Author: Paul Segreto

Founder & CEO of Acceler8Success America | Accelerating the American Dream Through Entrepreneurship | Entrepreneurship Advisor | Franchise & Restaurant Growth Strategist | Entrepreneur | Speaker & Author

Why do entrepreneurs get depressed? Answers needed for both YOU & ME!

The topic of depression and entrepreneurs is one that is being discussed more and more. It was especially the case through the pandemic and again now through challenging times. However, make no mistake about it, the issue has been prevalent for quite some time. Unfortunately, as the topic focuses on depression AND entrepreneurs, it’s not as mainstream an issue as it should be. Is it due to depression being diluted by adding entrepreneurs to the mix?

You see, the reason is due to the misunderstanding, or better said, the lack of understanding when referring to entrepreneurs. It must be understood that when referring to entrepreneurs the reference must also include small business owners, restaurateurs, and a very large number of individuals that only “eat what they kill”. Meaning, being solely responsible for generating their own income. If they don’t earn it (kill it), they don’t eat!

Also fitting the bill are sole practitioners including professional services providers; attorneys, CPA’s as well as the increasing number of coaches. Add to this, real estate agents, insurance agents, stock brokers and essentially, anyone whose position is 100% performance-based. And let’s not forget investor entrepreneurs – stock market, real estate, etc. Essentially, we’re referring to all whose livelihood is based on commissions or return-on-investment income.

Maybe even better said, we’re referring to all whose income is not derived from a regular paycheck. All who need to think and plan long-term, as well as short-term to ensure regular cash flow. All who must ensure there are cash and/or credit reserves for periods when cash flow slows to a trickle – or even to an abrupt stop for unforeseen or unexpected reasons that are totally out of their control. All who wear many hats just to survive, and if all things align just right, possibly they can thrive.

Ultimately, what causes depression is stress, and entrepreneurship, in any of categories listed above is chock full of stress. Compounding it further is the customer/client variable. From expectations to deadlines to less than acceptable personalities, all must be effectively managed by the entrepreneur. An additional factor is the strategizing and decision-making necessary to juggle it all.

An article in Inc. Magazine, Why Entrepreneurship Involves Depression (And How To Overcome It) lists other “potential” reasons why entrepreneurs get depressed as follows:

  • Empty successes
  • Naturally being prone to high levels of anxiety
  • Difficulty not feeling in control
  • Large numbers of investor rejections
  • Stress and long working hours leading to burnout
  • Being sabotaged by partners, staff or investors
  • Being fired from your own company
  • Struggles gaining and maintaining traction

The article states that the depression can be moderate and fleeting. Or it can be personally bankrupting and lead to a deep dive into bad habits, homelessness, and may take many years to recover from. Some don’t at all.

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Further, the article indicates that entrepreneurs are:

  • 2x more likely to suffer from depression
  • 6x more likely to have ADHD
  • 3x more likely to struggle with addiction
  • 11x more likely to receive a bipolar diagnosis

From my perspective, a major concern today is how entrepreneurs, a class of individuals that are considered to be the ones to lead our country through recovery, will be able to do so with so many mental health issues prevalent in their lives. More so, during a time of economic uncertainty.

As I wrapped up my recent series, Preparing for War: You vs. Recession, I asked the question, how will your mental health hold up during challenging times?

Always looking to be proactive in providing solutions to problems, I feel it’s necessary to also recognize there are problems and identify them as such. It’s imperative to ensure they’re front and center and not ignored.

I despise the proverbial “head in the sand” approach. Yet, as much as I despise it, I need to be better at practicing what I preach. To that end, please understand that as I share my insight and perspective, I do so from personal real-time thoughts and emotions. So, when I point to YOU, I’m also pointing to ME.

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Here’s an excerpt from the last segment of the series, Preparing for War: You vs. Recession.

I’d like to focus on YOU. That means, YOU the entrepreneur, the founder, the business owner, the leader, the CEO or whomever is charged with business performance and ultimately, the business succeeding according to defined goals. Especially in challenging times, how do we ensure that YOU perform at the highest level possible without stressing out and/or burning out?

At Acceler8Success Cafe, we’ve spent a great deal of time discussing mental health awareness and especially as it relates to entrepreneurship, business ownership, and leadership. Articles I’ve previously shared here about Mental Health are appropriate to share for this final segment of the series.

In late-May as Mental Health Awareness Month was coming to an end; I shared the following:

Certainly, the past couple of years has had us facing many uncertainties which, quite frankly took us on an emotional roller coaster. Mostly, the driving force has been fear. I’ve realized my own fear once I was able to admit being scared. Hey, at my age and the fact I’m not in good shape, I must be realistic. So, I’ve worked through my fear and in doing so, maybe I can overcome it. As fear is such a strong emotion that easily grips the soul, it will take time and patience to overcome such a grip.

Little by little I look forward to continuing to pry it away as fear is replaced by courage gained from confidence that fear is just a challenge to be conquered. The great thing is that some of the challenges don’t have to be tackled alone. Instead, collaborative efforts aligned with common goals truly exemplify the phrase, ‘strength in numbers’ and it’s that strength that ultimately conquers fear. Easier said than done? Possibly, but the alternative is being overwhelmed by fear and that, I’ve recognized is not living.

Read the complete article HERE.

I’ll leave you with this to ponder as I reflect upon the same…

Why, with all the challenges listed above driving ridiculous levels of stress, do individuals decide that entrepreneurship is for them – and their chosen path for their livelihood, to support and provide for their families, and to achieve long-term goals for their later years?

And, why is entrepreneurship so popular – so damn popular that despite just the known obstacles, caution is thrown to the wind?

In upcoming articles at Acceler8Success Cafe, I hope to answer these questions while also presenting solutions and resources that may help both YOU & ME!

Together we can make it happen. Together we can make it count. Have a great day!

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Quotes: A second voice that echoes our thoughts, beliefs & claims.

If you spend even a short amount of time on social media you’re bound to come across a quote or two. I’m sure we could divide quotes into quite a few categories but to me, it’s really just three categories. Quotes that either motivate me, inspire me, or those that spur my emotions.

Mind you, I’m not referring to memes. I’m talking about quotes from influential and famous people, from movies, books, and the like, and from individuals that actually write inspiring words and place them on beautiful images.

Quotes can open our eyes and minds to understand truths and acknowledge things we might otherwise have missed. They let us see life from another, wider perspective, and in this sense, they expand our mind and awareness.

A quote can spur us to reflect as they may be applicable to a specific task or event occurring in our lives right at that time. Reading quotes can improve how we feel and change our mood for the better. Often a quote can offer inspiration for the day or week, and inspire us when our normal motivation has lapsed.

