Franchise Essentials

3 Secrets of Millionaire Franchisees

You may be a future empire builder, or you may want to own a select number of franchise locations with healthy financial returns. There are many paths to becoming a millionaire, and many franchise concepts that may get you there. But the bottom line is that becoming a millionaire is not just about the franchise concept – it’s also about the mindset of the franchisee. Here’s how to start on the road to success with these three secrets of millionaire franchisees:

1. Have a financial vision.

Becoming a millionaire franchisee doesn’t happen at random. One thing that millionaires have in common is that at some point, they consciously decided they wanted to make money.

The form your financial vision takes is up to you. You could set a specific income level that you’d like to attain, or you could create a vision board with the homes, vacations and experiences that you’re looking forward to.

2. Select a concept you believe in wholeheartedly.

Millionaire franchisees aren’t ambivalent about their franchise concept. They know they’re selling a top quality product, they believe in the franchisor’s leadership team, and they’re enthusiastic about the future of the brand.

Pay close attention to the product-leadership-future trifecta, and make sure you’re especially well-informed about each element. If you are looking for a franchise concept now, you need to feel solid on these three fronts.

3. Do something that plays to your true strengths.

This seems like a no-brainer, but here’s the catch: many people don’t have a true sense of what their strengths are. Take a personality assessment, talk honestly with your friends and colleagues, or explore your past successes with a life coach.

For those looking at franchise concepts now, talk frankly with the franchisor about the strengths that are common to their most successful franchisees.

What are the other traits of self-made success stories? Please feel free to post your ideas, questions and comments below, or email us at blog@kiddieacademy.com.

Happy Franchising! A positive outlook for 2013

2012 was a great year for franchising. We saw an overall improvement in business ownership for the first time since the recession. And we’ll continue to see that trend going into the New Year. According to IHS Global Insight, the number of franchise establishments in the United States is forecast to increase by 1.4 percent in 2013.

Let’s reminisce about the past year, take a look at what we’ve learned, and look at what we can expect for franchising in 2013.

Available funding.

Yes, lending improved. And banks loosened up their purse strings. But bank approvals can still be a lengthy process that can postpone how fast you get up and running. In 2013, entrepreneurs will seek alternate options for funding including: retirement funds, business partners and home equity. Visit SBA.gov for the most up-to-date information on small business loans.

Growth of recession-proof franchises.

Recession-proof concepts were big in 2012. Entrepreneurs invested money into industries that, no matter how hard times get, consumers will continue to buy, buy, buy. This trend will continue to increase in 2013. (Psst, childcare is one of these industries).

Exploring new revenue streams.

Multi-unit franchising is one option, but we’ve already started to see franchisees get creative, finding new ways to generate profit, while leveraging their franchise location. Take the Kiddie Academy franchisees in League City, who built an after-school building right next to their academy for children who were outgrowing the Kiddie Academy programs.

With the New Year comes a fresh start. If you missed out on franchising in 2012, you can rest easy. Entrepreneurs are getting an early Christmas gift with a positive outlook for 2013. Happy Franchising!

Please feel free to post your ideas, questions, and comments below, or email us at blog@kiddieacademy.com.

Sources: Franchisewire.com, Smallbiztrends.com, franchising.com

4 Ways you’re Hurting your Shot at becoming a Franchise Owner

Mistakes that hurt your credit score:

Lending has made its (almost full) return. Loans are becoming more available, and all in time for you to start your own franchise business. Hold on, there’s more. Before the bank gives you a stamp of approval for a small business loan, they’re going to be examining your credit score, and it better reflect some smart decisions on your part. Avoid these 4 simple credit mistakes:

Franchise Essentials Tips

1. Thinking your credit card limit is your actual limit.

The bank won’t tell you this, but it’s better for your credit score if your credit card balance stays between 20-25% of your max limit. A high percentage could disqualify you for certain small business funding. It’s called “credit utilization”. Look it up.

2. “Forgetting” to pay bills.

