What is your Strategy for Success?

Strategy is a word that generates much confusion because different people use it in different ways. And of course, there are different levels of strategy. Strategic planning can support creativity and respond sensitively to diverse and changing circumstances. Managers, planners, consultants and even self-employed business people need to grasp the importance of Strategic Planning and how it can be done effectively.

Strategic planning has been in existence for many years. In fact, from a military standpoint, strategic planning has been around since biblical times. Strategy has a decisive impact on your product or services portfolio, how you carry out business operations, and even how you handle human resource issues. It defines the way you address a market and how you sustain the growth and health of your business. Strategic Planning is utterly and completely different from long-range planning.

Strategic planning analyzes the prospects of an organization (or individual business person) regarding its current position and what it is capable of in the near future. Strategic planning examines the feasibility of the projected growth rate of a company and the implications that it might have on itself, to the market and to the world at large. Strategy, planning, and decision making are totally interdependent whether you are looking to set-up your own business, have an established franchise, or are a large corporation or franchisor.

Strategy planning is what I would call the ’steps’ that you must take in order to achieve your goals.  It defines the framework and goals for a long-term process.  Strategic business planning is essential if a business is going to grow. The strategic business plan provides the framework against which all mission critical decisions are taken.  Like goal setting, you must write down your strategies for achieving your goals. It can take you for a “dream and vision” to reality.

Even if you are a franchisee, the need for strategic planning is not diminished.  True, the franchisor will have created an overall strategic plan for the network and probably a high-level strategy for you as a franchisee.  However, if you do not have a complimentary strategic plan for your own business development, you could find yourself going off track.

So what then are Tactics and Tactical Planning?

Often in business the differences and importance of Strategy and Tactics becomes blurred or even ignored.  However, whatever size your business, to do so can have a detrimental effect on your operational efficiency and the important “bottom line”.

Tactics must always relate back to the strategic outcome you have decided upon, and in business, they must always be selected on the basis of the target audience.

Tactical planning is shorter term, and tends to be more about “how” we will do something. Strategic planning is more towards “what if” something happens.

Tactical planning is much more detailed. Once you have decided upon a  strategy, how are you going to make it work? Tactical planning provides the specific ideas for implementing the strategic plan. It is the process of making detailed decisions about what to do, who will do it, and how to do it.

The 4 essential steps to Minimising Risk and Keeping on Track

Whether you are making the move from employment to starting your own business, or are seeking to operate your own independent business or franchise more profitably, these four steps are vital:

1. Create your overall business Strategy, based on your goals and business plan.  This is your blueprint for action, looking at the goals you have set, how to achieve them, and preparing contingencies for factors that could possibly derail your plan if not considered.
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2. Tactical planning then defines all of the specific tasks required to implement the strategic plan.
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3. Next, an operational plan can be developed, concerned with the near-term operation of the business or business acquisition.
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4. Finally, a follow-up control process should be outlined which is intended to ensure that those plans are implemented and the desired results are achieved.

Match Method to Scale and Take Action

Planning is essential to any successful venture, but it should not be a goal in itself. Some find planning a chore, and can tend to gloss over the exercise, diminishing the effectiveness of the planning at all.  Others can become so engrossed in their plans that the planning almost becomes an end in itself.

It is important therefore, that we match the complexity, detail and method of our planning to the size of our activity or business, as well as considering our own skill set, time, and attitude in the context of preparing an effective plan.  If we lack the time, skills or mindset to do effective strategic or tactical planning, then using the services of professionals in the field to get us on the right track is a wise investment.

For example, if you are seeking to improve the efficiency or profitability of your existing business, or launch a new product or service portfolio, then using the services of a business development consultancy could save you significant time and money, as well as improve your chances for success.

Equally, if you are considering starting your own business for the first time, or purchasing a franchise, using the skills of a leading Franchise matchmaking service such as offered by Kyros can help ensure you make the right choices and have a quicker and more “hassle free” road to achieving your goal.  An added benefit in the  case of  Kyros is that there is no cost to you for the services they offer.