Quotes can act as reminders to focus us toward a specific goal or plan of action. Either as a short sentence or as several sentences, quotes are typically easy to memorize. As such, we can refer to them often and as we may be so inclined, share with others at appropriate times.

Inspirational quotes can remind us to see our mistakes and setbacks as great learning opportunities, and provide comfort that there is nothing that we can’t learn from. Rather than living in the past and recycling old news, we gain support to move past our regrets and learn from them.

Another reason we love inspirational quotes? They affirm what we already know (or think we know) about ourselves. One of the greatest human motivations is our desire to be able to both fit into categories or types of people, and to feel like we’re in good company (and, often, limited company) once we’re there.

Interestingly, scientific research has shown that motivational quotes make us feel the same as actually accomplishing something. If that is correct, then that could be a very, very, very bad thing.

Quotes, especially on social media can be quite distracting as there are just so many that are shared every day. I do value the ones where the person sharing the quote actually shares their own thoughts about the quote.

A good quote can be the heart of a compelling article, an interesting story, or a compelling speech. As such, good quotes help to tell a story and enhance the credibility of a press release, news story or speech.

Words that are crafted well can leave a lasting impact on us, while similar words presented by us can leave a lasting impression on others.

11 Reasons to Read Positive & Motivational Quotes

  1. Motivational quotes motivate, inspire and encourage.
  2. Motivational quotes energize and prompt you to take action.
  3. Positive quotes create optimism and hope.
  4. Motivational quotes give insight and wisdom.
  5. Motivational quotes offer hope.
  6. Positive quotes bring light and happiness into our day.
  7. Motivational quotes teach.
  8. Motivational quotes open the mind to see life in a wider perspective.
  9. Motivational quotes are mood changers.
  10. Positive quotes inspire you to adopt positive thinking and take positive action.
  11. Reading motivational quotes does not require effort.

*Credit to Remez Sasson, author of the blog post, Motivational Positive Quotes – 11 Reasons to Read Them at SuccessConsciouness.com.

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Have a great day. Make it happen. Make it count!

A Franchisee Mindset: Do you have it?

photo credit: Authority Brands

Owning a small business was once the exclusive domain of the risk-takers of the business world. The true entrepreneur had a distinct flair for creativity, innovation, and vision. This individual knew how to operate outside-the-box and how to make things happen.

Many times, there was little choice as from an early age he would be responsible for shaping his future and for making it on his own. Formal education was usually limited and often just a far-fetched dream. Corporate life was not even an option. Besides, he couldn’t be told what to do, how to do it, and when to do it.

Changing With the Times

Well, times have changed. These days, people change jobs more often than in the past. A new job—or even career—is the norm rather than the exception. An advanced degree isn’t necessarily a fast track to success. Many professionals seek work-life balance.

Money is no longer the sole source of gratification. So many people who want to control their own destinies are increasingly choosing small-business ownership, as opposed to leaving their futures in the hands of Corporate America.

Weighing the Options

This is where the road gets tricky: There are many ways to go out on your own. You can start your own venture and assume total risk, or you can limit your risk by investing in a franchise and be in business for yourself but not by yourself.

Many potential franchise business owners ask themselves, “Can I achieve my goals and objectives as part of a franchise system?” “Do I have what it takes to be a franchisee?” “Am I willing to follow and adhere to a franchisor’s business system?”

These questions are usually easy to answer. Beyond realizing the viability of a franchise brand, as addressed in due diligence of the franchise concept itself, the answers lie in understanding the mindset required to be a franchisee. A franchise is almost definitely not the right choice for a business maverick or renegade.

Certainly, there is an important place in business for these unique innovators—without them we wouldn’t know Apple or Dell Computers. Even McDonald’s, as probably the greatest franchise of all time, which stormed through the country under the leadership and direction of a true maverick, Ray Kroc.

But even he would not have been successful without franchisees who were required to strictly follow McDonald’s system without fail. No questions asked and no room for negotiation. Does that sound like you? Then you may have a franchise mindset, after all.

Have a great day. Make it happen. Make it count!

Assistance & Resources

If you’re looking to replace a job, diversify your income, and/or control your own destiny during these challenging times of economic uncertainty, it is a good idea to explore business ownership, provided it’s the right fit for you.

Whether exploring a franchise opportunity or acquiring an existing business, We can help you find the franchise or business that’s right for you. We’ll even assist you in securing funding for your new venture.

Please reach out to Acceler8Success Founder, Paul Segreto on LinkedIn, via email to paul@acceler8success.com.or text or call him at (832) 797-9851.

Learn more at Acceler8Success.com and OwnABizness.com.

3 Questions to Help Determine if Franchising is Right for You

Among twenty-five or so Google Alerts I have set including ones for each of our clients, as well as for words and phrases relevant to services we offer, I also have a Google Alert for my name. As is often the case, I have seen articles referencing articles I have written along with interviews that I have given, quotes from one of my webinars or workshops, and even from guest appearances on one of my podcasts. It is very flattering.

More so, it’s eye-opening when the alert references something from 3-5-10 years ago. I’m always interested to see if my thoughts back then are in line with my thoughts today. I ponder whether my thoughts are consistent in how to approach things like social media, entrepreneurship and franchising. Really interesting is to see how my thoughts may have changed, to which I think about reasons why.

Recently, I was alerted once again. This time the alert referenced an article from eight years ago! Again, I was flattered when I clicked on the link and saw that it went to the blog on the Great Clips website.

I immediately thought back to see if I could recall writing an article or post for this great franchisor. After all, I had done so over the years for many franchisors and franchise organizations including Liberty TaxMonkey BiznessScooter’s JungleGuidant Financial, and International Franchise Association, just to name a few. So, it wouldn’t have been odd if I had written one for Great Clips.

Well, I hadn’t written this particular article for Great Clips, but I was flattered nonetheless as the article referenced an article that I had written for Entrepreneur.com. I was pleased to read that my thoughts shared back then are consistent with my thoughts of today.

Thank you to Great Clips and to the author, Beth Nilssen for thinking enough of my thoughts to share with their franchise candidate audience. I’m happy to share today it at Acceler8Success Cafe!

Is Franchising Right for You by Beth Nilssen

I came across an interesting article on Entrepreneur.com the other day that presented three key questions to consider when thinking about joining a franchised company or opening an independent business. Now, of course, there are more than just a few questions to think about, but I think the article did a good job of presenting three, basic and vital questions:

Do you understand every aspect of the business or do you thrive in one area?

The author of the article on Entrepreneur.com, Paul Segreto, points out that entrepreneurs looking to start a business from scratch really need to be well-versed in all areas of a business to ensure success. It’s important to have experience in marketing, recruiting, accounting, business operations, human resources, etc. 

