20. August 2011 by Bob Griffin.

I was working with a small business owner recently.  He grossed about $2 million a year and does a good job at keeping things moving.  He has been in business for himself most of his career and understands his industry well.  He is likeable, pays well, and is respected for the job he does and the services he provides his customers.

He is also losing everything he has worked so hard to build.

In business we want to create profit as well as provide a good service.  We also know that if it can happen to a good businessman like my friend, it can happen to anyone.  And it is happening very fast to many owners.  The $2 million question is “WHY?”.

When we were growing up, as many of you learned, the world of business was based on what you know.  Being a person of knowledge was the thing that kept the business growing. Reputation was earned over time and through many different ways - internship, college, on the job, etc. If you increased your knowledge then you increase your worth to a company.  The mantra was, “Want to move up the ladder of success?  Get more education.”  It was difficult and you had a system to prove yourself through grades and performance.

*(Thank you Chris for great information. You are a true Business Bulldog!)

Posted in Creating the Culture | Print | 511 Comments »

16. June 2011 by Bob Griffin.

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Simple questions always stump busy people.  When you see the same thing every day, you get stuck seeing it the same way.  Redirecting the focus moves you off course and into a new way of thinking.  It can also be the best way to make a better business.  From time to time, I ask small business operators questions that a normal customer wouldn’t ask such as, “What floor cleaner do you use? or Have you thought about renting more space?”  I get “knee-jerk” answers and then sometimes the floor is cleaner when I come back.  Sometimes the owner is inclined to run some numbers and move their location.  Simple questions are powerful.

So, when a customer asks, “When do you close?” and you have a chance to make a customer loyal to your store, do you?  Better yet, ask one of your employees when the store closes.  You will be even more startled.  You are not going to get the answer you want.  More often than not, you get the time that has been carefully posted on the door.  That is, of course, the wrong answer.

Customers want to give you money and routinely we forget to train our staff to help customers as they come through the door…every customer any time we are open.

Are you closed the hour before the time posted?  So, why are you closed the ten minutes before that same time?

Pretend I can hear you through my blog.  The excuses I just listened to are the reason you have not added customers.  Not just customers, but loyal customers. What I hear you are saying is, “payroll costs, there aren’t any customers that late, blah, blah, blah”.  You made a decision (probably when you had to close the store once) that cleaning and resetting the store can happen before the closing time.  That is the right thing to do.  It is also the right thing to do the hour after you open and all day long.  Your business should look great for every customer, not just the first ones through the door.

Are you so busy being cost conscious that you forgot to make it all about the customer?  I hear it all the time and cringe often.  I fully expect you to save money where you can.  I also expect you find ways to increase the number of paying customers you have.  If there is a conflict between the two, go with the customer.

Ask the questions that will help grow your business, be ready for everyone to push back at you, and start growing your business again.  The clock is ticking and you customers to help.

Bob Griffin

CEO@BusinessBulldog.com

Posted in Customer Service, Being the Boss, Making Money | Print | 610 Comments »

21. May 2011 by Bob Griffin.

Every workday I am struck by the number of people who fight against the system (franchise) they bought.  It’s like balling up all the money you worked so hard to earn and rolling it down the street.  If you did roll it down the street, you’d at least be able to know you weren’t on the hook for thousands more because of all the contracts you sign when you buy a franchise.  On second thought, forget rolling your money down the street.  Tie it to fireworks and blow it up.  It’s more spectacular and your crummy neighbors won’t be bothering you for more money.

The ability to lose common sense when it comes to making money is amazingly fast.  From the time you sign the Franchise Agreement to the time when you want to change things breaks the sound barrier.  Why buy something you want to tear apart and not use correctly?  It’s like buying a car and then taking it apart to make a skateboard.  Just following the system that made you want to buy in the first place.

Here are is my top 10 myths of franchising that I have seen in my years as a consultant.  If the guy selling you a franchise mentions more than one of these, even in passing, he is probably an OK guy to buy from.  The best franchises try to discourage you a little from buying.