Not only are late fees just plain frustrating, but also failure to pay bills on time will damage your credit score. While being late a few days won’t have a serious implication, missing an entire billing cycle will.

3. Applying for every credit card you qualify for.

Maybe you feel honored that every credit company is vying for your affection, but this is going to hurt your credit score in the long run. Around 10% of your credit score depends on the number of credit cards you’ve applied for recently. It’s ok to say no.

4. Closing inactive accounts.

That being said, the opposite is also true, closing existing accounts can be even worse. Let’s say you have a great credit history with one of your accounts, closing it wipes out your squeaky-clean credit history as if it never happened. Unless your bank is charging you annual fees, stash the cards away and keep them active.

Remember that cleaning up your credit score takes time; it also doesn’t guarantee that you’ll get approved for a business loan. Get started fixing any discrepancies or errors now. That way, you’ll be ready to get started franchising in the New Year!

Please feel free to post your ideas, questions and comments below, or email us at blog@kiddieacademy.com.

3 Reasons to Be an Active Franchise Association Member

Organizations such as the International Franchise Association (IFA) help protect and support franchise owners and their businesses. Whether you’re just starting out or already own multiple locations, staying an active member of franchise associations is valuable. Here’s how they benefit business owners:

1. Helping you get started: The IFA will help you ask all the right questions and assess your options when picking a franchise. Even if you already know what business you’re interested in, they will help you make sure you’re investing in a reliable franchisor that will provide comprehensive support.

2. Keeping you involved: Franchise associations hold national conferences and conventions to help members stay on top of the changes that affect business owners. World-class speakers give insight and advice from their experiences to educate franchisees. From market strategies to leadership to technology, the topics are varied and important.

3. Supporting you nationally: The IFA has power over government policy making. From taxes to health care policies, the International Franchise Association advocates for the best interests of franchise business owners.

Franchising associations provide help and support, but the effort is mutual. Becoming an active member of these organizations is one of the best ways to stay informed about the news in franchising. They work hard to help you help yourself by providing every tool to help your franchise thrive in a competitive market.

Please feel free to post your ideas, questions and comments below, or email us at blog@kiddieacademy.com.

You Don’t Have to Hire Nerds, You Can Be One

From email to webcams to RFID chips, nearly every business operates using some means of technology. And for good reason: technology can make your franchise more efficient and more profitable. If you’re not a “techie,” adopting new technology may sound like more trouble than it’s worth. But don’t be left behind! Leading a technology-forward franchise will do more than just raise your profit margin. It will help your employees feel better supported, deliver better service to your clients, and let employees and clients alike know that your business has forward momentum.

3 Tips to Becoming the Chief Technology Officer of your Franchise:

Decide what kind of adopter you need to be: Are you an innovator, early adopter or a laggard? When it comes to business technology, odds are your industry will dictate it. If you’re an accountant, always having the newest software may make your job easier, but may not be as important to your business as having the latest security system if you’re a high-end jeweler.
Do a competitive technology evaluation annually: Whatever your primary technological supports are: point-of-sale system, security, customer facing technology, web-based technology, etc., it’s important to do an annual competitive review of what your franchise already has and what’s new to the industry. At some point the gap between the two will become large enough that you’ll see the need for a change, and keeping an eye on it means you won’t be left on the wrong side of a huge technology gap.
Consider a “Wow” piece: Remember when the iPhone first came out? Whoever had one would pull it out of their pocket and you could hear the awed silence coming from the surrounding crowd. People love impressive technology. Whether it’s a new big flat-screen, a show-stopping Smart Board or using an iPad in your classrooms, it’s useful to have something that distinguishes you from the competition.

Please feel free to post your ideas, questions and comments below, or email us at blog@kiddieacademy.com.

Thinking Outside the Shoebox: How Zappos, Trader Joe’s and Google Create a Stimulating Work Environment

There’s no greater feeling than waking up excited to come to work everyday. As a business owner, it’s important to foster that enthusiasm in your employees. Maintaining a great energy at your company will affect the mood of your staff and the satisfaction of your customers.