On the flip side, franchisees don’t necessarily need to be an expert in all these areas because they can receive help from their corporate support system. At Great Clips, franchisees have access to marketing experts, business analysts and education staff to help them learn how to run their salon and train their staff. They also have a support system of franchisees who’ve “been there, done that” and can offer help and advice.

Are you an expert at making a name for yourself or would you like to be associated with an already strong brand?

Segreto points out that buying a franchise means that you inherit the reputation of the brand as well as customers—this shows the importance of doing research on public perceptions of any brand you are considering joining. A strong, recognized brand can have an immediate positive impact on your business, but a negative perception can do some serious damage. 

An entrepreneur starting from scratch has the unique opportunity of building and forming their own brand. This is a positive because you get to make the brand what it is, and the experiences you offer your customers will shape your brand perception. However, negatively, you’ll be starting as a small fish in a big pond, and it may be tough at the start to attract customers and establish a loyal customer base.

Are you the kind of person who likes to go it alone or do you appreciate a sense of community?

This is another great question from Segreto. In a franchise, you are a big community that needs to be united and work together to create a positive and enduring brand across all locations—this is not always an easy task. You also need to be able to follow a system. So, if you’re a free spirit or want to recreate the wheel, franchising may not be the right fit for you.

As always, we’re here to help you answer and talk through any questions you may have about franchising. Leave your questions in the comments below or fill out a request for information form and we’d be happy to discuss.

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Thank you Beth Nilssen. I hope that there was a candidate or two who had read the article that ended up buying a Great Clips franchise as it truly is an outstanding franchise organization. Here’s to your continued success.

Have a great day. Make it happen. Make it count!

Growing Your Business into a Franchise

As questions continue to be asked about franchising a business, I’m sharing today an article that had been written for The Small Business ExpoBrian Horowitz, a writer and content strategist specializing in business, technology and health interviewed Franchise Bible author, Rick GrossmanFranchise Scale founder, Dennis Mulgannon, and myself. The interview was conducted in mid-2021.

6 Essential Steps to Take to Grow Your Business into a Franchise

Small businesses face difficult decisions on whether to stay a mom-and-pop shop or expand into a franchise. Whether you are the WaveMax laundromat, the Flying Locksmiths or Shake Shack, which started as a hot dog stand in New York City, it’s hard to tell which company will become a successful franchise and which businesses will remain stand-alone mom-and-pop shops. 

If you are looking to grow your business into a franchise, here are some expert tips on how to proceed. 

Start in Nonregistration States

The Federal Trade Commission handles registration for franchises. Because it takes weeks or months to get registered, businesses should start growing in nonregistration states, said Rick Grossmann, author of Entrepreneur Magazine’s “Franchise Bible.” That will save the business money and the hassle of going through processes. However, if you are based in a registration state and plan to sell in your state, you must register. 

Paul Segreto, president and CEO of Franchise Foundry and founder of Acceler8Success Group, noted that 13 states are considered registration states, including New York, California and Illinois. Check with your state for the latest rules regarding franchise registration. Some rules have been relaxed following the COVID-19 pandemic

Hire a Franchise Attorney and a Franchising Coach

In addition to turning to a franchise coach, business owners should hire a qualified franchise attorney rather than a “business-only” attorney, Grossmann advised. 

“They have to be a franchise specialist,” he said. Grossmann suggested that franchising is too specialized to turn to a lawyer that is not handling franchise law all day long. 

When considering whether to become a franchise, look for a franchising coach that can take you through the process. For example, Franchise Bible Coach works with mom-and-pop shops as they go through evaluation, which leads to a three- to six-month project to launch them into franchising, Grossmann said. Services such as Franchise Bible Coach, Franchise Foundry and Franchise Scale coach executives on what they need to know to grow a business into a franchise. Franchise coaches also help write your operations manual and marketing plan while your franchise attorney is drafting your franchise disclosure documents. 

“Attorneys are an important part of the process, but you really need a franchise mentor,” said Dennis Mulgannon, founder and principal of Franchise Scale. “That is somebody that’s guiding and building out the infrastructure of a franchise system to be able to support nationwide growth or regional growth, depending on what the goals and the aspirations are of the founders.” 

As a franchise mentor, Mulgannon gets pitched four or five times a month from businesses looking to grow. 

“When I launch a new brand, I play stealth CEO, meaning they generally don’t have that experience in the franchise space, they’re experienced at whatever business they’re in, and they’re really good at it, or I wouldn’t be talking to him,” Mulgannon said. 

Build Franchise Businesses That Are Repeatable

The entrepreneur should also have a duplicable business that can succeed almost anywhere and have a need to help people in other communities, Grossmann said. There also should be a need for the company’s product or service.

“The system has to be transferable; it has to be relatable,” said Segreto, who has worked with hundreds of franchises. “It has to be able to be implemented and deployed just like the original business.”

Repeating the business in just one other location will not be enough, according to Segreto. He recommends a “hub-and-spoke” philosophy in which a franchisor opens a few locations around the main location. 

If you use Atlanta as the main location, you can set up other locations within four hours of that city, including additional franchises in Atlanta as well as in Nashville, Montgomery, Alabama and the Florida Panhandle, Segreto said. 

“You’re always going to have that central one in the core part of town, and then you’re going to spoke out,” Segreto said. He suggests moving toward saturation in a particular market before branching out to other areas. Saturating a single area with franchises also helps the supply chain, particularly for food chains, Segreto noted. 

Establish a Culture-to-Growth Philosophy

Businesses looking to become a franchise should have a “culture-to-growth philosophy,” according to Segreto. 

“You have to have the right individuals on your team, and then as franchisees come on board, you have to make sure that the culture is such that you’re not treating them like employees,” Segreto said. “You’re treating them like investors in your business.”

Segreto cites Jersey Mike’s Subs in Point Pleasant Beach, New Jersey, as a franchise with a “tremendous culture-to-growth philosophy.” He says the franchise’s owner, Peter Cancro, is always giving back to charity. Cancro is also known to put an apron on and get behind the counter to help out, according to Segreto.

“There are not enough of them like that,” Segreto said. 

As part of the “culture-to-growth philosophy,” businesses need to have “positively memorable experiences” for all stakeholders involved, Segreto said. 

“If you don’t have that type of mentality and mindset, franchising is not for you,” he said. 

A culture-to-growth philosophy incorporates people skills and having the skills to manage workers from diverse backgrounds, Mulgannon noted. 

Prioritize Branding for Your Business

To have a business that can become a franchise, put yourself in your customer’s shoes and see if the business is branded correctly when you walk in the door, Segreto said. 

Consider the social media, online branding and online PR that you will need to grow your business, he advised. 

