The ability to inspire is the key to successful leadership and can be achieved thought the adoption of 10 key characteristics according to a recent BusinessWeek article.

These are:

1. Be authentic and don’t pretend to be something you’re not
2. Be consistent and avoid erratic behaviour
3. Be aware of contemporary trends and issues
4. Be optimistic but aware of challenges and difficulties
5. Be self-aware by understanding your strengths and passions
6. Be driven by purpose rather than the desire for power
7. Be inclusive and seek out input from a diverse base
8. Be focused on creating a positive environment and legacy
9. Be respectful of employees at all levels
10. Be supportive of future leaders in your team

To determine if you’re an inspiring leader, score yourself (as objectively as possible) on each characteristic from one (low) to 10 (high), then add up your results.

A total figure above 85 is said to indicate that you’re practicing inspirational leadership.

FRANCHISEE SELECTION
Quality franchisors will have standards in franchise selection that include a detailed recruitment process in which is integral to the success of the entire organization. Quality franchisors will take the time to discuss with potential candidates their level of commitment, attitude and goals with business and their life. Identifying the best franchisee through an extensive interview and discussion process will be both integral to reviewing a potential franchisor and maintaining a great network. As a potential franchisee you want to feel as though you are moving through a selection process rather than getting the feeling as though you are just being “SOLD” a franchise to whoever wants to buy one. Successful franchisors will recognize the benefits of identifying candidates as a partner and someone they can form a long term partnership with.
If you are a franchisor and find individuals not willing to go through the selection process or unwilling to provide relevant information then they would not be a suitable candidate for franchising.

STRONG SUPPORT STRUCTURE
It is important to identify whether a franchise organization is a professional organization with the identification of support structures. You would expect support structure in various areas including training, advertising and marketing, operational and administrative support, coaching and mentoring and also Business and technology. This can be done through various departmental supports or even in smaller organizations as long as there is clear direction and processes in these areas supported by a management structure. This will allow franchisees to get the best of a corporate structure through a consolidative approach in all areas of the business which will allow franchisees on delivering the highest level of customer service.

A good franchisor promotes open and transparent communication and provides good support; if there is a problem, franchisees must know that there’s somebody within the system they can turn to for advice or help. Franchisors must also maintain focus on the system and develop a focus that is always positive and in the interest of the franchisees’ business.

STRONG VISION AND EVOLVING BUSINESS
It is also important to be a successful franchise business or even just a successful business you will need to have a clear vision for the business which is echoed through the network of franchisees, partners and franchisee employees. This vision should include a strategic focus on the core products and values that are developed which becomes a clear ‘Point of Difference’ but emphasis should be put on evolving the business to adapt to emerging and a changing market and customer demands. It is integral to a franchise business to clearly identify its ‘Unique Selling Points’ (USP’s), educate franchisees and also educate the customer on these USP’s. Quality franchise systems will put emphasis on developing product, Point of Differences and evolve their USP’s to improve market competitiveness. A franchisor will have a detailed plan or vision on the direction of the business and also to achieve its set goals.

TEAM PHILOSOPHY- COLLABORATIVE APPROACH
A successful franchise business will encourage franchisees and all those who are involved in the business to provide feedback and ideas through reporting, surveys and regular meetings. Other ways in which a team philosophy is present is when there are open lines of communication through direct means such as regular area franchise meetings, newsletters and also through the use of tools such as intranets or similar forums.
A good franchisor encourages and not hinders franchisee communication within the network.

PASSIONATE LEADERSHIP
Franchise Businesses like all business both large corporate and small SME’s should have a leader or team of managers who are passionate about the business. Being passionate about the business isn’t the only strength but also a stand out habit of highly effective Franchisors have a strong passion in helping their franchisees grow. Most top franchisors are hands on in developing and growing the business with a focus more so on helping other people be successful rather than purely by financial rewards.

Passionate Leadership comes in the form of enrolling positive behavior which is transcended and echoed through the Network from the franchisor management team and employees, to franchisees and their employees. This promotes a successful environment and a business that acts successfully is successful.

EDUCATION ON BUSINESS IMPROVEMENT
Highly effective franchisors create an environment of learning and will continually develop this approach through training on products, better service techniques and also general business management. Areas of focus will generally be on Sales & Marketing and improving sales techniques, product or market awareness and knowledge, Identification and Management of Key Performance Indicators (KPI’s) which promotes better performing businesses. It is important that the franchisor provides this support whether directly through support from a Franchise Development Manager or Territory Development Manager. Other ways of promoting education can be done through communication tools such as an intranet and newsletter announcements promoting high performing franchisees, new product updates and training initiatives.