Some of people’s favorite businesses attribute success to company culture. Zappos, famous for exceptional customer service, thrives by encouraging an enthusiastic environment in the office. See how they’ve managed to think outside the shoebox:

http://www.youtube.com/watch?v=QJy1slz4evk&feature=player_embedded

The Message for Business Owners:

Pick Your Players

The interview is undoubtedly the most telling aspect of any hiring process. It’s better to choose someone who’s a good fit than someone with some extra experience or slightly superior skills. Read about how Trader Joe’s selective hiring process has contributed to their success. Choosing ambitious candidates with positive energy is key to building a successful team.

Strengthen Your Team

Get your staff motivated! A great way to do this is to create a positive environment. To start revamping your franchise’s workspace, provide perks such as healthy snacks or consistent employee recognition programs. Inspiring decorations and lighting are also important features for fostering a positive atmosphere. Check out how Google has designed entire buildings to promote creativity and enthusiasm.

How do you create an inspirational atmosphere at your franchise? Please feel free to post ideas, questions and comments below, or email us at blog@kiddieacademy.com.

3 Famous Quotes to Inspire Successful Leadership

“Leadership and learning are indispensable to each other” –John F. Kennedy

Great leaders learn to adjust their techniques to accommodate a variety of circumstances. For example: upon hiring a new employee, a skilled leader may need to adjust their style and system to the new dynamic of their team. Learning comes from each new experience, regardless of success or failure, and has no limits. Approaching situations with this attitude will encourage and inspire the rest of your team. To prepare for unexpected situations, tactics such as leadership training and reading about leadership are great ways to improve your franchise’s success.

“Think like a wise man, but communicate in the language of the people” – William Butler Yeats

Great leadership requires trust in your team. This will influence others to do a great job. Communication is key for this type of effective leadership. A great leader won’t babysit, but they need to make sure the job gets done. Steve Jobs, founder of Apple, used these tactics to effectively lead one of the most successful companies in America. Jobs spent most of his workdays meeting with leaders of various teams to track progress. Regular meetings are a great format for business owners to create opportunities for communication.

“The price of success is hard work, dedication to the job at hand, and the determination that whether we win or lose, we have applied the best of ourselves to the task at hand” –Vince Lombardi

Great leadership doesn’t stop at the end of the business day. Creating new programs or finding new products to keep moving your business forward are great ways to keep your team excited about the company. A great example is a team of Kiddie Academy franchise owners who created an after school program for kids with working parents. They also incorporated exercise programs into their curriculum. Surpassing your clients’ and your employees’ expectations is the trademark quality for the most successful business owners.

Please feel free to post your ideas, questions, and comments below, or email us at blog@kiddieacademy.com.

How Government Policies Affect Your Franchise

Election day is right around the corner, and its important that franchise owners have the tools to make informed decisions at the poles. Franchises support nearly 18 million jobs, so maintaining and improving on policies that benefit franchise stability and growth is crucial to our job market.

The International Franchise Association (IFA) advocates programs and guidelines that support franchise business owners. Awareness of these issues and policies can help you decide which presidential candidate will best accommodate to the needs of franchises and other small businesses.

Credit Access

To start a franchise or to expand your business, you’ll probably need financial assistance in the form of credit. A research study by Mach and Wolken demonstrates that small businesses with greater access to credit had a better success rate than those that did not. The IFA supports increasing the maximum amount allowed for business loans as well as increasing small business owner’s access to credit.

Health Care

Health care has been a hot political topic for the past decade. With the cost of health care rising faster than inflation rates, affordability of insurance is a pressing issue for employers. The IFA endorses policies that increase the availability and affordability of health care insurance for franchise owners.

Tax Reform

Tax cuts provide enormous relief for businesses. The IFA wants to ensure that tax reform favors both franchise owners and franchisors. In addition, tax credit is a great way for franchises to create even more jobs, and depreciation deductions encourage investment for business owners.

