Author: Paul Segreto

Passionate About Fueling Entrepreneurial Spirit; Entrepreneurship Coaching; Management & Development Advisory & Consulting; Franchises, Restaurants, Service Businesses; Thought Leader, Influencer, Content Creator & Author.

[E-IDEA] Five Steps to Social Media Success

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Over the past two months, I have presented in several webinar series and have spoken to various groups about using social media within franchise organizations. Specifically, about [E-IDEA] that was originally posted on LinkedIn and on this site in June 2009. As I’ll be completing the Frantelligence Webinar Series with Franchise Business Review this coming week, I thought it appropriate to repost the original [E-IDEA] article.

[E-IDEA] Five Steps to Social Media Success

I recently responded to a LinkedIn discussion post on one of the franchise groups. The discussion was “What do you see as the biggest challenge this year in franchise sales and development growth?” I thought this the perfect opportunity to present my five steps to social media success and responded accordingly.

The biggest challenge will be to capitalize on the influx of interest generated through social media.

As today’s franchise candidate has become more sophisticated, educated and technologically advanced than ever before, many will spend a great deal of time within social media, exploring franchise opportunities.

To effectively capitalize on this interest, franchisors will need to embrace social media as an integral component of their overall franchise marketing and development strategy, and integrate the same with traditional strategies. A firm commitment of time, money and other resources must be dedicated to the initiative.

ideaOh, don’t think it would work by having someone play around with Facebook or Twitter without a strategy in place. That definitely won’t work. Instead, it’s going to take a concentrated focus, or as I fondly describe as [E-IDEA], the acronym for franchisEssentials five step process to social media success.

1. Exploring different aspects of Social Media, including Social Networking and key Web 2.0 technology that creates excitement and brand awareness within your industry segment.
2. Identifying primary and secondary targets – Who will be targeted to purchase and/or visit your franchise locations? How deep do the target groups go and are there collateral groups that can be tapped?
3. Developing a Strategy and Plan of Action – Customized to specific targets in accordance with franchise development goals and objectives?
4. Executing the Plan – Putting the plan in motion including monitoring, managing the process including new content and updates. Keep it fresh!
5. Analyzing & Quantifying the Results – Is it working? Do you continue straight ahead or repeat the process from the beginning? What are actual results in franchise sales and system revenue?

Mobile Marketing in a Franchise Environment

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SGC BannerThe following article was written by Guest Author, Linda Daichendt. Linda is Founder, CEO and Managing Consultant at Strategic Growth Concepts, a consulting firm that specializies in start-up, small and mid-sized businesses.

During my recent guest appearance on a segment of the FranchisEssentials Show on BlogTalkRadio, we discussed briefly how franchise organizations can benefit from Mobile Marketing. I thought it might be useful to expand on that discussion by providing show co-hosts Paul Segreto and Joel Libava (The Franchise King) with a listing of more ways in which franchise organizations can benefit from the use of Mobile Marketing. The following are a few of my thoughts on this topic:

With Franchisees/Potential Franchisees

• Provide consistent messaging to franchisees regarding upcoming deadlines or special events via text messages, voice messages, or mobile websites
• Receive inquiries from potential franchise candidates asking to receive initial franchise information and to request initial contact
• Send messages via voice mail or text to relay the date for upcoming potential franchise candidate seminars based upon those earlier registrations
• Have franchise seminar attendees complete a survey about the event and indicate interest in continuing conversation

With Consumers

• Mobile contest registrations
• Mobile customer loyalty program registrations
• Fitness franchises; sign up consumers for FREE introductory visit and/or post exercise class schedules for existing members
• Restaurants; allow consumers to make reservations
• Plumbing, locksmith, electrician, other trade franchises; post emergency numbers on mobile websites, allow consumers to contact you via text at those numbers
• Distribute coupons to registered consumers
• Provide information regarding upcoming sales and/or discounts available
• Have consumers complete surveys about products/services
• Restaurants; allow consumers to place food orders in advance for pick-up or immediate seating upon arrival
• Restaurants/fast food; allow consumers to place food orders for delivery
• Utilize GPS mobile technology to notify registered consumers who drive into a targeted geographic area about a limited-time (1 hr) only offer to initiate immediate response
• Real estate franchises can send home listings to potential buyers for review and selection
• Real estate franchises can add an SMS code (text number) to the signs posted at each listing which will enable consumers to indicate an interest in seeing the house; and enable real estate agents to respond immediately
• Maid services franchises and other trade franchises; allow consumers to schedule appointments via mobile
• Fitness clubs/tanning salons/hair salons; allow consumers to schedule appointments and/or send appointment cancellations and/or request re-schedules
• Fitness clubs/tanning salons; allow consumers to make monthly payments via mobile
• Florists/candy store/gift store franchises; allow consumers to place orders for delivery
• Florists/candy store/gift store franchises; allow consumers to check on status of orders placed
• Florists/candy store/gift store franchises; distribute special offers to registered consumers to encourage early ordering during peak seasons such as Valentine’s Day and Mother’s Day

