Tag: Paul Segreto

Franchise Social Media – Analyze

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This is the last segment in the Franchise Social Media series leading up to our upcoming Webinar, Franchise Social Media – Beyond the Basics, and addresses the last step in franchisEssentials e-IDEA, Analyze.

Analyze

Certainly, metrics are important in gauging the effectiveness of any online strategy. And, it’s vitally important to analyze and quantify results on a regular basis. However, the key metrics are actually simpler than that of algorithms, click-through rates, and impressions. It’s what I refer to as a Social Media P&L.

This P&L takes the objectives, expectations and desired results, as established in earlier planning stages, and quantifies them into hard numbers. Then, these numbers are analyzed against actual results. This should be done weekly, monthly and quarterly in order to view development and progression of trends which then creates the opportunity to tweak and revise the plan much like turning a ship at sea. As you know, turning a ship at sea is done in a very slow, deliberate manner as a quick turn could easily capsize the vessel.

Ultimately, the results achieved within the plan must line up with the initial objectives of getting involved in social media in the first place. Therefore, it’s imperative the initial planning stages include specifying desired results and defined numbers. It’s not enough to just say, “We want to increase business and franchise sales.” Well, how much of sales increase? And, where? What particular market(s)? Over what period of time? And, for franchise sales purposes the same holds true but from its’ own unique perspective.

Keep in mind the operational aspect that needs to be considered in the process, and in evaluating plan effectiveness. It’s not uncommon to drive leads to franchise locations and to franchise sales departments, only to result in poor conversion rates. Obviously, the poor results in this situation are not the result of a poor social media plan as much as it stems from a poor sales effort. It is essential to take into consideration all aspects of daily operations, at the appropriate levels of the organization. It’s imperative the information pulled from these various levels be accurate and timely to accurately evaluate potential issues, and to be able to quickly resolve problems.

Erik Qualman, Author of Socialnomics and the person behind the infamous Social Media Revolutions videos states that Social Media ROI is still being in business five years from now. A powerful statement, indeed! But one that I highly value and believe in as social media continues to gain momentum and becomes even more valuable, and essential, than it is today.

Expanding social media beyond its basic elements and utilizing it with specific intent and purpose can prove quite effective in generating multiple benefits at all levels of a franchise organization including increasing traffic at the unit level, creating brand awareness, generating interest in franchise opportunity and improving communications throughout the system. Understanding how social media need to operate in a franchise environment is critical to future success, and a primary reason for referring to it as Franchise Social Media, complete with functionality unique to franchising.

Join us tomorrow, Wednesday, April 20th at 12 PM CDT, for our complimentary webinar, Franchise Social Media – Beyond the Basics.

REGISTER HERE


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Franchise Social Media – Develop and Execute

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Today in the third segment leading into the Franchise Social Media – Beyond the Basics webinar, we’ll discuss the next steps in the franchisEssentials e-IDEA concept, Develop and Execute.

Develop

The results of the two previous stages provide the foundation for which the Franchise Social Media strategy should be built. Without the proper foundation, the strategy structure would be flat, lineal and two-dimensional. With a firm, well-defined foundation, the strategy will rise to a cross-platform, multi-tiered structure with communications lines running across the structure, to and from different points.

Basically, it can be looked at as the difference between a simple tic-tac-toe diagram drawn on a piece of paper, to a Rubik’s Cube that has many sides and angles, and is three-dimensional. Taking it a step further, when attempting to solve the tic-tac-toe challenge, there are only a handful of options before success or failure is imminent. Not so with a Rubik’s Cube as there are many, many options to succeed. In fact, the only way to fail at solving the Rubik’s Cube challenge is to give up and stop trying.

The Develop stage must address key components to the program including resources available AND dedicated to the effort. Resources include both human and financial resources. As social media has no time limitation or barrier, it can be considered a 24/7 plan of managing and monitoring. The various defined objectives must overlap for the three-dimensional structure to remain upright. The strategy must resemble blueprints similar to those developed when building an office building complete with common infrastructure and utilities, but where various floors will be designed for different tasks, and will be occupied by different people.