Learn more about the IFA and programs that will aid in the success of franchises. Cast your vote on November 6^th to contribute to the success of all franchises and the development of our economy.

Please feel free to post your ideas, questions, and comments below, or email us at blog@kiddieacademy.com.

Finding your Perfect Fit in Franchising

If you’re looking to start a franchise, how do you pick which one? Business ownership is a huge investment of time and money. Before you dive in head first, check out these tips on what to look for when you’re weighing your options to franchise:

Capability

Will you be able to successfully operate your business?

When franchising, make sure your company offers comprehensive training and ongoing support. A great franchise will offer support in business aspects such as marketing, growth and operations.

Does this business fit your schedule?

Say you’ve worked in business for years now and you’re searching for a lifestyle change. Choose a business that will fit well with your schedule.

Cost

Do you have the time and money to start your franchise?

It’s not a secret that starting a business can be rough if unprepared. Before you pick a franchise, research start up requirements, costs and timeline.

How long will it be before you start to make money?

It is important to find out your projected income after starting your business. Talk to other franchise owners within the company. First-hand experiences will be your most valuable resource when making a decision.

Competition

Is there a demand for this franchise’s product or service in your market?

It is important to assess your potential clientele. If a small town already has ten pizza joints competing for customers, it might be wise to consider a different venue.

What makes your franchise better?

Perhaps it’s the product. Maybe it’s the support network or a reputation for exceptional customer service. Whatever company you choose to franchise with, make sure that there is something special that sets the brand apart from local competitors.

If you are passionate, business oriented and capable of making the investment, business ownership can be very rewarding. Investing in a franchise ensures your business already has a great reputation for quality and consistency in product or services.

Please feel free to post your ideas, questions, and comments below, or email us at blog@kiddieacademy.com.

Cold fries: A fresh approach to customer service.

Cold fries, broken zippers, crying kids… Business ownership comes with some complaints no matter what the product or service. How a business deals with complaints will determine a client’s decision to stick with a company.

So, what is the best way to deal with a situation where an existing client is upset with your franchise?

Form an emotional bond. Empathy with the concerns of clients is critical. An emotional connection with the owner is important. In our business, a parent needs to be assured that their child is in a caring environment. Try integrating customers into the environment of the business. This will help develop a sense of trust and familiarity between a client and franchise.
Be proactive with the relationship. Make sure there’s open communication between the customers, the staff and the business owner. For example, ask your clients for feedback. Questions like “How was the service?” or “What do you think we can do to improve?” will give you ideas to improve your business and make each individual feel valued by the company. If you’d prefer to ask the questions but in a different format, consider using a survey to have your customers share their thoughts with you.
Search for your opportunity. A young man ordered a pair of shoes from Zappos. When the shoes didn’t show up on time the man called customer service. He spoke to a representative who rush ordered the shoes to his door and gave him a full refund for the inconvenience. When a customer knows that a company will go to great lengths to make amends for unsatisfied customers, the client gains an improved level of trust for the business.

Exceptional customer service is a great way to market your franchise through word of mouth advertising and build a rapport with your clients. There will always be a cold order of fries, a broken zipper, and an unhappy kid. Handling the situation with openness and understanding will do wonders for your franchise’s reputation within the community.

Please feel free to post your ideas, questions, and comments below, or email us at blog@kiddieacademy.com.

3 Secrets of Millionaire Franchisees

Happy Franchising! A positive outlook for 2013

4 Ways you’re Hurting your Shot at becoming a Franchise Owner

3 Reasons to Be an Active Franchise Association Member

You Don’t Have to Hire Nerds, You Can Be One

Thinking Outside the Shoebox: How Zappos, Trader Joe’s and Google Create a Stimulating Work Environment

3 Famous Quotes to Inspire Successful Leadership

How Government Policies Affect Your Franchise

Finding your Perfect Fit in Franchising

Cold fries: A fresh approach to customer service.

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