Category: Small Business

Franchising Excluded from AMEX Small Business Saturday Events!

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This Saturday, November 26th is the 2nd Annual American Express Small Business Saturday. Most likely you have seen advertising and promotions for the event. Possibly you’ve seen the event’s Facebook page that has over 2.3 million LIKES. If you spend as much time online as I have you, then you have definitely seen promo after promo mentioning the event.

Well, franchising, supposedly the cornerstone of small business and as many claim, the driving force behind economic recovery in America, has been excluded from the event. Here’s the AMEX notice…

ELIGIBILITY: The Program is only available to independently owned businesses. Small business cannot promote any of the following: pharmaceuticals, drugs, politics, pornography or sexual aids, diet aids, gambling, liquor, tobacco, firearms/weapons, or any sensitive topic with respect to current events, and any such small businesses are not eligible for this Program. Franchisees, national chains and government agencies are not eligible. By participating in this Program, you represent and warrant that (i) your business complies with the requirements set forth herein and (ii) you are the owner of the business and have the right to participate in this Program.

Yet, American Express heavily solicits franchise brands and franchisees to accept the American Express Card. And, as we all know, at a higher rate than that of Visa and MasterCard. Not to mention the fact that American Express typically exhibits at franchise conferences and trade shows where they promote AMEX Merchant Services. Besides, aren’t franchise locations independently owned and operated?

At the very least, franchisees should be able to participate locally even if franchise brands are prohibited from participating at the national level!

So, do you believe American Express was correct in excluding franchise brands and franchisees from Small Business Saturday? What are your thoughts?

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Improving Local Brand Awareness AND Driving Sales & Profitability for Franchisees!

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Individuals on the buying side of a transaction in today’s business environment are more diligent and cautious than ever before. Not only are these individuals consumers, but they are also business owners, executives, and basically anyone making a purchase for personal or business use. Taking this a step further, although a decision to offer credit is not considered to be a buy / sell transaction, today’s credit providers are also exercising caution and diligence at higher levels than in the past. So, what does this mean for today’s franchisees?

Considering that people buy from people, and people do business with people, the personal aspect is paramount to establishing a relationship that evolves thru to the transaction, and many times, repeat transactions. But, who has the time to network and afford people the opportunity to learn about them and their experience? Well, the answer is, “not many”, as they also have businesses to operate and manage, and time is limited. The key, then, is to brand ones’ self in a way to create a personal platform whereby franchisees, the business owners, will be searchable by the diligent and cautious parties that want to learn more about the person behind the local business before deciding whether or not doing business with them makes sense, and is in line with their own objectives, and possibly, values.

Typically, franchisees are hesitant, reluctant and frightened to network. Even in their communities. Basically, they don’t know where to start or even know what to say beyond, “I’m a such and such franchisee, and we sell this and that.” Therefore, franchisees work hard in the business by working long hours behind the counter, serving customers and interacting with employees; both important to the business but not to the growth of the business. Or, they do the opposite and check-in at some point, pick up the deposits and then do something completely unrelated to the business. Again, things may be in order but the business remains status quo. Does this all sound familiar?

Personal Branding for Franchisees, developed specifically for retail and service B2C and B2B franchises, can change how franchisees are perceived by consumers and others desiring to do business with them. It will improve franchisees’ confidence in going main-stream into the local community. It will create a platform whereby franchisees would be perceived to be on a similar level as executives of larger businesses and corporations. It will provide franchisees with the motivation to expand his or her reach into the local business community. It will present franchisees as experts in their field and in business in general. It will open communications at various business levels potentially exposing franchisees to strategic alliances, future employees and key contracts. Ultimately, it will help improve local brand awareness and drive sales and profitability.

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Social Media as a Must-do for Business Success

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I was recently asked the question, “How do you convince small business owners that social media is a must-do? It wasn’t difficult to answer as it’s something I’m asked almost every day, and my answer remains the same. The reason? Quite simply, it works!

