Is Now A Good Time to Start a Franchise?

The basics for starting a business remain the same in good and bad times. Despite the current economic climate, over 40% of retail sales are still spent at franchises. There's still money to be made if you do your homework and stick to the sound advice of franchise lawyers and other professionals who can you make sure you are meeting your objectives. You could lose your shirt with a franchise as you could any business if you do not consider basics such as making sure that you are not undercapitalized. Running out of money is a common reason why some franchises do not do well. But the current economic climate is not an automatic reason to not consider a franchise. Owning your own business provides some degree of self-reliance and relief that one is not totally dependent on an employer for a livelihood. There is also a large available labor pool given the number of layoffs. You may have access to talent not previously available. Just because conventional sources of credit might not be available, you can consider self financing , family, friends or investors.

Local Arizona Business Boom From Economic Slump

One industry's loss is another's gain for local phoenix businesses. More and more jets are not leaving the runway since the 9/11 terrorist attacks. According to this article, some of them may stay parked and not fly again. This has resulted in more business for aircraft-storage centers. "Airlines began parking more planes after fuel prices climbed. Then the recession hit and passenger demand fell, propelling more planes into storage even though fuel prices had come down." Arizona's dry weather and other conditions happen to make it good place for storage. So it turns out that those Arizona workers whose jobs are tied to aircraft storage and maintenance can feel a little bit better about job security.

Using Birthday Treats as a Marketing Tool

While some of us may dread turning older, some companies are finding that birthdays are a good way of promoting business especially during today's economic difficulties. According to this article, "More companies are catching on that birthday treats are a great direct-marketing tool. They benefit when you bring someone along, and if you get a warm-and-fuzzy feeling about their brand. The trade-off is minor: perhaps a little more spam in your e-mail account." In Phoenix, you can find ice-cream, popcorn, pet items and spa treats to celebrate your birthday!

Back to Basics- Solution in Downturn Economy?

We are always looking for tips or trends that may help Arizona Franchises in the current economic climate. Perhaps some guidance can be learned from the latest business strategy of Dunkin' Donuts. According to this article, Dunkin' Donuts has not had a major campaign for doughnuts since 1997. They have branched out to so many interesting products, that the company is now 'coming full circle with a new advertising campaign to remind people it also sells doughnuts." By focusing on their core, Francis Allen, brand marketing officer, hopes the new push will boost the company's revenue from doughnuts, helped in part by the recession. The chain's fluffy treats cost about 89 cents - a few cents more in certain markets - and the company figures any price less than $1 will appeal to thrifty consumers.
"Faced with daily disappointments and struggles, the doughnut is one of those affordable treats that can make someone's day," Allen said.

Sedona, Arizona Launches Comprehensive Marketing campaign

While some hold back during a poor economy, others recognize that strategic marketing could be a wiser course of action. Many in Arizona appreciate the serenity and natural beauty of Sedona. Jennifer Wesselhoff, president and CEO of the Sedona Chamber of Commerce, would like to extend this appreciation beyond Arizona to the country and around the world so people know what a wonderful and exciting place Sedona is to visit. According to this article, Ms. Wesselhoff has revealed an ambitious plan by the Chamber to market Sedona as a major destination point for those seeking adventure, relaxation, spiritual awakening and natural beauty.“Sedona is about the spirit of adventure,” she said. “We want to get that message out to everyone. We are very excited. We have a really cool marketing program to drive tourism to Sedona.” What is the strategy in a tight economy and tough competition for those who still have the resources to travel? The Chamber wants to get the word out that Sedona provides the "greatest opportunity for spiritual awakening, hiking, buying great art, balloon and aerial adventures, entertainment, hospitality, great dining, luxury accommodations, biking, horseback riding, great golf courses, kid’s activities, meditation and serenity" using eight giant billboards placed strategically across the Phoenix area in March and April.

Franchisor Success in a Tough Economy

Who knew that shrink wrap could cover more than food and be the answer for several franchisees in a poor economic climate. According to this article, new franchisees of Fast Wrap, an upstart Reno company that has franchises in six other states - Nevada, California, Washington, Idaho, Florida and Colorado have been using shrink wrap as a new business venture: "Though shrink wrap has been around for decades and used mostly to cover boats, Fast Wrap co-founder Mike Enos said use of the plastic protectant product is growing beyond marinas to disaster zones, construction sites and backyards. A shrinking economy has created unexpected demand for wrapping some products and heated up interest in acquiring franchises by people looking for jobs or supplemental income, he said. Ed, Charlene and Carrie Lane of Sacramento are hoping to complement their custom homebuilding business.
Ed Lane said business has been slow and his work lately has been remodeling jobs. With Fast Wrap, buildings can be sectioned off, isolating construction areas and minimizing dust and debris."

Tips for Running Your Franchise

Feedback from our last post was so good we are providing another idea for franchisors that may help with the development of their franchise. Conflict resolution is helpful. With solid business experience, a good franchiser leader should be able to identify and manage conflicts before they get out of hand. Though it is important for brand recognition that there be rules that apply evenly to all franchisees, some franchisees may interpret those rules differently. Franchisees also may have different needs. To avoid conflict, it doesn't hurt to consult with a Franchise attorney before things get out of hand. Franchise attorneys are not always on the offensive with court in mind. In fact, many good franchise attorneys know how to nip a potential crisis in the bud with solid negotionation. Some of this can be done behind the scenes to assist the franchisor so that the franchisor remains the "face" contact, but he or she can rely on good counsel to take the appropriate steps for a particular situation.

Tips for Running Your Franchise

There are many sources for running a good franchise. New ideas are always welcome in a touch economic climate. Flexibility is a good skill for a franchisor to have. Technology is one area in which flexibility to adapt to changes can prove beneficial. Some posts ago we referred to an Arizona food franchise that was using technology to print out nutritional information for its customers. Recognizing market changes and customer needs is important for a healthy franchise. Of course, diplomacy in selling those changes to franchisees so that they retain a committment to something that may prove healthy for the overall franchise is important too. It also helps with brand identity.

One Franchisor's Focus in a Tough Market

We are always looking for news about what any business is doing in a financial downturn to stay on top. Realty World N. California and Nevada is one franchisor dedicated to providing a sound business model for its franchisees. This includes a full range of marketing and advertising tools into the corporate intranet including: virtual tours and digital marketing; virtual and paper flyers, brochures, postcards and newsletters; e-mail distribution and tracking; video production and distribution.

According to this article, the franchisor has goals in three key areas:•
- "Ensure that Brokers and Agents have Access to Best Technology: The Realty World extranet is the backbone of the franchise, delivering all the tools required for success. The Imprev platform seamlessly integrates into the company’s intranet.
- A Robust Solution at an Affordable Price: Realty World’s model centers on providing offices with everything needed to run a successful business, for one low franchise fee. Full access to the Imprev solution provides associates with the premium level marketing Realty World requires, at an affordable cost.
- Partner with Proven, Trusted Partners: Realty World’s business model depends on delivering exceptional technology, and it is imperative that the companies they partner with provide uninterrupted service for years to come. Imprev’s reputation for providing high-levels of service availability has been proven over many years, and their commitment to ongoing development is well known."