Tag: Paul Segreto

Franchise Failure: A Dose of Reality

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

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

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

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

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

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

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

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

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

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

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

Social Media Tip: High Cost of Complacency

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The following is an excerpt from Online Social Networking blog (Larry Brauner, author)

Companies that neglect their social media presence will suffer in several ways:

* They’ll have no influence over their online reputation.
* Their customers will view them as backward.
* They won’t receive traffic from social media sites.
* They’ll receive less search engine traffic too.

Social Media Training For Employees

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Yesterday, I read an informative article by Ben Parr (Mashable) about training new employees in social media. The article, “How to Train New Employees in Social Media” was posted on the American Express Open Small Business site and included the following seven tips to social media training:

1. Consider writing guidelines or a social media policy: A policy can clear up confusion and help you keep employee focus away from what they shouldn’t do and towards what they should be doing. We wrote great guides on whether you should have a policy and 10 must-haves for any social media policy over at Mashable.

2. Make it clear you aren’t policing: The focus is on ways to use social media to promote the business, rather than ways to avoid embarrassment. Make that clear to new recruits and stress that you won’t be policing. Rather, you’ll be trusting in their good judgment and their ability to control privacy settings. The Associated Press quickly learned what happens when you become overbearing.

3. Test their social media knowledge: You’re going to have to individualize each employee’s social media training. While one may have 10,000 followers on Twitter, the other may have no idea what a blog even is. Don’t assume everyone’s at the same level.

4. Have them start their own blog: If your employees have writing-specific duties, give them a homework assignment: start your own blog. The practice of setting up a WordPress account, writing posts, and promoting them is real-world education.

5. Give them required reading: Give them a good book or two on using Twitter or pitching to blogs. Give them a set of blogs (don’t forget Mashable!) that they need to read. Have them subscribe via RSS for efficiency’s sake. Finally, encourage them to subscribe to other blogs and explore their interests.

6. Hand them the reigns: They can read and learn, but you have to trust them eventually with the reigns. Once your new employees are getting comfortable, have them tweeting, making videos, and coming up with initiatives. The more they submerge themselves, the faster they’ll learn.

7. Impress upon them the importance of social media: Yes, some employees simply won’t get it unless you put it into context. Explain how far your reach goes with a single tweet, or provide examples of how businesses were hurt by an inability to understand Facebook.