That statistic is in sharp contrast with the British Franchise Association 2011 figure that “About 90% of all franchisees reported profitability over the last 12 months”.

On the surface this could mean that the current recession an ideal time to be in franchising and that just about any franchise should succeed.

The demand is clearly there; there are lots of people out there desparate for a job and there are certainly a few of them looking for a good way to spend their redundancy payments.

The reality is that, as many experienced franchisors will point out, good recruitment is still one of the biggest challenges facing any franchise.

The reason for this is what I call the “franchise dilemma”.

In simple terms, you have two apparently conflicting aims. You want to grow and therefore you need to attract lots of applicants for your franchise. Yet when your hard-earned prospect franchisees get to your office, you then need to reject many of them ruthlessly.

The risks of bad recruitment are clear; many franchisors have told us that recruiting the wrong franchisee incur costs that far outweigh any franchise fee. Managing the problem franchisee is costly in terms of time and money and is the fastest route to a failed franchise.

This is not to mention the poor failing franchisees who lose their money and their self-esteem (and will certainly tell everyone about that).

On the other hand, good recruitment brings rewards that all franchisors dream of: an increased franchise network; more reliable income and better brand recognition.

Therefore I read this guide to franchise recruitment from the Franchise Magazine with a great deal of interest.

I’d like to add my own view to this.

Sometimes in business, some things truly are fundamental to success while others are just details that affect your business in much smaller ways.

In my view, solving the Franchise Dilemma effectively is just about the most important thing a franchise can do.

In turn, good franchise recruitment largely rests on three things.

Firstly, careful and monitored use of advertising channels and recruitment money.

Second, a compelling, properly priced and truthful business proposition. If you have to embellish your proposition, one day, this will come back to haunt you.

Finally, a determination to recruit only those who meet your carefully prepared recruitment criteria. The best franchises also have a clear set of recruitment criteria that they stick to without compromise. They understand that the franchise fee is small-fry compared to the long-term advantages of a successful new franchisee.

There is even a virtuous circle to all of this; good recruitment breeds good news stories and even more effective recruitment.

Smart franchises have a logical and well-presented business proposition. Good franchisees will respond to a good proposition whereas only fools will buy a bad deal. The one thing that good franchisees and bad franchisees have in common is that they will talk about you.

Seems like a small thing but I think it is hugely important and shows how much we care about our customers.

Why? Well, despite having higher prices and knowing the effort involved, Rackspace proved to us that even after 3 years good service from our old provider, they care enough about service for us to entrust your precious data to them.

It’s not an easy decision and has had the technical team working late to ensure that the changes go smoothly and without interrupting our service.

We could of course mention the SAS70 Type II certified data centres, the state-of-the-art back-up and recovery options, the latest server technology and the ISO 27001 compliance.

We could list the impressive list of companies that also chose Rackspace: Renault, gocompare.com, Which?, NHS Direct, Transport for London, Oyster Card….

All true, but most of all Rackspace proved to us that when it comes to service they care as much as we do about ensuring that people are well served.

They use the word “fanatical” a lot when they describe their service.

Fanatical service. We can get along with that.

We hope you like the result.

1. Technology is Voodoo

Ever heard the phrase that people leave their brains at the door when it comes to football. Well technology can make people behave a little like that.

The solution is straightforward. Benefits from technology are not voodoo so even if you don’t understand it, treat it like any other part of your business. Don’t be afraid. Ask lots of questions. Don’t let the IT guys get away with complex words when they guess you don’t dare ask what they are talking about. Insist on plain English at all times and agree with the IT people (preferably on paper) exactly how much it will cost and what it should achieve.

2. Don’t Ask Why!

It is amazing how many people are afraid to ask the basic question. Why would I want IT in my business?

The solution is basic business sense. The moment you are being sold something that doesn’t either make you more efficient or increase sales, you are wasting your money. So set concrete, financial objectives. Remember at all times that fancy toys are lovely to look at but don’t make you any money.

3. Franchising and that Interweb thingy

Franchises are by their very nature unusual for IT people. Offices and people are spread out, the franchisee is semi-independent while the franchisor has a need to understand the whole network.

