Category: Small Business

What is Your Biggest Business Frustration?

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?

Franchise Failure: A Dose of Reality

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.

Expansion Plan Includes Services To Independent Small Businesses

Small businesses operate in a variety of industries and under an assortment of business models. Franchising just happens to be a very popular business model that has been embraced worldwide. The difference, outside franchising, is the small business owner’s sole responsibility and efforts to market the business to consumers (B2C) or to other businesses (B2B).

RelationshipMarketingIn a franchise environment, franchisees are often involved in the brand’s local cooperatives where economy of scale prevails, making marketing much more cost-effective than for one location. Further, as many franchise organizations have internal marketing departments, or the luxury of a marketing agency, a great deal of professional experience is available to assist franchisees in developing effective marketing strategies and exploring new tools and technology that enhance otherwise mundane marketing efforts. Outside the franchise arena, small business owners must fend for themselves when developing strategies that must be innovative, just to compete. Often, trial and error becomes the norm, rather than the exception.

Well, the answer for the small business community is close at hand. Due to increasing popular demand, franchisEssentials is proud to expand its marketing and business development services outside the franchise industry. Initially, we will offer our proven services, including social media marketing, to independent small businesses within the State of Texas.

Our brand in this venture will be known as SmallBusinEssentials, and similar to franchisEssentials, is dedicated to small business success at all levels. In the near future, we will create an interactive site, similar to franchisEssentials site, with information and breaking news, relevant to the small business community.

Our services and resources, that have proven extremely effective for franchise businesses throughout the United States, in Canada and in several other international markets, will be available to small businesses across various industry segments including retail and service businesses, professional agencies, network marketing and more. Initially to be rolled out in Texas, services to be provided by staff, strategic partners and independent consultants to include:

  • Integrated Marketing
  • Web Development
  • Search Engine Optimization (SEO)
  • Content Development & Management
  • Blog Development
  • Local Business Listings Management
  • Mobile Marketing
  • Email Marketing
  • Graphic Design
  • Online Brand Management
  • Online Public Relations
  • Social Media Marketing & Management
  • Social Networking
  • Personal Branding
  • Virtual and In-person Training in Technology & Sales

For more information please contact Paul Segreto by email at segreto.paul@gmail.com or submit your comments or questions below.

Top Five Social Media Tips For Small Business

The following article was written by Guest Author, Linda Daichendt. Linda is Founder, CEO and Managing Consultant at Strategic Growth Concepts, a consulting firm specializing in start-up, small and mid-sized businesses, and a Strategic Partner of franchisEssentials. She is a recognized expert with 20+ years experience in providing Marketing, Operations, HR, and Strategic planning services to start-up, small and mid-sized businesses. Linda can be contacted at linda@strategicgrowthconcepts.com and the company website at www.strategicgrowthconcepts.com.

Top 5 Social Media Tips for Small Business
by Linda Daichendt
as posted on Marketing With New Technology July 16, 2009
(Please Note: some content in this posting is from an article by Mya Frazier for Bankrate.com)

A few years ago, using the Internet to market a small business simply meant to create a presence online with a simple, informational Web site. Then came the demands of search engine optimization to ensure Google and Yahoo searches yielded top-ranked results for your company. Was your business’s Web site chock full of the key search terms that would bring it to the attention of customers?

social-media-trendsToday, social media is transforming the small-business marketing landscape. Social media are Web- or mobile-based tools for sharing and discussing information. It’s not just for seeing who your high school sweetheart married. Businesses can tap into powerful networking sites and other social media to drive customers to their shops or companies.

If done right, small-business owners might even be able to slash their traditional marketing spending to zero. Writing blogs (short for “Web logs”) or on-going online commentary using social-networking sites, such as Facebook, MySpace, LinkedIn, Twitter and YouTube, can provide inexpensive but powerful online marketing.

