10 Industries You Probably Never Think of as Franchises – Leslie Kuban

When you hear the word “franchise,” what image pops up? Most likely, it’s a fast-food chain; and, even more likely, it’s your favorite fast food. Is it time for lunch yet?

If you’ve dismissed franchise ownership because you don’t want to flip burgers or make sandwiches, you’re missing out on a vast world of opportunities.

Yes, the number of franchises in quick-service restaurants continues to grow, but these are by far not the only successful option. According to FRANdata, an independent research company for the franchising sector, there are more than 230 different industries represented in franchising; and, additionally, 200 new brands enter the market each year.

You may think most of these businesses are run by small independent owners or large corporations. Not true. Let’s take a closer look at 10 out-of-the-box categories crushing it in franchising.

1. Coworking Spaces

Responding to the increasing trends toward shared services, remote working, and short-term fractional work, more small businesses, and larger companies are opting for co-working environments over traditional brick and mortar leases. Can you say, “recurring revenue?”

2. Yoga and Dance

The boutique fitness industry is exploding and now yoga and fitness dance concepts are making their mark. Drivers include the demand for fun fitness activities in a community setting coupled with the high costs of healthcare.

3. IT Services

From cyber-security to strategic growth initiatives, managing your company’s IT services can be a huge headache. Outsourcing overseas often provides lackluster service. Businesses want trusted, local expertise they can count on for the long-term.

4. Drug Testing

It’s hard to imagine a private or public-sector employer without a substance abuse policy. The demand for reliable, fast, accessible testing options is intensifying.

5. Swim Lessons

When I was a kid, my parents taught me how to swim by tossing me in the neighborhood pool. Times have changed and parents are demanding more effective and healthier methods. Not just about learning to swim, the franchises in this category are addressing a safety need in underserved communities.

6. Nail Salons

Perhaps the best example of an industry once dominated by small, independent shops is nail care. The demand for more sophisticated, experienced-based nail care is driving growth. Franchising has nailed this industry with clinically clean, semi-absentee, multi-unit opportunities.

7. Retail Resale

We’re not talking consignment shops. Franchising is transforming the resale market by offering gently used specialty items at affordable prices. The sweet spot of this niche lies between expensive retail stores and low-quality, second-hand thrift.

8. Music Instruction/Enrichment

Music is more accessible than ever; yet, traditional schools are still reducing fine arts programs, thus, driving the demand for quality music instruction and enrichment. Gone are the days of the old-lady, piano teacher. Franchising has turned up the volume on music instruction, making it fun and cool to learn.

9. Tree Removal and Care

In my neck of the woods, trees are everywhere. Care and removal of trees is no longer a business for “Chuck in a Truck” (with a chainsaw) in this $17-billion industry. This is a classic example of franchising bringing professionalism and systematization to a fragmented, high-demand service…and reaping the rewards.

10. Digital Marketing Consulting

The majority of businesses in America are small businesses with a small marketing staff and even smaller marketing budgets. It’s no wonder B2B franchise models exist across the globe to assist businesses with their online marketing strategy and execution.

Because there is such an abundance of profitable franchise ownership opportunities that exist outside of fast food, me and 14 of my friends got together to dispel that myth in the Amazon bestselling book, More Than Just French Fries.

You too can grow a profitable business through the franchise model and it doesn’t have to cost a fortune or take up all your time. Semi-passive business ownership is accelerating as families look to side-gig options for a more secure future. I recommend that anyone exploring franchise ownership keep an open mind and consider a variety of different businesses in different industries, even the ones that surprise you.

If you’ve dismissed franchise ownership because you don’t want to flip burgers or make sandwiches, you’re missing out on a vast world of opportunities.

Leslie Kuban is a nationally recognized franchise industry expert, CFE (Certified Franchise Executive) and Market President of FranNet in Atlanta; a locally owned and operated franchise consulting firm. Leslie and her team have helped close to 500 individuals and families achieve their dreams of business ownership through a no-cost, extensive educational and coaching process.

Connect with Leslie online or call 770-579.3726 to start the conversation today.

Published by

Leslie Kuban

Leslie Kuban

Franchise Consultant | Franchise Owner | Best Selling Author | Speaker
Published • 1d 44 articles

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Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

Why Do They Continue Making The Same Mistakes?

