Promising Stories for Arizona’s Economy and Good Marketing.

Many Phoenix fans are happy that the Coyotes are not moving to Canada, but staying in Phoenix. Why is this good news especially if the team hasn't enjoyed much success lately? According to this article, “San Jose, Anaheim, Dallas....all have very successful franchises on the ice and are doing well financially. The Coyotes started off on the right foot, had an extremely dedicated fanbase but haven't enjoyed much success lately....
"However, it's good to know that they are staying in Phoenix. As someone who grew up in Texas and came to love and play hockey there, I think it's important to support the game in as many places we can. Hopefully the Coyotes can rebound from this, get some things straightened out inside their organization and become successful once more.”

Freight Transportation Business Still in Slump in Arizona

Noone wants bad news, but for planning purposes, it’s sometimes good to keep an eye on certain industries that may be economic indicators of whether Arizona is recovering from the recession or still stalling. Because much of what we purchase in Arizona has to be delivered here, good news in freight transportation could promise an upward trend. Unfortunately, the freight business was in a recession before the recession hit the rest of the economy, according to this article, “Overall, the freight transportation business remains in a slump because consumers aren't buying, companies aren't ordering and factories aren't manufacturing as much as they were a year ago, experts say.”

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.

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."

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."

Franchising During the Credit Crunch

Banks may be skittish about lending money right now, but this has not deterred those seeking a fresh start in a new business from franchising. One Kalamazoo man serves as a good example of how to turn life experience into a business opportunity even during these tough economic times. Mark Taylor has traveled the world in his work with US Airways and Pfizer Inc., and has now decided to work in education through franchising. According to this article, Mark Taylor and his wife, Sandy, have become owners of the Tutor Doctor franchise that offers one-on-one, in-home tutoring for students from kindergarten through grade 12.

Tutor Doctor is part of a 10-year-old, Toronto-based franchise that operates in Canada, North America and Great Britain. Taylor's job with Pfizer's shuttle service ended last year when the company discontinued the service for its employees. "With Tutor Doctor, Taylor, age 42, and his wife oversee 20 independent educational consultants, who provide consultation with interested students and their families, then schedule tutorial sessions consisting of one-on-one learning in their home"

Positive Sales for Cleaning Franchise

In the cleaning sector, one franchise is showing that American consumers have not given up on spending altogether in the current state of the economy. According to this article, many customers are still seeking out Molly Maid, a leading residential cleaning service franchise, for their home cleaning. The franchise ended 2008 with a 5 percent increase in sales over the previous year. As if this weren't enough, an additional 17 existing franchise owners decided to expand their territories. Residential cleaning represents a $3 to $4 billion industry.

Increase in Arizona Jobless Rate

Though economic downturns may create opportunities for some Phoenix entrepreneurs and Arizona Franchisees, joblessness isn't anything that brings a spirit of cheer. According to this article, Arizona currently matches the national statistic for jobs and is hovering at close to 6 percent. "And economists at the state Department of Commerce said the situation will continue to deteriorate for the immediate future. New figures Thursday put the seasonally adjusted unemployment rate at 5.9 percent. That’s up three-tenths of a percent from August; a year earlier the figure was 3.8 percent.The last time the state jobless rate was this high was July 2003." The credit crunch, commodity prices and lack of consumer confidence have all been blamed as possible factors.

Volatile Economy is a Mixed Bag For Franchises

A downturn in the economy freezes some individuals so that they postpone any new purchases while others view it as an opportunity or challenge. Many corporate refugees use severances or retirement packages as a source of credit for a franchise business. With so many different industries making up the economy, not all businesses flail around when the economy does not fare well in general. Indeed, unemployment sometimes spurs those to go where they would not otherwise have gone.

Interest in entrepreneurship tends to increase when people face unemployment and have no other options. Many people consider starting small businesses and franchises. Indeed, some sectors of the economy do not see a difference in a downturn or may even see increased consumer demand. Many people find that these areas coincide with personal interests as people start franchises involving handyman services, fitness, pet care or elder care with require relatively less capital than other types of businesses.

Impact of The Financial Rescue Plan on Franchised Businesses

Members of the International Franchise Association, (IFA) the world's largest organization representing franchising with a growing membership of more than 1,300 franchise systems, 10,000-plus franchisees and more than 500 firms, made fervant efforts to the House of Representatives to pass the financial market rescue plan. According to this article, IFA President & CEO Matthew Shay felt that: "Passage of the bill in the House will send a positive signal to the financial markets and hopefully free up much needed credit for franchised business to expand. We cannot stress enough the importance of this vote." Shay said that "the 900,000 franchised businesses in the U.S. provide for 20 million jobs and contribute $2.3 trillion to the private sector economy."

Phoenix-based Honeywell Aerospace Sees Strong Demand for Private Jets

It's nice to know that despite the economic outlook, some businesses still see strong consumer demand which is hopeful for other businesses including franchises that may have related or supporting goods or services. According to this article, "Despite the global downturn, soaring demand for business jets is projected to generate more than $300 billion in sales over the next decade, which could support thousands of jobs at aerospace companies in Arizona and around the world. Phoenix-based Honeywell Aerospace's annual business aviation outlook forecasts delivery of 17,000 new business aircraft from 2008 through 2018."

