The Currencies of Trade
Every Franchise system should have a clear understanding of the following concepts. In addition, they should have a clear marketing strategy to help their Franchisees communicate to customers and prospects about how they will deliver these currencies as they operate their Franchise.
Trade. Give something to get something. Our inhabited globe has come a long way since the act of trade meant that ‘I’ll give you one caribou if you give me three baskets of carrots and a cord of wood’. However, that same basic tenet still drives all economic transactions. Value for value is the test. If we can create more value then we can get more value back when we auction ours. The only difficulty is that the definition of value is ever-changing. Therefore it would make sense that if we can figure out who defines value, we will be able to create and deliver more of it.
Remember from the discussion about Basic Business Concepts that ‘It’s all about the customer’. So if we accept that it’s all about the customer then it follows that the customer is the beast that defines value. Seems simple. Seems basic. Seems unchallengeable.
O.K. so how do we figure out what the customer defines as value? It seems to make sense that we need to find ways to ask the customers that we choose to serve. We need to ask them to define what they find more and more valuable. We also need to accept that the definition of today will not be the same definition of tomorrow. At some point, somebody figured out that the customer wanted a fatter caribou, and if a fatter caribou was delivered, then four baskets of carrots and some extra wood could be obtained. They probably asked the carrot guy.
Study of business customers in today’s world will reveal that there are some basic currencies of trade that hold value for the customer. Understanding these basic currencies will help to define the specific methods and characteristics that are required of the product or service you provide to meet the value definition of your customer.
Money
This is the most accepted version of currency in most people’s minds. In fact, money is used in our common language synonymously with currency. I propose that it is only one currency, albeit the one we trade with in commercial transactions most apparently.
In reality, it’s just the bridge between the caribou and the carrots. I mean, surely people don’t really want a stack of paper. No, they want the carrots if they’ve already got a bunch of caribou. Our forefathers have simply been able to structure a system where the paper can be traded for stuff, and stuff can be traded for paper – and we’re all willing to abide by this trading system.
So a dressmaker is willing to trade one of his dresses for some paper. The landlord is willing to rent part of her space to the dressmaker to display dresses in return for some of his paper. The grocer will accept the landlord’s paper for some carrots – no caribou required.
We all get this one. So if we know that one of the currencies that businesses desire is money, then our products and services must be able to help our customers gain more money. It seems simple but I’m not sure we have that goal firmly in mind when we illustrate our wares.
However, just like the system of trading stuff for paper is simple, so is the concept that we need to show our customers how they can gain more money by doing business with us. The better we can communicate that message, the more attractive our goods and services will be to our desired customers.
Time
Any desired commodity, currency in the case of this discussion, increases in value as it increases in scarcity. Although we were all hoodwinked into believing that the computer revolution of the 1980′s was going to make us so efficient that we would have gobs of time on our hands, I don’t think there are too many converts to that ascribed belief any longer.
When we discuss our clients’ need for more time in their respective businesses, during our training class for all new Schooley Mitchell Franchisees, I always relate the following story.
The scene was at a National Franchise Convention waiting for the kick-off speaker to begin the proceedings. There were several hundred Franchisors like me sitting in the convention hall, when from the back of the room this guy entered, flipping a head of lettuce up and down. He walked right up the middle aisle continually flipping the leafy orb. There were a few snickers because it was apparent to some that an inmate had gone over the wall at the local asylum.
With a determined look, and a single purpose in mind, this guy trotted right up to the front of the room, climbed onto the stage, and leapt behind the podium. With a greatly threatening look, he bellowed, “Somebody in this room tell me why this head of lettuce represents the most important concept that you must understand for your business to survive in the next decade!” He was completely fired up, spittle was flying, and he was turning red. At this point half the room was convinced of the asylum scenario, while the other half realized that this was actually the guest speaker.
Gliding down a bit from his commando high, he said, “O.K., I want to ask you a couple of questions.” He went on to say, “I want you to think back ten years, picture in your mind your local grocery store, and tell me how many square feet were dedicated to heads of lettuce at 79 cents each.” After a bit of a pregnant pause, someone in the audience yelled out, “30 square feet.”
Our now calm and seemingly rational speaker now asked, “O.K we can accept that answer, so now flash forward ten years to today and somebody tell me how many square feet are dedicated to heads of lettuce in today’s grocery store at 89 cents.” The answer came back as ten square feet.
The next question was, “Now somebody tell me how many square feet are dedicated to prepared salads at $4.95 each.” The revelation was clear. Yes, that’s where the other 20 square feet went – in fact, the current stores may even use more than 20 feet! The crowd was elated that they had solved the riddle.
Then in a very quiet, almost ominous tone he asked, “So what is that about and why does it matter so much to your business?”
His message was of course that it was about time. We are willing to pay good money, already conceded to be a valuable currency, to save ourselves time. We will pay a premium to avoid cutting carrots and cucumbers, and in my mind I plead guilty to the act.
In fact, he said, “Time is the currency of today’s economy, and you need to figure out how you are delivering time to your customers, or you will not thrive.”
The story hit hard, made a strong and valid point, and I have been thoroughly convinced of the importance of time as a currency of trade ever since. The challenge of course is to figure out how to deliver time to our customers. Before we can do that we have to figure out how we can make it clear to our customers that we will, in fact, help them to gain time through our wares.
Money and time are certainly the most recognizable and widely accepted of the currencies of trade. However, it is my belief that we also trade in Security, Knowledge and Prestige. These currencies will be reviewed in more detail in a subsequent release, but for now, suffice it to say that we need to feel secure, not only physically, but also that we have made the right decisions. We also crave knowledge. In fact, we live in a knowledge-based society now. The vast majority of people trade for prestige as well. Otherwise, why would we wear what we wear, drive what we drive, live where we live?