I believe the best way to convince small business owners to embrace social media is to educate them one piece at a time. Education must consist of both awareness and teaching.

Working with franchise organizations, I’m typically presented with the challenge of working with a mixed group of early adoptees all the way to diehard change-opponents, and many differing opinions in between. Some of the holdback is definitely generational as older businesspeople tend to be intimidated by new technology. Others are overwhelmed by the perceived complexity of utilizing social media effectively. While others chomp at the bit to move forward with full vigor!

My philosophy stems around making the learning process enjoyable. Regardless of differing opinions, skill levels and perceived or real understanding, the common denominator is emotion. Of course, emotions are easiest to work with when the path towards achieving goals and objectives is broken down into manageable components. At each transition point, a satisfying moment is key to moving the process along. For the various experience levels, the starting point is not the same.

Key elements of this process include hands-on instruction, which is made so easy today with the continued improvement of online meeting platforms. The ability to share screens creates a learning experience similar to a skilled worker manipulating and guiding the hands of an apprentice in the fine art of shaping a gem.

It also affords the opportunity for “students” to learn at their own pace. And, once they master one part, let’s say Facebook, we proceed to another. Then, when that part is mastered, they learn how to integrate the two. For the more advanced it may mean working within a complex campaign of integrating basic social media with email marketing that includes video with specific geo-based objectives.

I know I veered off course and addressed the process I’m passionate about, instead of focusing on the question at hand. But, it does take sharing the passion to get the non-adoptees to drop their guard and put their toes in the water. The exhibited passion must work towards building their confidence. The transfer of passion typically results in the desire to move forward. Many never look back.

Yes, I believe it all stems from education. We must continue to provide information, show examples of practical application and success, and get them to participate… but allow them to do so at their own level and pace.

One of my most satisfying success stories had me working with a successful 50ish year old female franchisee that was intimidated by social media. She was reluctant due to her own fear of looking stupid to others. She was afraid she’d make a catastrophic mistake she wouldn’t be able to correct. Her fear was very real and very difficult to overcome. She’d often exclaim, “How can I keep up once I start? It’ so overwhelming!”

Well, long story short, she has become extremely proficient at utilizing social media. Her biggest motivation to take it to a new level was a result of her daughter referring to her as a “cool Mom” because she was embracing Facebook along with other “cool” social media. Is it ironic that they now communicate better than ever? After all, social media is all about communications. She now sees how this can help her communicate better with customers. And, she is enjoying herself more in business today, than yesterday.


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Many 2011 Predictions Focus on Female Perspective and Influence

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As you might imagine, I spend a great deal of time reading and keeping up with both franchising and social media. Over the past week I’ve seen many predictions for 2011. Some are surprising. Many were anticipated. However, the predictions I’ve seen time after time, across various channels and platforms, both in social media AND franchising, cearly include women in the equation. If the comments haven’t been directly about women, they’ve been about things women heavily influence such as being consumers and bloggers, and of course, developing relationships via social media. Here’s two of the predictions that have been typical in much of what I’ve recently read:

Women Power

The recent report put out by Intuit shows that over the next decade, women around the world will enter the workforce at an unprecedented rate. Close to 1 billion women, who had not previously participated in the mainstream global economy will do so by 2020.

The fastest growing demographic of Facebook user is currently 55 year old plus women. We are creating a She-conomy. Plus women are naturally more social so it makes sense that we are adapting well to the social media sites.

Prediction: Women will overcome the legal or traditional barriers that prevented them from participating in some regions by using virtual, mobile and Internet technologies to run businesses without having to be physically present. Businesses will recognize this and start creating customized products and services online to cater to them.

Consumers Shape the Online Marketplace

Thanks to the number of amazing tools and services we have out our disposal these days it’s starting to transform the communities we build and the relationships we make online and offline.

Recent results have shown that nontraditional influencers, such as bloggers and social network contacts are the key people we turn to before making a purchasing decision. It makes sense really, you generally buy on recommendations from friends. Now you have these social networks where you’re exposed to your friend’s friends’ too and their influence will continue to expand.