But most importantly – TAKE ACTION NOW.  Whether it is creating a plan or contacting Kyros, taking action sets you on the road to success.

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Adapted with permission from an article by William Metzger, Senior Partner of International Business Concepts, the Business Development Consultants.  www.ibcdirect.net

Effective Leadership

Whether you are a sole-proprietor or the owner/manager of a large business, you are a leader. As such it is important to develop the necessary skills that will extract the best performance from yourself, your employees and partners if you wish to see your business flourish.

An effective leader must be able to interact with employees, peers, superiors and many other individuals both inside and outside the organization. Leaders must gain the support of many people to meet or exceed established objectives. This means that they must possess or develop a unique understanding of people. Accomplish that and success is imminent. The following tips may help you avoid some of the pitfalls that could cause you to lose both the trust and respect of employees and those you work with.

• Show consistency and fairness in your treatment of employees and associates.

Do you vary your approach with employees, being lenient with some and strict with others? There is a fine line between treating all employees exactly the same and showing consistency in the treatment of employees. Employees are all individuals with different backgrounds, different values, different goals, different ideas and different motivational factors. The ability to recognize the differences in people and apply variable leadership methodologies is an important characteristic of effective leadership.

That being said, it is extremely important that a leader does not show favouritism and give preferential treatment to one over another. A lack of consistency in the leader’s treatment of employees destroys teamwork and trust.    Do not give special privileges unless a special situation warrants it, and everyone understands it.

• Being able to collaborate and share ideas without being threatened creates an atmosphere of cooperation and team spirit.

Sharing your thoughts, experiences, knowledge along with coaching and mentoring is showing confidence and self respect. This supports a culture of camaraderie and expands the chance of further development. If part of a larger organisation or franchise network, share information whenever issues in your realm of responsibility affect operations in other managers’ or franchisees’ areas.

• Be as sure as possible you can keep any promises you make.

Take making promises seriously. View a promise as a commitment made on the understanding that circumstances might arise that would make it impossible to keep it. Make those circumstances very clear to the person at the time promises are made. Breaking a promise can lead to a loss of respect and a questioning of your integrity. Don’t make promises you know you probably cannot keep.

If circumstances arise that prevent you from keeping a promise, be honest about it and explain those circumstances in detail.

• Do not automatically dismiss complaints simply because you feel they are unjustified or trivial.

No one thinks their complaint is insignificant regardless of what you may think.   Dismissing out of hand something you feel is trivial can cause even greater problems and cause offense. In fact such offense may grow and fester. An effective leader will address the complaint and not be afraid to explain why they feel the complain is unjustified or trivial. Even though the employee may not hear the answer he is looking for, the leader will not lose respect due to inattention. Of course how he delivers the message is important and should be done without belittling the employee.

• Refusing a request without creating resentment is a vital skill common to effective leaders.

The ability to say no without creating hostility is important. The key is to recognise the validity and sincerity of the request by providing a full explanation as to why it cannot be grated. Being sincere demonstrates concern and makes your personal regret believable.

• Close friendships or relationships with employees are not a good idea.

That does not mean that you should be cold and aloof which can also detract from effective leadership. Leadership is about relationships but you must not develop a personal relationship to the extent that it leads to unwarranted preferential treatment, or compromises your ability to take command when necessary.

You can be friendly without losing authority or compromising your position. Anyone whose job it is to influence people and direct them in their work must maintain friendly contact with the group that is fair and equitable to each individual.  Favouritism can rebound on you and cripple the effectiveness of any team.

Remember, as a leader, others will be depending on your ability to steer the business down the road to success.

Technology CAN be your Friend!

It is easy to overlook new developments in technology when just running your business can keep you fully occupied.  However, not keeping up with developments can be detrimental to your business’s health!  This is not to say that we must jump on every new product and concept when it is introduced, but it is important that you, as a businessperson are at least aware of new technologies and their potential benefits for your business.

Improvements in mobile communications, computing and the rise of interactive services on the Internet have completely changed the way we do business.  More importantly perhaps, our customers and prospective customers and clients have come to expect the use of these technologies during the course of any normal sales or service interaction.  And of course, when used properly, new technologies can produce significant savings in static overhead costs as well as improve efficiency.

