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In this edition of Franchise Direct’s Business Insights video series, Franchise Direct CEO Sean McGarry talks about generating profit for your business.

Download Business Insights #10, or view in the player below

Profit, as Sean says, is “the magic word for every business”.

“Every business must create profit. That is the lifeblood of the business. These are the internal funds that are created by the business that if retained in the business, can help it to grow and develop and fund its working capitol.”

Sean urges that every businessperson, particularly during a recession, continually monitor their income and expenditure, especially in this changing business environment. It is vitally important that businesses avoid accruing the hardcore debt that could hang like a millstone around its neck.

If your profits are down, Sean urges you to address the situation quickly. If necessary, it might be essential to “cut back the size of the business, get it back profitable again, get yourselves into a position where you can expand again.”

Finally, Sean offers this bit of insight regarding profit:

“Always remember, profit is the internally generated funds, and we do mean that, and we particularly need our businesses profitable at the moment. It is critical you do get advice. You must have advisers to help you on a monthly or annual bases in regards to specific questions you may have.”

Visit the Franchise Direct blog every Friday for more advice and information from Franchise Direct CEO Sean McGarry.

In the ninth instalment of the Business Insights video series, Franchise Direct CEO Sean McGarry offers advice on that essential element of every business: the customer.

Download Business Insights #9, or view in the player below

Sean wonders why so many businesses go to such great lengths to avoid their customers, be it with intricate email or phone voice mail systems that make it impossible for the customer to contact the business owner.

“These barriers are a distance between ourselves and the people that keep our business going,” Sean says. “They usually creep into a company’s system over time.”

Sean urges entrepreneurs to avoid creating these barriers at all costs.

“The customer, particularly the paying customer, in the present environment, is the most valuable asset to your company.”

Sean says business owners should always keep an open-line of communication with their customer, so that they can access you and talk to you.

“For a customer-focused business, keeping these channels of communication simple and open is one of the most important things you can do,” Sean concludes.

Visit the blog next when Sean discusses that magical word for any entrepreneur: profit.

This week, Franchise Direct’s Lillie Burroughs speaks to delegates at the Annual International Franchise Association Convention in San Diego.

Download Business Insights #8, or view in the player below.

Lillie asked a variety of delegates from the franchise community about how they were coping with economic downturn.

Donna Ettenson from the Association of Small Business Development Centers explained “things are very tight right now and we’re hoping that the stimulus package will encourage banks to begin lending to small businesses again”. She continued “People are still interested in starting a business and one on ten people in the United States wants to have their own business”.

Doc Cohen from Cookie Associates Limited voiced a determined attitude, saying “We’re looking at our entire operation. We’re making sure that we’re operating efficiently but what we’re not going to forget is that we owe a duty to our country and our customers to continue to provide them with a top notch product and outstanding customer service”.

Pam Price, Vice President of Domestic Development for Nexcen Brands observed that “People are afraid - do I sit on the capital, do I invest - what do I do? The nice thing about franchising is that right now it is one of the strongest mediums to start a small business, and small business owners have really got to start putting that money back into the economy, I think, to really help perpetuate growth”.

Drew Myers, CEO of RecruitMilitary.com spoke about he thinks “this is a great time for veterans to explore franchise opportunities”.

Brian Spindel, Co-Founder of PostNet spoke about how “our business is very steady, we don’t boom during great times and we don’t dip during a down turn. We’re finding that the interest in franchises is also picking up.”

Chip Baranowski, Director of Development at Unishippers, echoed these positive sentiments, saying “in our business model, we’ve sustained growth because we’re in the shipping industry dealing with business to business customers and even during a downturn they need to get their products from point A to point B”.

Finally, Dina Dwyer Owens from The Dwyer Group ended on a determined and optimistic note, saying “those who aren’t doing well, we as an organization, of course have to work very hard to provide them with the tools they need to be able to survive through this … at the end of the day, we’re all going to be stronger businesses as a result of this downturn”.

Writing A Business Plan - continued

In last week’s Business Insights video, Franchise Direct CEO Sean McGarry discussed the first two components in creating a successful business plan. In this week’s installment, he addresses the subject in more detail, and specifically talks about the operation of the business plan and its funding elements.

Download Business Insights #7 or view in the player below.

The operational side of the business plan deals with how you are going to deliver the product or the service, and in particular questions like, ‘What is the equipment you’re going to need?’, ‘Are there specialist, key-skills you’re going to have to identify?, and Who are your suppliers?’. “These are issues that are going to have to be dealt with in the operational plan,” Sean says. Financing is the final element of the business plan, though Sean admits that financing is the first thing that many banks and investors examine. “You will have to clearly set out the funding that’s needed to start this business,” Sean says. Sean warns against a common mistake that entrepreneurs make: underestimating your total funding. He urges entrepreneurs to set up a realistic cash plan that will clearly set out how much cash is coming in and how much cash is going out in the first months of your business. “The one thing you’re going to recognize in your first few months of business is that cash is king. If you run out of cash, it’s all over.” With this knowledge, plus Sean’s advice from last week, you should now have everything you need to create a successful business plan.

In this week’s installment of Business Insights, Franchise Direct CEO Sean McGarry talks about the process of writing a business plan.

View the video to hear Sean talk about what is most probably the most important document for a company.

Download Business Insights #6 or view in the player below

Sean talks about how a business plan is a way of communicating your business idea to a banker or potential investor.

The process of preparing a business plan is very important and should be prepared over a number of weeks or in some instances over a number of months. If you are sitting down to write out a business plan, before you begin you should think out the different areas that affect your business.

In this week’s video, Sean discusses the first two key areas of the business plan:

1. Management

This area should address the overall management of the business. Sean advises that the first thing a Banker or potential investor will want to know is who is involved in this business venture and how qualified/competent are they at what they do. You should use this section to prove that you have the specific skills and experience required for the business area into which you wish to enter. In this instance, a franchis opportunity can be beneficial as franchisees do not have to have as much business experience because they will be supported by a team of experienced franchisors who are experts in their field.

2. Market Analysis

The second section of the business plan should address the area of market analysis. Here you should outline and give detail of where and to whom you are going to sell your product/service. You should be able to provide evidence of significant market analysis, as well as a competitive analysis whereby you will have identified your main competitors and stated how you are going to be able to compete with their business offerings.

Next week, Sean will continue on the topic of Writing A Business Plan, and address the areas of Operational Aspects and Funding & Finance.Come to the blog again next Friday to watch the next installment of Business Insights.