Prediction: Businesses are going to be forced to step up and take on multiple, inter-connected approaches to reach new customers, most of whom are hanging out on the web. We will see more companies using their customers as the face of their business – either by sponsoring bloggers or highlighting top customers in their online campaigns.


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What is Your Social Media Marketing Strategy?

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The following was my response to a business executive that posted the following discussion on LinkedIn in a non-franchise group:

How are you and your business using social media to drive business and gain awareness? With the social media landscape becoming increasingly fragmented and complicated, how are you managing to gain the most from this medium?

“All of my clients are within the franchise industry which is a more difficult environment in which to effectively utilize social media because there are different elements to the relationship between franchisor, franchisee and customer as opposed to just B2B or B2C. That being said, it can and is being done quite effectively. However, it takes a very concentrated focus, or as I fondly describe as [E-IDEA], the acronym for franchisEssentials five step process to social media success:

social media types1. 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?

Yes, there are many aspects of social media and more being added every day. That doesn’t mean it’s being fragmented. Instead, it’s providing more tools in which to cross-reference and link together. Unlike traditional marketing that is more or less a straight line, social media marketing, used most effectively, is a cross-platform, multi-tiered strategy that uses multiple Web 2.0 tools to cross in front of the targeted audience multiple times and from different directions.

It’s akin to the businesses with limited marketing budgets that only advertise on TV once or twice a month, at one specific time but on multiple channels simultaneously. Then, when the consumer changes the channel upon seeing the commercial, again and again, the perception is “this business is everywhere and must be spending a fortune on advertising. Therefore, it must be good.”

Unfortunately, social media marketing is not a one-size-fits-all strategy. The strategy must conform to the organization’s goals and objectives and must target the appropriate audience by the appropriate means (Web 2.0 tools). For instance, if the target is young adults age 15-18, MySpace would be an essential component of your strategy. Couple that with a lot of video and audio, as this age group gets bored very easily.

On the other hand, if the targets are businesses in the insurance industry, your strategy might include developing a blog for industry professionals and then linking the same through LinkedIn to insurance groups. Simultaneously, you may develop a Facebook page to refer interested parties to visit and/or join.

A key factor in an effective social media strategy is to be sure to integrate the same with your traditional marketing. As an example, if your company frequently uses direct mail, be sure to include the company’s various social network links, blog links, etc. In a B2B environment, do the same with your blast email campaigns. And, in a corporate environment where you may be attempting to attract a consulting client, personalize your traditional strategy with social network interaction and enhance it with video and audio messages.”

Now that you have read this article, I’ll ask you straight up, “What is your social media marketing strategy?”


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Winners or Losers: Choices Are Made Everyday

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Winners and LosersThe Winner is always part of the answer; The Loser is always part of the problem.

The Winner always has a program; The Loser always has an excuse.

The Winner says, “Let me do it for you”; The Loser says, “That is not my job.”

The Winner sees an answer for every problem; The Loser sees a problem for every answer.

The Winner says,” It may be difficult but it is possible”; The Loser says,” It may be possible but it is too difficult.”

When a Winner makes a mistake, they say,” I was wrong”; When a Loser makes a mistake, they say,” It wasn’t my fault.”

A Winner makes commitments; A Loser makes promises.

Winners have dreams; Losers have schemes.

Winners say,” I must do something”; Losers say, “Something must be done.”

Winners are a part of the team; Losers are apart from the team.

Winners see the gain; Losers see the pain.

Winners see possibilities; Losers see problems.

Winners believe in win/win; Losers believe for them to win someone has to lose.

Winners see the potential; Losers see the past.

Winners are like a thermostat; Losers are like thermometers.

Winners choose what they say; Losers say what they choose.

Winners use hard arguments, but soft words; Losers use soft arguments, but hard words.

Winners stand firm on values, but compromise on petty things; Losers stand firm on petty things, but compromise on values.