Because it’s free, people think it’s easy to create a social media presence. But this attitude can lead to missteps. So before you dive headlong into social media, take some time to observe the customs and social norms of these new forms of communications, says David Spark, founder of Spark Media Solutions, a San Francisco-based firm that helps companies tell their story through social media. “Also think about your strategy for effectively utilizing social media before you jump in,” says Linda Daichendt, CEO/Managing Consultant of Strategic Growth Concepts. “It’s easier to avoid costly mistakes before you begin than to correct them after they’ve done damage to your company’s reputation.”

New_rules_of_marketing_and_PR“Think of social media as a cocktail party,” says, David Meerman Scott, author of “The New Rules of Marketing and PR” and “World Wide Rave,” books about how to create buzz online. “You don’t go into the cocktail party and go into the middle room and scream at the top of your lungs and say, ‘Buy my products.’ … What works is you have some meaningful conversation first. And that’s just how social media works.”

If you decide to take the social-networking plunge, here are five ways to harness social media to help your business.

1. Use free sites. Use free online services, such as the mobile short-message site Twitter, and popular networking sites Facebook and MySpace, to post significant news, specials or events. For example, you run a small Italian restaurant with a loyal following. You could create a Twitter account and upload the lunch or dinner specials via “tweets,” or short messages of up to 140 characters, daily to customers’ smart phones or to other Web sites.

“All you have to do is give a (Twitter) handle and start a conversation. You could put the Twitter handle on the menu or in the restaurant,” says Chris Abraham, Abraham Harrison LLC, a Washington, D.C.-based digital public relations agency. Granted, social networking sites are still for early adopters. “You aren’t going to get Aunt Matilda to tweet about the experience she had at dinner,” Abraham says.

Abraham considers Twitter one of the easiest ways for a newbie to social media to get started. “It’s more challenging to do Facebook,” Abraham says. “You have to create a personal profile, create a page and so on. With Twitter, if you’re Joe Smith with Motorcycle Emporium, you don’t have to create a page. And you can create Twitter updates via a phone or mobile device easily.”

“Don’t try to reinvent the wheel,” he says. “There are lots of people sold on really expensive solutions, but two of the best investments for reaching out to people and engaging with them are free on Twitter and Facebook.”

2. Shift marketing costs to social media. After learning how social networking operates, use social media to free up traditional marketing dollars for your small business by putting it online. You can quickly learn which of your Facebook or MySpace “friends” or online “group” members received and responded to your message.

Stanya Doty has cut her print marketing budget to zero. As owner of Simple Indulgences, a wine and high-end gift shop in Delaware, Ohio, she began using Facebook in December 2008 to communicate with her brother but quickly realized the online marketing possibilities.

“I thought, ‘Oh, my gosh, there are so many people here,’ ” she says. Indeed, Facebook boasts 200 million users worldwide. In April 2009, she began promoting monthly wine tastings via a Facebook page for the shop that quickly attracted 100 members. Combined with an e-newsletter created using the do-it-yourself, e-mail marketing Web site Constant Contact, she keeps enough buzz going about her shop that her advertising budget for local print ads no longer seemed necessary. She usually sends out about 700 e-mails, with the response rate sometimes reaching nearly 50 percent. It sure beats a postal mailing. “If I sent out a postcard with postage and paid for all that, I’d still have no idea who read it and who threw it away,” she says.

Indeed, unlike a print ad, Doty gets instant, measurable results. “On Facebook, you can see who has responded to invites,” she says. “It’s easy, it’s cheap and I’m actually appealing to people that at first know me from the store and then hopefully … pass the word along throughout their networks.”

google-yahoo-thumb23. Do your own social-media optimization project. Learn about the competition in your industry and geographic region that are tapping social networking. Spark recommends starting by researching the competition in the major search engines — Google and Yahoo.

“Type in keywords and phrases that people would use to find you, like ‘plumber’ and ‘San Francisco.’ If you don’t appear in the top percentage of pages, take a look at the Website of those plumbers that do show up,” says Spark. “Look at their pages, and usually they will have a lot of content on their sites.”

To increase a business’s presence on the Internet, Spark advocates companies create blogs, newsletters and other articles on their sites to bolster the number of keywords — terms that search engines recognize — to boost their ranking in all-important Web searches.