Last week, one of my clients filed for Chapter 11 Reorganization.  Now, two of my clients are in Chapter 11, working to find a path back to solvency.  In April, I was engaged by a new client to help them find a way out of Chapter 11. In the case of the two former clients, I can honestly say that I wasn’t responsible for the circumstances leading to their demise.  In other words, I didn’t place any executives who caused these problems, and I haven’t been involved in consulting projects that resulted in adverse consequences.  To the contrary, I placed an executive to help one client navigate through Chapter 11.  Regarding the other client, I placed an executive to help them avoid business failure.   Regrettably, Senior Executives sometimes fail to heed sound advice.  In each of these situations, failure was predictable.  Management failed to adequately penetrate their home markets before moving into new territory.

 

I’ve witnessed the results of many crazy decisions during my career.   Some noteworthy situations include an ice cream brand selling franchises beyond their distribution capabilities.  Or a California-based brand that tried to move into the Southeast with a single location.   I’ve seen Southeastern brands sell franchises on the West Coast, thousands of miles beyond their management reach and distribution network.   A Northern barbecue chain leap-frogged into Georgia with a few restaurants placed across the state.  That decision was funny, in a sad way, as barbecue has a distinct regional appeal.  Another brand added drive-throughs to dogs with the hope of turning them into profitable restaurants.  Sadly, they created dogs with a drive-through.  From my perspective, the most egregious yet consistent mistake is the urge for start-ups to enter new markets before adequately penetrating their home base.  To be sure, many of those mistakes were made by rookies, entrepreneurs lacking experience or solid advice.  However, these mistakes continue to be made by experienced leaders who should know better.

The fundamental axiom for success as a traditional retail brand is market penetration.   Achieving optimal market penetration, also known as market share, conveys significant leverage to the brand.  Greater penetration yields more efficient deployment of supervisory personnel, purchasing and logistics, marketing expenditures, and employee recruiting and selection,  among others.  Developing an understanding of one’s customer profile becomes more accurate with more stores as well as an appreciation for drive time customers are willing to endure.  Additionally, the development learning curve leads to a more efficient use of capital.  And, greater penetration increases brand awareness on the street. This is retail 101. The leverage provided by following this strategy results in a healthy cash flow to be deployed in new markets when appropriate.

 

I can speak with authority on this subject as I spent most of my career working on retail expansion.  I began my career as a financial analyst assigned to the new store development group.  In this role, I performed analytical work on capital expenditures for new stores and other investments.  I learned how to evaluate the prospects for a new store, and the penetration required to optimize the return from a larger market, i.e. city, SMSA, or region.  I became a strategic analyst and planner shaping retail store development strategy for several national brands. Finally, I held general management positions where I was accountable for return on investment.  In fact, one of my first assignments as a senior executive was to identify and prioritize markets for focused development.   As a result, I am confident in my ability to build a retail brand, especially, food-service brands.  I appreciate the value of achieving significant market share before developing new markets.  Believe me, engaging in the development of a new market, before adequately developing a home market can be fatal to a business, especially so for a start-up.

 

So, if significant penetration of a home market is fundamental for success, why does management continue to violate this well-established rule?  Over the years, I have asked this question of countless CEOs, CFOs, and Chief Development Officers.  The only consistent response is “sometimes, management becomes so enamored of expansion that sound business practices are ignored.” Imagine, human emotions getting the better of Senior Executives.  Who knew?   The only solution is to hire accomplished retail development executives, among others, who won’t hesitate to tell the “Emperor that he has no clothes.”

Thank you for visiting our blog.

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Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber, Managing Partner

ITB PARTNERS

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

 

Exit and Succession Planning is a Team Sport

We have advisors and coaches in all facets of life. But in this most important area for our future, for our family and for our retirement, most business owners are pretty much just “winging it”. Oh, they may have an accountant but not much more of a team to focus on exit planning in all its complexities. An advisory team is critical for successful succession planning.

Business owners start their companies to create their future. But they often lose sight of the key to making that future happen – building value. They get caught up in the day-to-day and don’t get to implementing the sustainable, positive change that allows them to transition on their own terms.

Consider: “…78 percent of small-business-owner clients plan to sell their businesses to fund their retirement. The proceeds are needed to fund 60 percent to 100 percent of their retirement needs. Yet, less than 30 percent of clients actually have a written succession plan…”
http://www.cnbc.com/2015/04/13/ew-small-biz-have-an-exit-plan.html   [I would suggest that 30% is generous, and even if accurate, that those plans are not very effective, for growth or for exit planning.]

When I speak on exit planning/succession planning/transition planning, I outline a proven 7-step process. Forming your advisory team is one of those steps.

Build a Team of Advisors.

Nobody knows everything. Many of my clients are in creative industries, designing, creating, building. You don’t want me in that role. But I have worked with many organizations and have a different experience and skill set than my clients. I bring ideas and experience from many industries and many client engagements. The other critical exit planning team members bring their own expertise to the table. These should include:

  • Exit Planning Consultant / Coach
  • CPA
  • Financial Advisor
  • Business value expert
  • Business Attorney
  • Insurance Expert
  • Estate Planning Attorney
  • Banker
  • Business Transaction Expert

When I work with a client, we build this team. The players may already be in place. Or, we may bring in advisors where there is a gap. Either way, we need this core team working with the owner. A business is complex.   A marketing action impacts finance, HR, and more. Big decisions need to take into account the effect on the whole organization and should support clear goals focused on building value.

The client receives much better advice and guidance with this approach.

This does not mean that you are going to start hiring all of these people and employing them full-time as you work toward your transition…especially if you have a few years to go. But, you should use them strategically as you build your business/succession plan. For major decisions on growth, expenditures, hiring, exit-readiness, business value, deal structure…engage their expertise!

The Bottom Line

 Find advisors who understand what you are all about, your growth and exit planning objectives. More importantly, find advisors with whom you feel comfortable. Make sure that they can work together and collaborate on your behalf.

 

********************************************************************

David Shavzin, CMC
770-329-5224
david@GetOnTheValueTrack.com

The Value Track
Succession Planning / Exit Planning, Building Transferable Value for Sale

Thank you for visiting our blog.

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Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber, Managing Partner

ITB PARTNERS

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

Jim Weber To Present “The Three Pillars For Success” BENG Atlanta Chapter August Meeting

Join Us for the August Atlanta BENG Chapter Meeting featuring Jim Weber

Jim Weber – Managing Partner, ITB Partners

Jim Weber, Managing Partner ITB Partners, founder of New Century Dynamics Executive Search and the author of “Fighting Alligators: Job Search Strategy For The New Normal” will be joining our BENG Atlanta Chapter in August. Jim will be presenting:  “The Three Pillars For Success”

This discussion is meant to career-minded professionals who are gainfully employed, or between situations, and independent business owners looking to become more successful.

REGISTER

Date And Time

Tue, August 13, 2019

7:30 AM – 9:30 AM EDT

Add to Calendar

Location

Bella’s Gourmet Kitchen

350 Embassy Row Northeast

Sandy Springs, GA 30328

View Map

REGISTER

ABOUT BENG:

The Atlanta chapter of the Business Executives Networking Group (BENG) is a multidiscipline, independent group of job seekers, those currently employed and business networkers, who are willing to help others. Current membership includes mid to senior-level executives with over ten (10) years of business experience. Past attendees have come from the financial management, information technology, legal, manufacturing, engineering, transportation, logistics, distribution, and general management industries. We actively seek new members from all disciplines.

Monthly meetings are structured to help each member get the maximum benefit.

BENG Networking Meetings:

  • Are approximately two hours in length.
  • Are typically held monthly.
  • Range from 10 to 30 attendees, but the average is 20.
  • A skill-building presentation.
  • Allows each attendee 30 seconds to introduce themselves, talk about their background and expertise, and to present their Target Companies and networking needs.
  • Please bring business cards and your marketing plan if you have one.

Networking meetings provide members with an opportunity to sharpen their networking skills, meet peers from various disciplines and share business opportunities and job leads.

REGISTER

3 Reasons Why Your Firm Needs a Podcast – Profit from the Power of Podcasting

Written by Artie Ruderman, CEO, InnovativeGrowthSolutions

 

1 Age of Content: Be Heard & Establish Your Brand

Do You Have a Growing Problem?

Most businesses depend on new business from existing clients and need to acquire additional clients to thrive.  Aggressive marketing along with advances in technology and innovation has enabled competition to encroach upon your company’s product and service offerings making developing new business more challenging.

 

 

Value-Based Selling

Best practices for developing business has evolved; 82% of shoppers conduct online research before buying.1  Unlike the two traditional sales methodologies, ‘Selling’, where a salesperson tries to push prospects to make a purchase or ‘Marketing’ which tries to pull prospects to make a purchase, ‘Value-Based Selling’ attracts purchasers by imbuing the reasons your company’s products and services are valuable to them.