How One Franchise Remains Optimistic in Hard Times

Despite the economic climate, one health franchise continues to expand internationally and attributes its success to a well thought out franchise model. According to this article, Curves is the ninth most successful franchise company in the world and they are setting their sights on Australia despite the growth their of copy cat fitness centers. Curves' founder Gavin Heaves states that, "we have a very affordable program. You know they may quit the expensive gyms, but Curves at $59 a month is one dinner out that you don’t do. So, if we as an organisation continue to go out there and say that your health is important and that they can take 30 minutes three times a week and it were actually a very affordable form of recreation, then … we actually do well during tough economic times and personally I’ve been around for 15 years, so I’ve been through a couple of recessions and if you are proactive and remind the business operators … they really have the power to maintain their business." Interestingly, Curves is quite vocal about its selection of franchisees. "we sell Curves one at a time to usually women that have numbers that are passionate about the programme and the other guys tend to sell them to investors or pretty much anybody who will put up the money. So, we’ve been able to create a community of support with 10,000 locations in 65 countries that stood the test of time."

Local Arizona Restaurants Join Fight Against Obesity Business Trend

Arizona Smart Choice, a program designed to help fight obesity in Arizona is working with local restaurants, including Subway and the McDonald's franchise, to provide nutritional information for customers, according to this article. "Chronic illness, diabetes and obesity are big threats to the United States and Arizona and according to the U.S. Surgeon General, one out of five adults in Arizona is obese." Arizona Restaurants can join the program at no charge, but a nutritionist, which typically costs about $100 analyze at least one menu item that meets the program's nutritional requirements approval can be provided and the restaurant can display the given Arizona Smart Choice marketing tools.

Phoenix, Arizona Metro Light Rail May Provide Economic Boom for Metro Phoenix

The Metro Light Rail is expected to cover a 20 mile region including Phoenix, Tempe and Mesa and should be completed in December. According to this article, "Light rail is six months from operation, but the transit system's impact on the Valley's real-estate market has been in full swing with new condos, office buildings and mixed-use developments rising throughout metro Phoenix." There are detractors who believe it might be a burden on taxpayers (estimates put the figure at $6 billion for on public and private projects) associated with the rail. Also, construction of the line has effected the operation of nearby businesses. That said, "As the Valley's office market struggles to retain and attract tenants during the economic downtown, light-rail proximity also could be an effective marketing point for landlords trying to lease space." There's also thought that as gas prices increase, this can be a welcoming option for consumers.

Arizona Small Business Association to Spotlight and Support Successful Second-stage Companies

ASBA (the Arizona Small Business Association) CEO Joan Koerber-Walker announced today that ASBA and Comerica Bank have joined forces to shine a spotlight on Arizona-based,
second-stage companies that are generating new jobs and sustaining business growth, according to this article. "To qualify, companies must be privately-owned "second stage" companies. Second-stage companies employ between 10 - 100 employees with $1M to $100M in revenues,
while creating jobs and growing sales through innovative products, services
and practices." The effort means more than recognition. According to Meredith Russell, president of Comerica Bank in Arizona, "This new agreement represents a great opportunity for us to not only recognize but also provide resources for entrepreneurs and growing
companies in Arizona, one of the fastest-growing economies in the U.S.."

Open Air Centers -New Arizona Business Trend

New Arizona malls are hoping that a new misting system will help shoppers beat the heat as humidity rises and temperatures reach 110 degrees. According to this article, some Arizona businesses are hoping that the Phoenix outdoor lifestyle centers will boost shopping: "Much like some outdoor malls near Detroit and Cleveland have equipped themselves with heated sidewalks to draw shoppers during the winter, Valley outdoor centers have prepared to face scorching summers with shade screens, gazebos, strategically placed trees and fountains that allow shoppers." Some feel this will make indoor malls with their heavy use of air conditioning, a thing of the past. "Phoenix developer Jim Pederson, whose company, the Pederson Group, co-developed the Promenade at Casa Grande, said he believes lifestyle centers are popular because most shoppers enjoy being outdoors. "Retail has gone full circle and is getting back to open-air shopping," he said. "There is a certain environment you just can't duplicate with an indoor mall."

Service Businesses a More Affordable Path for Franchise Ownership-Opportunities for California Franchisees

Service business may provide a more affordable point of entry for those lacking the funds that were previously available through home equity loans. According to this article, local franchise consultant Cheri Carroll claims that "While a franchised sandwich shop may cost $120,000 or more for the build-out and equipment, or $300,000 for a retail shop, a service business can cost as little as $20,000 to get started, with almost no overhead." Potential California Franchisees may find potential businesses in the following areas: "Some growing service businesses among San Diegans are Gurnee, Ill.-based BrightStar Healthcare and Sandy, Utah-based Spectrum Home Services, which offer nonmedical services to seniors such as running errands and yard cleaning."

Going Green Good For Environment and Franchisors

Franchisor FOCUS Brands has found that reducing paper has not only helped the environment, but has lead to substantial savings. According to this article, "companies that reduce or eliminate paper-driven processes not only help the environment but also help their bottom line by improving productivity, increasing compliance, reducing storage costs and eliminating time lost to misfiled information and disorganization." FOCUS Brands Inc. is the franchisor and operator of over 2,100 ice cream stores, bakeries, restaurants, and cafes under the brand names Carvel®, Cinnabon®, Schlotzsky’s®, Moe’s Southwest Grill®, and the franchisor of Seattle’s Best Coffee® on military bases and in certain international markets. "FOCUS Brands is a prime example of a company that is not significantly different from healthcare, finance or any other type of business – in that it handles confidential information. The multi-brand organization manages legal affairs, finance, audits, private franchisee and personnel records, etc. in house and, as a result, has to securely and efficiently manage, store, access and responsibly dispose of confidential information. For companies across all industries, paper retention and disposal drives up operating expenses and slows productivity."