An effective Franchise Social Media strategy has some commonality built into it through the use of the basic social media channels. However, it should never be considered a one-size-fits-all solution as there are just too many variables from one franchise organization to another. These variables must be individually addressed and include, but are not limited to franchisees already using social media, percentage of effort to be dedicated to consumer proposition and lead development, coordination of timed events, content development for daily activity, responsibility for response both at the franchisee and franchisor levels and timeliness of the same, and transition from the virtual to the real world whether it be at the unit level face-to-face with customers, or within the franchise sales process with a candidate.
Development of the Franchise Social Media strategy is not much different than the development of an operation manual for a franchise system. It must be thought-out and planned for every aspect of the business at-hand. It must be comprehensive to handle the “what ifs?” It must be well-defined to work seamlessly from one individual to another. From 30,000 feet it could look not much different than a franchise system.

Execute

Now, the fun part kicks in and execution of plan is put into action. If the strategy is well-developed and communicated throughout the organization, including to and with franchisees, execution of plan should run smoothly, and should actually be an enjoyable experience. The strategy, defined in a living document, must be in the hands of all involved in the effort. Guidelines must be followed for optimum results. Policies and procedures must be in place for reference as needed.

The key to executing the plan lies within engagement and monitoring. It’s imperative to share content and information that is pertinent and relevant to the target audience. That does not, and should not mean the constant regurgitation of brand messages. The opposite is actually more effective and will actually attract and retain individuals within the online community. Many will return again and again seeking new information. If done effectively, the online community becomes a portal of sorts with followers returning almost daily for new information they may be able use that day.

From a lead generation standpoint it’s imperative to share information beyond the brand message and certainly of the franchise opportunity itself. Information pertaining to entrepreneurship and small business ownership along with links to articles about transitioning executives, establishing goals and objectives, family role in business ownership, and small business finance are popular topics. Sharing this type of information with occasional posts about the brand and franchise ownership will keep this target audience returning day after day, looking forward to new information that will assist them in achieving their goals and objectives. As a valuable resource, a relationship begins to form; a key component of the franchise sales process.

Monitoring the activity is vital to further developing the relationship regardless of whether it’s with consumers or candidates. Timely response to questions and comments go a long way in common courtesy. More importantly, interacting when the consumer or candidate is “hot” typically spurs conversation. It’s that conversation that establishes the personal interaction that potentially moves the process along. It’s the backbone of the “people buy from people” theory. It’s also at this point where the virtual to in-person transition begins to happen. It’s also where the relationship is most prone to unravel.

It is essential that front-line staff and franchise sales personnel fully understand and are aware of the information being shared with consumers and candidates alike. They should also be aware of online activity, especially the activity leading towards “buying” activity. As the transition to the in-person setting, which includes a visit to a franchise location and a telephone call with a franchise sales representative, the professionalism established online must continue. The online message must be consistent and continue to be conveyed.


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Franchise Social Media – Explore and Identify

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As a lead-in to this week’s webinar, Franchise Social Media – Beyond the Basics, we defined Franchise Social Media and re-introduce franchisEssentials e-IDEA concept as a simple process to embracing social media within a franchise organization. Today, we will begin to break down the e-IDEA process by defining the first two parts, Explore and Identify.

Explore

In the initial stages of a developing a Franchise Social Media plan, it is essential to review current levels of general social media proficiency throughout the organization. This includes the franchisee base as well. Determine not only who within the organization is proficient, but within which social media platforms they excel. Be sure not forget the enjoyment factor!

For instance, if franchisees are utilizing videos and photos effectively within their efforts, it’s safe to say that video and photo sharing should be integral components of the franchise social media strategy. Explore further for individuals within the organization that enjoy photography and video production. Having these individuals interact with marketing professionals bring new perspective to the process, especially as they will also bring practical perspective of working within the franchise organization at different levels.

The same holds true for individuals within the organization who are most proficient and passionate about training, and are fully versed on internal training processes and procedures. It lends to being able to bring other aspects of social media to the table – webinars being the most obvious. The less obvious, but very effective includes internet radio for podcast replays or on-demand access, and video again, for sharing simple or more complex information.

