Franchising Feature - Franchises in Your Price Range

FranchisingFeature febru a ry 2020

Franchises In Your Price Range do i have time for this?

breaking down barriers to growth for smbs

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what’s new!

Hattie Marie’s Texas Style BBQ & Cajun Kitchen Announces Franchise Opportunities for Aspiring Entrepreneurs, Investors and Franchisees Throughout the United States Hattie Marie’s Texas Style BBQ & Cajun Kitchen is proud to announce that they are currently offering franchise opportunities to qualified candidates.

With three Metro-Atlanta locations slated to open in 2020, Hattie Marie’s offers a wide variety of mouthwatering BBQ dishes including: BBQ Ribs, Smoked Brisket, Pulled Pork, Smokey Sausage Links, Fried Catfish & Shrimp, Macaroni & Cheese, Potato Salad, Collard Greens and Texas-Style Gumbo.

Unlike other “barbecue joints,” Hattie Marie’s smoke all of their meats in-house daily.

Hattie Marie’s has already gained national recognition by having social media influencers, politicians, socialites, and entertainers walk through their doors, indulge in their comfort food and document their entire experiences on all social media platforms.

“We are seeking experienced single or multi-unit franchisees to acquire and develop locations in shopping areas, airports, colleges, and more,” says co-owner, Ramona Griggie.

“We bring strong financials and a culture that promotes community and great eating.”

Hattie Marie’s already has an established market presence and substantial market penetration in Atlanta. From that highly successful platform, the company is looking to initially expand the brand on a national level.

To qualify financially for Hattie Marie’s franchise ownership, you must have a provable net worth of at least $100,000, and liquid assets of at least $40,000. Franchisees must be willing to sign single or multi-unit development agreement of no less than three stores within two years.

For more information, visit www.hattiemariesbarbecue.com

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FranServe Appoints Jerry Rieder as Chief Operating Officer Appointment Marks Promotion from VP of Consultant Development FranServe, Inc.—the world’s largest franchise consulting and expansion organization—is pleased to announce the promotion of Jerry Rieder to the position of Chief Operating Officer.

COO is the latest of several roles Mr. Rieder has served in during his seven years with FranServe. Previously, he was Vice President of Consultant Development.

“Jerry’s compassion and desire to see our business and our people succeed is the driving factor behind everything he does,” said FranServe

CEO Alesia Visconti. “With 25+ years at Fortune 500 companies prior to joining the FranServe family, Jerry has honed a management style rooted in a foundation of cultivation, and I can’t imagine anyone better suited for this role.”

As COO, Mr. Rieder will provide organization-wide leadership and management as he helps guide FranServe in the execution of growthfocused strategies. He will also assist CEO Alesia Visconti in the management of daily operations and help establish policies that further promote

the company’s culture and vision.

FranServe is the world’s largest franchise consulting and expansion organization.

Its mission is to help others achieve their dreams of business ownership through franchising. FranServe leads the industry in connecting people to franchise opportunities. This is accomplished by equipping the industry’s most knowledgeable consultants with the training and tools needed to introduce franchisors to the most qualified candidates.

FranServe’s culture,

technology, reach and scale are helping to revolutionize the franchise industry.

To learn more about FranServe, visit www.franserve.com

Conserva Irrigation Adds Seven New Territories in January Conserva Irrigation, the only national outdoor irrigation company founded on the concept of water conservation, announced a successful beginning to 2020 – adding seven new territories in January. The brand will welcome three new franchisees to the system and will open territories in the following locations: · Pasadena, CA and Burbank / Glendale, CA · North Indianapolis, IN and Central Indianapolis, IN · North Charleston, SC, South Charleston / Hilton Head, SC and West Charleston, SC With the addition of seven territories, Conserva Irrigation has now grown to 91 territories in markets throughout the country.

“We’re excited about the fast start to 2020 and are eager to begin servicing clientele in our seven new territories,” said Russ Jundt,

founder of Conserva Irrigation. “Since launching our franchise program in 2017 as part of Outdoor Living Brands, we’ve welcomed like-minded entrepreneurs that recognize the importance of water conservation. Our 2020 pipeline is strong and it’s a privilege to watch our franchisees help address the water waste issues presented by typical irrigation systems, while they use our Conserva Irrigation business model to build an attractive business to achieve their career, lifestyle and financial goals.”

Conserva Irrigation remains the only environmentally responsible irrigation company with a franchise business model focused on providing repair and maintenance practices for commercial and residential sprinkler systems. The smart irrigation leader has quickly become one of the fastest-growing companies in the irrigation industry.

For more information about franchise opportunities with Conserva Irrigation, visit www.conservairrigation.com/franchising/ or OutdoorLivingBrands.com.

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what’s new!

100 Gyms and Growing “Stronger”: Blink Fitness “Lifts” Past Growth Milestone

It’s official: Blink Fitness (Blink) is today’s breakthrough health and wellness franchise brand.

The affordable, premium-quality fitness concept has opened its 100th gym in less than 10 years and is built to thrive for the future.