It is important that the franchisor encourages and promotes training in all aspects of the business including product, business and general self development training and programs.

FRANCHISE SERVICE FEES AND LEVIES
In most cases franchises have service, royalty or administration fees and other levies such as Marketing & Advertising which is generally treated as a CO-Operative fund that is audited and in most cases are managed by the franchisor but with guidance and input from the franchise network or a group of franchisees.

It is important when reviewing the franchisors that as a prospective purchaser that you are getting something in return for the fees and some correspondence from the franchisor that they are moving the business forward. If you feel as though nothing is happening whether it be through direct questioning in the interview process or through your initial research phase and discussions with existing franchisees about what they get from the franchisor.

Highly effective franchisors will be striving to better the business for all involved in the network and franchise group.

PROFITABLE BUSINESS MODEL
It is imperative that the franchise business model is profitable and the franchise business operation has proved to be successful across multiple locations and with multiple operators. As a potential franchise purchaser you should be looking for a majority of franchisees who are satisfied and across various locations or regions. It is also important to contact various franchisees randomly and seldom contact only the franchisees who have been given to you as a reference by the franchisor. It is also important to get some insight into the type of franchisee and whether they are also an effective franchisee or operator to gauge whether the business model will work for you.

There is no guaranteed formula for success but franchising in general should take most of the guess work from knowing whether you will have a successful business model and one that suits your personality and attitude. The franchise model you are investigating should provide enough consistency that you can source enough information that will assist you in determined the viability and potential profitability of the products or service and the business model.

Again, don’t forget that it is imperative that as a potential franchise purchaser that the above criteria or sign posts should be researched and investigated in detail and signs that these are not in place then I would recommend moving onto to another potential franchisor.

After all there are plenty great franchise models out there.
Happy Buying

What makes it different from other streams of management is the fact that Human resources management or HRM cannot be defined by simple thumb rules, nor can it be taught or explained by simple theories, without a grave risk of oversimplification. It requires keen observation of human traits, sensitivity arising from emotional intelligence, and understanding of human nature like a psychologist.

Human resources management originally began as personnel management, but today it encompasses many well defined sub-streams of functions that can be listed as under:

(1) Workforce planning

(2) Recruitment

(3) Orientation & skills management

(4) Personnel administration & compensation

(5) Time management

(6) Employee benefits administration & personnel cost planning

(7) Performance appraisal

Each of these sub-streams is a more or less specialized function, yet one can say that HRM itself is more than all of these put together.

Unlike managing other resources like machines, real estate and finance, managing human beings is a totally different ball game, simply because unlike other assets, each employee has his own goal and will work first to attain that goal, even if it is at the cost of the goals of the organization. Thus, no employee can ever be made to provide his optimum output for the organization unless the goals of the organization are closely aligned with his own goals. This, in short, is the greatest challenge for all HRM experts, and in every organization, the need is to go about it in a way which is unique and specific for that organization.

Literature on Human resources management is fairly rich in terms of academic theories. Success of Henry Ford and his Ford Motors in early twentieth century gave rise to the term ‘Fordism’ consisting of the theory that high corporate profitability can be achieved by high wages to the employees. Even before Ford, Fredrick Winslow Taylor had propagated the ’scientific management theory’ or ‘Taylorism’ wherein scientific studies of processes were believed to lead to optimum human resource utilization. These ‘modernistic’ theories suffered from one grave drawback - they treated human beings as homogeneous, ignoring the individual differences in them. Later academic theories, often referred to as ‘post-modernism’ attempted to correct this folly by admitting that human beings are complex and solutions to their problems cannot be obtained by simple thumb rules.

In recent times, the academic theory has given place to practical applications and HRM experts today specialize in resolving individual problems of the organization in a step-by-step pattern. This means focusing on one of the several human resource management processes enumerated above, beginning from recruitment and ending with performance appraisal. These days, one of their greatest challenges is managing the process of collective bargaining, or the ‘contract’ between employee and the organization in a way that ensures commitment of the individual towards organizational goals. Another focus of modern HRM practices is to provide the employees a clear understanding of these organizational goals.

While technology threatens to take over most functions of business management away from the experts, HRM is one field which is unlikely to be faced with this threat. It was, is and will always be an expertise that is as much of a skill as an art, and hence beyond the intelligence that our computers possess.