Money, time, security, knowledge and prestige make up the suite of Currencies of Trade. So the challenge is how to deliver these items, and how to make our customers aware of how we deliver them.
About the Author
Dennis Schooley is the Founder of Schooley Mitchell Telecom Consultants, a Professional Services Franchise Company. He writes for publication, as well as for schooleymitchell.blogging.com and franchises.blogging.com, in the subject areas of Franchising, and Technology for the Layman.
www.schooleymitchell.com, 888-311-6477, dschooley@schooleymitchell.com.
Partnerships and Starting a Franchise
Partnerships have a relatively low rate of success when starting a franchise. Well, the same is true for any business. Why?
Most partnerships fall apart within a few years or even months because of mistakes during their structuring process.
In many cases partnerships are put together because one person either can’t afford a business or does not have the expertise to start one.
As a result, exited to find a partner and fulfill an individual dream, entrepreneurs rush to get started before taking care of some important details.
Here are some things that need to be considered when starting a franchise business in a partnership:
1. What is the exits strategy? – Maker sure that you share the same vision of where you want to be in 5 years. If an offer comes along to buy your franchise, what will you do?
2. Decide what to do if you stop agreeing on things – effective dispute resolution tools need to be put in place before you get started.
You are going to spend a lot of time with your franchise partner, don’t expect to agree on everything.
3. Decide who is the boss – it is almost impossible to run a 50/50 partnership. Someone needs to be the boss or the CEO.
This way you know who is responsible for a final decision from the beginning instead of having to decide that each time on the spot.
4. Consider a Limited Partnership – Make sure that all the liabilities in your business are clearly spelled out. Getting a limited partnership agreement in place might be the best way to go.
5. Look at some successful partnership examples – Baskin and Robbins (ice cram franchise) come to mind. Take you time to research what made other people successful in this arrangement.
When considering a partnership it also helps to consult an attorney in order to incorporate all the details into a partnership agreement.
In the end, partnership may be a great option for you, the key is to give careful consideration to all your options and properly document everything.
For more on finding the right franchise go to: http://www.franchise-opportunities-search.com
About the Author
Andre Chernih is a franchise expert, editor and manager of the web site http://www.Franchise-Opportunities-Search.com a collaborative compilation of info, articles, opinions and recommendations created to help aspiring business owners learn about franchising and find the right franchise opportunity.
Portability of smartphones is significantly better than tablet PCs and notebooks
April 8 morning news, according to foreign media reports, Compuware subsidiary Gomez Internet Performance Department released data show that the main Internet web site page is loaded, Dell GW240 Battery the Apple iPad faster than the speed of the Internet this and the Amazon Kindle reader.
Data show that 74% of major Internet sites loaded in the iPad on the Internet this on faster than the speed. But on all Internet sites, the, iPad page loading Dell Inspiron 6400 Battery slightly slower than the Internet this. Gomez CTO Emard @ Mullin (Imad Mouline) that the performance of a large site on the iPad better because these sites are optimized for the iPad. If there are more sites to follow, then the iPad the future will provide a better browsing experience.
However, upgrading of part of the site loading speed is not as iPad load Flash content, which leads to some site functionality is limited. But Mullin said, even taking into account the impact of Flash content, iPad loading large web pages are still faster than the speed of the Internet this.
Apple CEO Steve @ Jobs (Steve Jobs) has said, iPad if you want to be successful, it must in some ways better than the smart phones, in some ways better than the laptop. Portability of smartphones is significantly better than tablet PCs and notebooks, but the performance is also weak.
Jobs said, iPad would be by far the most outstanding Web browsing device, while the Internet is not the advantage in every aspect. iPad portability of this better than the Internet, if the page loading speed better than the Internet of this, it will prove to be Steve Jobs said is true.
According to the foreign site, Apple iPad has been successfully listed, last weekend one-day sales of more than 300,000 units. Apple iPad forum users complain that recent days have been a continuous bombing, the complaint can not be sustained and steady focus on iPad keep Wi-Fi connection. Apple today confirmed that its new iPad existence of Wi-Fi link to the problem and the issue of remedial measures.
On an Apple forum, Dell GD761 batteries entitled Weak Wifi Pages (bad Wifi page) the Dell Inspiron 8600 Battery listed in the iPad 48 hours after visits to more than 1 million times.
The following is an excerpt of 2 user comments:
One commented that the 16GB version of iPad on my Wifi signal is also weak, even WLAN is standing in front of the router, the signal is weak when the strong. In fact the router signal is very strong, the other computer can receive a strong signal, even in the 20-30 meters as well.
Another commented that, in the room, my iPhone, iPod touch, two Macbook Pros notebook, Apple TV, and PS games are full of cell signals, but only 1-2 iPad format signal.
User guess Wifi antenna signal is weak due to problems, some people speculated may be a software problem. The latter fact seems to confirm speculation that the majority of the forum completely run Apple network users do not have the same problem.
Monday Apple Knowledge Base article published on the page, to discuss the issue. cheap Compaq TC4400 batteries This article not only to make recommendations on the repair, also illustrates this problem very seriously Apple. The article said that support for 2.4 GHz and 5 GHz frequency band of third-party Wi-Fi router connection problems occur, the user’s network settings for each band a different SSID, to ensure that each network uses the same security settings (WEP, WPA or WPA2 ).
About the Author
Data show that 74% of major Internet sites loaded in the iPad on the Internet this on faster than the speed. But on all Internet sites, the,
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