The Upside of Down

Does it affect all aspects of franchising? Does it affect all industry categories? How can operations and franchise development work in harmony to have the franchise system thrive (yes, thrive) in a tough economic climate? Let's take a seven-step approach to "Tuning Up Your Franchise System" in an uncertain economy.

As with anything valuable, lead supply is sometimes short. Yet lead demand, the lifeblood of the sales force, keeps demanding. The tectonic shifts in our financial, business, and cultural bases naturally have affected franchise lead flow, an effect that shows up differently for each franchisor. Many, however, are experiencing some sort of shortfall in the quality and/or quantity of leads, and today, more than ever, customary lead generation methods are being challenged.

Despite all the buzz about "rich media," the simple text ad is still one of the most effective ways of bringing prospective franchisees to your website, according to a report from market research firm iPerceptions. The study is especially intriguing, given its substantial number of participants: 14,000 people were surveyed about their ad preferences after they visited leading media websites.

"How has the capital market for franchise financing changed in the last 3 to 6 months, and what are you doing differently in franchise sales in the next 3 to 6 months?"

Standard operating procedure, or SOP, is a term widely understood by those who have served in the armed forces. SOP refers to a step-by-step method for how a mission or function will be carried out. Veterans understand the importance of implementing and following SOP for a task to be executed and the mission completed successfully. This systematic approach sounds very similar to the franchising model, and is why more and more veterans are finding successful post-military careers in the world of franchising.

Reading newspapers, listening to the radio, or watching TV today is like drinking from a fire hydrant. Here are some recent headlines: