The Big Question: Franchise or Go it Alone?

August 20, 2010 – 4:11 pm

Once you decide to start your own business, the next question is: do you start from scratch, buy an existing operation or become part of a franchise system?

While there are advantages and disadvantages to all three scenarios, some interesting statistics back up the franchise option:
•    Total gross sales from all franchised businesses total over $1 trillion. That’s about half of all U.S. retail sales and services.
•    Franchises employ nearly 8 million workers in over 100 franchised industries.
•    2/3 of franchisees said they would not be as successful if they had started their business on their own.

Why has franchising been such an important part of business growth over the past fifty years?

For a number of reasons – the most important being the successful systems franchise operations have in place to get customers, deliver products and services and train employees.

Entrepreneur.com takes this idea a step further, and calls franchising “one of the greatest systematic transfers of know-how in the business world.”

The Value of Systems

“A good franchise program is designed to take people without experience in a specific business and teach them how to run a successful operation following a detailed formula,” Entrepreneur.com explains. “New franchisees are successful only if they can learn to follow the system.”

Of the number of successful business people who have chosen the franchise model for their businesses, 86% say “general business skills” are important or very important, followed by “access to capital” and an “entrepreneurial mindset.”

Increased Pace of Growth

One of the biggest benefits of choosing a franchise is instant access to a recognized brand – one with years of proven systems that would take years of trial and error for an individual owner to replicate.

In addition, franchisees benefit from regular training, operations manuals, and benchmarking through performance comparisons over time and against other firms within the system.

This leveraged use of collective knowledge and information means that franchisees almost always outpace independent business owners in terms of rate of growth and revenues.

Studies consistently show that franchisees grow quicker, reach market break out sooner and succeed more regularly than independent businesses in the same industry and category.

Tested and Proven Business Models

The biggest advantage franchises have over independent start ups are tested business models that have proven successful over time in the market place.

“The most important thing in a franchise model is that the owner is not alone,” ActionCOACH Master Licensee Kevin Alft said. “The franchise wants and needs its franchisees to succeed. That’s why there are so many levels of support in a franchise on the operational, marketing, sales and training levels. The business models and the systems are only as good as the people who are part of them and working them.

“That’s why a commitment to continually learn more about business, a good work ethic, and an ability to be ‘coached’ within a system are so important to a franchisees’ ultimate success.”

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Business Owners Look for Answers from Business Coaches as Economy Slows

August 4, 2010 – 12:34 pm

As bad economic news continues, owners of small and medium-sized businesses are turning to an alternative source of business development strategies to help them through the downturn.

Conventional informational tools are still popular. New books and workshops continue to offer business advice and strategies for anxious business owners, but more owners than ever are turning to business coaching as a way to help grow their companies.

“The U.S. and some major European economies have entered an economic ‘winter.’ However, just like the seasons, the economic cycle will soon be on the upswing, and the owners ActionCOACH is working with want to be prepared for the next economic ‘spring,’” ActionCOACH CEO Jodie Shaw said.

Because of its comparable cost to more specialized business consulting services, as well as a positive track record of success for clients worldwide, ActionCOACH is leading a new and innovative trend toward high impact, low-risk business development services.

“Business owners are looking for answers that will immediately impact their companies,” Shaw said. “Business coaching is attractive to them because coaching is a generalized approach that looks at the company as a whole, and focuses on profit, which is the most important part of any business.”

For many businesses, the benefits can be exponential in nature.

“For a consultant, an incremental increase on a big company’s bottom-line can mean millions of dollars,” Shaw said. “For a Business Coach and that coach’s client, an exponential profit increase can mean tens or hundreds of thousands of dollars to that owner’s bottom-line – which can mean a huge difference in the life of the owner and the company.”

Shaw added that as new businesses start and as existing companies prepare for the next “economic spring,” there are literally millions of small and mid-sized businesses that need business coaching services.

“There is no better time for owners to get the business knowledge they need to succeed,” Shaw said. “And there is no better time to be an ActionCOACH.”

To find a coach near and receive a complementary coaching session click HERE

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Coaching in a Downturn – How the “Slowdown” Highlights Key Business Coaching Principles

August 3, 2010 – 1:47 pm

While the U.S. economy is in a recession, most business owners are acting accordingly by tightening budgets and cutting back on purchases.

However, a business slowdown presents unique opportunities for both business coaching and small business owner – in addition to a number of increased challenges.

As more businesses turn to business coaching as an alternative to costly business consulting practices as a way to grow their companies, business owners are also recognizing a greater number of positives than negatives in the current economic landscape.
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”As the world’s number one business coaching firm, our Business Coaches recognize the potential for small business to grow and get ready for the next expansion – even in a slowdown,” ActionCOACH CEO Jodie Shaw said.

”More money is made in a slowdown leading into the next expansion that is made in a boom.”

According to Shaw, ActionCOACH Business Coaches have been working with their clients to “get their financial houses in order,” as well as expanding their marketing efforts.

”Three areas of focus business owners should look at right now are finances, marketing and delivery or distribution,” she said.

From a financial perspective, businesses should focus on controlling cashflow (closing the “float” between accounts receivables and accounts payables); collecting outstanding payables; revising current terms with creditors (creating payment plans if necessary) and finding ways to increase profit margins while cutting some costs – realizing most firms can only cut costs so much before affecting overall operations.

From a marketing perspective, businesses should focus on developing or expanding marketing efforts. This includes a variety of low-cost marketing strategies (referral-based marketing, “test and measure” advertising, customer surveys to adjust stock/inventories to higher margin or higher volume products) and defining a Unique Selling Proposition (USP) that defines and differentiates the business in its specific market.

Finally, from a delivery and distribution perspective, businesses should focus on the overall customer service experience, from front-line team members, to making it easier for customers to buy, to guaranteeing products or services.

”Many large businesses were started in a slowdown by owners who looked at the world differently than conventional wisdom or the media narrative,” Shaw said. “ActionCOACH is a good example of that. Our Chairman and Founder (Brad Sugars) started the company in 1993 during a slowdown in Australia, and expanded to Singapore during the midst of the Asian credit crisis in the late 1990’s.”

Shaw also added changes now will leverage results for owners in the future.

”So there is no better time than right now for owners or would-be entrepreneurs to get their businesses on the right track,” she said. “Because when the expansion does take place – the serious business people will be miles ahead of everyone else.”

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About ActionCOACH founder and CEO Brad Sugars

May 18, 2009 – 6:35 pm

When ActionCOACH CEO Brad Sugars decided to franchise ActionCOACH back in 1997, he raised eyebrows in both the coaching industry and franchise industry, as most of the professional service franchises at that time were oriented around tax preparation and real estate.

Today, Brad Sugars’ vision has developed into a leading global business and rapidly growing franchise system, with more than 1,000 offices in 26 countries.

Widely recognized as the leading Business Coach in the world, Brad Sugars has leveraged is years of business development skills, knowledge and systems into a franchise concept perfectly suited to entrepreneurs, skilled business professionals and executives looking to leverage their current skill set to help other business owners succeed.

With thousands of workshops and seminars as part of his resume, as well as more than 14,000 individual one-on-one coaching sessions, Brad Sugars brings a level of business knowledge and real-world results to ActionCOACH and its franchisees unmatched in other types of categories or franchise systems.

An author of more than 14 books on business success,Brad Sugars is also a regular contributor to Entrepreneur Magazine, and has been profiled in leading business publications all over the world.

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