing business because plaintiffs have everything to gain and nothing but a few hours to lose, says Hillel Presser, author of Financial Self-Defense (Revised Edition), www.assetprotectionattorneys.com.
"Even if a case seems utterly ridiculous - like the man who struck and killed a teenager with his luxury car and then sued the boy's family for damage to his bumper - defendants are encouraged to settle. It's sometimes the only way to avoid potentially astronomical legal fees," he says.
If you haven't already taken steps to protect your assets, that's one New Year's resolution you'll be glad you made and followed up on, Presser says. And while it helps to have the assistance of a lawyer who specializes in asset protection, there are many things you can do yourself...

Ellen Hui spent years as a multi-brand franchisee in the San Francisco Bay area. Following the sale of her business, she has turned to helping franchisors and franchisees improve their operational efficiencies. And with her background in banking, she's also astute on the financial side. We asked what she looks for when researching brands.
Here are her 10 tips on how to evaluate a new brand.

Effective leaders manage by keeping their fingers on the pulse of their employees' key activities. When tasks and assignments are delegated, leaders must take the time to review each employee's progress against goals to determine what, if any, additional training and coaching is needed to successfully complete the assignment or to enhance their skills.
There is a two-fold purpose of an assignment performance review. Leaders are receiving a progress report on the delegated task or assignment. They are allowing the employee to provide details and input on what has happened to date, and the results. The employee is also providing feedback on any problems, issues, and concerns that may have surfaced. This allows the leader to provide insights and to suggest possible courses of action, if needed...

Aziz Hashim, who was an engineer before deciding he liked restaurants and franchising better, has a detailed, systematic process for evaluating potential new brands. With 50 units (23 Domino's, 13 Popeyes, and 14 Rally's), first and foremost he's looking for brands in the restaurant sector. Three of his top considerations are:

New Tools Boost Franchise Lending Prospects
Previously, I described one of the few positives from the recent financial crisis: In the world of small-business lending, franchising has gained a competitive edge in the battle for access to capital.
We're now in phase two of a small-business credit recovery that started in late 2011 and will last a few more years. This phase is defined by the banking community's gradual return to small-business lending, the result of banks beginning to feel earnings pressure they didn't have following the 2008 financial crisis. Investor expectations for banks are gradually changing from capital preservation to earnings--and banks make money by lending.
The early part of phase two starts with banks searching only for lower-risk lending opportunities (e...

Twenty-year-old Michael Silva-Nash's family bought the Greater Little Rock Molly Maid franchise in 2005. "If you were part of the family, you had to come to work at Molly Maid, folding rags, filing, weekends," he says. Soon he was making customer phone calls and beginning to take on marketing-related activities. Now he's appearing on a local television station sharing cleaning tips on the air.
About a year ago, they revamped their marketing. "We started doing radio with a local personality we enjoy listening to and who spoke to our clients, the women we were trying to reach. She's almost a personal endorsement, like a friend," he says.
For someone so young, he seems to have his fingers on all the right marketing buttons. "You have to adapt your marketing to the local area and tie all your marketing together," he says...

Earlier this year we interviewed representatives from companies that specialize in helping business operators hire smarter. These experts identified characteristics of the best hiring strategies and processes that can be utilized by multi-unit franchisees. Some of these may seem like no-brainers, while others may provide an "Aha!" moment. Implementing these practices into your hiring process will generate improvements in the performance of both your front-line employees and your bottom line.

Gift cards! Often viewed as giveaways or as marketing ploys. You may want to think twice before you throw them into your offerings mix -- there are potential obstacles you may not have considered. Franchisors sometimes offer gift cards for their franchisees to sell, usually through programs funded by the franchise system's ad fund. The big question to consider is, once the franchise system collects the funds, what happens with the unused portion (the "breakage") of these gift cards? Are these funds kept by the franchisor? Are they turned over to the franchisee?
Many states have "escheat" statutes (the process of re-assigning legal title of unclaimed or abandoned assets to a state authority) that require these funds be turned over to the state after the passage of a prescribed period of time...