The simple solution, find a mentor. Talk to people that have already “walked the path that you are traveling.” You might be wondering how and where to talk to these people. I have an answer for you.

First, figure out exactly what kind of investment you would like to attempt. Accomplishing this will help you focus your efforts and questions to people who possess the expertise that will be most helpful to you. Once you have established your investment interest, you next must find “experts” who can give you the vital information you need to make an INFORMED decision about your investment goal.

Second, start with your immediate family and friends. Asking these people questions will not be difficult, because you will probably feel most comfortable around these people. Make sure you are asking questions of people who can help! DO NOT arbitrarily ask random friends and family members general questions, because you will not gain any useful information. Another pitfall to avoid is making a decision off of this information alone. Friends and family members may “sugar coat” the answers to tough questions so as not to discourage you. Although the intention is kind-hearted and good-spirited, this can only hurt you in the end.

If you do not have any friends or family members that can help you directly, ask if they know anybody that can help. Besides providing information, friends and family can provide many outlets for you to find information.

In the event that your friends and family, and their friends and family cannot provide you with a source for useful information, this means that you will have to find an expert yourself. If this happens to you, know that you are not alone. This exact situation happened to me. About five years ago, I was extremely interested in fast food franchising. After doing research through print materials and the internet, I decided that a particular restaurant offered the best opportunity. Because I had no family or friends that could help me gather information, I e-mailed every person on America On-Line whose profile stated that they owned a restaurant franchise. You would not believe the large amount of responses I received from people who were more than willing to talk with me and answer my questions.

Third, read books, magazines, and other publications on your specific investment. Although these materials can help give you a general idea, they are no substitute for a live person. Print materials may not answer all your questions and as such should be used as a supplement for person-to-person interaction. Once again, do not make a determinative decision about your investment on this information alone.

Finally, once you have compiled enough information to make an INFORMED decision, make your decision. I caution you though, do not lose contact with your mentors. They will be an invaluable resource in the future.

Having all these resources at your finger tips can help minimize your risk and maximize your returns. Learn from these mentors and success is sure to follow.

It is so important in every day business that you have good employees because it truly can be the difference between a successful business and one that will ultimately fail. The answer really starts with you as a business operator or manager. You need to develop many skills including, being a leader, motivator, a teacher, a problem solver and sometimes a psychologist. All of these are fairly self explanatory in their definition but most would say “a psychologist, what do you mean?”

As a Manager creating or developing the skill to determine an employee’s capability and personality type is truly a great skill and one that is worth some time in developing. I have read many articles and books and have found either directly or indirectly that most are saying the same thing: “Find the personality type of a person and bring the best of that type out of them”.

I believe there are 3 main personality type:

1. “The Technician”; someone who thinks about yesterday

2. “The Manager”; someone who thinks about today

3. “The Entrepreneur”; someone who thinks about tomorrow

These are just basic interpretations of the different types of personalities besides the obvious definition or type of personality that would be associated with these descriptions. Basically, being able to determine one’s personality type and bringing the best out of that person is the key to being a successful leader or manager. To be successful at this you really need to be subtle in your approach as most people will not admit such a restriction in there ability, but of course most have more of one personality type then others.

It is important from interview through evaluations that you maintain an understanding of the employee personality type and ensure that you enhance this and take advantage of it through praise and rewarding. Most employees don’t necessarily look for a financial reward but just praise that they are doing a great job. Supply additional training and possibly determine if they want to get out of their set personality comfort zone and explore other modes. Encourage this.

So, basically it starts with you as the Operator ensuring that you maintain an understanding of your employee personality types and recruiting those that you need and enhancing those that you have. Here is a tip: if you want to be a truly successful business operator teach yourself to turn all these personality types on in yourself when needed to perform a certain task or function within your business.

Happy recruiting

Angelo Lauro

Statistically, franchising is the most successful format for owning a business in today’s competitive and aggressive business environment. I have read many articles relating to looking at a franchise in which I tend to agree with some and disagree with many. At the end of the day it is a business that you run and are fully responsible for.

Too many people get into franchising thinking that it is all made simple for them and they just have to sit back and wait for the money to come in (for those of you out there: buy property!) Well, this is not the case and I am telling you this from experience. I have been at both ends of the franchise spectrum and now offer advice in this area.