Further, developments in technologies have led to a complete rethink of our work environment which needs to be updated to best utilise the additional benefits that these technologies can offer.  For example:

• Mobile work stations will allow workers to set up anywhere in the office
• In the Intelligent Workplace, workers can control temperature and lighting
• Desks with built-in treadmills will allow you to keep fit while you work

Although the first users of these systems will usually be larger companies with many employees, the concepts can be applied to many SME’s as well.  Following is a reprint of a recent article from CNN which shows some of the trends in office design that have been inspired by the developments in technology and the need to provide a more “user friendly” as well as efficient working environment.

Work is a pleasure in tomorrow’s office

By Mark Tutton
For CNN

LONDON, England (CNN) — Work stations with a built-in treadmill and portable meeting rooms are just some of the developments that may become commonplace in the offices of the future.

Workplace technology has changed dramatically in recent years and the offices we work in are finally set to catch up. The advent of laptops, wi-fi and BlackBerries means that high-tech workers are no longer tethered to their desks, and the office of the future will be designed to let workers roam.

Dutch designer Michiel van der Kley has come up with Globus, a stylish spherical “podule” that looks like a piece of art, but is actually a mobile work station. Open it up, take a seat, switch on your laptop and you’re good to go. If you need to see a colleague you can take your laptop with you and talk shop at a ScooterDesk, an ultra-mobile mini work station by Belgian design firm Utilia.

Another Belgian company, Living Tomorrow, predicts that as we become increasingly able to work from home, workplaces will spend more time unoccupied. It says flexibility will be the key to filling unused space, which means that as well as mobile work stations, we’ll be seeing mobile meeting rooms.

The Center for Building Performance and Diagnostics (CBPD) at Carnegie Mellon University in Pittsburgh has built the Robert L. Preger Intelligent Workplace — a functioning workplace that is also a ‘living laboratory’ for researching office design.

An informal Conversation Area in the Modern Office

See more photos here: Photo Gallery

In an effort to increase energy efficiency, much of the heat in the Intelligent Workplace comes from solar thermal energy and recaptured heat from generators.

Daylight sensors and occupancy sensors mean lighting isn’t used when it’s not needed, but workers are also given a huge amount of control over their own environment, regulating air temperature and flow, and lighting levels and direction, from their own work station.

The point of all this, says the CBPD, is to show you can improve quality of life in the workplace while reducing greenhouse gas emissions.

As businesses are coming to realize that the best ideas are often generated in casual conversation, designers such as Perkins and Will are incorporating informal team areas into office environments, to encourage chance encounters and impromptu meetings.

Obesity has become a hot topic as we lead increasingly sedentary lives. One solution, envisaged by Dr James Levine of the Mayo Clinic in Minneapolis, is for us to burn more calories at work.

With that in mind, his team has developed a treadmill desk that lets you walk while you work, and it has already been tested in real workplaces. So you’ll soon be able to work off that lunch-time blowout while you work on your big presentation.

You can find this article at:  Work is a Pleasure

So you want to start a business?

Whether you have been planning your new business for months, have been made redundant, or you simply made a sudden decision to go it alone, becoming your ‘own boss’ can be a daunting step.  Many of us take for granted the safety and security of having someone else make decisions that affect our day to day working existence and ensure that there is sufficient money available to pay the bills.

Starting your own business removes that safety net and suddenly plunges the new businessperson into a world where only the strongest survive. Unless you really have no alternative, making this big decision should not be taken lightly. Business failures in the start up community are so high that you are working against the odds from the moment you start.

Not everyone has the skills, personality, temperament and ability to run their own business and it is vital to really ask yourself if you have what it takes.  A good place to start is with our Free Report: ‘Right Place, Right Time‘.  (You can download it HERE if you have not done so already.)

If it is right for you, starting and running your own business and making it a success can be a very rewarding experience and a great deal of fun.