Upon exploring various types of social media, and social media tools, and in determining the proficiency and enjoyment/passion levels within the franchise organization, it is then the correct time to step into the Identify stage.

Identify

Here’s where Franchise Social Media really starts to make practical sense as this stage fosters thought about the ultimate objectives of the franchise organization. Most believe this stage is entirely focused on identifying targets. However, identifying targets is only a portion of this stage.

Identifying objectives within a franchise organization is where Franchise Social Media separates itself from basic social media as there are typically many objectives to define, including increasing business at the franchisee level, improving brand awareness, creating interest in the franchise opportunity, and developing or strengthening communications throughout the system. Much of this process is unique to franchising as franchise law and the franchise relationship both need to be taken into consideration. Proceeding ahead without these considerations could result in significant consequences at various levels.

In identifying objectives, it’s most likely apparent there are multiple targets to attract. Within the consumer proposition the targets will be customers, but are they retail customers, business customers, or both? For franchise lead generation, there may be multiple targets that could be attracted in different ways. For example, attracting a transitioning executive may take a different approach than attempting to attract a transitioning executive from a specific industry segment.

Next, in this stage is identifying where all these targets communicate and congregate online. This is often an ignored component of a social media strategy, and one that would specifically lead to the strategy being non-effective. After all, what use is it to broadcast a message if it is not known where to broadcast the message so it will be heard by the target audience? Identifying the online locale of the target audience is critical to the success of the program, but it’s also critical to identify if the target audience is communicating within that locale.

Tomorrow, we will breakdown the next two steps in the e-IDEA process, Develop and Execute. The following day, we will explore the last step of the process, Analyze.


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Franchise Social Media – Beyond the Basics: An Overview

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On Wednesday, April 20th at 12 PM CDT, franchisEssentials is proud to present a complimentary webinar, Franchise Social Media – Beyond the Basics. A couple of weeks ago, an article by the same title was posted on Franchising.com, a popular Franchise Update Media Group site. Since the article was published, we’ve received numerous requests for additional information, and registrations for the upcoming webinar has increased significantly.

Leading into the webinar, as many within the franchise community are still hesitant and reluctant to venture into social media, and embrace social technology, we’re posting the article on this site, in segments, over the next few days. The article serves two purposes. One, it provides an overview of the basis for the webinar. And two, it provides a detailed explanation of franchise social media in very simplistic terms, and defines a simple process to embracing social media within a franchise organization.

Franchise Social Media – Beyond the Basics

What is Franchise Social Media? Basically, it’s more than just social media. It’s the application and utilization of social media within a franchise environment. Sure, many of the same principles apply. But, franchising is different than most small business models. It’s unique in many ways beyond the typical B2B or B2C model. There are specific disclosure laws that are a major part of the franchise candidate recruitment process. Even from a consumer proposition standpoint, the integrity of the entire franchise organization must be considered. And, one cannot discuss social media in a franchise environment without touching upon guidelines, policies and procedures, and brand uniformity.

So, Franchise Social Media is how social media is tailored to not only fit within the various levels of franchising, it must also be integrated within processes and methods within franchise marketing and development. Certainly, utilizing social media within franchising is more than just asking an administrative assistant to set up a Facebook and Twitter account and post and tweet away; especially, without a purpose or specific objective, and definitely not without a well-defined plan of action.

Despite what many marketing professionals believe, Franchise Social Media must be more than what is defined and implemented across most small business segments. The interdependency of the franchise relationship, the franchise dynamic, if you will, must be considered and focused upon as a social media plan is put into action. At all times, the question, “How does today’s [social media] activity affect others within the organization?” must be on the forefront of administrators’ minds as they post, tweet, connect, and engage… every day! A simple mistake can send a ripple effect throughout an organization. A major error, which could include a slow reaction to a potential crisis (remember Dominos employees’ You Tube video?), could be akin to a tsunami racing ashore at 500 miles an hour, with little or no warning to the people (franchisees) along the coast, and possibly inland as well.