Businesses should have a modern appearance with clean branding, Segreto added. Avoid handwritten signs on the walls or windows or the appearance that furniture or counters have been built by hand. Digital signage and the uniforms that employees wear are elements that make a business look like a franchise, according to Segreto. Consider how employees throughout franchises like Best Buy or Verizon are dressed in similar attire.

“Create a marketing plan that’s customized and tailored toward people that will resonate with your brand, not just a shotgun approach,” Grossmann said. “If you’re a physical therapist and you’re going to target physical therapists, you should have a marketing plan that specifically targets physical therapists. 

Consider the Financial Cost of Building a Franchise

Many companies fail to take into account the financial requirements of building a business model. Franchisors must have a certain net worth and exceptional credit. To build a small business into a franchise, a franchisor should have at least $150,000 for franchising costs, according to Segreto. Those financial resources will go toward developing a franchise disclosure document, obtaining trademarks, drafting manuals and hiring people. 

The real income for franchisors will come in ongoing royalties, and the franchise fee will be a “wash,” according to Segreto. 

Success in growing into a franchise comes down to leadership, according to Grossmann. 

“I’ve seen mediocre businesses with great leadership thrive, and I’ve seen really great concepts with lousy leadership fail,” Grossmann said. To grow your small shop into a winning franchise, ensure that your leaders have strong management skills and seek input from franchise coaches as needed.

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Learn More About Franchising Your Business

Below are links to Acceler8Success Cafe articles about franchising an independent business or brand. If you’re considering doing so, even just thinking about it, I highly recommend you learn all you can about the process and what it takes to become a successful franchisor. Do you due diligence much like franchise candidates will do when exploring a franchise opportunity.

Is Franchising the Right Way to Grow Your Restaurant Business?

Is Franchising the Right Way to Grow Your Restaurant Business? (Part 2)

Emerging Franchise Brands: Controlled Growth is Key to Initial Success

8 Key Focus Areas of Successful Franchise Leadership

Have a great day. Make it happen. Make it count.

Assistance & Resources

The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to me for assistance or even if you just need someone to talk to. Please do not hesitate. You can reach me via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851. Learn more about Acceler8Success Group at Acceler8Success.com.

Bring the Preparing for War: You vs. Recession Series to Your Organization

If you’re interested in having this series presented to your organization, either as a webinar, workshop or conference break-out session, please click HERE for more information. The program can be tailored to your business model, product, service offering and industry segment. It has been resonating quite well with franchise and restaurant brands.

6 Ways to Drive Restaurant Sales and Repeat Sales in Bad Times (and in Good Times)

Every week for the past year or so I’ve read the dismal news of restaurant closings across the country. It doesn’t appear that hardship was partial as the closings run the gamut from small cafes to large fine dining establishments, from small towns to large cities, and in both blue and red states.

The bottom line is that it’s becoming more and more difficult to successfully operate a restaurant today. Yet, many restaurant operators hang on, and for a multitude of reasons. I’m certainly not going to debate a person’s reasons, especially emotional reasons driven by passion, commitment and pride.

Instead, I’d like to focus on ways to make things better, to whatever extent that may be possible. I am of the mindset for these operators that failure is not an option. So, let’s give it the old college try to help. Well, it’s more than a college try as there are effective strategies being implemented by quite a few restaurant operators across the country.

With restaurants surviving, and with some actually thriving, there is hope. However, standing still, and continuing to do the same things over and over again, day after day with the same results is absolutely insane. There’s even a famous quote, albeit mistakenly giving credit to Albert Einstein for saying it, “The definition of insanity is doing the same thing over and over and expecting different results.” Nevertheless, it is a true statement!

Last week I revisited a strategy that helped a number of restaurant clients as lockdowns had been mandated. If you missed the article, Revisiting the ‘New Normal’ for Restaurants, you can read it HERE. As I wrapped up the article, I indicated I would soon be sharing my recommendations for driving business and repeat business to restaurants (as well as any consumer-facing business). Well, today is that day!

Please note: At the end of this article, I will share links to my recent series, Preparing for War: You vs. Recession that provides supporting details to some of the tips listed below. I highly recommend reviewing the same for full understanding.

6 Ways to Drive Restaurant Sales and Repeat Sales in Bad Times (and in Good Times)

First things first. The ultimate goal must be on striving to deliver positively memorable experiences, at all times, and to customers and employees alike. As the restaurant operator, owner, or whatever the title, the commitment must start with that person. Positivity, regardless of what is happening that particular day is paramount to the delivery of positively memorable experiences. It must be a proactive approach and one that is contagious.

  1. Utilize loyalty programs to keep your brand in front of customers. Loyalty programs should not be looked at as just for the purpose of promoting specials and celebrating birthdays & anniversaries. Complement typical efforts with frequent messages showcasing a new menu item created by an employee or as suggested by a customer, recognizing long-term employees as well as long-time customers, and even spotlighting vendors and their efforts. As much as possible, make it personal. Use names. Make it real. Think… Loyalty & Family. Create a family-type environment to develop family-type relationships!
  2. Look at social media as the integrated platform that it is. View it as communication central. All efforts pertaining to driving positively memorable experiences should be shared across the brand’s social media platforms. Yet, not just replicated from one to another. Similar messages, but not exactly the same is key. Use a different photo with the same message. Utilize photos AND videos to allow customers a glimpse into the restaurant, front of the house and back. In addition to plates of food, let them see smiles, cleanliness and organization. Pay attention to detail as social media is highly representative of the brand in customers’ minds.
  3. Speaking of attention to detail, it’s also imperative in the restaurant itself. Think Disney or Apple. Some may question how attention to detail would drive business. Well, it drives repeat business, positive reviews, recommendations to friends & family, etc. Be proactive in creating attention to detail as an initiative to be looked at from the customer’s perspective including ALL things that may be viewed by the customer. From the parking lot to the restroom, look up and down as if on a virtual tour. Make sure everything is perfect just as would be the case if family were coming to your home for a special dinner or event.
  4. Many believe communicating with customers means talking to customers, blasting out messages, etc. but it’s also about listening. However, listening to understand as opposed to listening to speak is key. Following up AND following through with customers should be considered as a single step with parts A and B necessary to complete the action. One without the other could create issues. Ensure that customers truly believe they are being listened to and are being understood. The best way to do so is to be proactive in responses not only to their complaints and requests, but also to their kind words.
  5. Communicating after an experience may be the icing on the cake to making a customer feel loved, to feel wanted. Using a simple version of the Net Promoter System (see articles linked below) is a great way to do so. To whatever extent that may work in a particular restaurant, asking a customer to grade their experience is quite effective in ensuring repeat business, or at the very least in keeping negatives off the review sites. Sure, there are customer surveys that come along with the check but personally, I believe they’re too long and vague. Simply, two questions should be asked. On a scale of 1-10 with 10 being best, how would you rate your experience? And what could we have done to have earned a higher score, even if just by a single point? Asking these questions as close to the timing of the experience does wonders to letting a customer knows that they are truly valued. Share the results with staff for added value to the business. A side thought: ask employees the same questions of them with respect to their experience working at the restaurant?
  6. Just one more. I’m a firm believer in, just one more. Just one more item ordered. Just one more visit by a customer each week, month, etc. Just one more positive review. Just one more referral or recommendation. Just one more time to consider the restaurant. When enhancing the experience with a personal touch, just one more becomes a reality. People trust a brand but desire to do business with people. They especially want to do business with people who care, who are kind, who listen, and who go the extra mile.