 

Podcasting Establishes Your Business has Value

A podcast with compelling content triggers three purchaser qualifiers: ‘Know – Like – Trust’.  A podcast that offers solutions to a prospect’s business issues or enhances their lives connects your company to its target market, increases brand recognition, develops a relationship and establishes your brand as an industry authority.

 

 

Interesting Facts

  • Podcasting started in the 1980s and was known then as ‘audio blogging’
  •  In 2004, the term ‘Podcasting’ started as a blend of iPod and broadcasting
  •  Sale of pro microphones will grow 50% by 2021 (Futuresource Consulting report: 11/22/17)

 

 

2 Podcasting Levels the Competitive Playing Field

Podcasting is Easy and Economical

Recording a podcast is less complicated and less expensive than producing a video.  You can simply talk into a smartphone and upload it to YouTube.  If you would like to have a professional production, consider recording at a podcast studio that can enhance the sound quality and provide studio services such as editing – voice-overs – jingles and more.

 

Be Heard & Increase SEO

In addition to posting your podcasts on your website, LinkedIn company profile, and social media, expand your connections by linking your podcasts on popular listening networks like Stitcher – iTunes – Spotify & Google Podcast.  To increase opportunities to be heard, ask a podcast studio if they can distribute your podcasts on syndicated channels like IHeartRadio.

 

A Primer for Producing Your Own Podcast

  • Craft Content of interest to your target market
  • Your Podcast is your firm’s Digital Voice – Imbue it with your company’s personality
  • It can be formal or folksy like Southwest Airlines

Tips for Professional Production:

  • Editing & individual microphone sound enhancement
  • Voice overs / intros – outros / jingles
  • Have a show host & guests who are clients, prospects, industry executives & authorities…
  • Distribute to networks to be heard by prospects outside your connections

 

3 Podcasting is the Media of Choice Today 

The Age of Content

Anywhere you are out and about, the chances are you will see people interacting with their smartphones.  Just as you are reading this article to leverage what you can learn about podcasting; they are also seeking content to learn or be entertained.

 You Can Listen to a Podcast

There are a plethora of marketing options on the internet: email blasts / blogging / videos / vlogging, however, they all demand your visual attention.  Podcasting’s popularity can be attributed to the fact that you can listen to a podcast anytime and anywhere; in a coffee shop or performing a multitude of pursuits; driving, running, walking the dog, mowing the lawn…

 

 

Statistics Worth Knowing*

  • 62 million people listen to podcasts weekly, a 17% increase in 2018 over 2017*
  • Facebook had 15 million fewer users in 2018 than in 2017
  • 45% of monthly podcast listeners have a household income of over $75K
  • 27% of US podcast listeners have a 4-year college degree vs 19% for US population

 

*2019 Podcast Stats & Facts posted by Podcast Insight with credit to Updated stats: Edison Research                  

                 Infinite Dial 2019 released March 6, 2019.  Q1 2018 report from Nielsen, March 20, 2018.

 

 

 

1: As reported in Forbes: New Research Shows Growing Impact of Online Research on In-Store Purchases, by John

Ellett, Feb 8, 2018 credits report from The ROBO Economy (Research Online Buy Offline).

 

A Podcast based on this article can be heard at ProBusinessChannel.com.

To learn more about podcasting or booking a studio visit: www.GlobalPodcastStudios.com.

 

Artie Ruderman is the CEO of  InnovativeGrowthSolutions, a fractional corporate & business development company and Business Director at Pro Business Channel, an internet broadcast network & parent company of Global Podcast Studios

 

 

Thank you for visiting our blog.

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber, Managing Partner

ITB PARTNERS

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

New Dad, New Town and New Franchise in Four Months

Contributed by Leslie Kuban, President of FranNet in Atlanta

Michelle and Ryan Kinsley are a dynamic young couple who always envisioned themselves as business owners. They were focused on finding a business that would be right for their newly growing family but overwhelmed with so many options. With Ryan’s background as a government analyst, he knew how to do the research, but decided he needed someone with the right franchising experience to help.

 

In just four months’ time, Ryan moved to a new city, bought a new house, welcomed his first child and invested in his family’s future through franchise ownership.  How DID he do it?

 

What drove you to make the leap from a seemingly secure career position to the entrepreneurial unknown?

 

Ryan: My wife, Michelle, and I had been married for about a year.  We were still living in a 1-bedroom apartment in downtown Atlanta when we found out that we were expecting a child.  We realized that we needed to make some life decisions quickly so that we would be ready when our child arrived.  At the time, I was extremely burned out in my position with the government.  I had been reading books for over a year on franchising and small business.  After talking with my wife, I decided to reach out to FranNet to explore franchise opportunities.

 

What were the most important factors in deciding on the business you ultimately chose?

 

Ryan: With a child on the way, Michelle and I knew we wanted to get out of the hustle and bustle of city life.  We both grew up in medium-small cities in Georgia, so we wanted to raise our child in a similar environment.  Finding a business that would work in one of our desired areas was a major factor.  I also wanted to find a business that would allow me to attend my child’s activities and life events. Finally, finding something with somewhat traditional work hours so that I was not always working when my wife and child were at home.

 

You and Michelle just welcomed your first child…how did you think about the timing of starting your family and the timing of going into business for yourself?

 

Ryan: We bought our first house, started a business, and had a child all within four months.  We joke that if our marriage survived that, we can make it through anything.  As I mentioned, the baby was a driving factor in getting this business started so I wanted to get everything up and running as far in advance of the baby coming as possible.

How are you managing so much change at once – a new business and a new family member?

 

Ryan: As the owner of Monster Tree Service of Athens, I tell everyone that all my time is now spent with either the big monster or my little monster.  I put a lot of time into running my business and raising my child, but I don’t do it alone.  I made sure to hire experienced, driven employees who are self-sufficient and can troubleshoot many of their own problems.  Because of this, I am able to focus on the most important issues in growing a company.  It goes without saying that I couldn’t do any of this without Michelle and the support of our friends and family.

 

What advice would you give to young families like yourself wanting to start their own business?

 

Ryan: Be sure to do your research! I can’t stress that enough. Read books, talk to business owners, contact a franchise consultant, and find the end of the internet before you commit to starting your own business.  The right franchise consultant will help you find the right fit for you and your situation. I reached out to Leslie Kuban at FranNet of Atlanta because she has many years of experience in the industry, knows my local market and is a franchisee herself. She took my wants and needs and generated a short list of opportunities that she felt would fit my goals. She never pressured me in any direction, and she was always available to help with any concerns I had.

 

“You will be scared,

but you will also know when you have found the right opportunity for you.” 

 

Do you think he was talking about franchising, new home ownership or the joys of his new family? Perhaps all of the above. Happy Father’s Day from FranNet!

 

If you’d like to explore whether business ownership is right for your family, give us a call today at 770-579-3726 or take our free Readiness Assessment at frannet.com.

__________________________________________________

 

Leslie Kuban

Leslie Kuban is a nationally recognized franchise industry expert, CFE (Certified Franchise Executive) and Market President of FranNet in Atlanta; a locally owned and operated franchise consulting firm.

Leslie and her team have helped close to 500 individuals and families achieve their dreams of business ownership through a no-cost, extensive educational and coaching process. Her personal experience as a franchise owner provides a unique perspective to help her clients assess their real opportunities, risks, and timing to make sound decisions.

Connect with Leslie online or call 770-579.3726 to start the conversation today.

 

 

Pan Asian-Pacific American Heritage Month

A week ago, Saturday, my wife and I attended an event hosted by the Pan Asian Pacific American Council of Georgia, celebrating Asia-Pacific American unity. We were invited by a client of Laotian descent who is very active in the Gwinnett County, Georgia community.  I enjoy experiencing different cultures, although it’s usually by sampling their food. However, I lived in Hawaii for three and one-half years, during junior high and high school, so I have some experience with the Asian community.  I knew this event would be fun.

 

Pan Asian Opening Ceremony-2 5-18-2019

The evening was a celebration of their successful blending into the American mosaic.  It began with a flag ceremony; the American flag leading the way, followed by women in traditional costumes, carrying the flags of their native lands. Everyone stood for the Pledge of Allegiance, followed by a solo rendition of the national anthem.

 

The atmosphere was a mixture of pride for their heritage and old fashion American patriotism. The event featured traditional music, songs, dance, and wardrobes.  The drummers were awesome!  Naturally, events like this are a magnet for politicians, so the agenda featured speeches by local representatives.  Thankfully, they were brief and unremarkable.  The last event of the evening, just before my wife and I had to leave, was the scholarship presentation to new high school graduates. It was symbolic of the community’s progress.