“That’s the way people discover you,” he says. “Take that plumber in San Francisco. The right search terms might just be ‘clogged toilet and San Francisco.’” “That tells me I should write … in my blog about how to fix a clogged toilet and mention that I am a plumber in San Francisco,” he says.

4. Take social-network marketing to the next level. Create and post richer content about what your customers would expect from someone in your business. Don’t view social media sites as a place to simply hype your wares. It’s a place for conversation.

“Social media is about earning attention,” says David Meerman Scott, author of “The New Rules of Marketing and PR” and “World Wide Rave,” books about how to create buzz online. “What’s most important is to forget about what your company does. Instead, think about the people who are buying your products. Simply hyping products and services online and in social media sites completely backfires. People are not looking for products but for something fun. They are looking to make connections,” Scott says.

So it’s all about having something interesting to say or show. It could be a blog, or a video on the video-sharing Website YouTube.

For example, if you’re a caterer, instead of talking about your service, create engaging culinary content. Imagine positioning yourself as a gourmet magazine on the Web, complete with links to a video you uploaded to YouTube.

“A caterer could create a blog with information about how to create a fantastic party, and each blog post or YouTube video could be another installment,” Scott says. “On the Web, you are what you publish and being on the Web is about publishing information.”

So back to that plumber faced with the prospect of dropping an expensive Yellow Pages listing but worried about customers not finding him if they have a burst pipe or a misfiring shower head. Scott recommends the plumber post a list of “the 100 home fixes for common plumbing problems.”

“All of a sudden you are going to get indexed very highly in the search engines, and people are going to share that content with their friends,” he says. “When someone puts an update on Facebook asking if anyone knows a good plumber in Boston, a friend might point to your content.”

blogging5. Use blogging to drive search results and help new customers find you. Lately, blogging has gained greater attention, with the advent of “micro-blogging” on Twitter. But consider the time commitment and strategy before launching an account.

Even with the spread of micro-blogging, Abraham remains a big fan of traditional blogs, which are lengthier and show up on Web sites. In general, no matter what form the blog takes, it should be consistent over time.

“If you can’t keep up one (blog) post a day or 12 tweets a day, do one tweet every Thursday. Consistency in blogging or tweeting will create a relationship of trust with your followers or readers. Do it once a week, but for the next two years,” Abraham says.

And don’t spend extra money on blogging software, technical help, or a ghost writer for your blog. To get started, sign up with WordPress.com or Blogger – both are free blogging platforms which are easy to use for beginners.

Additional opportunities within the social media environment include: online radio shows on platforms such as BlogTalkRadio, social networking sites such as LinkedIN, Plaxo, and FriendFeed, and a wide variety of additional tools as well depending on your type of business.

Following these social media basics for small business will get your company started on the right road to gaining new customers and increased revenue via social media.

Accountability Begins With Respect

The following article was submitted by franchisEssentials Guest Author, Diane Helbig. As a certified, professional coach and president of Seize This Day Coaching, Diane works with people starting their own business, salespeople who need and want to improve their skills, and business owners who want to master challenges and realize greater success. She is also co-founder of Seize True Success, a coaching practice dedicated to helping franchisees grow and prosper.

Accountablilty Begins With Respect
By: Diane Helbig

Many small business owners struggle with making their staff accountable. They know what they expect their people to do. And, as long as everyone’s performing effectively, all is well. The trouble occurs when someone falls short of the owner’s expectations.

respectThe struggle is rooted in fear – fear of confrontation, consequence, repercussions. The solution is rooted in respect. When you respect yourself, your staff, and your customers, you’ll find accountability easier to achieve.

1. Respect yourself – This sounds simple, and it is. You should have a healthy respect for yourself. You took a chance and launched a business, putting your ego, income, and reputation on the line. At the same time, you’re not superman (or woman). When you respect yourself, you appreciate your accomplishments and own your limitations. When you respect yourself, you understand that you have a right to expect reasonable levels of performance and attitude from others.