Before starting up

It is the ambition of many people to run their own business. However, with the statistic that four out of five new businesses fail in the first two years (up to 90% within the first 3 years) – the more forethought you give to the job of running your own business, the more likely you are to succeed.

Consider the different ways of starting in business.  There are four main options:

• Buying an existing business

Buying an existing business is often a quick way to get ‘up and running.’ It may well be that the business in question has under performed or you believe that your skill and expertise will enable you to be more successful than the current owner.

• Buying into a franchise

Franchising is a common method of starting a business by adopting a tried and tested formula. A franchise is a method of running an enterprise with a ‘blueprint’ designed by a franchiser licensed to the franchisee.  By far the method that provides the greatest chance for success for someone new to business ownership.  The franchisor has already built a successful business model.  However finding a franchise that suits you can be an expensive and time-consuming task.

• Starting from scratch

Whether it is on your own or in conjunction with others, starting from scratch can be the most rewarding way of starting in business – but also the most risky. If successful, the rewards, both material and psychological can be substantial – but it does not suit everyone. Unfortunately, the chances of failure are very high.

• Become an agent or reseller

Many companies have a product or service that can be sold full or part time on a self-employed basis. This is often the easiest way to get started on your own although the scope to really build a business in this way is very limited.

Research your market

It is easy to become so enthusiastic and wrapped up in your brilliant idea for a new business that you can lose your objectivity.  Regardless of how great an idea you and your friends think it is, have you taken into account what potential customers will make of it? One of the most common faults of new business plans is a lack of proper market research to support the business proposition.

To put your new venture into perspective you will need to provide detailed information on potential customers (different customer groups), competitors (both direct and indirect), suppliers (of everything you will need for the business), human resources (who you are going to need and how you will find them), and operations (the location of your office, the shop, etc.).

Here is where a franchise business has a significant benefit over other the other options in that market research will have been carried out by the franchisor (in most cases).

Reduce Risk – Get Professional Advice

A good place to start, and without any cost to you, is with Kyros Franchising.  Our consultants will be pleased to help match you to the right franchise business, should you wish to go that route.  Why not contact us today and see if we can help you find the right business to match your goals and aspirations?

The Inside Track – Over to You

We are pleased to announce the launch of the New “Inside Track” our Kyros weekly update newsletter.  It has been a busy summer at Kyros and as a result some our featured resources, such as the blog and newsletter have been a bit neglected.  Now we are correcting that situation!

“The Inside Track” will be a weekly news summary of what is happening in the franchise industry and general business community within the UK and Ireland.  It will also feature news of developments and events from Kyros and as well as “insider” information about what is happening within the various regions.  At least this is what we are planning, but what is included (or left out) is up to you.

What Do You Want to Read?

We want the Inside Track to include the information you find most beneficial – so here is your opportunity to tell us what you want to see included (or left out).  To do so, simply leave a comment to this post below (they are all reviewed).  Tell us what you would find helpful, or what you feel would be better left out.

It Get’s Personal!

A feature that will be included is a weekly summary of any posts to this Weblog so you can keep up to date.  These posts are not meant to duplicate the news found in the “Inside Track”, but are focused on opinion, comments, reviews of the news, and some personal observation from the Kyros Professional Team.  It is also a place for you to comment on us as well!

It’s Your Turn

So, we want to hear from you.  Leave your comment below and let us know what you want to see in the “Inside Track”.  If you have not yet subscribed, you can do so through the link over on the left, or Through This Link.  Thanks for your help and comments – we look forward to being of service to you.

Is Now the Right Time to Start a New Business?

Business start-ups at any time are volatile by nature, and it is difficult to predict which firms will be successful.

Most studies show that over 90 percent fail within three years – even in the best of times.  During an economic downturn, such as we are currently experiencing, it can be particularly daunting to consider starting a new business.  Finding a business that has a good chance of success might seem to be like following Alice into the Looking glass.  But that does not need to be the case.

The right franchise business could be the answer.

It has been proven over many years that a franchisee has a stronger chance for survival than an independent start-up.  This does not mean that a franchisee would automatically be a success.  Success in business does require dedication but the fear of failure, and indeed the actual risk of failure, can be greatly reduced through franchising.