The solution is to look for technology that deals with these problems head-on. Don’t rely on home-made databases and spreadsheets since these are not designed to be used across lots of companies. One piece of good news is the Internet; it is the franchisors best friend and in conjunction with smart phones, net books and other mobile devices is ideal for hooking up lots of little businesses.

4. Why not be a Luddite?

Looking at the latest smart-phones, tablet pc’s and other devices it is hard to know when and where to start and almost seems safer to be a “Luddite”. Nevertheless, one fact that we can no longer ignore is that the technology is here to stay and it can make a difference to the way we work.

The solution is again to be practical. Yes, ignore the fancy phones and advertising hype but if your guys are out on the road and the sums add up, buy software and hardware that they can use on the road. If you can, connect your franchises using web-based technology so that you don’t have to manually send endless spreadsheets and documents. This is not fancy technology just good old fashioned business sense.

5. Technology? Ask my kids/ dog/ mate*

(*Delete as appropriate)

The playstation generation can make us all feel a bit stupid and sometimes it is easier to just step away and let someone else get on with it.

The solution is once again to be businesslike. Business technology is not something that you necessarily need to understand completely to manage. As a businessperson, you need to know what you want and once you have a strategy you can then step away and leave the getting there to the experts.

Don’t get me wrong. It’s not that they don’t like Mum’s cooking; more that they like my creative approach to the task.

I learned from the celebs that everyone needs an angle. Heston has his blow torch, Gordon has his swear words and Jamie has his nakedness. Me, I have my car.

So, I go outside, I turn the ignition, I drive to the mall and wait in the queue. I drive up to the microphone and two seconds later my order is being worked on by a nice lady in the McDonald’s outlet….or so I think. Not quite – it turns out my order is just one of many being processed by a call centre on the other side of the globe.

Well perhaps. It might be true. I may have travelled 10 yards from the order point to get the goodies, but at many outlets my order would have gone half way around the world. Not the food of course, just the order.

I’d never associated McDonalds with mash until I read Thomas Friedman’s “The World is Flat”.  It tells of a McDonald’s franchisor with several outlets using a call centre in India to process orders.

“Big deal” I hear you scream. Well, maybe and maybe not.

Someone has done the sums and found that if the volumes are high enough, and some outlets are merged, it is cost effective to outsource to the subcontinent. 

Using services in India might seem a step into fantasy land for most of us, but the location isn’t the point.  The order takers could be in Bridlington,  Boise or Bangalore – the issue is that this sort of creative approach to revolutionise a business is symptomatic of a new way of thinking that could affect us all in the long run.

This scenario is currently referred to as a “mashup”, but we’re talking processes rather than King Edwards or Maris Piper. A mashup involves stripping back and radically reconstructing of a process, so that it appears to deliver what it did before.

Extreme maybe, but we can take-away (excuse the pun) some useful nuggets of information (somebody stop me) about improving the bottom line. As Friedman asserts -

• Inexpensive Technology can break down the barriers to collaborate.
• Plenty of other businesses are thinking this way and providing a specific niche service that can plug into anyone else’s process.

The conclusion is to start to jettison elements of your business to someone who can do it better, cheaper and faster.

Some food for thought (last one I promise)-

Strip the elements of your business to their basic function.

• Consider each in turn – if it’s not core part of your business why are you doing it?  Can someone do the same quality (or better) for less?  For example could people like this http://www.onestoplettershop.com offer you direct mailing services?
• How could your business fit in to someone else’s ? Pitch an idea- few can afford to will reject a money saving proposal out of hand.

I hope that I’ve whetted your appetite. Just remember – if transferring a burger order from customer to kitchen can be outsourced, anything else can be too. Consider your options, with relish.

Once upon a time, if an old soldier reached the end of his tether he wrote to The Telegraph, started a letter with “Why oh Why oh Why…” to BBC TV’s “Points of View” or took his chances against vegetables shaped like guitars and contacted  another of Auntie’s vehicles for the permanently affronted, “That’s Life”. Chances are though, a parrot who could yodel would be more interesting, and the despicable dealings of some local builder would go unchallenged.