2. Respect your staff – They are working with you to help you realize your vision. They bring valuable skills and sensibilities to your organization. You respect them when you have clear, written expectations and consequences – not only for their job function, but for their behavior and attitude. Have enough respect for them to let them know what you want. At the same time, have enough respect for them to remove obstacles, especially when those obstacles are co-workers who aren’t up to par. Put yourself in their shoes. How do you think it feels to consistently do a good job while Susie over there skates? In addition, respect them enough to believe in them. After all, they believe in you.

3. Respect your customers – They are the reason you and your staff are able to do what you do. When you respect your customer, you are aware of anything that can have an impact on them. And, rest assured, they’ll know if you are or are not making your staff accountable. It’ll show in their work, their attitude, and most of all – in yours.

A healthy respect goes a long way. If you’ve made your expectations and the consequences clear, and someone isn’t up to snuff, when you keep them anyway, you are doing a disservice to you, them, their co-workers and your clients. Making people accountable is the respectful thing to do!

About the Guest Author: Diane is a COSE Mindspring editor and writer for www.examiner.com. She is also a member of the Top Sales Experts panel at www.topsalesexperts.com. Diane is also a contributing author to Chicken Soup for the Soul: Power Moms. Diane earned a BS in Social Science from Michigan State University and received her coaching certification from The Coach Training Alliance. To learn more about her coaching practices please visit www.seizethisdaycoaching.com or www.seizetruesuccess.com

Local Marketing Challenges: What is a Franchisee to do?

No TomorrowI believe the most common local marketing challenges in a franchise organization are the typical franchisee’s lack of marketing 101 skills, their inability to develop a defined marketing strategy, and certainly their inability to execute any marketing plan. However, let’s be fair. They may not have learned about marketing and marketing strategies.

Now, here’s something that franchisees do know something about, and that’s making things happen. Unfortunately, many franchisees don’t have the drive to do whatever it takes to make it happen as it sometimes means integrating their local marketing efforts with grassroots, guerilla, word-of-mouth, or as I like to refer to it as “get off your ass” marketing.

Many franchisees find it necessary to stand behind the counter and serve the customer when they would better serve the business by getting out from behind the counter and mingling with the customers, visiting other businesses, participating in community events, etc.

The major challenge is that most franchisees refuse to take this approach, feeling they’ve made a large investment and the business should come to them, or put the responsibility on the franchisor, or are just lazy and would rather wait for tomorrow. Well, as Garth Brooks sings, “if tomorrow never comes…” Instead, they need to make it happen today and forget tomorrow, as if there is no tomorrow!

Opinions, Insight and Perspectives on Franchising

I recently posted a question on Linkedin that addressed the primary reasons to explore franchising. Below please find several of the responses from a cross-section of industry and non-industry 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.

doors-optionsWhat is your opinion of franchising as a business model, business expansion strategy and as a career alternative?
as posted in the Q & A section on LinkedIn under Franchising

An SAP Consultant with some franchising experience obviously has done his homework and offered valuable advice as well as sharing some real life experiences.

“I have studied business and many individual businesses personally. I read many business cases and books and have a deep interest in business models and how they work in the current market.

First of all, check out the book ‘The E-myth Revisited?’ It is a very interesting way of viewing a business model. It describes the benefits of the franchise way of doing business.

I also have been involved in a few franchise opportunities, most recently, I was looking to purchase a tanning franchise. The business model was highly tuned, the computer system was revolutionary and perfectly adapted to the business through many years of iterations. The computer system alone would allow you to manage multiple stores with very little hands on control. The power of the franchise itself brought purchasing power and brand recognition which would have been difficult to built independently. The small percentage of revenues to fund regional advertising brought in enough business that I could have been almost completely hands off while still turning a sizable profit.

In short, most entrepreneurs work IN their business, but at a point you need to delegate so you can work ON your business. And franchising is a marvelous way (for most businesses) to grow exponentially.”

This next response if from a business coach that specializes in guerilla marketing strategies. Before I even read her response i knew I would agree with her perspective of franchisees needing to be prepared to work hard despite buying into a system. How true, indeed.