Are you afraid or frightened yet? Are your thoughts circling around the decision to just leave social media alone? Or, if you’re already entrenched within social media, are you now considering slowing down, pulling back on your efforts, or maybe even bailing out altogether? Well, you shouldn’t be afraid or frightened, and certainly, you should not bail out. Actually, there needs be more focus beyond the basics of social media, with a very detailed, comprehensive plan to direct efforts specifically to Franchise Social Media.

At franchisEssentials, we utilize a basic acronym of e-IDEA as a guideline when developing franchise social media strategies for clients. The acronym translates to Explore, Identify, Develop, Execute and Analyze. Five easy steps to keep in mind and remember to remain focused and stay on track in your efforts.

Over the next few days we’ll break down each segment of e-IDEA.


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How to Use Social Media to Enhance Your Franchise – Podcast

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Adam J. Siegelheim, member of Stark & Stark’s Franchise Group, attended the 2011 International Franchise Association’s Annual Convention February 13-16, 2011 in Las Vegas, Nevada. 

In this podcast, Mr. Siegelheim meets with Paul Segreto of franchisEssentials. Mr. Siegelheim and Mr. Segreto discuss social media and how franchisors can utilize social networking applications, such as Facebook, Foursquare, LinkedIn and Twitter, to enhance their brand.

You can listen to the full podcast online here.


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Social Media: Definition & Resources

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The following is directly from Wikipedia, and represents the definition for Social Media. As the definition includes numerous links to various social media tools and technology, and resources, I thought it would benefit our loyal readers to include the entire section on this site. Certainly, reviewing the basics from time to time can’t hurt, right?

Social Media – As defined on Wikipedia

Social media can take many different forms, including Internet forums, weblogs, social blogs, microblogging, wikis, podcasts, pictures, video, rating and social bookmarking. By applying a set of theories in the field of media research (social presence, media richness) and social processes (self-presentation, self-disclosure) Kaplan and Haenlein created a classification scheme for different social media types in their Business Horizons article published in 2010. According to Kaplan and Haenlein there are six different types of social media: collaborative projects, blogs and microblogs, content communities, social networking sites, virtual game worlds, and virtual communities. Technologies include: blogs, picture-sharing, vlogs, wall-postings, email, instant messaging, music-sharing, crowdsourcing, and voice over IP, to name a few. Many of these social media services can be integrated via social network aggregation platforms.

Communication

Collaboration/authority building

Multimedia

Reviews and opinions

Entertainment

Brand monitoring


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What Excites You About Working Within Franchising?

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What an extraordinary time it is in franchising. Many of us are still riding high from the IFA Convention. Approximately 160 franchise professionals attended the Franchise Unconference last week in Utah. It is my understanding turnout at this week’s Franchise Finance Conference in Las Vegas was very good. And, in a few weeks many of us will be in Washington DC for the International Franchise Expo. That’s just a great deal of positive energy in a six-week period within franchising. Certainly, it’s exciting to be working in franchising as the economy continues to rebound.

Of course, it’s easy to be excited when there’s a load of positive energy at showcase events. Seeing long-time friends with similar interests and objectives adds to the excitement. It’s also relatively early in the year, and many are filled with New Year’s resolutions that have yet to be challenged. Optimism fuels excitement! But, let’s take a step back and look at the core of franchising. Let’s evaluate why we have decided to continue earning a living within franchising. Through the worst of economic times, with franchise sales bottoming out, why did we hang around instead of doing something else for a living? Sure, many will say there weren’t other jobs available. But, I truly believe there was more to it than that.

Approximately eight months ago, in the LinkedIn Franchise Executives group, I asked, What Excites You About Working Within Franchising? and received over 50 responses. Let’s take a look…

John Teza, President at Janus Brands, responded “Empowering an individual to change their lives. No matter the intended change, be it in terms of income, lifestyle, or equity building, for many individuals, opening a business is a life changing experience. Playing a small part in that transformation is very rewarding.”

Lyndsey Jardine Wolfsmith, Business Coach at The Entrepreneur Source, exclaimed “Love your question Paul! I think franchising is fascinating…there are so many facets from developing a successful franchise model to helping clients understand the sheer breadth of options. When you are surrounded by all that variety, how can you not be excited!”