Winners follow the philosophy of empathy: “Don’t do to others what you would not want them to do to you”; Losers follow the philosophy, “Do it to others before they do it to you.”

Winners make it happen; Losers let it happen.

~ Author Unknown.

Originally posted on franchisEssentials August 2009


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How will the CIT bankruptcy filing affect your business plans for 2010?

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After struggling for months to avert bankruptcy, lender CIT Group has filed for Chapter 11 protection in an attempt to restructure its debt while trying to keep badly needed loans flowing to thousands of mid-sized and small businesses.

“Analysts warned that the bankruptcy could add to the uncertainty around loans for the nation’s small businesses, especially retailers, which make up a significant portion of CIT’s clients and are already struggling with tight credit markets.

CIT is the financier for about 2,000 vendors that supply merchandise to more than 300,000 stores, many of which are gearing up for the critical holiday shopping season. They rely on the lender to cover costs ranging from paying for orders to making payroll. Any disruption caused by bankruptcy could wreak havoc on their operations, Joe Alouf, a partner with Eaglepoint Advisors, a crisis management company that is partly owned by Kurt Salmon Associates.”

READ THE FULL STORY


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Twitter [and other Social Media] Tips

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twitter imagesThe following is from a recent post on the Practical Cafe blog. The post provides answers they’ve given to numerous direct messages, emails and general queries concerning Twitter and other social media outlets. They don’t claim they’re the “right” answers or all inclusive advice, just that they’ve worked for them and some of the restaurants [businesses] they’ve helped.

ENGAGEMENT

I’ve been coming across quite a few statements lately from “professional marketing” firms/people who claim that Facebook, MySpace and Twitter (ie: all social media) is “just another form of advertising”. This is absolutely wrong.

First, the consumer “owns” your brand in social media (not you); meaning you have no control over what is said. You can follow the conversation, try to mitigate damage and take praise, but you can’t shut people up. There’s an old adage in the restaurant biz; one person complaining about something inside a restaurant means there are seven people who left, never said a thing about the same problem, but told all their friends about their “negative” experience. Social media has now boosted that ratio by a thousand fold. Your naysayers can reach more people faster and more easily than they could before and they can say it over and over again with the click of a button.

Second, social media is a forum to engage your consumer, not to press them into buying your product. What does this mean exactly?

Read below:

DO) Engage. Twitter isn’t advertising, it’s socializing. Just like you do in your dining room, social media is a means to interact and communicate with your customer. You ask questions like you do with your regulars: how’s the wife/husband/kids; your offer them something special because they always come back and they TALK about your business outside of it; you make sure they’re comfortable; you give them asides and information which might be relevant to their visit; their life; their concerns.

Hence, if you’re plotting out tweets like newspaper copy then you’re not getting your message through. (Actual Tweets follow)

Thursday, Open at 2pm, Happy Hour Till 5pm, Enjoy Delicious Food, Drinks & Sports until 1am.

The message above is considered nothing more than spam in the social media world. It’s something that can be read on your sign as I’m passing by to someplace that makes me feel comfortable, welcome and appreciated.

The message below draws interest, piques my curiosity, makes me want to pause, maybe even stop in and have a look around:

Think there’s only one way to make guacamole? Think again. Here’s 10+ New Takes on Guacamole (with a link added)

This also draws interest:

Truffles and creams and caramels, OH MY (with photo link)

DON’T) Post your drink/food specials at 7:51 am. They’re not getting read. Twitter & FaceBook feeds are like the feed on the stock exchange, it just keeps going. You want your message to be in front of people when it’s relevant and you’re hitting your targeted customers. If like most restaurateurs you have time constraints, then use a service like Hootsuite or Tweetdeck to help you track, plan and delay-post tweets. (I use Hootsuite). Or, plan for the same “message” to go out at multiple times during the day so that you’re engaging with a wider audience.