“I think that Franchises represent an great opportunity for some people. They can provide an excellent template for success, as well as resources and support as you are growing your business. That said, opening a franchise is just like starting any other business from the standpoint that you must have a clear idea as to how you will drive customers to your product/service. A franchisor will provide you with the tools and a blueprint, but you are going to have to do a lot of the heavy-lifting yourself. Make sure you are prepared!

Before committing to any franchise, talk to some of their current (and former!) franchisees. Don’t just call the people the franchisor tells you to call; reach deeper into their list of franchisees. Develop a list of questions that you can ask that help you to understand whether this particular franchise is going to be a good fit for you.

Lastly, if you are someone who doesn’t really like “rules”, you may want to think twice about franchising. What makes franchises work is that things are delivered consistently. That can be a good thing, or a bad thing, depending on how well you follow rules!”

An entrepreneur who previously founded a small franchise company offered his view which it appears may have been formed by some entrepreneurial types that entered into a franchise agreement with his franchise company. Personally, I do not believe true entrepreneurs make very good franchisees. On the flip-side, is he referring to true entrepreneurs or franchisees that just had buyer’s remorse and had to blame someone for their poor performance and/or failure?

“I could wax on for hours on the subject and don’t have the finger skills to type it all, but…

First, my qualifications: I founded/own a successful retail business for over 15 years. I have created multiple businesses, some successful, some not, but all independent. I also created a retail concept that I franchised. So I have the unique view of being an independent and a franchisor.

Here are some quotes:
-A franchise is like a bicycle with training wheels. Once you learn how to ride, you won’t want training wheels anymore.
-Franchising is for those who want you to help them…but, then to leave them alone. In other words they want to be indies, but in a community.
-A franchise is only as good as it’s support.
-If a franchise operation doesn’t give back in value more than royalties paid in, the franchisee will eventually resent writing a check to “the mother ship”.
-A franchise is a business model that people expect to have it all figured out – no one has it all figured out.”

A very well-respected and experienced franchise consultant offered his perspective from having worked with individuals explore franchising as a career alternative. I agree that many explore business ownership options because they cannot find a career position that will compensate them as they have grown accustomed to in the past. the choice between franchise and startup often comes down to risk.

“As a business model I think that franchising is or has taken the place of corporate expansion in a lot of cases. Especially in the startup sector. I don’t know how many times recently I have been contacted from a startup that wants to expand via franchising.

I am talking to a lot of people that are looking at franchising as an alternative career path. Most of them are coming to me because they can’t find a job, it isn’t that they don’t want one, but they can’t find one making the money they were making before.

So they turn to owning a business and a logical choice for some of them is a franchise. For others it is starting their own business.

I think it comes down to personal preference and ability to cope with risk factors. I think most of the people that buy a franchise do so to help reduce their risk, so if they were really looking for a job and then had to buy a business, a franchise is probably a one choice.

About 1/3 of my clients are people in this situation that were looking for a new career, due to recent economic conditions, and they couldn’t find what they were looking for.”

An upstart franchise founder offers her views from the perspective of being new to franchising but quite experienced in running her own business. She appears to be spot on about ideal franchise relationships but I look forward to discussing her thoughts after she awards her first four or five franchises.

“As a career alternative, franchises are not for entrepreneurs, whose M.O. is ‘anything you can do, I can do better’. As an expansion strategy, it depends on the industry, product, service and system. For those that rely heavily on outside sales, for instance, hiring salespeople is more risky and time consuming than offering the opportunity for ownership.

I agree that franchising is a great way to grow by working on your business instead of in it.