Even The Franchise King, Joel Libava, chimed in “I really enjoy moving folks away from corporate employment, so that they can have their shot at the American Dream. (Only if it makes sense to do so on a whole bunch of levels) I also enjoy providing an independent perspective on the state of franchising in a very gentle way.”

Many of the responses spoke about the satisfaction of putting people in business, helping them achieve the American Dream. And, despite what franchise professionals went through at the low point of the economic downturn, some only needed to be reminded of the passion behind franchising to get moving back in the right direction as evident by the following response…

Kevin Joiner, former, President at Crye-Leike Franchises, stated “Wow! Reading all of these positive comments re-energize me dramatically. I agree with many of the comments. I am the FORMER president of a Real Estate franchising company that operated primarily in the Southeastern U.S. Unfortunately, I was required to layoff my complete staff effective March 1, 2010 (as a cost-cutting, cost-savings measure) and turn over franchise system oversight to the founder and owner of the parent company. Having grown the organization from virtually nothing, into a $500 million dollar sales enterprise with approximately 50+ franchisees in six years, it was hard to take. However, I am expecting to hopefully regain momentum and move forward with another organization soon.”

Many ask how I would answer my own question…

“I’m excited to work within franchising because I get many chances to help franchise organizations succeed at all levels. I know that’s a lofty proposition, but it’s true. It’s what I’ve dedicated myself to as I have recovered from a near-catastrophic experience ten or so years ago as a once-successful multi-unit franchisee that took his eye off the ball and subsequently failed. Certainly, it would be easy to reflect upon what that experience did to me. But there are other things to consider as such experiences can effect entire franchise organizations. There could be collateral damage, and at times, a ripple affect.

Of course, I do what I do to earn a living and provide for my family. But I could do that in a host of different industries or business environments. Instead, I chose to put the bad experience aside and focus on how I can help others within franchising. Not only to avoid the mistakes I’ve made, but to focus on best practices that lend towards franchise success at levels.

With extensive experience and success in franchise marketing and development, and in training franchisees and franchise staff alike, gained in the various positions I have held for franchisors, I have focused my attention on making a difference in franchise organizations in these key areas. Sure, many know me from my almost incessant social media activity, but I’m just embracing what I believe to be a tremendous technology and communications tool that when utilized effectively and coupled with best practices, will contribute to franchise success at all levels.”

In case you haven’t noticed, it is also the same response when I’m asked, What is it that I do?


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Social Media Basics – An Overview

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As a result of the many conversations about social media I had with franchise professionals at the recent IFA Convention, I posted on this site, Social Media – Before Diving In, Know How to Swim. It seems many within franchising, and most likely throughout small business, continue to put off entering the world of social media. On the surface, the old and by now, tired, excuse of “it’s a fad” appears to be just a smoke screen. The real, true reason is more in line with “I just don’t know how to get started” and/or “If I start, I want to do so correctly.”

Sure, many, including me, have said this before as people expressed fear of social media, “just jump in!” But, I feel it’s necessary to clarify. I do believe one should jump right in, but at least have some fundamentals in place to ensure your experience is both enjoyable and successful. I clarified the same with the franchise professionals I met in Vegas and expanded upon it with Social Media – Before Diving In, Know How to Swim.

As is often the case, one post spurs additional questions and requests, which led to my 4-part series on Social Media Basics. Several years into the social media movement and what appears to be very fundamental, is actually monumental to individuals and organizations still sitting on the sidelines wondering how to get into the game. Hopefully, the 4-part series will help them take that first step on the field.

The series started with Who, What, When, Where, Why & How of Social Media Within a Franchise Organization. Basically, it was an outline of some very basic instruction as it related to each of the 5 “W” questions, and of course, the “How” question.

Next, we needed to introduce the most widely utilized social media, Facebook, Twitter and LinkedIn, along with basic instruction points for each. This segment, Starting Your Social Media Program with the “Big Three” accomplished this objective.

The third segment, An Hour a Day With the Big Three Social Networks continued to build the program as it addressed the time issue of social media. Many newcomers have heard that social media can be a major time commitment. As such, they have been reluctant in starting their social media experience because they don’t have hours per day to commit.