Obviously, this list is in no way comprehensive as the ways that Mobile Marketing can be utilized by franchise organizations are limited only by your imagination. Mobile provides an extremely cost-effective and efficient method of reaching target audiences. It works well as a stand-alone marketing strategy, but works extremely well as part of a multi-media strategy in which all media being utilized are integrated for maximum effectiveness.

If your firm is interested in learning more about Mobile Marketing and the ways in which your firm can benefit from its use, please visit the Mobile Marketing section of our website, or contact me directly at linda@StrategicGrowthConcepts.com and indicate you were referred by FranchisEssentials in order to receive your FREE one-hour Mobile Marketing consultation.

Would the World be a Better Place Without Franchising?

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This article is a repost from March 15, 2009

It is unfortunate the franchise industry continues to be (and always will be) subjected to bad press because of franchisee failures resulting in lost family savings including the children’s college fund. It’s unfortunate because bad press sells and society has evolved into accident watchers. Need I say “rubber necking on the highway?”

Not to mention that society has become full of gossipers. When was the last time you heard someone in the neighborhood say “Did you know Joe and Mary have been married for thirty happy years?” Such a positive comment is usually left unspoken, at best. Instead, you would be more likely to hear, “Did you know that Joe cheated on Mary.” Well, I think you see the point.

Would it be better for the press to report franchisee failure due to the franchisee not following the system, being undercapitalized or because of serious substance abuse problems? I seriously doubt it. But wouldn’t that at least educate the public? The same public that is looking at franchising as a career alternative or their first step into entrepreneurship. I know, that’s never going to happen either but it would shed a light on the truth.

I haven’t even touched upon less than reputable franchisors, undercapitalized franchise concepts and poor lending practices. Regardless, of how much government tries to protect potential franchise candidates, the government and the industry itself cannot effectively police every franchise professional, every franchise company and every aspect of commercial lending. It’s just not feasible and possible.

What’s the Solution?

So, the ultimate answer lies in dedicating more time and resources in positively publicizing franchise concepts and the industry itself. As well, promoting efforts and results in working with community and non-profit groups would go a long way towards positive public sentiment.

Basically, we (reputable franchisors, franchise professionals and the industry as a whole), need to create a publicity bank that can be withdrawn from as a precaution and hedge against the potential and reality of negative publicity. And just like the cash reserves insurance companies are required to have on hand for future claims, multiple sources and instances of positive publicity must be accumulated to counter the few negative counts of publicity that the media so enthusiastically reports.

The world would not be a better place without franchising. We just need to inform and remind people of the industry’s efforts and accomplishments so the world knows how franchising has actually made the world a better place and will continue to do so for years to come.

The challenge is that in today’s uncertain economic environment, where franchisors continue to cut budgets, the possibility of dedicating more resources towards positive publicity is slim to none. Certainly, it won’t be done in the traditional sense.

But it can be achieved, as it can also be achieved for marketing, development and operations, by exploring non-traditional strategies, methods and processes which are essential to future franchise growth and success.. at all levels.

“Serving Those Who Served For Us”

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support_our_veteransHere’s another fine example of how the franchise community continues to provide assistance to veterans, including transitioning military service personnel. The following is a reprint of a blog post by Cyndee Perkins, Computer Explorers Director of Curriculum and Program Development. Additional information regarding Computer Explorers veterans support may be accessed HERE.

Question: I read that COMPUTER EXPLORERS is offering classes for military veterans. What is that about?

Answer: Bud Hadfield, owner of COMPUTER EXPLORERS, is a WW2 veteran who wants to “serve those who served for us!”

As posted on Computer Explorers Blog (August 20, 2009)

COMPUTER EXPLORERS is incorporating project-based learning to help military veterans in their job-search and career placement. The first pilot program will be underway September 8-11 at Northwest Forest in Houston, Texas.