Franchises offer franchisees:
– Self direction (while some do, many don’t have too-stringent rules)
– Higher income potential than a fixed salary or most sales positions, and often even more than business ownership because growth may be better supported
– Proven solutions to problems that exist in the market, the basis for any startup
– Elimination or reduction of what can often be years or decades of research, development, relationship building and trial and error and financial investment
– SUPPORT”

Mobile Marketing Can “Mobilize” Franchising

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 specializing in start-up, small and mid-sized businesses. She is a recognized expert with 20+ years experience in providing Marketing, Operations, HR, and Strategic planning services to start-up, small and mid-sized businesses. Linda can be contacted at linda@strategicgrowthconcepts.com and the company website at www.strategicgrowthconcepts.com.

Mobile Marketing Can “Mobilize” Franchising

Given the precarious state of today’s economy, franchise organizations are on ‘high alert’ for new ways of increasing their franchise development capabilities and helping their franchisees to increase revenues. While recent technology advances provide a variety of methodologies that can be useful in achieving these goals, there is one that has only recently come to the forefront of marketer’s awareness – Mobile Marketing. While you may not yet have heard a lot about it, be assured that in the very near future, you will need to know as much about it as you previously needed to know about direct mail, telemarketing, radio or TV.

Consider the cell phone and its capabilities if you will: recent studies indicate that there are currently more than 272 million mobile phone users in the U.S. (89% of the total population); of those phones, 99% are text capable and 57% of those mobile subscribers use texting on a regular basis; 15% of active mobile phones have the ability to utilize mobile web applications and 44 million people regularly access the mobile web from their cell phones; and over 84% of cell phone owners won’t leave home without the device. These statistics lend legitimacy to the school of thought that indicates that Mobile Marketing is likely to become a substantial portion of corporate marketing budget expenditures within the next few years.

mobilemarketingpanelGiven that, marketers will likely be intrigued by the following facts about Mobile Marketing derived from recent studies: over 80% of consumers respond to SMS messages within 1 hour; 23% of SMS campaign messages are forwarded and become viral; and the messages sent via mobile are actionable and trackable thru specific consumer replies.

I recently gave a presentation to a group of franchisors and franchisees on the topic of Mobile Marketing for franchises, and how its use can aid franchise growth and profitability. I was very pleased by the group’s positive response and interest in the topic, and the many excellent questions that were posed by the event attendees. Given the high level of interest by that group, I thought blog readers from the franchising industry might have an interest in the topic as well. Therefore, I wanted to share some basic Mobile Marketing information, as well as provide several ideas for how it can be utilized in a franchising environment.

First, let’s review what it is. Mobile Marketing is a simple to use, targeted and measurable method of reaching consumers anywhere, anytime via their mobile phones. There are a variety of methods of Mobile Marketing, among them are:

• SMS (short message service)
o Also known as ‘texting’
• MMS (multi-media message service)
o Messages that contain multi-media objects such as images, video and audio
• Mobile Web
o Browser-based web services such as the World Wide Web using a mobile device
• Bluetooth (short-range wireless technology; up to approx. 33 ft)
o Also known as proximity marketing
o The localized wireless distribution of advertising content associated with a particular place. In other words, if you have a cell phone in the proximity of a marketing broadcast, you would be able to receive a message or advertisement
• Location-Based Marketing
o Delivers multi-media directly to the user of a mobile device dependent upon their location via GPS technology
• QR Codes (quick-response barcodes)
o Two-dimensional barcode
• Voice

Next, let’s review several ways in which franchise organizations can utilize Mobile Marketing; these ideas include:

• a franchisor can communicate with all franchisees in their organization at one time via text message to remind them about an upcoming deadline or special event, insuring a timely and consistent message delivery
• a fitness club franchise can post class schedules or let potential customers sign up for an initial free visit on their mobile device
• a restaurant franchise can post seasonal menus or send coupons to their customer database
• a plumbing franchise can list rates and emergency numbers for consumer referral
• a franchisor can send voice messages to a group of prospective franchisees taking part in the franchise development process all at once; the franchisor can insure that all receive the same accurate version of the message, and they can save payroll costs because it takes only moments to have the message sent once instead of hours for personnel to make the calls directly
• many, many other ways that will drive business growth thru franchise development and/or increased consumer demand

Mobile Marketing is extremely cost-effective and results in very satisfactory ROI; with a typical ROI of 10 – 12% and returns as high as 30% reported on some campaigns. According to Nielsen Mobile, half of all U.S. mobile data users, or 28 million people, who recall seeing mobile advertising in the previous 30 days say they responded to a mobile ad.

