How can a company worth billions of pounds that relies on being online end up with over 6 hours of downtime?

You can certainly sense an element of shock on the part of the company at the scale and length of their problems.

Of course, “technology” disasters are not new.

Consider the Titanic; all evidence is that the owners never actually said the ship was unsinkable but at the time, there was palpable shock that something so technologically sophisticated could end up at the bottom of the ocean.

Have things changed?

To be fair, far from being arrogant, it sounds like Realex had a team in place pretty quickly to sort things out and judging by their words, they are pretty sorry about the whole event. I certainly don’t envy them.

The point is, it does seem that no matter how much money gets thrown at complex technology, things just have a habit of going wrong, at least some of the time.

Reading this article, I pondered whether GreyRidge’s web-based franchise products are immune from these sort of problems.

The answer is obvious, of course we aren’t. And actually, I am glad to say that our starting point is to understand that 100% reliability is impossible.

So I am actually quietly pleased that Tom is gently paranoid about things failing. From time to time, he reminds me that he worries all the time if things aren’t quite as good as they could be.

I think that his very acceptance of our fallibility goes some way to helping us minimize the potential problems we are likely to face.

We know that our infrastructure might fail. So we:

• Use only the best dedicated hosting provider we can find.
• Insist on putting our servers into the best infrastructure possible.
• Are obsess about security right across the board.
• Use only the best database technology (Oracle).
• Don’t use complicated infrastructure such as SAN’s; we keep it as simple as we possibly can.
• Employ only the best staff with the highest qualifications and experience available.

We know that even then, things might go wrong so we:

• Take regular data back-ups offline store them in different geographical locations.
• Offer a service for clients to download their own data.

Most of all, despite every precaution, we remind ourselves that we can never be perfect but we do go to sleep at night knowing that we have done our very best on our clients behalf.

I say “we”.

I do distinctly remember Tom saying that he will be up until 3 this Sunday night checking something on one of the servers…

We’re delighted because we have just heard from our partners Equas SmartPro that they are now expanding their ISO software service in the UK as well as making deals with partners in the Middle East, Denmark and Holland.

Equas developed the web-based Activ management system in partnership with GreyRidge to enable any type or size of organisation to meet the requirements of a range of ISO, BS, OHSAS and other standards – including ISO 9001, ISO 14001, ISO 27001, ISO 50001 and OHSAS 18001.

The system manages documentation and enables the improvement processes specified by the standards to efficiently deliver tangible business improvements.

Activ clients see the system as a means both to deliver their own services more efficiently or in some cases to develop a new business model.

A good example of this is Advena Ltd. “Advena provides regulatory consulting services to SME medical device manufacturers and distributors. Since its commencement in 1996, Advena has developed a global client base”.

The production of medical devices is covered by ISO 13485. Advena have purchased Activ to manage their own management system but are now using Activ to build an ISO 13485-compliant system which they plan to sell to their clients and which will enable Advena to monitor their clients’ systems and ensure that they are up to date with all the regulatory requirements.

As a web-based system, Activ can easily be sold around the world, to multi-site organisations or to the very smallest office since it requires no complex hardware or infrastructure.

Based in Oman, Midwest Oilfields purchased Equas’ ISO 9001, ISO 14001 and OHSAS 18001 management systems for their business. They had heard about Equas’ ISO in a Box paper-based system but when they saw the online Activ systen they decided that this would be more efficient as they had engineers in remote sites.

Midwest Oilfields are now certified to these 3 Standards and see an opportunity to market Activ in the Middle East. They are in the process of setting up a new consulting company which will market Activ and the consultant support to build ISO-compliant management systems.

Equas are finding that similar opportunities are springing up all over the place; Activ is already being sold under licence in Denmark whilst deals in Holland and Germany seem imminent.

The challenges of starting a small business and keeping it going cannot be underestimated and many do fail, even in the very good times. The hurdles can be substantial and the ability to get a business up to speed, making profit and supporting you is not achieved by many.

Franchising has attracted the attention of many over past years and the tough economic climate has highlighted its strengths and shown that there is a more secure way to start your own business. Its formula of a locally owned and run enterprise, driven by a small business owner, with branding, economies of scale and support from the wider network, gives the business a far better chance of success. However, this is only the case if it is done well.