 

May is set aside to honor Asian Americans and Pacific Islanders. During this month, we celebrate their culture, traditions, and history.  May was chosen for this recognition as events significant to the Asian Community occurred this month.  The first Japanese immigrants to the United States arrived on May 7, 1843, and the completion of the transcontinental railroad was May 10, 1869.   Many of the workers who laid those tracks were Chinese immigrants. On October 5, 1978, President Carter signed legislation recognizing Asian American Heritage Week. In 1990, President George H. W. Bush signed a law to expand this recognition period to a month. At that time May was officially designated as Asia-Pacific American Heritage Month.

 

The following Tuesday, I was scheduled to meet my client at her office in Lawrenceville, the Gwinnett County Seat.  We planned to meet at 1:00 p.m. to review a draft report of the initial assessment phase of my work.  My client saw an opportunity to add a free lunch to our agenda. She invited me to join her for the Pan Asian Pacific Islands American Appreciation Day at the Gwinnett County Courthouse.  According to the U.S. Census Department, the July 1, 2018 estimate for the population of Gwinnett County was approximately 927,781 citizens. Americans of Asian and Pacific Island heritage count for 12.3% of the total population, making them a very significant constituent group.

 

We were surprised to learn, however, that what she thought would be a quick lunch and proclamation, turned into a 2 1/2-hour affair that included speeches from County Commissioners, a panel discussion, and then a recognition ceremony at the beginning of a meeting of the County Commission. It’s safe to say that whenever politicians get involved in an event, the time commitment will increase.  As I had set aside the entire afternoon for my client, I wasn’t fazed a bit.  In fact, I enjoyed it.

 

The event began with a welcome from a County Commissioner, as we enjoyed our lunch, followed by a few words from an Asian American Commissioner.  A Panel Discussion was the next item on the agenda.  The Panel included a Muslim American, two Vietnamese Americans of different generations, a Chinese American, and an Indian American. All are first-or-second-generation Americans, many coming to the United States as a result of the Vietnam War. The gist of the discussion was about aligning around common interests and challenges to move the community forward. I found some very interesting parallels to those of a business start-up trying to establish itself in the marketplace. They spoke to the same points I had made in an earlier post on networking; the key to success is to interact, participate, and to engage.

 

I was impressed by the pride these Asian-Americans have for their heritage and appreciation for their American Citizenship.  Clearly, their assimilation hasn’t been easy, but they are thriving and optimistic.  My takeaway is that one’s success in life requires a commitment to a goal.  To achieve that goal, one must interact, participate, and engage.  This recipe holds for building a business, assimilation into the community, and for gaining political power.

Thank you for visiting our blog.

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber, Managing Partner

ITB PARTNERS

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

Jim Weber Completes 1st Phase of Turnaround Engagement

Jim Weber has completed the first phase of a Turnaround Management Engagement for a client in Chapter 11 Reorganization.

His work revealed a clear path for a successful exit from Chapter 11 and a strategy to generate sustainable growth for the client.  The next phase will include a detailed plan and the introduction of performance metrics.

For more information about ITB Partners and what we can do for you, contact Jim Weber at;  Jim.Weber@itbpartners.com

Communicate Like a Fortune 500 – 6 Lessons For Start-Ups

By Sebastian van der Vegt, Untold Communications

Thanks to a booming economy, the start-up scene is thriving.  Co-working places everywhere are full of entrepreneurs with innovative new ideas, taking advantage of a digital economy that is providing unparalleled opportunities, the likes of which the world has never seen before.

Yet, statistics remind us of a sobering number.  Among start-ups that manage to attract outside funding, around 70% never make a profit.  Over half of all companies don’t even make it past their 5th year.

So how do you beat these miserable odds?

The answer is that it’s not simple.  You need thick skin, a strong mind, a lot of determination and not just a little bit of luck.  But you can greatly increase your odds by creating an awesome communications strategy and narrative.

By strategy, I simply mean the purposeful use of communication to fulfill your mission – the right message/content, to the right target audience, at the right time using the correct medium/messenger.     Done right, it will inform investment decisions, win over potential clients and investors, and position a company for long-term growth.

Sounds like a no-brainer, but it’s not.  Most start-ups have a business plan, a financial plan and even a basic marketing plan to establish an online presence. Very few have a sound communications strategy mapped out.  In fact, among the start-ups that I’ve come across, I’ve yet to find one that had thought about this.

Some start-ups do decide they need good ‘PR’, usually after about six months to a year into their existence, but they often do it for the wrong reasons, or with little or no strategy.

Just last week, a prospective client asked me if I knew any journalists. “Of course, I do” I answered, “I know plenty,” but explained to him that it’s really the wrong question – see point 5 below.