Obviously, it’s important to gauge efforts against results, and to throw in a measure of expectations as well. The last segment of the series focused on social media analytics from a very basic perspective. Social Media Metrics: Not Yet a Science! touched upon the key issues of social media metrics including attention, participation, authority, influence and sentiment. It also touched on some of the obvious goals franchise executives would like to achieve in their social media efforts along with the not-so-obvious benefits that can be achieved as well.

So, there you have it – a 4-part series on Social Media Basics, precluded by an overview of what to do before getting started, that combined, will provide a basic foundation for social media success. Keep in mind, this is the equivalent of driver’s education. But it is the first step to enjoying your life behind the wheel… in social media.

Happy Networking!


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Social Media – Before Diving In, Know How to Swim!

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Very few of us like to admit failure. Especially when it comes to something that appears to be so easily done by others. But just because it appears easy, is that reason enough to dive right in? Certainly not!

I remember being six years old and spending a typical day at Coney Island. On this particular day my family left the beach and ventured into the Steeplechase Pool. I recall staring at the line of kids of all ages as they anxiously awaited their turn on the diving board. I watched as they bounced up and down on the board and finally made their exit from the board and subsequent entry into the water below. Quickly rising to the surface I marveled at how effortlessly they made their way to the ladder on the side of the pool, scampered out of the water and darted right back in line to do it all over again… and again.

It seemed so easy, and definitely so much fun. I gave it some quick thought and decided to join the action and dive right in. And, dive right in I did! Things didn’t go so well from that point as I vividly recall paddling like crazy, just trying to stay afloat. I remember what seemed like thousands of bubbles rising up all around me as I could barely see sunlight beyond the water line. For what seemed like an eternity, I tried to get to the surface and take a breath. Certainly, someone will notice me drowning, right? Or, will they only notice when I hit the bottom of the pool? Well, the next thing I remember was opening my eyes and seeing a bunch of people hovering over me discussing whether I was dead or alive. Others wanted to know if it was okay to begin diving again! Some just laughed.

Have you experienced something similar with your social media efforts? Thinking about how easy it appeared, did you just dive right in? After all, you’ve seen your teenage kids pounding away on their laptops or smartphones posting on MySpace and Facebook, claiming all the while that they have hundreds or thousands of friends. As you pondered this new world of social media, you heard words that sound like cartoon characters… How else can you explain your first impression of Twitter, Gowalla, Foursquare, Digg, Technorati, Tumblr or StumbleUpon? And, cartoons are simple, right? So, you rationalized that social media was simple, everyone was doing it, and if kids can do it, so can I. Watch out below as you dive in head first. Worse yet, watch out below as you lead your organization to the end of the diving board!

Alright already. Enough of the sensationalistic attempt at journalism. But, I know you get the picture.

So, what do you do if your social media efforts are missing the mark? Instead of giving up and quitting… regroup and prepare. That’s right. Regroup and prepare!

Preparing for Social Media Success

Define why you’re involved in social media in the first place. What are your objectives for doing so? What do you hope (expect) to achieve by your efforts? This is the exploratory stage.

Next, identify who you’re trying to target with your messages or who you would like to share information with. Of course, it would help a great deal if you knew where those targets communicated and congregated online. After all, you’re not interested in talking to yourself, right? This is the identifying stage.

Developing a plan on how to spread your message or share information is the next fundamental step. The plan should include how much time (resources) you’re able to dedicate to your social media efforts. Messages and information? What should I say? Where do I find information others will be interested in? Obviously, your plan should include these as well. This is all part of the development stage.

Taking action is next on the agenda as you execute your plan of action. Post, tweet, link, connect to your heart’s content… provided it’s in line with your plan that you painstakingly developed. This is where you’ll save precious time and not put yourself in a position to consider social media a major time suck. Stay focused on the task at hand. Tweak and revise along the way, always keeping your objectives in mind. This is the execution stage.

Last on the list is to establish benchmarks based upon your objectives, expectations and desired results. This is your scorecard and one that should be on the forefront of your mind every day. It is there for you to analyze your efforts and results. Basically, it’s your social media P&L. Did you achieve what you set out do? Why, or why not? This is the analysis and quantification stage.