If I had listed various advertising and marketing suggestions with significant expense, I would be hearing that they’re unaffordable during tough times. However, although the above is tied to labor, which is an expense, they are affordable and especially as sales increase. I think an important question to ask (and answer) is more about the commitment to follow through.

Have a great day. Make it happen. Make it count!

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Links to the articles from the Preparing for War: You vs. Recession series:

Preparing for War: You vs. Recession

Recession Prep Question: Are you planning to win, or are you planning not to lose?

Recession Prep Question: How important is the WOW factor?

Recession Prep Question: Is the employee experience a factor in the customer experience?

Recession Prep Question: How important is the right culture to business survival?

Recession Prep Question: Should the ‘Experience Factor’ be treated like a line item?

Recession Prep Question: Do you have an unbeatable strategy of loving customers… and employees?

Recapping the Series: “Preparing for War: You vs. Recession”

Recession Prep Question: How will your mental health hold up during challenging times?

Assistance & Resources

The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to me for assistance or even if you just need someone to talk to. Please do not hesitate. You can reach me via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851. Learn more about Acceler8Success Group at Acceler8Success.com.

Bring the Series to Your Organization

If you’re interested in having this series presented to your organization, either as a webinar, workshop or conference break-out session, please click HERE for more information. The program can be tailored to your business model, product, service offering and industry segment. It has been resonating quite well with franchise and restaurant brands.

Weekly Review August 1-6

Just like an experience at your local café, I’ve planned for Acceler8Success Cafe to be conveniently located when and where you desire or need to relax, enjoy a cup of coffee, and catch up on some time for you. My goal is for Acceler8Success Cafe to be your virtual café, a place where you may frequently visit to enjoy a few minutes of leisure time to read, think and reflect about ways to improve and succeed in today’s crazy business world.

I strive for your experience to be memorable by providing learning opportunities, by presenting different perspective & insight, by spurring thought & reflection, by encouraging interaction, and by spotlighting topics that, quite frankly, may not be as front and center as they should or need to be.

Acceler8Success Cafe is open for business seven days a week. For the benefit of current & aspiring entrepreneurs, this daily newsletter is delivered each morning. As a way to jumpstart the week ahead, a weekly review is delivered each Sunday morning listing and linking to the articles you might have missed during the previous week. My objective is to provide an opportunity for you to begin your day and the week ahead informed and with ideas that possibly could accelerate your success.

So, before we jump into this week’s review, how about starting today with a smile? A positive thought? Your happy place? A tug at the child in you? And what better way than doing so with Charlie Brown & the Peanuts Gang at the beach?

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Adapt to Survive. Adapt to Succeed!

Over the weekend, I was reflecting upon how things have changed and disrupted business, and life as we knew it. Buzz words were thrown around, probably more so than for anything else except to give reason to necessary changes; the same changes that were needed to be made in order to adapt to a changing business world.

Ultimately, not adapting was reason for error, and for failure. But to some, it was “okay” because there was [false] justification – the pandemic. At other times, false justification includes a plethora of reasons, well, excuses. Hey, I’ve found myself falling into that trap at times, especially when others get in your ear as a way of justifying their own actions or inactions. Of course, some are just flat-out negative.

Read the article for Monday, August 1, 2022 HERE.

Is NOW a good time to start a business?

One of the most frequent questions I’m asked of late is whether it’s a good time to start a business. I believe there are two answers to this question.

My first response is addressed from the perspective of the person asking the question. It’s actually about asking questions of that person that determines whether business ownership is right for them, regardless of what’s going on in the world at a particular time.

First, I ask about why they’re interested in starting a business. I ask them to share with me their goals, experience and skillset. The next set of questions have to do with the capital they have available, their ability to secure additional capital, their adversity to risk, and of course, whether they’re replacing their primary source of income. I also inquire if they’re going to have a partner.

Read the article for Tuesday, August 2, 2022 HERE.

Is Franchising the Right Way to Grow Your Restaurant Business?

Another question I am being asked quite a bit of late is about whether franchising is the right way to grow a restaurant business. It’s certainly good to see restaurant operators and other business owners proactively planning for the long-term. Preparing to franchise a restaurant or any business for that matter, is a good project to undertake even if franchising turns out not to be in the cards, for whatever reason. A lot can be learned from the process itself.

It was this objective of being well informed regardless of whether franchising was the right strategy or not that I had on my mind when I was asked to conduct a seminar for RestaurantOwner.com five years ago. It’s no secret that many restaurant operators have aspirations of seeing their concept grow across a state or even across the country. Most think about franchising as the vehicle to accomplish their goals for all the obvious reasons. But is franchising right for them personally? Is their business positioned correctly for franchising? And is franchising the right or only path for growth?

Read the article for Wednesday, August 3, 2022 HERE.

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Is Franchising the Right Way to Grow Your Restaurant Business? (Part 2)

Today, I’ll be sharing Part 2 of the article, Is Franchising the Right Way to Grow Your Restaurant Business? An article that was based upon a webinar of the same title that I presented at RestaurantOwner.com approximately five years ago.

A restaurant operator knows the time is right to franchise his concept, ideally, after duplicating profitability and customer engagement at several locations. That proves systems and processes are working without the restaurateur being on the premises.

Slightly less than ideal, but certainly doable, Segreto continues, is having a single, highly successful location that runs like a well-oiled machine even when the owner is not on site. That said, the time can also be right when the restaurant owner wants to help others follow his vision to success, knowing that the business now is franchising as opposed to foodservice.

Read the article for Thursday, August 4, 2022 HERE.

Revisiting ‘The New Normal’ for Restaurants

Two and a half years ago, mandated lockdowns pushed restaurants (and other businesses) to shift, pivot or whatever you prefer to call it – just to survive. Sales plummeted almost overnight as dining rooms shut down, forcing restaurant operators to either think outside the box or close temporarily, if not permanently.