Driving Customers to Franchise Locations with Mobile Marketing

Strategic Marketing Concepts, a Strategic Partner of franchisEssentials, is a leading expert on Mobile Marketing. Below is a quick glance at how a small business can use mobile marketing as described on the Strategic Marketing Concepts website and blog. We highly recommend visiting these sites to learn more about this exciting technology, and trust you’ll find the information valuable enough to share with your franchisees individually, or through your franchise organization’s advertising cooperatives.

mobile-marketingHow Can a Small Business Use Mobile Marketing?

•a fitness club can post class schedules
•a restaurant can post seasonal menus or coupons
•a school can send voice messages to parents to remind them to attend parents’ night
•a locksmith can list after-hours contact numbers
•a manufacturer can survey customers about a new product
•a plumber can list rates and emergency numbers
•a bookstore can post special events such as guest appearances by well-known authors
•a theater can post movie schedules
•a nightclub can promote appearances by various entertainers
•a grocery store can post weekly coupons and special offers
•a bank can notify customers if their account is going to be overdrawn
•a radio station can have listeners enter a contest
•many, many other ways that will drive business

FOR MORE INFORMATION

Another Franchise Growth Roadblock?

It’s been said that franchising (and small business) will be instrumental in helping the economy recover. Yet, a recent article regarding the commercial real estate market may shed a new light on that prediction. Already facing tighter credit guidelines, franchisors may now be faced with fewer suitable locations for new franchisees that will further hinder growth initiatives.

The article, “Is Commercial Real Estate in Bubble Trouble” was originally posted on the Fish on Franchising blogsite. Fish Consulting is a national PR and marketing agency that specializes in helping mature and emerging franchise companies achieve their business goals. We appreciate working with them in presenting this article to the franchisEssentials readers.

Is Commercial Real Estate in Bubble Trouble?
As posted on Fish on Franchising (Friday May 15, 2009)

Several years following the collapse of the housing market, which gave way to record breaking home sale and price declines, experts are now warning that the next real estate wave to hit the markets will be the commercial sector.

real estate bubbleUntil recently, commercial real estate was a bright spot in an otherwise dreary economy. While residential investment plummeted 28.9 percent from the start of 2006 through the end of 2007, investment in nonresidential structures grew 24.9 percent over this period. At the same time that residential investment subtracted almost a full percentage point of gross domestic product growth in 2007, investment in nonresidential structures was adding 0.4 percentage point back. And while the delinquencies on residential mortgages have been on the rise since the first quarter of 2006, delinquencies on commercial mortgage bonds reached a record low of just 0.27 percent this January, according to Fitch Ratings.

The problem is that commercial real estate tends to traditionally lag behind residential just a bit. With 5.7 million jobs lost since the recession began in 2007, nearly 13.7 million Americans out of work and the foreclosure rate double what it was the year before; it’s easy to see why commercial construction is losing its appeal. A depression in residential growth means fewer malls, shopping plazas, offices and other commercial centers that support new homes and economic good times.

There are already signs out there to suggest that the commercial market may have already turned sour. On April 16, the nation’s second-largest mall developer, General Growth Properties, filed for bankruptcy protection. The Chicago-based company owns more than 200 malls across the U.S. In addition, there are many reasons out there to suggest that commercial construction was plagued by some of the loose lending practices that eventually unraveled the residential market.

How bad will it get? Well that depends on how fast the economic recovery takes hold. More than likely we’ll see commercial failures start to pile up slowly until they tumble down in an avalanche of bankruptcies and debt like the residential market did. Problem is that if a commercial mortgage wave hits the banks soon, it is likely to prolong our nation’s economic recovery for quite some time. Additional bank losses at a time when they are already depressed by home mortgage and credit card defaults will probably mean more government intervention and taxpayer assistance. Only time will tell.