TWITTER PUBLICITY/FOLLOWERS

DO) Register your Twitter account in a Twitter Directory like: WeFollow, Tweeple Pages, TwitR, MyTwitDirectory, TwitStates, and connect with LOCAL followers. The best source I found (so far) to find local people is Twellow. (Some will disagree with this as this is where the spam bots hunt.)

DON’T) Auto-follow or fall for the “gains 100s of followers in a day” scams. Customers are not cows, you can’t herd them in, fill up the trough and stand there thinking you’ve accomplished something. But, as a restaurateur you know this already. Besides that you’ll end up with lots of followers in the ilk of spam bots and xxx porn sites that are trying to feed into your stream; not exactly the image you want for your customers. Add to this that unless you are a national chain, a follower in California is useless to announce a lunch special to if your based in Miami. The lesson here: IT’S NOT THE NUMBER OF FOLLOWERS; it’s the quality, their location and whether or not you’re engaging them. (That’s why it’s called social media.) If your followers think you have a great thing going, then they tell their friends, who tell their friends, and so on; just like that old shampoo commercial.

GENERAL TWITTER ETIQUETTE

DO) Fill out your bio, add your logo and your URL, so I can find your website quickly if I want to. Also, put links on your static website to all of your social media outlets. Your website gives me detailed info, your social media is meant to let me TALK to you.

DO) Learn the lingo. Here’s a quick reference guide I like at WiredPen.

DO) Respond to, and answer, complaints and questions ASAP, if not immediately; just as if they were sitting in your dining room (because they might be). Set your phone to collect and monitor your tweets if need be.

DO) Throw some humor into your posts. Everyone likes to laugh and humor is just as infectious online as it is in the restaurant.

DO) Admit mistakes. Shit happens, and every restaurant owner/manager knows it. When this occurs fix it. The thing to remember in the age of social media is that your business is constantly on stage and in the spotlight. It used to be that consumer influence was small (pros call it word-of-mouth) but now, everyone can reach around the globe and write things that can damage your biz or make you a superstar. Don’t try to control that buzz; follow it, learn from it and try to create it instead.

DO) Get involved in a cause, a nonprofit, or an event that’s local to your community. Here’s a source for local charities: http://www.charity-charities.org/

DON”T) Set up your account to auto-reply me with SPAM when I start following you. What this tells me is that you are only interested in my money and not my business, my input, or my conversation.

DON”T) Give away stupid things like say, a Frisbee, to try and draw customers in. If you want to give something away make it pertinent to your biz or something people want, like a free taco, or a drink, dinner for two, or a trip to the Bahamas. Make a contest out of it. Be creative. Coupons, discounts, freebies; their all great for the short term, but you still have to watch the bottom line. You can’t pay your vendors or your employees with spent gift certificates, and you don’t want to devalue your brand to the point where people expect the discounted price all the time.

DON”T) Tell me about your problems with your roommate, staff, ex, your coffee run to (wherever), your man/woman problems etc. Simple rule: If you wouldn’t talk to a customer in your restaurant about it, why are you broadcasting it?

DON”T) Hire an in-house social media “expert” whose only qualification is that they’ve been on MySpace since they were 12. If someone else is running your social media, then monitor it. What’s your ROI? What were your expectations to start with? Are they asking questions and building something you can work with later? Are they in contact with the key people who make the decisions in your organization and are they putting out current, pertinent and useful info to your audience.

DON”T) Post a link and say nothing about it. That’s spam which says “Trust me, just click here.” Yeah, OK. Can I have a Frisbee too?

DON’T) Protect your tweets. This is a business. Locking your tweets is equivalent to only allowing current customers to see your marquee or your website. (To unlock your tweets go into settings and uncheck the “Protect my tweets” box. Then press: Save.)

DON”T) Connect your FaceBook and Twitter accounts then start spamming your followers with junk from FaceBook like Mafia Wars. I didn’t connect with you to have my email filled with invitations to create a mafia empire. If you do connect your FaceBook account, then set up a business account and NOT a personal one for your business.

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.