News travels fast. It’s not just news any more; it’s any information, travelling around the globe in seconds.  If you have a spare 5 minutes, and want a sobering realisation of how a fictional event could spread faster than flu in Fresher’s week, check out http://www.tomscott.com/mob.

And this has some implications for franchises too.

Put this in a business context, blend raw emotion with a means for instant viral distribution, and a brand, reputation and most threatening of all, a bottom line can be destroyed in minutes. The current tools including Facebook and Twitter form a supercharged nervous system for raw, uncensored, unconsidered information, perhaps rashly conceived without an eye for consequences. Facts, objectivity and balance are not the usual bedfellows for rage and vengeance.

But here is the silver lining – for next to nothing, any business can secure positive global exposure of intangible magnitude. Voyeurism can even become more respectable as you keep tabs on what your competition is up to.

And the added bonus of getting this right is that it will make you stand out from others when that prospective franchisee starts looking for opportunities to invest.

Here too, is a novel approach – why not combat the most modern of potential problems with a most ancient and fundamental of commercial principles?  “Keeping the customer satisfied” was a pithy motto on motivational posters in offices around the world long before the internet, but it never went out of style.

We have designed a simple 3 stage mantra -

Stage 1 (before you even switch on your laptop to see what nasty things your customers are saying about you and your organisation) – don’t give them anything to complain about and avoid viral damage altogether.

Stage 2 fire up your computer with much more confidence.

Stage 3 take some sensible precautions to help you monitor what’s happening out there –

• Set up Google Alerts http://www.google.com/alerts for you and your competitors, to see what’s being said about you.
• Collect the social networking names of your customers and follow them on things like Twitter, Facebook or LinkedIn to see what they are up to.
• Use social networking to provide a channel for communication with your customers – encourage it – be open and accessible.

Don’t forget too, that old fashioned is not outdated. Face to face is better than anything else. If this weren’t true, salespeople wouldn’t exist – always something to reflect on when you’re signing off your sales person’s expenses for a “meal for 8” and “exotic entertainment in London nightclub”.

It’s a scary internet world out there but not if you get the basics right. Make it work for you, not against you.

Back to you Esther……

Facebook, Twitter and all the others represent a radical transformation in how most people now use technology. What was inconceivable a few years back now has endless implications for franchises. The research is not empirical (it’s a random sample of 1 though other members of the Women’s Institute are also facebookers) but we can safely assume that the internet is not just for “geeks” any longer.

Is this good or bad for franchises?

In our experience at least, even now, unless technology is a key aspect of the operation, many franchise networks regard it as an afterthought and something that can be bought “if there’s enough cash left after we’ve paid for everything else”.

Rather like X Factor with Louis championing his own acts and insulting Simon’s, this is not surprising – we are in the business and have a vested interest, but please hear me out.

It’s not a wild theory to assume that new or potential franchisees will expect some form of joined up, internet-based way of working rather than a bulky, leather bound operating manual. The balance is changing. Indeed, the lack of such a system will raise eyebrows and maybe even turn you off. After all, nobody does business that way anymore, erm, do they?

Prospective franchisee perceptions aside, technology can be a real competitive advantage for the franchisor. From seamlessly capturing and allocating new leads to the right franchise, through the enforcement of the corporate processes to delivering service with ongoing customer management, technology can take out the “grunt”. You can ponder the consequential enhanced management information to ensure you make the right strategic decisions.

Technology should be looked upon as a bona fide start up cost, and not a “nice to have” embellishment. Hopefully I’ve convinced you.

One word of caution though. Learn to drive before you buy a car. Check the straps before you use a parachute. Learn what LOL means before you throw it about like confetti. My mother thought it meant “lots of love” rather than “laugh out loud. It put a slightly different spin on “Sorry to hear you fell downstairs and broke your hip LOL”.

Here we are focussing on the recession hit construction industry.