A good franchise will offer you a proven business format with the initial and continuing support that you will need.

Your business will work under the brand established by your franchisor using the business system they have developed and proven in the marketplace. You will pay an initial fee known as the Franchise Agreement fee to set up using the brand and the proven business format, but you would have costs to set up by yourself anyway. With Franchising you will get further ongoing support that will help you to operate and allow you to build the business and, eventually, a capital asset that you can sell or pass on.

The ongoing support is one of the key reasons for the success of franchising. The franchisor has already gone through the pain of finding out what works and what doesn’t – they have invested in the systems and are now willing to teach you how to replicate it. However, don’t think you can pick and choose which parts of the systems you want to use. It is very much all or nothing. However, if you are paying for a proven system, why wouldn’t you follow it?

What are the advantages of franchising?

• About 90% of all franchisees reported profitability over the last 12 months.
• The business format is proven.
• You have the opportunity to build your capital as well as your earnings.
• It is your business and you are the owner manager, providing you follow the system, you decide what goes.
• The major banks are very supportive of good franchising models.

What are the disadvantages of franchising?

• Running any business is hard work, demanding the highest level of personal and family commitment.
• You make a financial investment, however, no investment is guaranteed, especially when it depends on the efforts of both you and your franchisor as well as the vagaries of the market place.
• You buy into a proven business system for its benefits but you also take on the responsibility for following it – not doing so may result in you loosing the business.

Written by Mark Rozier and published by Sally Lawson

Mark Rozier,
Franchisee Development Manager for Concentric Lettings, has a wealth of experience in running businesses, starting out his career working in the family business of transport and then branching out on his own, following his passion for coffee by running a coffee shop, experienced in all aspects of setting up and running a business as well as the front end sales of any enterprise, Mark uses to his advantage all that experience in working with the Franchisees who have joined Concentric as their Franchisee Development Manager and now shares his valuable experience with regular Blogs, articles and social media

“This is the first entry for any award we have entered and to get in to the final alongside the likes of McDonalds and other well established franchises is a huge achievement the team at franchise support are thrilled” commented Ginny Murphy.

She added “ we pride ourselves in striving to do our very best to enable our franchisees to have the best resources and support available to them and we have worked very hard in all areas of online marketing this last 18 months which has seen great rewards not only in sales for our franchisees but also with brand awareness”
For more information on The Wheel Specialist and their franchise opportunities visit The Wheel Specialist.

I presume that before see-through windows were invented, life was that little bit more difficult. Think about it; houses would have been dark (or very cold); cars would be bad for your hair and jet travel nothing short of lethal.

Given their obvious usefulness, it therefore seems to make complete sense that in the parallel computer software universe, offering see-through windows, (as opposed to the opaque variety) means billions of dollars of new sales.

Now, I’ll admit that I hadn’t actually noticed that my computer windows weren’t see-through. For years my computer windows were opaque and I wasn’t even aware of it. My desktop wasn’t even particularly dark or windy as a result.

But now, like an increasing number of people, I have now been through the see-through windows revolution and I can report back on the experience.

For me, this revolution was labelled “upgrading to Windows 7 Aero interface”. It cost me a little bit of cash and it took a few hours but I am now the proud owner some non-opaque, transparent, aero and definitely very see-through windows.

Now, I am late to the game. I could have gone for Windows Vista which also had see-through windows but unfortunately too many of them had a tendency to break and like most people, I missed out.

And yes, apparently, Apple and Linux have been offering reliably see-through windows for years but I don’t get to see through them very often so also I missed out there.

So where were we? Oh yes, my report on the experience.

Well.

Given how much difference it would have made to upgrade to see-through windows in the real world, I will admit that my experience in the software world left me feeling just a tad under-whelmed.

I still have the Internet, I have a bunch of folders and files, some programmes and my email programme looks very familiar. I am a little poorer and a little confused at times but apart from that everything feels remarkably similar. I’ll admit that the windows do seem to be a little shinier…although that could just be because they are new.

So there you go.

Windows 7 (it’s got shiny see-through windows).

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……