A significant part of my day is spent talking with business owners. Whether small independent business owners or restaurant operators or franchisees or freelancers, I’m alarmed at the state-of-mind of many of them. It’s more than mental health as the culprit. Although, their mental health is certainly at risk.
What’s being conveyed to me is not a sense of loneliness, hopelessness or despair. More so, what’s being shared are concerns about just not knowing what to do to keep their business afloat. They’ve thrown money at their business. They’ve cut their own salaries. All to keep the business moving along.
They’ve tried to run their business with just-in-time inventory to keep cash flow positive. They’ve increased wages for staff to retain not only the best, but even the worst of employees. They’ve worked extra hours in any position that needed to be filled. They’ve enlisted spouses and their children to help where and when possible.
To say sacrifices have been made is an understatement of biblical proportions. But were these sacrifices necessary? Were the decisions to implement the action items listed above necessary, or were the decisions essentially just knee-jerk reactions? Are the actions being taken effective for the long-term or just filling gaps until the next one widens?
Of course, this can all be debated for hours on end. Especially, as the actions being taken could certainly each be looked at as being reasonable, practical and the right things to do at the particular time of need. Therein, I believe lies a problem. The actions being taken are often reactive, and in the moment.
Now, don’t get me wrong, if the utilities are scheduled for disconnection today or an insurance termination is looming or if two key employees’ last day is tomorrow, sure, quick decisions are necessary. Actually, quick decisions are definitely better than procrastination or indecisiveness.
But have decisions been looked at from both sides of the coin? Meaning, are there options, or a potential partial solution? Or, are the decisions just being made by one person with one perspective without nary a thought something else could or should be considered?
Again, we can debate this for hours but I firmly believe what’s being missed is dedicating the time to think through the what ifs, strategize and plan for possible situations, and to include stakeholders in the discussions. After all, open, transparent communications is a cornerstone of a strong culture within an organization and a strong culture goes a long way toward business success, and in this case, business survival.
Transparency in communications is essential as it lends to creating a decision-making process built upon different perspectives and from different points of view. This is in lieu of a business owner keeping the problems bottled up and then making decisions without so much as a thought to looking at the problems from different angles. After all, stakeholders will be affected, as well. So, they should be included.
With stakeholders involved in discussing and resolving problems, they’re buying into the solutions and as is human nature, will work harder toward the action plan goals. Essentially, they’ve bought in because they were allowed to participate. They may view their opinions as having value, and see some solutions or parts thereof, ones that may have been based upon their input.
They will also be appreciative of being part of the solution as opposed to ending up as a victim of the problems. And if there is a negative outcome, they’ll at least feel like they were consulted and may be willing to “participate” in more drastic action steps. They certainly will not feel like it’s not their problem and turn their back on the business owner.
This Henry Ford quote is one of the best I’ve ever read about teamwork. I believe it’s a true statement. With this quote in mind, think about this simple example. Ten people in a boat rowing together. The more in sync they are, the faster and straighter the boat will travel. Out of sync and the boat can actually spin in circles and out of control.
In the past, Sundays at Acceler8Success Cafe consisted of a weekly review with links to each day’s article from the preceding week. Considering that each article from day one is already listed at Acceler8Success Cafe, I feel it’s redundant and of little value to post a weekly review with links to the same articles.
My thoughts were confirmed as I asked a number of subscribers their opinions of the weekly review and whether a different direction should be taken for a Sunday article. They agreed to a change in direction and most thought some type of motivational or inspirational messaging would be of value, as well as complement the level of content being delivered each day at Acceler8Success Cafe. It was agreed that Sunday nights would be perfect as many do try to spend some time preparing for the week ahead.
As such, I’m excited to announce that the recurring article, Sunday Night Motivation & Inspiration will be published by 8 PM every Sunday evening at Acceler8Success Cafe beginning Sunday, August 21st. My goal is to provide a positive foundation for the week ahead as an extension of my commitment to helping current and aspiring entrepreneurs achieve and accelerate their success.
As we move forward, I’ll look forward to your comments and suggestions. In fact, they’re always greatly appreciated!
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.
Further, the article indicates that entrepreneurs are:
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.
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.
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!
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
Motivational quotes motivate, inspire and encourage.
Motivational quotes energize and prompt you to take action.
Positive quotes create optimism and hope.
Motivational quotes give insight and wisdom.
Motivational quotes offer hope.
Positive quotes bring light and happiness into our day.
Motivational quotes teach.
Motivational quotes open the mind to see life in a wider perspective.
Motivational quotes are mood changers.
Positive quotes inspire you to adopt positive thinking and take positive action.
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.
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.
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 Tax, Monkey Bizness, Scooter’s Jungle, Guidant 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.
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.
As questions continue to be asked about franchising a business, I’m sharing today an article that had been written for The Small Business Expo. Brian Horowitz, a writer and content strategist specializing in business, technology and health interviewed Franchise Bible author, Rick Grossman, Franchise 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.
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.
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.
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.
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!
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.
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.
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.
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?
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!
Links to the articles from the Preparing for War: You vs. Recession series:
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.
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.
Definition of “adapt” – become adjusted to new conditions.
While large numbers of businesses have failed, many entrepreneurs responded to the challenges by adapting, innovating and creating to not only survive but also to thrive. Failure was not an option in their minds. So, why were they able to face the challenges head-on and succeed with their plans when others failed?