Top 10 Myths about Franchising

1. I can buy a franchise and let it make me money.
2. Hiring a manager will take care of most of the work.
3. I manage people in my day job.  I can handle a few hourly/contract workers.
4. I have a Masters/ PHD/ Doctorate in Accounting, Marketing, Management, etc. This will be easy.
5. I can teach the franchisor a thing or two with all my knowledge and skills.
6. I can buy a poorly run store and turn it around for a profit.
7. I can jump in and sell out fast.
8. I can buy a franchise for my wife, son, daughter, etc to give them a career.
9. No one can teach me anything I don’t already know about business.
10. I like the product so I will be the best marketing person for my franchise.

Do any of these myths sound familiar?  We all want to see the best in the things we do.  It is human nature.  It is also human nature not to want to fail, but we seem to set that fear aside in the “knuckle-headed view” that you can buy a franchise, open the doors, and make huge amounts of money without doing any heavy lifting.  You have to work at whatever business you buy.

Hard work, building on success, building a business for yourself first, and many more lessons are hard learned when you get in business the right way.  Why start out on the wrong path?

I ask the classes that I guest lecture what kind of businesses they want to buy.  Not one, so far, has said they want to buy into an existing franchise.  Some of them have mentioned wanting to start a franchise but none want to buy a business with a track record and a reputation.  Absolutely none of them have mentioned the work that goes into being a business owner. 

Ask anyone how much money they think they will earn in the first year in business and they will gush with profit margins that would make Bill Gates blush.  The misunderstanding about the cost of doing business - more than money - is where most people fail to be honest in business.

Take my list my happy franchise friends!  Pass it around to anyone interested and especially those who are blind with new business bliss.  Don’t follow the myths. 

Bob Griffin - CEO
BGriffin@BusinessBulldog.com
Twitter: @BusinessBulldog

Posted in Customer Service, Being the Boss, Training, Saving Money, Making Money | Print | 412 Comments »

27. March 2011 by Bob Griffin.

The simple answer is always the best one.  Brevity is the key to good communication.  Momma says, “Because I said so!”.  All are good statements and it seems everyone has found this to be the case for the short-attention-span world we live in.  So, why do you spend hours and days trying to communicate directions to your employees when a simple statement is the best direction?

For example, I love talking with technical people.  They are the most needed group in any organization because we all have gadgets at the heart of any of our tasks.  When things go wrong is when the IT Department is really valuable.  What is the first question that IT asks when they are helping you?  Answer: “Is it plugged in?”  Why do they start there when so many other things can be wrong with a computer?  It’s because that is the number one answer to computer problems.  A cord gets knocked loose and all you need to do is plug it back in.

The rational side of me would have a message that plays before you can talk with the Tech Team.  It would say, “Check to see that your computer is plugged in.  If you do not check and that is the problem, you owe the technician $100.”  That, of course, would handle most of the issues, but it would put half the IT Department out of work.  With everyone handling their own power problems what would a techie do?  Of course losing IT employees is risky when you may need them when the real problems hit.

I was in a store this past week talking with the owner.  He said he wanted to sell more products.  The manager walked up to us at that moment and I simply told her to sell 5% more products.  She gave me a frown and then smiled and said “OK”.  Just like that she was telling her team to sell more.  No explaining.  No motivational statements.  No incentives.  I told her what I wanted and she went back to her team and made it happen.  She was plugged in to what the owner wanted.

I was in a fast food restaurant not long ago and they were an organizational mess.  When I  finally got a chance to order, the girl behind the counter was rude to me.  Instead of being rude back to her, I asked a simple question.  What did your manager tell you your job was in this restaurant?  She was full of wonderful sentiment, so I asked to talk with her manager.  I asked him what he told his staff was their main job.  He wasted no time in telling me that it was to help customers.  I don’t think that is the message he told his crew, but I left with my money and more to talk about here on Business Bulldog.  He apparently wasted his breath on some half-baked meeting where he kind of gave the idea that the customers were the reason they had a job.  I had the idea that the place should be shut down before they hurt someone.