Since opening its first gym in Manhattan in 2011, Blink Fitness has entered nearly a dozen major metropolitan markets coast-to-coast through sustained franchise and company-owned growth. The brand has celebrated more than 20 openings in the last 12 months, expanding through franchising and company growth into key markets like Chicago, Detroit, Houston and Dallas.

Founded by the world leader in the

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luxury fitness category, Blink Fitness has differentiated itself in the booming health and wellness segment by offering its gym members a high-quality, affordable and inclusive workout experience where how you feel is more important than how you look.

And, there is immense interest from seasoned franchise groups. This year, Blink Fitness inked multi-unit franchise agreements totaling nearly 50 units in Sacramento, Boston, Nashville and cities throughout Ohio.

Franchisees are especially attracted to the concept’s labor-light model—

an unmatched tech-enabled platform streamlines operations and allows for Blink Fitness gyms to operate daily with as few as two employees. Blink Fitness franchisees also benefit from hands-on operational know-how from the brand’s more than 90 company-owned locations open today. Additionally, the scale of the concept’s company-owned footprint allows it to pilot initiatives in various markets, rolling out only proven processes to franchisees.

For more information on the Blink Fitness franchising opportunity, visit www.blinkfranchising.com

Spray-Net Painting Franchise Offers Low-Cost Franchising Opportunities Every year, people are looking to revamp the exterior of their homes, and they are turning to franchises because of their proven business models and support in this competitive industry.

The home improvement industry was expected to increase to $387 million in 2018. Since then, the industry has grown immensely. Exterior painting plays a huge role in home improvement and restoration.

Spray-Net, a Canadian-based brand, whose mission is to use chemistry & software to deliver the best renovation solutions to homeowners, has officially announced franchise opportunities in the United States fo aspiring entrepreneurs.

Spray-Net is the home-improvement franchise that’s changing the way homeowners renovate. Thanks to its patented weather-adjustable paint process and proprietary chemistry, SprayNet delivers a factory finish on aluminum

and vinyl siding, stucco, brick and even

surfaces that aren’t traditionally painted on-site, like front and garage doors and

Spray-Net’s in-class training, succeeded by their online training platform, starts at their support center, where franchisees learn about the brand, business planning, sales, paint application, recruitment, retaining and much more.

homeowners a new way to paint their

They don’t expect their franchisees to come with a background in home-improvement, which is why they’ve developed a comprehensive on-boarding program as well as an interactive e-learning platform to make it as simple as possible for our new franchisees to transition into operating their Spray-Net franchise.

home-improvement franchise opportunity.

For more information, please visit www.spraynetfranchise.com

windows. At a fraction of the cost of

replacement, Spray-Net is the most costeffective way to modernize a home and boost property value.

By bringing the factory painting

experience on-site, Spray-Net gives

homes & offers franchise partners a unique

Massage Heights Announces Top Performers at Annual Conference in Miami Massage Heights, a leader of professional, affordable and convenient therapeutic massage and facial services, recently held its annual conference in Miami Beach, Florida, where top performing franchisees were awarded for their significant accomplishments and contributions throughout the year.

“It’s always an amazing experience when we’re all able to come together and celebrate each other’s accomplishments,” said Shane Evans, co-founder and Chief Executive Officer of Massage Heights.

“Without the passion and commitment from our Strategic-partners and their employees, we wouldn’t be where we are

today, and it’s important to recognize the hard work that each of our incredible team members apply to their businesses every day.”

Top award winners included: • Strategic-partner of the Year Award - Jen Burlington, owner of Massage Heights Leon Springs, Massage Heights Bandera, and Massage Heights Alamo Heights • Rookie of the Year Award - Joe Terracina & Group, owner of Massage Heights Mueller • Hall of Fame Award - Brad and Lisa Moore, co-owners of Massage Heights Centerra

As part of its growth strategy, Massage Heights is targeting franchise development in Nashville, Chicago, St. Louis, South Florida, and Las Vegas.

For more information, visit www.massageheightsfranchise.com

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Featu re

b y G i n a G i l l Fr a n c h i s i n g U S A

Feature:

Franchises You Can Afford The franchising world used to be a slightly unattainable business venture. Held solely for those with big pockets and easy access to money, the franchising world has developed into a more accessible option.

Though once considered the elite investment, there are now opportunities for a wider variety of people interested in becoming a franchisee.

As more and more businesses are offering franchise opportunities, the variety of choices has grown as well. These options include lower investment fees, including business opportunities directly from your own home. As the franchising world has changed, so has the needs of consumers.

“As more and more businesses are offering franchise opportunities, the variety of choices has grown as well. These options include lower investment fees, including business opportunities directly from your own home.�

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People are demanding convenience and efficiency more so than high end products.

A lot of Americans want a service that comes to them rather than stepping out of their homes to access it.

With the internet becoming a normal part of everyday life, people have become accustomed to the facility of having everything at their fingertips and everyone now has immediate expectations from businesses. The franchising industry has responded to those needs with convenient mobile services that also come with a much lower price tag for franchisees. Convenient

services provide lower investment opportunities that are a great initiative for business owners.