There you have it. A relatively simple social media plan for success that I fondly refer to as Social Media e-IDEA which is an acronym for Explore, Identify, Develop, Execute, and Analyze. Try it. I believe you’ll like it and will find that it will keep your head above water in your social media efforts.

By the way, the most painful part of my near-drowning experience wasn’t from the water in my lungs, or from the hard pounding on my chest and back, or even from the embarrassment and humiliation I felt in front of my friends and family. No, it was the pain of my aunt pulling on my ear, while scolding me for doing something that I was not prepared to do!


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Discounted Franchise Fees and Concessions: Are they really necessary?

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I’m confused. Many signs are pointing towards the economy rebounding, albeit slower than we would like. The franchise finance situation appears to be improving, although also at a slower pace than we prefer. And, the spirit among franchisors appears to be positive and optimistic. Certainly, more so than this time last year. Yet, we continue to read about some franchisors offering discounts and concessions as an enticement, a lure if you will, to attract new franchise candidates. Does this practice really make sense?

Last year there was a discussion within the LinkedIn franchise groups that addressed the issue of discounts and concessions. The original discussion posed the question, “What kind of discounts or concessions are required now to get a franchisee candidate to move forward?” and generated many responses and different views. The following was my response when my view about getting back to basics was perceived to be fine during “normal times” but was challenged as a solution in more difficult times. Sure, last year should be considered a difficult time. But is that really still the case? In that same thread, there was also a subsequent response from another franchise professional that implied there are too many franchisors. I did address that as well last year, but now have begun to ask that same question.

“Although it’s certainly easier to accomplish franchise growth during “normal” times, the basics need to be in place even more so during tough times. That’s not to say we don’t need to think and act outside-the-box to make something happen. It just means we need to be extra prudent and diligent in our actions and not use the economy as an excuse for poor execution of skills.

If franchisors are to offer discounts and concessions in awarding franchises they need to be extremely careful they don’t oversell or create the perception of desperation. By doing so, they’ll either lose the deal or create a situation whereby the franchisee will not have respect for the franchise system and feel if one or two concessions were made initially, why not more moving forward? And then, there’s the perspective of franchisees already in the system that paid full amounts without concessions. What’s in it for them?

Nevertheless, with reports like Franchise Update’s about poor franchise sales performance and practices, I can’t help believe franchise systems wouldn’t be in better shape if their sales basics were perfected. It has to start with the basics before changing direction or considering revisions to the program.

In any business, just like in any sport, when a slump is imminent, it’s the fundamentals that need to be worked on before anything else should be considered or entertained. Once that’s done, then it makes good business sense to consider other options. At the very least, it should be done simultaneously. If not, what’s going to be the excuse when concessions and discounts don’t work?”

I guess my questions now are, “What have franchisors learned from the economic downturn, and what has been done to improve, not only their franchise sales process, but the weak spots within their systems, to offer a greater chance of success to current and future franchisees alike?” Or, is it just perceived to be easier to offer discounts and concessions?

In addressing the statement about there being too many franchisors, I replied, “Saying there are too many franchisors is akin to saying there are too many businesses of the same kind. What happened to free enterprise and entrepreneurship? Maybe, franchising could be better served by more regulation, licensing and policing, to weed out the weaker (for whatever reason) franchisors and make it more difficult to become a franchisor. Unfortunately, I don’t see that happening because the “big boys” of franchising will squash those efforts in a New York minute. I look forward to debating this topic in a different discussion or forum.”

Have my thoughts on this changed in the past year? Yes, they have. But, more from the perspective of regulation, licensing and policing being absolute last resorts. Instead, my focus is now on dedicating more efforts to education, and specifically, quality of education. To paraphrase Ken Walker during one of his many excellent addresses at the IFA Convention, “We need to continue to prove that franchising can effectively govern itself.”

In my opinion, franchising can accomplish this, but does need to do more in educating franchisors, especially new, and often impressionable, franchisors. And, there’s the key – impressionable! Yes, there are many educational opportunities available for franchisors… more than ever before. But, it doesn’t necessarily mean that more is better as quality over quantity is more effective in the long run. Now, THAT, is something I look forward to debating!


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