Using our proprietary curriculum to learn MS Office® applications (Word, Power Point and Excel), participants will develop their resume’s, explain their life and work experience with PowerPoint, and establish personal budgeting processes. They will showcase their “projects” via our new social media course (focusing on LinkedIn, Twitter and FaceBook) to develop business contacts and job opportunities. These practical applications will enable the vets to explore wider employment opportunities. Hadfield, who was a Dale Carnegie instructor for 20+ years, has also created a short Personal Development Workshop to help the vets speak comfortably in front of a group and to develop interviewing skills.

We’re excited about doing these classes, and are looking forward to meeting with the veterans in a couple of weeks! Let us know if you have any suggestions that you think we should include as part of the course content!

Franchise Community – This Needs Our Immediate Attention!

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Avoid-texting-while-drivingEvery once in a while, we come across something that makes such an impact on us that we find ourselves motivated to let other people know about our find. Well, I found one of those things. Except, it is not something that I’ve enjoyed, laughed at, or wanted to share for pleasure’s sake. However, it is something that everyone, I mean EVERYONE must be aware of. It’s something that everyone must share and spread the word about. That is, if you care about saving human lives and protecting families from absolute devastation.

The other day I was watching Rick Sanchez on CNN as they showed a Public Service Announcement video that depicted a horrendous accident which was the result of “texting and driving.” After watching this eye-opening four and half minute video, I was speechless, but knew I had to help spread the message of no texting (or emailing, tweeting, posting, etc.) and driving.

One of my social media clients, Mom Corps, happens to follow, and be followed by, @DontTwive. I had seen their posts and even before watching the PSA video, I was intrigued by their efforts. We tweeted a few things about DontTwive and retweeted some of their posts as well. But, after seeing the video, I knew I had to do more.

Today, I posted, from me, and from Mom Corps, tweets on Rick Sanchez show on CNN. Our messages ran across the screen many times during the show. Posts were also made on my personal twitter account, and that of Mom Corps. I also posted a link to the DontTwive blog on my Facebook page. But I know it’s not enough. Not even scratching the surface, but I know every little bit helps when it comes to saving lives and protecting families.

So, in an effort to take this to a new level, I invite all our site visitors to read the following blog article from DontTwive, and view the accompanying video. In addition, I implore all to please preview the rest of their site because it has a wealth of information and other articles pertaining to this horrific subject.

Upon doing so, please join me in supporting DontTwive and their efforts by sharing this information with all your friends and family, and with all your social networking connections. Also, please follow DontTwive on Twitter and make sure to tell everyone who will listen to do the same. On my end, I will look for additional ways of helping, so stay tuned for more details.

4 Minutes and 15 Seconds that can save your life

This 4:15 PSA video from the Wales Police Department is graphic and intense but left us speechless with its message. Some say this video is too gruesome and YouTube has even blocked the 18 and under group from being able to view (the target audience for this Public Service Announcement.)

Read the complete article and watch the video HERE!

This video should be watched by any driver who thinks they can text and drive. Life can change in one second. One second – less time than it takes to Tweet, text, email, or dial a phone number.

New York State Tax Law Update and Changes

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Recently, franchisEssentials Guest Author, Kathryn Rookes, submitted an article New York State Tax Law, which was posted on this site on July 23, 2009. The article was about a tax law passed by New York State that establishes specific reporting requirements for franchisors in the State of New York. Subsequently, Kathryn submitted a follow up article regarding updates to the state law. The update was posted on this site on August 6, 2009.

In her continuing efforts to keep the franchise community updated with additional changes to the New York State Law, Kathryn has detailed the recent changes accordingly.

New York Tax Law Changes
as submitted by Kathryn Rookes, Attorney, FSB Legal

The New York State Department of Taxation and Finance has made some changes to its new reporting requirements for franchisors.

First, the NYSDTF has implemented an extension procedure for franchisors that are unable to meet the deadline. The extension must be filed before the due date (first due date is September 20, 2009) and once filed, is automatic. The extension is for 90 days.

Next, the NYSDTF has waived some of the information that it previously required, including audited gross sales of a franchise if the franchisor has audited and found gross sales to be different from what the franchisee reported and the amount of sales that a designated supplier has made to a franchisee.

The NYSDTF also has made changes to reporting requirements if the royalties are not paid as a percentage of gross sales.

Finally, the NYSDTF will waive penalties in some situations, when the information filed is incorrect because the franchisee supplied incorrect information to the franchisor without the franchisor’s knowledge.

Kathryn is an experienced franchise attorney and a member of FSB Legal, a virtual law firm. She is one of the very few franchise attorneys in the United States with experience in a government regulatory practice (Maryland Division of Securities), private practice, and as in-house counsel. With this diversity of experience, Kathryn understands the issues that franchisors face on a daily basis.

Has LinkedIn Run Its Course?

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LinkedIn logoIs LinkedIn missing the boat in keeping up with Facebook? Is it due to inability to utilize various applications, tools, etc. in making the social networking experience more enjoyable and less regimented. Hey, one can’t even make text “bold” in a discussion!

Would the ability to post actual audio and video within discussions enhance the experience? Has LinkedIn just become a social networking HR site and nothing more? If, and when, the economy turns around and unemployment falls to more respectable levels, will LinkedIn activity decrease significantly?

Personally, I do believe LinkedIn is missing the boat, but I would love to hear your opinion as well.

Please Note

Within 15 minutes of posting this discussion on a Linkedin group, I received the following response that I now feel compelled to share with my readers, along with my response to the same which should clarify that I am, in fact, a Linkedin proponent and only am looking for added enhancements and features to LinkedIn.

Owner of a Marketing Group responded: “Has LinkedIn run its course? Not even close. If you feel it has, move on, and stick to Facebook, period. We have had remarkable results, 20+ new clients in 2009 alone, due to LinkedIn. But, then again, we have a tangible service. How is the “Social Media Coach” biz treating you? If it were not for LinkedIn, I doubt you would even be brandishing that fancy title. Please keep that in mind when being negative about all the benefits that a 100% no-cost LinkedIn account can produce.”

I responded accordingly: “Just because I asked a question, does not mean I am negative. If anything, I utilize social media to encourage participation, which is an integral part of successful social networking.

Further, as much as I utilize LinkedIn, I would like to see more features and enhancements, just as I would with Facebook, Twitter, or any other social media. And, the best way to get LinkedIn to take a look at adding the same, is to discuss the same within the groups. More than likely they are already considering the features I mentioned. Maybe some more discussion would move them along.

I would highly recommend you consider adding Facebook, Twitter and other social media to your LinkedIn activity and your 20+ new clients might have been 40 or more. Integrating all types of social media together, and with traditional marketing, has proven quite successful for many businesses and is advocated by many leading social media experts.

Last, I’m a firm believer in the positive, and in developing and strengthening relationships with everyone and anyone I can help, or that can help me. That being said, I’m amazed you’re as successful as you claim with such a condescending attitude and your lack of ability to see beyond the obvious. So, please consider this social media coaching on the house and with my sincerest compliments.

Oh, and by the way, if you truly embrace LinkedIn and all it has to offer, I would think you would have followed a very common LinkedIn tip, and check an individual’s LinkedIn profile, including connections, group membership and discussion activity, before engaging that individual. In my case, you would have certainly realized I am a LinkedIn proponent by the number of my connections and extensive group participation both in posting discussions and responses alike.”

What is Your Biggest Business Frustration?

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Q & ARecently, the question, “What’s your biggest business frustration?” was posted on Linkedin. The question was posted in the small business / franchising Q & A section. Below please find several of the responses from a cross-section of small business professionals . As I have done in the past, the names of the responding individuals will be kept confidential. Instead, they will only identified by their Linkedin statement or profile.

A small business owner provided a brief response:

Three in order….
1) government paperwork
2) employees that do not work while at work
3) taxes…really…tax the rich? Don’t you know it is the rich that pay your paychecks?

An individual that describes himself as a “Marketing Visionary” responded:

a) workers that want a job, not an opportunity
b) prospects thinking your NOT capable because your an SMB
c) vendors offering solutions – a don’t know my business
d) Clients thinking 15 days means 30 days payable in 45

Another small business owner chimed in:

Being a small business owner myself I find it frustrating that clients continually will get ripped off and not get the most for their money because they feel more comfortable going to a ‘big name’ company.

A small business owner in the graphics design business added:

My biggest frustration is clients not taking my advise. My designs are not there to look pretty, I design marketing pieces to accomplish my client’s goals. Many times, clients have a set thing they want to say. Really, they need to think about what the customer wants to hear and how they can help them. Do you want to read a mission statement on a website or do you want to see if the company you are looking at offers the service you are looking for? I get frustrated when clients waste my time and their money. I want them to get something out of their marketing.

Really? Are these really our biggest business frustrations?