There are many things to look at when looking at a franchise. Of course the main one is the strength of the Brand; even if it is a new Franchise you can typically ascertain whether there is brand strength there or not. How is this achieved? Look at the experience the franchisor or the people behind it have in this sector and what their plans are for the future. By this I don’t mean how many franchises they plan to open but discuss with them the competitive side of product or service. See if they are ahead of the market. Ideally, new or established, you should be able to sense if they are or will become a market leader.

Like all business whether independently operated, large national or multi national or a franchise system, it is very important to give the market what it wants or what it may need. Other areas to look at are Branding, product or service demand, The people behind the business, marketing plans, competitors, and the big one - will you enjoy supporting this business, product or service? This is a big deal because if you are not behind it 110% you may not succeed even with franchisor support.

It is important that a franchisor is there for you but you are responsible to the customer day to day and this is the difference. The franchisor is there in National support with Branding, supply negotiations, Marketing strategies and product development but it is you at the end of the day who is at the coal face selling it to the consumer. Any doubt at all then it is not the right business for you.

Happy franchise hunting

Angelo Lauro

After extensive research into this area I believe there is a substantial change in the way product, companies and services are advertised and marketed. The consumer today has become more “info aware”. Due to technology the guess work or sales pitch on a product has been eliminated by accessing the technical specifications from the web. The internet has opened up a whole new generation of consumer who has access to products and information from all around the world. Anyone can access any product or information whether they are 15 or 65. You will see that there is a shift in the way products are developed and marketed.

You will find that in a lot of personal products that companies are advertising or marketing them to a more defined targeted market. They will use what I call “an emotional sense” to get the consumer’s attention rather then based purely on the technical aspect of the product. There is definitely a shift in the more non- traditional ways of advertising and marketing a product to a more personalized approach using senses and emotions to define the consumer wants. This also is evident in the way retailers are creating an experience in the design and layout of the stores and the way in which they position product throughout the store to make more of an experience as opposed to a task. To confirm this all you need to do is pretty much look at any major retailers or brands and look at how they are positioning product or encompassing new style design and layout of retail stores.

Good examples of the way in which companies are marketing and also developing product around an emotion can be researched through websites such as; http://www.trendwatching.com and http://www.springwise.com

I hope this has given you a start or made those of you a little more curious about Advertising and Marketing a product and really do suggest that you visit the above websites as they are extremely interesting and valuable.

Angelo Lauro

There are many ways to raise capital and a lot of these articles relate to raising capital through private and public offerings of some sort. Remember raising money for a business is a difficult job even if it means you have to go to the bank yourself to raise the money.

I agree with all those who have advised you to create a business plan and the amount of detail in the Plan will definitely determine how much money can be raised. You will find in most cases that a proven business or product is essential in raising both 1st round and second round venture from any source. My experience has been to either create a prototype or get the business up and running before I would look at raising capital. When there are actual touch and feel or proven figures then it easier to get the expansion or development costs from a venture source.

There are other ways to expand including raising funds such as Franchising for a business idea or partnering with vertical market product suppliers. For those of you have created an idea in a product and are having difficulty raising capital to produce or manufacture, then you could like at a license arrangement with a company who produces the same or similar product but under your brand name/ Identity.

Remember though to ensure that you have all the correct patents, trademarks, licenses and agreements in place to protect your investment. At the end of the day although you may feel like giving up. DON’T! Because there are many opportunities to get your business or product sold or financed other than raising money through venture or investors.

Good Luck

Angelo Lauro

What is a Brand/Branding or a Logo?

1. Brand- is the identity that a consumer can identify a service or a product that becomes more identifiable then others.

2. branding- itself is not specific and can cover various areas including branding in the product or service itself independently or; can be how the business wants its identitity to be recognized or; branding in the identity itself being the person or persons behind the business or product.

3. Logo- doesn’t necessarily mean a lot in this day and age because a logo can be varied for different mediums and marketed differently for many different ways. Just look at Fashion Labels, they will change their logo depending on the mood, environment of the product they are supplying.

Now, for those out there that say “hang on” what is he talking about.. Well I say this; think that all of the above is compared to the environment and there are many factors that determine a good or bad day. This can be because of the weather, your mood, and a little bit of luck.

In today’s generation of consumer who is far more advanced than 10, 20 or 50 years ago they are far more advanced and attuned to all these elements so to truly understand this topic you must understand that how today’s consumer is and how they approach advertising or product placement that include everything I have written about.

I have touched on consumers and marketing in other articles..

Check them out and send me a message..

Always happy to Chat.