I believe the reason is quite simple. First, and possibly foremost, they remained positive and made sure their positivity was felt by their teams, and also their vendors & suppliers and all stakeholders within and around the organization. They made certain to ensure everyone was onboard for rough waters ahead, albeit with confidence being instilled by their leader.
Further, they succeeded because they buckled down on business fundamentals – customer experience, employee experience, and culture. They also tightened up on spending, watching pennies but not to the point of stepping over a dollar to pick up a penny. They were proactive in planning ahead, taking the time to understand and realize trends, affording them the time to negotiate, source elsewhere or to be creative.
They thought outside the box, acted swiftly and decisively, remained open-minded to possibilities and ultimately, not only kept afloat but were able to capitalize on opportunities. At times, they pivoted and created a new box, either as a new direction or as a complementing opportunity.
Essentially, they adapted to the times!
A quote by management guru, Peter Drucker comes to mind:
“The entrepreneur always searches for change, responds to it, and exploits it as an opportunity.”
If your business is still chugging along, congratulations are in order as you’ve survived to this point. However, just surviving is not what entrepreneurs work for, right?
With economic uncertainty and a new set of challenges ahead, it’s important, if not vital to be proactive in your actions. Below are 5 tips to help you adapt:
Keep an eye out for changes and be alerted to shifts in market direction whether consumer or supplier centric. Be proactive in thinking about the ‘what ifs’ so that you’re ready to turn on a dime, as necessary.
Accept the idea of change. Embrace change by being ready to act accordingly in a swift, decisive manner. If prepared to do so, any sense of hesitation will be minimized.
Be open to possibilities. This may mean looking at things a bit differently in order to realize options and opportunities. After all, you’re an entrepreneur. Do not stop being one!
Keep an eye on your competition while also keeping an eye on your industry. Know what’s going on in your local market. Be informed. Be aware.
Be conscious of your mental health. Form alliances with fellow entrepreneurs and business owners. Open up to loved ones to ensure they understand what you may be going through. Sometimes a hug can change a mind-consuming burden into a glimmer of hope and optimism, and a clear mind.
If you were to do a Google search for ‘entrepreneurs and weekends’ or any combination of words including both of these words, one would find more than could be read in a day that appears to have relevance. Although, that relevance is on both sides of the coin.
One side showcases the necessity and desire of entrepreneurs working seven days a week. The other side presents the case of work / life balance and necessary rest. Both philosophies could be looked at as the right way with a laundry list of successful entrepreneurs listed on both sides. If the lists were determined by reason or justification, additional lists would be required.
Sure, times have changed, and the business environment has kept pace. A push for a 4-day workweek certainly appears counterintuitive to entrepreneurs working weekends. Yet, working remotely could be embraced by the entrepreneurs that desire to seemingly work 24/7 without having to ‘waste’ time commuting to an office.
On the flip side, is it possible for an entrepreneur, creative and innovative as is typical of a successful entrepreneur’s traits and characteristics to actually shut down for two or three (holiday weekends) days at a time? Or if they did take the weekend to enjoy some rest & relaxation, would that time be spent exclusively on non-business activities?
I guess we’d have to identify ‘business activities’ to have a true understanding. Apart from actually crunching numbers, drafting proposals, outlining strategies and reading reports, do business activities include spending time thinking about new ideas, reflecting upon decisions, thinking ahead and even reading business-related books & publications?
Is it possible for an entrepreneur to completely shut down for the weekend? And truly shut down without a glimpse at or about anything that is even closely related to business? Is it possible to clear one’s mind?
Further, considering an entrepreneur’s passion and commitment to his or her venture, is it really possible for them to turn on a dime and focus elsewhere?
I believe the true answer to these questions comes down to balance. After all, it’s impossible to run 24/7 without burning out and / or adversely affecting one’s health. That’s a given. By the same token, is it practical to completely shift for the weekend and then shift back just two days later?
And is it really two days or are we ignoring the often-recommended practice of preparing for the week ahead Sunday evenings? And when does the weekend start – Friday nights or Saturday mornings?
Yes, balance is the answer but also essential is developing one’s business in a way to not control the entrepreneur’s every waking minute. The entrepreneur’s mindset must also adjust to delegate accordingly. Building a team is key. As is developing the right culture.
Basically, there must be a Yin and yang structure within the entrepreneur’s mind to allow, ensure work and life co-exists, as opposed to a this or that scenario.
So, sleep a little later than usual this weekend. Work out a little longer and harder. Spend quality time with your loved ones. Grab an afternoon nap. Take a few hours for a leisurely lunch or dinner. Hit the links with your friends. Do it all or do nothing at all as that’s okay.
However, don’t feel like you have to do any of it and certainly don’t do things out of guilt or doubt or because some articles say you should do things a certain way and within a certain schedule. Do what makes you feel well-rested physically AND mentally. Do what you enjoy and what makes you happy.
And if entrepreneurship or your venture isn’t making you happy, it may be time to re-evaluate what it is that you do moving forward.
Make it a great weekend. Make it happen. Make it count!
About the Author
With more than 40 years of experience in franchise, restaurant, and small business management and development, Paul Segreto is a respected expert in the entrepreneurial world, dedicated to helping others achieve success. Whether you’re an aspiring or current franchisor, restaurateur, or entrepreneur in need of guidance, support, or simply a conversation, you can connect with Paul at paul@acceler8success.com.
About Acceler8Success Group
Acceler8Success Group empowers entrepreneurs, founders, and business leaders with personalized coaching, strategic guidance, and a results-driven approach. Whether launching, scaling, or optimizing a business, we provide the tools, mentorship, and resources to drive long-term success.
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