Why do we get frustrated with not getting the results we want when the message is the problem?  I think you know that answer.  You want to make sure everyone sees things your way.  They should understand your reasons behind doing everything you do and follow along because your way is the best way.  What you miss is that they just aren’t plugged in.  When you tell an employee what you want they will either do it or not.  The outcome is where you need to spend your time, not in the directions.  If they don’t follow your orders find out why and then direct again.

Keep things simple in your business.  We are amazing at complicating anything.  Plug yourself in and make the simple, effective leadership your way of doing business.

Bob Griffin - CEO
BGriffin@BusinessBulldog.com

Posted in Customer Service, Creating the Culture, Being the Boss, Training, Making Money | Print | 112 Comments »

6. March 2011 by Bob Griffin.

The debate rages on!!  Are franchisees entrepreneurs?  How can they be entrepreneurs when they aren’t doing it all by themselves?  How can anyone think that entrepreneurship and franchising can be grouped together?  Silly thinking, eh?

After all, the cost of getting into business is very different.

A franchisee has buying power that an independent person doesn’t have.  The cost of a sink can be hundreds of dollars more for the guy on his own.  Franchises have the ability to tell a manufacturer or wholesaler that they can buy a number of them each year.  An independent owner buys one at a time and is lucky to get a deal.  OK, that doesn’t sound good for the guy on his own, but he has freedoms the franchisee doesn’t have.

An independent owner can try out new things at any time.

That means they can do as they please.  Sometimes that means winning big!  What about franchisees?  They have to follow a system and can’t be trendy and jump on things.  Of course, trends fail every day and the cost of trying something out can sink a business if it is rejected by customers.  The research and development costs are spread out in a franchise where they can roll things out slowly and work the kinks out before getting the whole brand to try something new.  The independent owner has one shot to get it right. Dang! I was so close to making it sound like it was better to be on your own.

How about pricing?

The guy on his own can set pricing anyway he wants.  He can undercut the competition or increase prices when he likes.  Franchisees many times have the ability to set their own prices.  If they are part of a national marketing plan, they can’t though.  Think about McDonald’s and Subway.  They have to follow the prices advertised or they get beat up by the customers.  Although I must say, the advertising buys behind the set prices will bring in more customers,  so that might be a plus for the franchisee too.  Speed at which an sole owner can change anything is much faster than a franchise.  I have to give one to the independent guy even though the marketing edge goes to the franchisee.  Split the point!

Everyone needs a mentor.

Mentoring is one of those items that is a cost because you have to have someone to talk things over with and to find the right person can make all the difference. In a franchise, everyone is thinking about how to make more money in the stores.  The cost is part of the royalties you pay to be part of the organization.  You can think of it as a membership fee.  For the guy on his own, finding a mentor to help can be costly and you are never really sure that person is working in your own best interest.  Also, there is usually only one or two people you can afford to pay for help.  There are services at non-profit groups like SCORE and even the SBA has help for you, but the majority of people with the right skills to help you grow are expensive.  (On a side note, I like SCORE an American small business mentoring service.  I am not affiliated with them, but they do a great job!)

Building a business from the ground up is a challenge.

Building out a space to use every square foot for turning a profit can drive anyone crazy.  Just finding the right space is a challenge.  Negotiating with landlords on retail space is requires special skills.  A good franchise has those people on staff.  Trying to get a good deal on your own is like trying to order dinner in a language you just learned.  Franchises rule on this one (the good ones at least).  There is also the blueprints for the contractor, finding the right contractor, and making sure the build-out actually matches the blueprints.  If you think you can do this, you either have a real estate license or you have a contractors license.  Don’t try this on your own.

OK, so the battle isn’t much of a battle.  Unless you have a concept that you don’t need much to get off the ground and retail space isn’t needed, you are better off working with a franchise.  Smart moves should be a bigger part of being an entrepreneur.  Franchisees are entrepreneurial.  If you put money, time, effort and sweat and tears in to start a business you are an entrepreneur.  The costs of working for yourself are big.  A franchise just limits the risk better.

Bob Griffin - CEO
BGriffin@BusinessBulldog.com

Posted in Creating the Culture | Print | 397 Comments »