There are several reasons for this.  First, a franchisor already has a proven business model.  The guesswork has largely been eliminated.  There are actual sales figures and business trends to support the business model.  Also, a franchisor is able to support its franchisees with expertise in many business areas that an independent business may not otherwise be able to afford, or in fact even be able to find easily.

Further, an established brand that is easily recognisable provides distinct advantages as consumers feel ’safer’ with something that is familiar.  Companies typically develop their brand image and trademark through extensive advertising and promotion. But a company can benefit from mass-media advertising only if it has in place a number of shops, offices or other locations that customers who see its ads can visit or contact.   This would be beyond the reach of most new independent business start-ups.  However, as part of a franchise network, you would benefit from their brand visibility.

So is this the right time to start a new business – even as part of an established franchise network?

I believe the answer is “Yes” – with some qualifications.

Historically, during times of recession and other periods of economic upheaval, there were those who prospered.  This is not too surprising, as people still need to purchase many items, and often increase their spending on those things which can provide “light relief” to them in difficult times.

Those business people with money to invest, a bit of foresight and a good support structure prospered.  They could do so because the cost of various overheads generally reduce, forced down by the economic situation, many competitors will go out of business and the potential employee pool will increase.

With the right franchise business, you would have the advantage of brand strength, proven business model and ongoing support to add to these other advantages.  However it is vital to find the right franchisee business in a timely fashion.

Finding the right Franchise to meet your goals and objectives takes diligence and focus, and is a time intensive process.  Many prospective franchisees don’t even know where to begin the process. After all, there’s so many options, how do you know which is the right franchise option for you?

Experienced consultants, such as those at Kyros have spent years pre-screening hundreds of large and small, national and local franchises to identify the leaders in their industry, building strong relationships along the way.  This gives you the edge, right from the start, and can be just what is needed to find your road to success in these difficult times.

“The Only Thing We Have to Fear Is Fear Itself”

As final note, it is good to remember this quote from the First Inaugural Address of the newly elected President of the United States, Franklin D. Roosevelt.  It was made in 1933 at the depth of the Great Depression, and therefore particularly timely for us today.  There are excellent business opportunities out there right now if we are ready to take them.

The Easy Life

Some years ago I met with a chap who was already running his own business but was looking for something else.  He explained that he already knew in his own mind what he wanted – it was a business where the product was new and unique, there was no competition, there would be no requirement to do any selling, the investment level would be in the order of £10k and the earnings in the first year would exceed £50k.

 

Well, franchised businesses like this only exist in a parallel universe as far as I am concerned, but it was interesting to find out why this ‘successful’ business owner wanted to find this mythical business.

 

It stemmed from the fact that his current business was not too successful after all. 

 

What had started out as a good electrical contracting business had suffered from reduced margins on the product side and stiff competition from other contractors.  What this chap had failed to do was to recognise the dynamics of the industry he was in and adjust his business model accordingly.  So, he had failed to add value to his service in the eyes of his customers, they didn’t feel he was any different from the competition so he had become a commodity.  He started having to protect his own business by dropping his prices to match those of predatory competitors, and ended up doing business at a loss.  Instead of nurturing each customer, proactively seeking new solutions for their problems, making himself an invaluable member of their team, he had become someone who simply responded to enquiries, quoted a price and did the job.

 

Let’s be realistic about the elements of the parallel universe franchise and put some common sense around them

 

Firstly, new and unique products are always being introduced, but are they any good?

Is there a strong and sustainable market for the product, is there sufficient money being invested into Research and Development to ensure the product can be enhanced in the future?

 

If there is no competition then why not?  It will only be for one of two reasons – either no–one else thinks this is a market to be in, or it is a good market to be in but competition hasn’t appeared yet – but you can guarantee that it will and it will almost definitely enter the market with a better proposition than the first entrant into the market!

 

Competition is healthy – it means that the market is worthwhile being in; the trick is to make sure you keep your share of the market and hopefully grow it.