At that time, based upon consulting with a number of restaurants facing very desperate situations, I wrote an article, The New Normal that I’m proud to say was picked up by several restaurant and franchise industry publications. The New Normal was the foundation of an aggressive strategic plan we had developed to help restaurants quickly and cost-effectively.

Today, as restaurants (and other businesses) are again facing challenging times, I’ve been revisiting the strategy. We’ve reintroduced it to several of our clients who are quickly seeing positive results. The questions that I’m being asked by these operators is, why didn’t we continue with these good practices all along – why did we stop?

Read the article for Friday, August 5, 2022 HERE.

How did we get here?

Over the years, many of us had moved out of major U.S. cities; the very same ones that are now under attack. These cities will most likely never be the same as they were before buildings were vandalized and burned, monuments toppled, defaced and in some cases, desecrated. Neighborhoods are being destroyed. 

Crime is rampant. There are shootings and stabbings in the streets, in broad daylight. Vicious crime is indescribable to anyone with the least feelings possible as a growing number of thugs and gangs have exhibited no regard for human life. Drugs. Homelessness. Filth. And a lot of frightened citizens whose personal dreams are being shattered by the day.

Read the article for Saturday, August 6, 2022 HERE.

Have a great day, and week ahead. Make it happen. Make it count!

With over 60 years combined experience focused on entrepreneurship, small business, franchises and restaurants, we know what it takes to succeed in both good and challenging times. We share our knowledge and passion to help entrepreneurs and business owners realize their success.

We have helped hundreds of franchisors & business owners achieve their business and development goals and have assisted several thousand individuals and investment groups achieve the American Dream of business ownership including franchises and restaurants.  

For information about Entrepreneurship Coaching or about any services by Acceler8Success Group, please reach out to me on LinkedIn, via email to Paul@Acceler8Success.com or text or call me at (832) 797-9851. I look forward to helping you achieve your goals & objectives.

How did we get here?

Over the years, many of us had moved out of major U.S. cities; the very same ones that are now under attack. These cities will most likely never be the same as they were before buildings were vandalized and burned, monuments toppled, defaced and in some cases, desecrated. Neighborhoods are being destroyed. 

Crime is rampant. There are shootings and stabbings in the streets, in broad daylight. Vicious crime is indescribable to anyone with the least feelings possible as a growing number of thugs and gangs have exhibited no regard for human life. Drugs. Homelessness. Filth. And a lot of frightened citizens whose personal dreams are being shattered by the day.

New York City (mine), Chicago and others will be forever in our memories of growing up and visiting and sharing with our children. Yes, we had left for greener grass in Texas, others to Florida and Arizona, all of us to raise families and live better lives – but still our hearts belong to our hometown cities. And despite living elsewhere, in some way our loyalty remained to where we grew up or as many say, where we were from.

However, we visited often. It’s where our personal heritage began and the history of our parents and grandparents preceded as proud first-generation Italian, Irish, German, Jewish, Polish along with many other immigrant groups. Many were fortunate to have realized what was then referred to as the American Dream. I’m now thinking about how it is viewed differently today and certainly without the passion once tied to the dream.

This past week, my wife and I watched the series, The Offer. The series is about the making of the movie, The Godfather. The story was mesmerizing in its own right but as The Godfather and The Godfather Part 2 always does for me, it brings me back to the time of my grandparents and the many other immigrants that came to America. Although it was about Italians, Sicilians, and that’s my heritage, it could have been about any ethnic group.

My Dad was born in 1916 to immigrant parents in the Lower East Side of Manhattan. As a point of reference, the opening scene of The Godfather Part 2 was 1916 in that very neighborhood of Manhattan. That’s exactly where he was born and raised. What a visual! It always makes me think about my dad’s life back then and what he saw and lived through, as so many did, as well. I think about the same for all my relatives, as well as for the relatives of many of my friends and classmates growing up.

The American Dream was real. It was about hope for a better life for each person and their families. It was built around cities, melting pots of many people living together, amongst each other. The conditions were certainly less than ideal. Sure, there was crime and violence but ultimately, all living there remained committed to improving their lives and they worked extremely hard at doing so.

Improvements were made in the neighborhoods. New buildings were mixed in with the old. Churches, schools, department stores and the like popped up everywhere. Small mom & pop businesses flourished, enabling parents to put their children through college – another part of The American Dream and the list went on and on – business ownership, home ownership, car ownership sprinkled in with values, care, and respect.

And then, like me and many within my family, we did what our ancestors did and moved elsewhere in search of something better for us and our families. Do I regret it? No, I don’t regret it, but I do miss what once was as I was growing up – close-knit neighborhoods, tight communities of friends and families, families living close enough to visit every Sunday. I miss traditions associated with all of it including church bazaars, neighborhood festivals and Christmas on 5th Avenue, just to name a few.

Yes, I miss it all. However, visiting often had kept the spirit burning for me. I loved that my children got to see and experience it. They loved hearing the stories. They loved the food. They loved the heartbeat of the city – of New York City. And that, in a nutshell is what is being ripped from these cities today – their heartbeats. As their pulse continues to disappear, slow and painful death is imminent. I’m wondering, how did we get here?

These cities will always be part of who we are but sadly the thought (and joy) of returning for a visit has been overshadowed by the decay of these once majestic cities. They’re fast losing steam as once popular cities for conferences and trade shows, so even business trips to these cities have diminished. It’s hard to believe that cities with populations of millions of people have essentially become like ‘ghost towns’ to those of us that have lived there before. There’s a feeling of emptiness that is hard to describe, but definitely felt as real.

Fond memories are fading, and for that I weep and especially for what has been stolen from me, my family, and for future generations who will only be able to read about America’s once great cities. That is, until someone or some group decides to permanently remove these cities’ history from the books, claiming their existence disgracefully represented something more than the foundation (and battleground) of the first example of the American Dream.

Have a great day (and weekend). Make it happen. Make it count!

Revisiting ‘The New Normal’​ for Restaurants

Two and a half years ago, mandated lockdowns pushed restaurants (and other businesses) to shift, pivot or whatever you prefer to call it – just to survive. Sales plummeted almost overnight as dining rooms shut down, forcing restaurant operators to either think outside the box or close temporarily, if not permanently.

At that time, based upon consulting with a number of restaurants facing very desperate situations, I wrote an article, The New Normal that I’m proud to say was picked up by several restaurant and franchise industry publications. The New Normal was the foundation of an aggressive strategic plan we had developed to help restaurants quickly and cost-effectively.

Today, as restaurants (and other businesses) are again facing challenging times, I’ve been revisiting the strategy. We’ve reintroduced it to several of our clients who are quickly seeing positive results. The questions that I’m being asked by these operators is, why didn’t we continue with these good practices all along – why did we stop?