According to the Construction Financial Management Association’s 2008 Information Technology Survey, the majority of large construction companies are now using software for functions such as cost estimating, accounting, project management and scheduling which suggests software can provide real benefits in these areas. The problem is, there are just as many different ways to run and manage a construction company as there are general contractors who run them, so how do you select the software that’s right for you?

The most valuable feature in any software program is its ability to adapt to your companies needs easily. Boxed or “off the shelf” software often does not provide the flexibility to accurately mirror your business processes, which can limit the benefits it provides as it requires you to work round the software rather than the software working for you. In simple terms, boxed products are often not bespoke enough.

On the other hand, buying a purely bespoke system also has its limitations. A bespoke system can be extremely expensive, as every component is developed from scratch, and less reliable as it does not have a large user community using it on a daily basis. In simple terms, sometimes bespoke is too bespoke.

One potential solution to this is to buy a product that is designed to be “tailored” to your business rather than a bespoke system developed solely for your business. This sort of hybrid approach usually allows for new functionality and integration with existing software, such as accounting packages. With a well chosen flexible product, your company can get the best of both worlds: a system which mirrors your business processes but which is affordable, flexible and extremely reliable.

When Brent Ropelato, a general contractor, was asked how he felt software is used within the construction industry today, he stated “From my perspective, a program that I can bend to fit my needs is an asset I can’t work without. Customisation is perhaps the most important factor when considering software, because an adaptable program will pay for itself and be easier to use accurately.”

The Building Maintenance Company, an independent maintenance service company agrees with Brent. “We chose to buy software to give our company a technical advantage over our competitors. We chose Maintenance 360, a software product by GreyRidge Software, designed for building maintenance and facility management companies, because unlike “boxed” products that we had used before, the system fitted our business processes perfectly, yet could be integrated to our accounting package simply” states Charlotte Ridley, Company Director.

So why do some experts believe that buying software in these hard times is a waste of money? It could be through lack on understanding. Brent Ropelato explains “The learning curve for using a software program will be greater or lesser depending upon your computer skills. There are several programs that are inexpensively priced, relatively easy to use and, with a little effort and patience, will free up some of your time”.

For all firms considering software, it is important to consider how it integrates and interoperates with your database and existing software applications used by your firm and its subcontractors. Your company size will also help dictate the complexity of the program you should use. Many programs have tutorials, online help, training classes and online demonstrations for support, making it user friendly. You must always keep in mind that your competition may already be using one. To remain competitive and achieve a professional quality in your presentation documents, do your homework and select a product that will suit your needs now and for the future.

Ever heard of the phrase “more haste, less speed”?

The PC Support franchise founders Phil Bird and Simon Albert are committed to this idea and they believe that it is now bringing them solid results. The PC Support Group is now the leading UK franchise dedicated to delivering outsourced IT support to smaller businesses. It is a business based on careful promotion of a winning brand formula.

Right from the start Phil and Simon have placed quality of service above uncontrolled expansion and they believe that it is this emphasis that makes them stand out from the crowd. Phil explains “Our original business was successful because of our dedication to giving fast, outstanding service to our clients. Our policy of ensuring that our franchises meet these exacting standards, has meant that our network is now much stronger than if we had purely gone for fast unmanaged growth from the outset”.

This approach runs right through the business. For example, In the last 2 months The PC Support group has announced a series of partnerships with trusted suppliers and companies that service the IT sector.

Simon is enthusiastic about these partnerships for the same reason that he is careful about network recruitment . “Recently, we have just partnered with GreyRidge, a excellent software company, Rackspace a world leading managed hosting provider and data recovery specialists, ABC DataRecovery.

In each case they were looking for a “win-win” situation whereby the supplier adds something extra to the range of services but also that the supplier standards match those of The PC Support Group.

Phil says “it is great that our franchisees can expand the range of services that they can offer to our clients but it is even more important that they can be sure that these are of a standard that our customers have come to expect from us.”

Ensuring that partners are of sufficient quality doesn’t just happen. Phil continues “Taking the example of GreyRidge, we first used them in 2007 and have worked with them between then and now. With this experience we are now absolutely sure that they are a class-leading company.”