Initially, most small companies also rely on communications and marketing themselves.  After all, they can write, sell and know their product better than anyone.  Thanks to a wide variety of new digital tools, everyone also has access to inexpensive solutions that help you build a website, post blogs, send mass emails, or do basic marketing.

Being an entrepreneur naturally means they should take advantage of these new tools. But there is a reason that large, successful companies spend millions on communications and marketing, and smaller companies would do well to adopt some of these same lessons.

So here are 6 of my favorite lessons that I learned while working at a fortune 500 company, that could benefit any start-up:

  1. Starting with why is not enough

Most start-ups will have been advised to start with why (thanks to Simon Sinek).  It’s a good start, and better than only talking about what you do, but it’s not enough.

The why is only part of the ‘context’ – which should include why you exist, what problem you are solving for your customers, what gives you the authority, and, implicitly, ‘who’ you are targeting.

Tell the story of how and why you were founded.  If you can, try to make an emotional connection in the delivery, it will make for an audience that is a lot more engaged.   Extra bonus point for telling the story of how you are helping your customers achieve success.

  1. Explain what you do in a few words

Any idea worth its time should be told in a natural way, in plain English, in less than 15 seconds.  It’s more difficult than you think.  For most, this will mean forgetting all the technical language they are accustomed to.  It also means forgetting that 100 other companies make similar claims.

Too many start-ups try to differentiate themselves unnecessarily through complex wording or technical capabilities to prove that they are special.  My advice: differentiate yourself through the way you fulfill a need and address a problem for a segment of the market, in a way that a prospective customer would easily understand.

  1. Include strategic communications in your business plan

A great business plan will benefit enormously from a great communications strategy.

That means that if you need to find software engineers to power your start-up, you need a strategy to boost your brand with the local university.  Go give a lecture, a seminar, or sponsor a hack-a-thon.

It means that if you’re trying to get teachers to use your product in the classroom, you need the right language, the right content and the right medium to reach them.   Partner with a teaching website or school district to give your company message.

It means that if you’re taking on a dominant competitor, be provocative – you don’t use ‘safe’ language that a multinational would use.  Stand out by differentiation, and by not being afraid to ruffle some feathers.

I could go on, but you get the point.

  1. Fit the message to your audience.

While a company ‘boilerplate’ with standard messaging is a great tool to have, you’ll need to adjust your messaging depending on the audience.  One size does not fit all.

Building on point 3, identify your top 5 stakeholder groups that are critical to your growth and write down the key message points and language you would use to communicate and win over each audience.  Once you’ve done that, you can identify the channels/materials in which you can best reach these groups.

This again sounds like a no-brainer, but the discipline of this exercise will help everyone stay on message.

  1. Own your space.

Many start-ups will look for a silver PR bullet.  A write-up in a newspaper, a listing on a top 100 of hot start-ups, a mention on TV.  Great – this may work for you if your story is there and you have something new or interesting.

For most start-ups, their story is not (yet) of interest to receive what we call ‘earned’ media, and they are much better off building their brand in the ‘owned’ space.  This means writing blogs in a medium that you own; it means building a kick-ass website and content across different social channels; it means writing a regular newsletter and industry content for trade magazines.

Often overlooked is physical space – most companies own assets.   You can also consider ‘shared’ media; using your content in partner owned channels can be a win-win.

Point is, start-ups have many options other than selling their story to journalists or buying advertising.

  1. Be authentic & address your purpose

Audiences smell bull-sX#! from a mile away.   In a world where we are bombarded with information and polished content, presenting the real, authentic you is a competitive advantage.  Make sure you tell your story in a way that is compelling, with proof points that are real and relatable.  Also, remember to include a vision that is purposeful and that has meaning.

The company vision is where communications strategy and company strategy really meet.  Why does your company exist? What’s the ultimate goal?

The most obvious and easy answer is, of course, to sell more products & services, but try to dig one level deeper to think in terms of benefits to society. It will not only help focus your company, but it will help motivate your employees, attract investors and ultimately help improve your sales.

 

After spending years working with some of the biggest brands in the world, I love helping smaller companies achieve their goals and vision. It’s one of most rewarding aspects of my new role after leaving the corporate world behind.

That’s not to say they don’t have their own set of challenges; many don’t have revenue yet, lack good time management, have strong opinions, operate on limited budgets, and present solutions in search of a problem.

Yet, despite all of this they’re still my favorite clients (with apologies to my corporate clients).  Quite simply, having a great communications strategy for start-ups can make the difference between failure or success – it’s that critical.

