If you’re wondering who’s going to do well in this economy, look no further than companies that sell franchises. In a very insightful article on MSNBC.com, Mark Siebert notes that the increase in the unemployment rate of 1.4 percentage points over last year adds 2.2 million people to the jobless pool. And “every 0.1 percent increase in the unemployment rate adds another 150,000 prospective franchise buyers to the marketplace.” Add to those who are being pushed overboard the folks who are going to jump before they are pushed–Siebert calls them the “near layoffs”–and the pool grows larger still.

So lots of workless people are sloshing around. Franchisors are salivating! But it gets better. Lots of folks have already sold out of the market and are sitting on cash earning no return. These people are looking for ways to put their money to work. While there may be fewer people willing to plunk down a million bucks for a Dunkin‘ franchise, those same people may fork over $500,000 for something else, and there are plenty of franchises available for that amount or less.

Mr. Siebert has a consulting firm that helps companies franchise their businesses, so he has a particular point of view supporting franchising. I come from the opposite angle. I don’t support franchising. I am neutral. As a franchisee and business coach, I know the pluses and minuses of owning a franchised business and the dangers faced by someone who’s going into a franchise for the wrong reason.

Still, I think Siebert’s article is incredibly valuable for people who want to understand the economics at work that favor franchise sales in the coming year. There was never a time for buyers to beware more than now. If you want to find out more about the risks of franchising and how to cope with them, drop me a line.

Tags: Dunkin' Donuts, iFranchise Group

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I was just updating my LinkedIn page and there was a quick poll that asked, “What is your ideal workday attire?” I answered and it brought me to the results page. Of 820 LinkedIn members who have answered the poll, 74% said jeans and a t-shirt would be their ideal work clothes, followed by 17% for a suit and tie; 6% for a driving suit and helmet; and 1% for a hardhat and steel-toed boots.

The results were largely the same regardless of company size.  There was some variation by management level: 89% of business owners were jeans/t-shirt and only 61% of the C-Level and VPs were, while 28% percent of that group like their suits and ties, thanks very much. Eighty-four percent of women prefer jeans and 71% of men do. And when it comes to age, people age 25-54 answered jeans about 71%-76% of the time while people over 55 said jeans 65% of the time.

So what’s going on here?

Business certainly is more casual than years ago, but not jeans/t-shirt casual by and large. Is there a pent-up desire for more freedom, more entrepreneurship, more home-based business? Or is everyone just dreaming about changing their lives as they suit up in pin stripes? I think it could well be true that we’re seeing the early indicators of another wave of self-employment and business startups. With Detroit hanging by its fingernails and Wall Street in shambles, it’s no wonder.

Tags: entrepreneurship, LinkedIn

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You may have the most fantastic product or service in the world, but if you don’t connect with me in a way that makes me feel confident in you, I will not be your customer.

I was at a conference a few weeks ago and met people who were networking and pitching their services. One man had an interesting company but I could not connect with him. Why? He had several enormous rings on both hands, accentuated by very shiny nail polish and a huge gold bracelet. He may have been the world’s greatest subject matter expert in his field, but all I could see was his hands. I don’t remember a word he said. I know it’s not right or fair, but there it is.

Another man at the same conference had fingernails bitten down to the end. It was painful to look at. Am I obsessed with hands and fingers? I don’t remember what his business was about.

A woman who was there wore a very low-cut blouse….think I recall what she did for a living? No, I don’t.

Like it or not, most people, I think, are influenced by what they see in someone who may be a potential business partner.  We cannot focus on race, foreign accent, obesity,  disability or unusual style of dress that’s tied to religion–those kinds of things must be overlooked. Not to do so would be pure prejudice and bigotry.  What becomes difficult to ignore are factors that are in our own control. Particularly personal-style factors.

For some, over-the-top personal style is schtick–something to remember them by. The Donald’s comb-over. Liberace’s outfits. (I am dating myself.) Excessive piercings. (It’s one thing if I am looking for a tatoo artist, another if you want to be my financial adviser.) For business people looking to do business, personal style details are important. I think this is true even for people who aren’t 51 years old like me.  Or maybe this whole line of thought is really ridiculous. Hey, maybe those same people I didn’t connect with thought I was an oddball, too.

So how important is personal style for business people?

Tags: networking, small business, success

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I’ve always been intrigued by public speakers, good and bad. I always learn something.  Today I was at a college and happened to drop in on a presentation. The speaker was a social worker who was at the college to give a talk on Alcohol Awareness.  The room had about 100 mostly teenage kids seated at round tables of about eight each. The room had about 15 tables. There was a distance of perhaps 100 feet from the front of the room to the back, where I was. Read more...

Tags: public speaking, success

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In 25+ years in corporate management (and those years are blissfully behind me), I witnessed a lot of behavior that was destructive of employee morale, as well as actions that built up morale. Here are some pointers that will help you motivate your people, whether you are in a large or small business.

1. Acknowledgment. Have you been in a corporate meeting when you have made a point to a group and then the next person chimes in as if you have said nothing? I worked with someone who did this all the time, and it was really demoralizing. In every sales meeting, I’d make a point and then this person would follow up and not even recognize what I said. In effect, the implied point was that my viewpoint was worthless. It’s so easy to NOT do this. When someone makes a point in a meeting, even if you think it’s off the mark, acknowledge it. “I see what you mean, but I was thinking of something else.” Or, “That’s a good point, and I’d like to build on it.” Be seen as a collaborator, not a grand-stander. And not someone who’s oblivious of those around him.

2. Don’t Say Someone’s “Wrong”: I used to do this, and it demoralized and angered other people. If they said something I disagreed with, I’d react emotionally and say, “No! You’re wrong!” That is not a great way to show leadership. If you disagree with what someone says, ask a question or two. See if the person can explain the point until, perhaps, you agree with it, or at least until you understand it and respectfully disagree.

3. When it Comes to Temperament, Think Obama, not McCain. No matter what your political views, as a manager the temperament that resonates with co-workers is one that is inclusive, respectful and acknowledging. When people feel heard, they are more likely to be receptive to your ideas. If they sense anger, disgust and impatience, they will either become defensive or they will retreat (sitting back in the chair, arms folded, silent). The best manager I ever had was my friend Al, who was a newspaper editor and hired me as a reporter. He never raised his voice, he never got angry if I made a mistake. He was fairly stingy with praise. But when he gave it, oh boy, I lived on it for a week. It was worth the wait.

4. Be a Listener More than a Talker. Good managers don’t have to say much. They mostly listen.  A great manager uses silence with effect. Getting people to reveal their solutions and strategies without going to the answer (which you may think you have) is an infinitely better management technique than laying down the law. Corporations aren’t a battlefield. Unless you aspire to be a grunt, no one wants to take orders all day long. Realize it is not about you. Be a humbler boss. Try it, I promise it won’t hurt.

Have other emotionally intelligent tips for being a better manager? Let me know.

Tags: emotional intelligence

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