Business Bulldog

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Is it Plugged In??

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


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Entrepreneur’s Aren’t Franchisees

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


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