On my next blog, I’ll focus on the basic difference between good and great marketing.  Until then, I look forward to your feedback.

Sebastian Van Der Vegt is the Managing Director of Untold Communications in Atlanta A native of the Netherlands, van der Vegt has lived in Canada, Brazil, Switzerland, and Turkey before settling down in the U.S. He has a degree in Psychology and has taught strategic communications at leading business schools. For more information, please contact him at Sebastian@untoldstrategies.com.

Thank you for visiting our blog.

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber, Managing Partner

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Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal

 

 

 

 

For the Sake of Learning

Josh Sweeney Presentation on Culture First Hiring

Recently, a number of info-graphics comparing the habits of successful people to those that aren’t, landed on my Pinterest feed.  A few of their points spoke to reading as opposed to watching television and a zest for continual learning as significant differentiating factors.  Although I couldn’t disagree, I didn’t pay it much attention until a recent conversation with my friend, Faith.  She was excited to tell me that she had just received a tuition reimbursement check from her employer.  As she is working to complete a college degree, she is making good use of her company’s education assistance program.

 

She continued, saying that she valued that benefit and planned to take full advantage of the program.  I agreed with her thinking and complimented her employer for offering the benefit.  However, I lamented that too many employers have scaled back on their training programs and lack cultures that reinforce the benefits of life-long learning.  Naturally, we agreed that it was a topic I needed to explore further.

 

A few days later, Dennis, an alumni buddy, and I were enjoying our cigars and adult beverages, talking about cars. He told me how another friend, John, got him interested in doing his own car repairs.  John showed Dennis how to research the issue, find the right parts, and make the repairs.  Over time, he gained confidence as he accumulated experience.  He has resolved many maintenance issues, like replacing brake pads and rotors, saving a lot of money.  This is a skill set he developed with a little encouragement from a friend.  I know that he takes pride in this ability which gives him great satisfaction.

 

On the other hand, I am reminded of a colleague who had no interest in learning how to use a Personal Computer.  It was a time when PCs were moving rapidly into the workplace but before the introduction of laptops.  He told me, “why should I know how to use a PC, that’s why I have an assistant.”  The irony is that the PC replaced the administrative assistant, except for the more senior level staff. I often wonder how long it took him to catch up to his peers?

 

Much has been learned about the brain that supports the value of lifelong learning.  A healthy body and sound mind is the key to a long and happy life.  The brain is like a muscle, either use it or lose it!   Learning is like any other skill that requires practice.  With practice one masters the subject. Lifelong learning or continual learning is an attitude, a mindset.  If one believes in the importance of learning new information, or skills they will make the effort to pursue that course.  If not, stagnation may develop, putting one’s career in jeopardy.  As a commercial enterprise is a collection of people, an organization, it follows that it would benefit from continual learning.  Building a learning culture is a viable strategy to keep employees interested and engaged, supporting innovation and productivity improvements.  A learning culture creates competitive advantage.

 

I am a big fan of YouTube.  The variety of their videos seems to be endless.  Among others, I have viewed programs to improve my efficiency with Office 365, manage my websites, develop landing pages to build my contact database, and facilitate greater exposure for my brand.  My time on YouTube has increased my productivity in so many areas that I’ve become an addict. The point is, YouTube is a free service.  It’s a platform for brands to build customer loyalty by training to maximize the utility of their products.  Tuning into YouTube seems to be a ‘no-brainer,’ for individual learners, and for employers.

 

It is all too easy for professionals to get into a rut, going on autopilot as it were, as the vicissitudes of daily life take president.  Companies are no different.  They develop successful business models and continue executing that formula, sometimes without noticing the changes happening around them.  Brands that maintain long term relevance, do so by listening to their customers.  They Learn.  The best brands know that their employees are their customers too.

 

Creating a learning culture really isn’t difficult.  One small change can spark a virtuous cycle of change.  Providing education benefits to employees is a good step toward creating a continuous learning culture.   At the end of the day, however, it’s the responsibility of leadership to build a culture for success.

Thank you for visiting our blog.

I hope you enjoyed our point of view and would like to receive regular posts directly to your email inbox.  Toward this end, put your contact information on my mailing list.

Your feedback helps me continue to publish articles that you want to read.  Your input is very important to me so; please leave a comment.

Jim Weber, Managing Partner

ITB PARTNERS

Jim.Weber@itbpartners.com

Author of: Fighting Alligators, Job Search Strategy For The New Normal