The answer points to the fact that as business started to return to normal, operators quickly returned to what they knew as standard operating procedures and pushed the new normal items to the backburner.

However, one of our clients stayed the course and I’m proud to say, their revenues are higher than pre-pandemic numbers. Interestingly, this restaurant is experiencing significantly less issues recruiting and retaining personnel than many other establishments. The culture within the restaurant is phenomenal.

Mind you, this restaurant was facing a severe challenge as prior to the pandemic, takeout sales were less than 2% of total revenue with delivery essentially non-existent. Today, takeout and delivery accounts for 16% of its business.

The owner recently told me he’s seeing new customers coming to the restaurant for dine-in that had mostly been delivery customers, and ones that hadn’t known about the restaurant pre-pandemic. He further indicated he felt like this was the first new profit center he has realized in many years.

Reverting back to the old without integration of new ideas and methods, is essentially putting square pegs into round holes. To think that business should run as it did 2-3 years ago without adjusting to the times is ridiculous. There is no going back, just adapting to the here and now.

Think about it from the standpoint of starting the business today. What would it cost to start the business today? What would your labor costs be if you were starting today? What would your menu prices be if you didn’t know about what they were yesterday or last year? What would your menu look like if you started today? Would you have as many selections as 1-2 years ago? How about the addition of more profitable items and removal of less profitable ones?

The list of questions is long, but the bottom line is they must be asked… AND answered honestly and without prejudice. Operators must be flexible, willing to shift, pivot and adapt quickly, and yes, often – as often as necessary.

To that end, I’ve revisited The New Normal article and strongly believe that the recommendations made back then, work well today. Below are those 25 recommendations for restaurants to implement to successfully shift to the here and now.

As they did two and half years ago, these recommendations focus on take-out and delivery. Next week, I will share my recommendations for driving business, and repeat business to restaurants (as well as any consumer-facing business).

One more word of advice: Don’t pick and choose. Implement all of them ASAP!

  1. Reevaluate your menu. Look to highlight items that travel and heat up well and those that look and taste as good upon delivery as they do when served in-store.
  2. Include reheating instructions with all orders.
  3. Create value-added specials for families, like a dinner for four specials with an appetizer, salad, entrée and dessert.
  4. Add bottled soda to your drink offerings.
  5. Stock your restaurant with proper take-out and delivery packaging, including utensils, napkins and condiments. Don’t skimp on bags and boxes.
  6. Create a Thank You item (or items) for customers who support you during the slowest weeks, such as a low-amount gift card for a future take-out/delivery order, a higher-amount gift card for when full dining becomes available, a hand-written note expressing thanks for their business, or small freebies. Be creative, but remember, a little goes a long way!
  7. Include a business card from the owner or general manager with a note outlining steps customers can take if they are not satisfied. If, and when contacted, act promptly and courteously.
  8. Pay special attention to order taking and checking to ensure accuracy.
  9. Ask about special food preparation requirements.
  10. Add a personal touch by letting customers know the name of the person taking their order.
  11. Phone calls must be answered as promptly as possible and in a professional manner.
  12. Pay attention to how menu items are placed in containers to ensure they look attractive when customers receive them.
  13. Include extra containers of sauces and dressings. When reheated, many menu items tend to dry out, and customers appreciate the extra items.
  14. Be sure to track all orders and hold delivery drivers accountable.
  15. Follow up with customers after they receive their order — later that day or at the latest, the next morning.
  16. A good rule of thumb for managing expectations is to under-promise and overdeliver.
  17. Include with each delivery a list of future specials and of course, the take-out and delivery menu.
  18. Utilize the restaurant’s loyalty program to communicate with and market to your database of loyal customers.
  19. Create a simple frequent diner program. For example, every fourth order receives a $10 or 10-percent off discount.
  20. Build order tickets by offering a multi-meal discount. For example, place a second or third order at the same time and receive 5 percent or 10 percent off, respectively.
  21. Offer an additional entrée with orders over a certain amount. For example, spend $50 and receive an order of spaghetti & meatballs at no additional charge.
  22. Market on social media with pictures of menu items and specials.
  23. Market on social media with videos of the owner showing cleanliness of the kitchen, food preparation or just offering a personal message of care and thanks.
  24. Document all processes and methods regarding take-out and delivery to incorporate into restaurant operations to enhance business when restaurant is open for dine-in customers.
  25. Communicate, communicate, communicate with staff on changes and progress. Celebrate small wins!

Assistance & Resources

The future may be a bit bumpy for some, more so for others. Knowing who to turn to and when to turn to for guidance and help is important. Having resources at your disposal is also important. So, if you hit a wall, for whatever reason, please feel free to reach out to me for assistance or even if you just need someone to talk to. Please do not hesitate. You can reach me via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851. Learn more about Acceler8Success Group at Acceler8Success.com.

Have a great day. Make it happen. Make it count!

Is Franchising the Right Way to Grow Your Restaurant Business? (Part 2)

Today, I’ll be sharing Part 2 of the article, Is Franchising the Right Way to Grow Your Restaurant Business? An article that was based upon a webinar of the same title that I presented at RestaurantOwner.com approximately five years ago.

Timing is Everything

A restaurant operator knows the time is right to franchise his concept, ideally, after duplicating profitability and customer engagement at several locations. That proves systems and processes are working without the restaurateur being on the premises.

Slightly less than ideal, but certainly doable, Segreto continues, is having a single, highly successful location that runs like a well-oiled machine even when the owner is not on site. That said, the time can also be right when the restaurant owner wants to help others follow his vision to success, knowing that the business now is franchising as opposed to foodservice.

Understandably, the smaller and more efficient the restaurant, the better. The lower investment is attractive to experienced operators who may have $1 million to invest but would rather do it with five to I0 units rather than investing it all in one high-dollar operation with little to no room for error. That’s why the QSR (quick-service restaurant) model tends to be attractive, says Segreto.

Segreto also sees an excellent opportunity for successful food truck operations transitioning to brick and mortar. The key in all of this is simplicity in operations while maximizing efficiencies for higher profit margins. This is especially true of QSRs without grills or hoods, but with preparation of fresh salads and other dishes. Some don’t even have freezers, which is even cutting down space requirements.

Franchised takeout and delivery concepts will continue to proliferate, Segreto predicts. What I also see changing is a move away from single-item franchises such as French fries or dessert items. Basically, if it’s a single, complementing, or add-on item on a typical menu it won’t sustain a franchise operation. The few units that survive will be in high-foot-traffic areas albeit with high rents.

It will be a struggle, but some will survive, he suggests. I also believe we’ll see more modeled after typical pizza operations: large takeout and delivery, high percentage of online and phone orders, (and) counter-type operations of a high-margin family style product such as barbecue and fajitas.