Let’s keep the conversation going and get some response from the franchise community. Franchisors, franchise executives, franchisees, franchise brokers, franchise consultants and franchise suppliers, let’s hear what YOU have to say. So, what is YOUR biggest business frustration?

New York Tax Law Update

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The following article was submitted by Guest Author, Kathryn Rookes, as a follow up to her previously submitted article, New York State Tax Law, which was posted on this site on July 23, 2009.

Kathryn is an experienced franchise attorney and a member of FSB Legal, a virtual law firm. She is one of the very few franchise attorneys in the United States with experience in a government regulatory practice (Maryland Division of Securities), private practice, and as in-house counsel. With this diversity of experience, Kathryn understands the issues that franchisors face on a daily basis.

New York Tax Law Update
as submitted by Kathryn Rookes, Attorney, FSB Legal

The IFA has received a response from the New York State Department of Taxation and Finance to its July 20 letter.

Reporting Deadlines: The Department is creating an automatic 90-day extension process for the initial as well as all future reporting deadlines. Prior to the initial deadline (set by the Legislature for September 20) the Department will post on its website instructions to request an automatic 90-day extension to December 20, 2009. All future annual deadlines, which were to be due March 20, will be given similar treatment, meaning that if a franchisor requests the extension all annual reports will be due June 20. Permanently moving these deadlines, rather than creating an extension process, would have required an act of the New York State Legislature.

Forms: In the coming days, the Department will post on its website the standardized form franchisors must use to report the required information.

Supplier Sales: The Department has dropped the requirement that franchisors report to the state sales made by “designated” or approved suppliers to New York franchisees. However, sales of supplies from a franchisor or its affiliates directly to a New York franchisee must still be reported.

Franchisee Gross Sales: If the franchisee currently reports gross sales to the franchisor, this information must be supplied to the state in the required reports. If a different performance measure is used (such as room-nights in lodging or cents-per-gallon of product in food service) that calculation must be explained and, where possible, the quantitative data for the relevant reporting period supplied to the state.

Franchisee Identifying Information: The requirement that franchisors report to the state the name, address and New York certificate of authority or federal tax identification number of the franchise remains in effect.

Franchise Failure: A Dose of Reality

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success or failureThe other day, Donald Cranford, Editor at Franchise Direct, posted an article about the benefits and risks of multi-unit ownership. Subsequently, he followed it up with the post, “Considering Franchise Failure” and referenced one of my articles that related to my own experience of franchise failure, and the fear and consequences thereof. I cannot thank Donald enough for posting these articles as they may assist franchisees that are experiencing difficulties, explore their options and keep their heads out of the sand.

Considering Franchise Failure
by Donald Cranford
as posted July 30, 2009 (Franchise Direct)

Yesterday we wrote about the benefits and risks of multi-unit franchise ownership. With a bit of research and pragmatism, multi-unit ownership can work for you. That said, business can be difficult sometimes and sometimes franchises fail.

Especially given the state of the economy at the present, failure is something that every franchisee and franchisor must confront. There’s no point in tip-toeing over the truth. Times are tough in the small business world. Only by acknowledging the chance of failure can we overcome it.

For a thoughtful meditation on the causes of failure in franchising and ways of overcome the stigma of watching your business collapse, we’d like to recommend the writing of Paul Segreto, who has a run multi-unit franchise and now blogs at franchiseEssentials.

We recently came across Paul’s thoughts on the subject of franchise failure and thought they were illuminating.

In this blog post, Paul frankly discusses how his franchise failed, and does not avoid pointing the blame at himself.

“Let me clarify something. I failed as a franchisee. Not because of anything the franchisor did or didn’t do but because I put and kept my head in the sand and did not face reality. I could go on and make excuses about things that happened around me but at the end of the day I could have turned things around if I got my own head out of the sand, made some difficult decisions and took full, immediate responsibility.”

Ultimately, though, having experienced the ups and downs of franchise ownership, Paul states that failure is something that he has learned from and the experience has inspired him in business.

“Yes, it was a tremendous learning experience but not one I would bestow or wish on anyone. Now, all I can do is to offer my experience to anyone in the franchise industry that needs assistance. As we’ve entered 2009 in the realms of economic uncertainty, I’m certain already difficult situations have been compounded but I’m confident a snap back to reality could only help. If just one franchise business is saved from the consequences of failure, then we’ve made progress. Progress we’ll continue to build upon.”

A dose of reality can prove quite beneficial when considering buying a franchise.