Franchising for Entrepreneurs?

There are three quick and dirty tests for whether or not a business might be a candidate for franchising:

1. Is it a good moneymaker? The old rule of thumb is that the franchise company is going to take a royalty fee of about one-third of the expected or average profits to cover their service expenses and make money. Is that going to leave enough profit for the franchisee to get a good return on their money? If not, it will be very difficult to recruit franchisees.

2. Can you systemize the operation of the business to make it simple enough that any reasonably talented and smart individual can follow your instructions after a fairly short training program and be successful? If it is more difficult than that or requires a lot of special skills or education, it may not work because the prospective franchisee pool will be too small.

3. Is it fairly easy to market the business so that you attract a sufficient number of customers at a reasonable price? If not, then you’re going to end up with failures and that’s not going to be good for anyone.  Franchising for Entrepreneurs

Franchise?

Marketing for Entrepreneurs Is Different From Any Other Marketing

Stanford University, which offers a free course for entrepreneurs suggests the fundamental difference in marketing when you are an entrepreneur:

Lumping everything that’s not a start-up into everyone else marketing is a vast over-simplification we use to make some points about entrepreneurial marketing. As someone who has been responsible for marketing in 19 different start-ups, I forget what it is like to market anything that anyone has ever heard of before. This is the most fundamental difference between entrepreneurial marketing and everyone else marketing: no one knows who you are, and secondly, you generally have very little money to tell them.

So, where do you start when you have no customers, no brand, no budget and maybe even no product? You “market” what you do have — your vision, your people and the work-in-progress that is becoming your product. This is done one-on-one or in small groups. If you are NOT out meeting with the people who may someday become your customers, and learning about their needs, their challenges and their dreams, you are making a classic mistake we call the “field of dreams” flaw — thinking, “if we build it they will come.”

Entrepreneurship is not like the movie. Customers don’t necessarily come to you; you have to go to them, and do so long before you have a product to sell. You need to understand not only their product requirements, but you need to learn how to sell it: who makes the decisions, where does the budget come from, what other issues is management facing and, most importantly, where do you fall on their priority list? We love to ask, “why would you NOT buy or use my product?” If you fail to truly understand what makes your customers tick, you will most certainly do one of three things: build too much, build the wrong thing, or deliver too late. Any of these perils can easily waste a round of funding, or, in a start-up, kill the company.

Another fundamental skill that will help you be a great entrepreneurial marketer is discovering what customers really care about. When we ask students what customers care about, usually we get responses like, “whether the product works,” or “cost effectiveness,” or “quality.” But the answer is much simpler. Customers care about themselves. They care about how you can help them be better at whatever they do. It’s about them — not about you. As soon as you realize that, you are freed from the need to have a finished and polished product. They have to believe that you 1) Comprehend their problem or opportunity, 2) have the Competence to address it and 3) Care about their success.

This is where a great entrepreneurial marketer starts: comprehending, competence and genuine caring about their customers. This customer insight goes into creating the right product. From there we can begin with the other aspects of marketing, like building awareness, generating leads, measuring success and so on. But it all starts with having the right product- one which is based on customer awareness.

Entrepreneurial Marketing

Startups in Brazil with Government Support

With two major global events coming up — the 2014 World Cup and the 2016 Summer Olympics — now sounds like a good time for the Brazilian government to announce a startup accelerator program. The country’s Ministry of Science, Technology and Innovation is offering up to $78 million to entrepreneurs that apply to Start-Up Brasil for one of 100 slots. Selected participants will go through a business accelerator for six to 12 months. About one-quarter of available slots will go to foreign companies, but only if they plan to stay for a few years; the government will help them get visas.

Start-Up Brasil director Felipe Matos wasn’t a huge fan of the government when he started his own incubator, but when he was approached to run this project, he “thought that this would be a fantastic opportunity to do something for the Brazilian startup ecosystem.” He believes that businesses can take advantage of a shift towards those who can afford to choose entrepreneurship over other professions. Brazil is the second South American country to create this type of program; Chile began its version in 2010.   StartUp in Brazil

StartUp Brasil

 Apply by November 19. 2013 startupbrasil.21212.com/

Entrepreneurs in Zimbabwe

In the wake of President Robert Mugabe’s re-election in July, some speculated about a return to the Zimbabwe dollar, which collapsed in 2008 under the weight of hyperinflation. Two tech gurus ponder innovations that might emerge if such dark times returned. Perhaps a smartphone app that works out what to charge in the afternoon based on prices in the morning. Or one that uses GPS technology to direct motorists to petrol stations that have not yet run out of fuel.  Entrepreneurs in Zimbabwe from the Economist.

Tech Entrepreneurs in Zimbabwe

The Dangers of Willful Blindness

In Margaret Heffernan’s brilliant book, Willful Blindness, she describes her first direct encounter with the state was in the Judge’s instructions at the end of the Enron trial.   “You may find that the defendant deliberately closed his eyes to what would otherwise have been obvious to him.  Knowledge can be inferred if the defendant deliberately blinded himself to the existence of a fact.”

Heffernan notes that many of the greatest crimes are not committed in the dark, but in full view of people who chose not to look and not to question.   The Catholic Church, the SEC, Nazi Germany, Madoff’s funds, the embers of British Petroleum’s refinery, and the dog-eat-dog world of sub-prime lenders, all willfully blind.    Willful Blindness

Willful Blindness

Asia: The Impact of Politics on A Country’s Businesses

William Pesek on Bloomberg notes that the roiling economies throughout the world have taken their toll on emerging economies but governments rife with corruption and leaders paying more attention to securing their power than addressing the country’s issues make the future look bleak in Indonesia, India, Thailand and Malaysia. Asia’s Crisis of Leadership

Corruption in Asia

Nobuyuki Idei Encourages Japanese Entrepreneurs

Japan ranks 114th among 185 countries for ease entrepreneurs have in starting businesses.

“We want to transform Japanese corporations and Japanese society, because after Sony and Honda, no big companies have been born except retailers,” said Idei.  “The concept of patient risk money doesn’t exist.”

Idei discusses everything from the difficulty Japanese entrepreneurs have in finding investors to Nikolai Kondratiev’s obscure theories on technology cycles. He also said he had no regrets about his much-criticized stewardship of one of Japan’s most iconic companies.  Former Head of Sony Helps Young Japanese Entrepreneurs

Idei