Initial Steps

The first thing Segreto recommends would-be restaurant franchisors do is conduct a feasibility study. It’s understanding the competition, he explains. It’s understanding what’s working out in the restaurant industry in your particular food segment. It’s looking at where are the best locations. Where are the successful brands succeeding? What does the real estate footprint look like? What does the size of the space look like? What is the competition that’s out there? Who’s growing in my particular area that I anticipate going head-to-head with? So, the last thing you want to do is open up your Greek food restaurant as a franchise and go directly across the street from an actual brand that is doing the same thing.

Development of an operations manual is another necessary step, Segreto says, and this is really complex. It really is the specific development of every process, every procedure. Keep in mind, as I said before, franchising is being able to repeat the system over and over and over and over again; being able to duplicate it, to replicate it, so somebody can pick up that operations manual and actually learn from it and be able to operate that business.

Some of the most successful brands – in any sector – are franchises. In the restaurant business, they are household names. For many independent operators, franchising their concept is the so-called Big Hairy Audacious Goal. Before you take that big leap, there are a lot of small and critical steps to consider. – Paul Segreto

Franchisee and franchisee employee training and program development comes next. How are we going to go ahead and get individuals who are interested into your brand in a franchise situation to be trained correctly? – he asks. You have to develop a training program along with a training manual. You also have to have a train-your-trainer program, because the person who might be doing your training today might not be around (in the future), and you have to make sure you have everything documented from that.

Ongoing support, understandably, is critical. We have to support the individuals who are out there. Obviously, we don’t want to just pick up the phone and say, ‘Hey Joe, how are things going?’ There has to be an action plan. There have to be goals. There has to be a way of motivating them. There has to be a way of coaching them. There has to be a way of understanding at a glance where this franchisee might be having some issues.

Web site development must account for each new franchisee that comes on board. “They’ve got to have specific unique URLs (uniform resource locator, the address of a World Wide Web page) on your site. If you wind up selling 10, 20, 30 franchises, obviously you have to have the structure in place to be able to accommodate those location pages. Is it going to be Pizzarama Number One? Is it going to be Pizzarama, Abilene, Texas? How are we going to identify them? There must also be a franchise development web site, a page on the regular web site that also has its own unique URL that can be used as a landing page.

A franchise relations management computer application is another valuable addition. Compliance mechanisms must be put in place, he urges. How do you track royalty payments? How are you going to do it for multiple franchisees? There are different franchise relationship computer applications out there; some are very proprietary, and you can’t even get in the door at $25,000.

But there are a lot being released now which are Microsoft-dynamic, and are able to integrate QuickBooks very, very effectively. He calls this an absolute necessity in order to track what’s going on. And if you’re selling any type of supplies or goods to them, this is another way of tracking.

Another essential step is prototype restaurant layout and design. Rarely, says Segreto, does someone open a restaurant and afterward say it is exactly what he wanted. We’re always saying, ‘I wish the bathroom was a little bit different. I wish we had a little bit more room in the server area. I wish we had a little bit more room in the kitchen because we’re kind of running into each other.’ Keep in mind; this is something that your franchisees are depending upon you for, so obviously there’s a cost involved.

Likewise, development of signage specifications is a necessity. Whatever the franchisee is going to have, you’re going to have signage specs. What is the sign going to look like from the outside, on the building itself? What does the road sign look like? If it’s on a multi-use line, what is the small side going to be? Of course, make sure your logo fits on it.”

The franchise disclosure document is really the big one, – says Segreto. Within it is a franchise agreement. Again, you could reign in the cost on this, but a lot of it depends on how good your franchise attorney is. I would never, under any circumstances, ever, ever, ever recommend an attorney do your disclosure document that doesn’t specialize – not touch on but specialize – in franchise law.

The timing for a certified financial audit varies according to state. “You won’t need this your first year, at least in the state of Texas, says Segreto. But if you’re franchising in the State of New York, you will need it in the first year.” It calls for an independent audit firm to look at and sign off on the venture. “It says, ‘These are the financials as I know them.’ State administrators look at this to make sure that you can support franchisees, that you’re not just doing this on a wing and a prayer.

According to Segreto, a franchise registry is something that’s popped up of late. It is part of the Small Business Administration (SBA) registration. It’s almost, almost impossible for a franchisee to get an SBA loan without the brand already being vetted out and listed on the franchise registry, and there’s some reason behind it. By the same token, however, it also shows the franchise candidate that this brand is serious and has actually invested in getting listed on the registry.

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You Can Do It Yourself… And Other Myths

If we can take anything away from Segreto’s advice it is that franchising is a tremendously complex endeavor. Few operators – even successful franchisors – have the breadth of knowledge and skills to do even a portion of the required steps without professional advisors.

Of course, the franchisor can try to do it himself, he adds. I’ve seen many, many individuals in the restaurant industry, and otherwise, try it. They always come running back and say, ‘I’ve no idea how to handle this. There are too many things going on at one time.’ So, you’re going to need a consultant to kind of ‘hold your hand’ along the way and make sure that everything gets done in a very progressive manner.

The human factor in a franchise relationship should never be overlooked. As Segreto has found, A few individuals may just be needy and whiny about everything. Could you handle that? How about a franchisee that’s not complying, not paying royalties, causing issues in the marketplace, and as a result you must take them to court and possibly terminate the franchise agreement and get them to cease operations? Keep in mind, his lifesavings are on the line. Could you handle that?

His point is that a franchisor has to have the right personality and has to be committed to the long-term vision. There are a lot of myths about franchising: ‘If I franchise, I’ll make tons of money. If I franchise, I won’t have to work as hard as I’m working now. I can just retire.’

The vision of franchising a restaurant concept can make some over-confident, Segreto has found. Some are likely to say, ‘Once I teach a franchisee how to run the business, then I don’t have to do anything else. All they do after they sign is pay me royalties.’ That’s not true. You have obligations.

Indeed, Segreto concludes, this might be the biggest myth there is. A lot of franchisees that, all of a sudden, make an investment have an entitlement attitude that, ‘Because I invested X-amount of dollars, the business should just succeed.’ You find that all of a sudden, they’re on the golf course a lot more. They bought that new boat. You’ll be surprised what comes out of the woodwork.

Read Part 1 of this article HERE.

Assistance & Resources

If you’re interested in exploring whether franchising is right for you and your business, let’s discuss. I can share with you my 40+ years’ franchise development experience while also introducing you to resources necessary for you to make an informed decision – one that is right for you and your brand! You can reach me via a LinkedIn message, by email to Paul@Acceler8Success.com, and by phone or text at (832) 797-9851.

Have a great day. Make it happen. Make it count!