 

When it comes to selling then every business needs not only a way of telling their existing and potential customers about their products and services, but also a way of ‘doing the deal’ – creating the need then satisfying it.  If you do the marketing correctly then the selling becomes easier – I can’t imagine a Wii salesman going hungry for a while yet!

 

Investing £10k and earning £50k?  I’m sure there are opportunities to do just that but they will depend on the amount of effort the individual puts into marketing and selling and sheer hard work. 

 

The crux of all this is that business, whether it is franchised or not, is not an easy life – there are no substitutes for hard work, determination and perseverance. 

 

Any good business knows its products and its customers and how to join the two together for mutual benefit, a franchised business just happens to be one where investors can be the business owners.  The product, marketing, selling, IT, finance systems are all in place along with training and support –the hard work setting up the infrastructure and the business model has already been done – now its up to the individual to do the hard work to build their business from this advantageous starting point.

 

 

“I can do it myself!”

I once described a particular franchise concept to an individual who retorted with “Well I could buy all that equipment and do it myself!”  Well of course he could but he was missing the point.  I can’t think of many business concepts where the same could not be said; yes there will always be some unusual requirements of certain businesses but basically many businesses started up from individuals doing their own thing and competition starts when someone else sees you are being successful and comes to market with an offering that’s probably better than yours.

 

The whole point of an existing good franchise is that you can’t simply buy the equipment and do it yourself.  There are certain things you just don’t get going alone.

Firstly, a brand!  With that comes a track record and perceived level of service and product – you get business history –that’s worth a lot.

Secondly, you get a robust business ‘system’ – someone else has made a lot of the mistakes already!  They are only now successful because they’ve experienced them, learnt from them, adjusted their system and carried on.  You simply can’t buy this in your own business –it is unavailable!

Thirdly, training in the business – the franchisor should actually want you to be successful – if you are, then you are unlikely to need too much of their time and attention, and they earn a larger management fee – that means that a good franchisor will invest a lot of time and money on their training systems and in your training!

Fourthly, support; throughout all the stages of Business Planning, start-up, launch, maturity, selling the business – and support not only from the franchisor but also other franchisees – you all have a vested interest in making sure every franchisee is performing as well as they can.

 

Where the “I can do it myself” mentality is dangerous is where it is really a mentality of “I know best”.  For example, I know of one franchisor who had particular issues with one of their franchisees who was complaining about not accomplishing the targets they had set themselves in the Business Plan.  They had started out so well but things had taken a turn for the worse.  On investigation, it was discovered that the franchisee had stopped marketing in the way described in the Operations Manual (the document describing the Business System and how to implement it).  One simple example was that after every time a job was completed (and this was a service carried out in the customer’s home) the franchisee was supposed to distribute 20 leaflets to adjacent homes saying something along the lines of “We have just fettled someone’s utensils at No 20, why not call us to have your utensils fettled and we’ll give you 10% off”

 

As part of an overall marketing approach, this generated on average one job for every 20 leaflets – in other words, for every job undertaken, another one was generated.  The fact the franchisee had chosen not to do this part of the marketing meant that they were losing as many jobs as they were doing!  If there’s a business system to be followed then it needs to be followed!

 

Many franchisees can still harbour thoughts of “I can do it myself” and sometimes this can be positive.  If it is the genuine ‘good idea’ that can add to the business system then that’s fantastic, after all, ‘Happy Meals’ and ‘Drive Thru’s’ were ideas that came from franchisees and not the franchisor.  Where the franchisor excelled was in putting these ideas into practice worldwide and into the business system, something an individual would not be able to do.

 

So if you want to “Do it yourself” there’s nothing stopping you and Good Luck to you; there are some very rich people out there who have done just that.  However, as you and I well know, these make up about 0.01% of the “Do it yourself” brigade!

 

Success cannot be guaranteed but at least with a franchise system you can go and see someone else doing exactly what you think you’d like to be doing, you can make a make a judgement based on sound and current information rather than a whim and a hope.  You may not end up as one of the 0.01% of super rich, but there’s a better chance of not ending up in the bankruptcy courts!