Of course mobile services are not the only lower price range franchise opportunity. A lot of upcoming franchises offer services that can be called in and accessed from the franchisee’s home office. One could run a reliable and secure business from their home, offering cleaning services , tutoring or web assistance, for example. A franchisee can manage their employees, and their customers without having to run it from an off site location.

“While some childcare service franchises are not always quick gig options, some low cost franchises provide child care opportunities to parents like nannies, or in home services as well.”

“Managing and scheduling dog walking and sitting can easily be done from the confines of one’s own home. There is no need for an office or building to provide such an easy service.”

A lot of these businesses are offered in a lower price range because they do not come with a tangible building. A huge investment portion of some franchises, like a restaurant for example, can be expensive due to the onsite building and rental options. With the fast paced world we live in now, it turns out that a physical office is not always necessary to turn a profit.

Children’s services Nowadays people are looking for one off options to service quick needs. A couple seeking a babysitter for one evening, or someone looking for care while they attend an appointment are the perfect example of the everyday needs of Americans.

What used to be a big business transaction with customers, can now be answered by

many low priced franchises. A sitter for an evening, a carer for a hospital visit or even someone to help wrangle the kids while you prep for a big meeting - these are all crisis people face everyday as parents. Consumers are looking for special occasions and willing to invest in one off experiences, but they need businesses to provide that opportunity. The franchising world has recognized the economy’s need to provide one shop services that are immediate. Providing care for parents on a short term basis is an easy franchise to run and purchase.

While some childcare service franchises are not always quick gig options, some low cost franchises provide child care opportunities to parents like nannies, or in home services as well.

If you’re interested in childcare opportunities, but don’t want to go broke running your own business, a franchise provides options in both long and short term care - or even offers both services.

It’s worth researching the expectations of the franchisee and investigating whether or not there are high cost for office space. If a business can be run from within your own home, the start up fee will be significantly lower.

Animal care and home care Now that the economy is run on mainly two working folks per household, a lot of people are busy in their day to day life. Services we once expected from our friendly neighbour or family member is not as easily accessible as it was before.

People want their hard earned money to go towards making their lives run a little more smoothly.

Nearly 90 million people in the states own

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“As not everyone is well versed in technology, the majority of people are dependent on web services in one way or another. Depending on your passion there are options for marketing, web design, social media, graphic designer and so much more.”

“There are numerous opportunities within the digital communications world and franchises have tapped into the potential.” a dog and pet owners take their job very seriously. However, sometimes they need a little help to provide the best care to their lovable pooch. People are willing to pay for dog walkers and dog sitters but need someone to provide that service.

Again this is a great opportunity for those interested in a lower investment. Managing and scheduling dog walking and sitting can easily be done from the confines of one’s own home. There is no need for an office or building to provide such an easy service. A franchise gives owners a leg up on the competition, with marketing support and branding that gives pet owners the confidence in knowing their animals will be cared for and safe.

While some owners may need someone to care for their animals while they are vacationing, they might also be looking for someone to care for their home while they are away. According to Travel Agent Central, Americans spend over $100 billion on summer vacations alone - which means there is a lot out of town opportunity for home and pet care!

There are lower priced franchises that offer both services, or each one individually and because both of these services are very

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private and intimate interactions, it’s likely that consumers would prefer a franchise because of their credible reputation and reliability.

If you are someone who is interested in giving back to the community and helping make Americans lives a little bit easier, then child, pet and home services would be applicable to your passion. Not only are there lower cost options, there is also the opportunity to provide a great work life balance. If maintaining such a balance is important to you as an investor it would be wise to gain some understanding of a franchisee’s expectations with such services.

Web services For a totally different option, a low price tagged franchise is web services. Most businesses and homes rely on the web to run smoothly. From creating apps and websites to launch a business, to managing social media to simply installing internet within your household. There are numerous opportunities within the digital communications world and franchises have tapped into the potential.

Web services can easily be provided by a

mobile services. People would prefer you to come to their home or business and assist them with their digital needs. As not everyone is well versed in technology, the majority of people are dependent on web services in one way or another. As a franchisee you won’t need a background or education in IT and can easily be trained to help provide top notch services to consumers.

Depending on your passion there are options for marketing, web design, social media, graphic designer and so much more.

With a mobile service, employees can visit sites, without franchisees having to invest a great amount to start a profitable business.

Franchises can now be anyone’s dream come true. With so many options, the sky’s the limit. Running your own business has never been so easy and now having choices with lower investment costs makes franchising even more appealing.

Answering the customer’s needs for more quick paced fast services, has allowed the franchising world to create business opportunities for even more people without putting a severe dent in their bank account.

No matter what your interest, there is a franchise in your price range.

Look out for our next special feature:

MULTI-UNIT FRANCHISING ABOUT THE AUTHOR: After receiving an English Degree, followed by a Journalism Diploma, Gina Gill became a freelance journalist in 2008. She has worked as a reporter and in communications, focusing on social media. She currently works as a community information officer with Epilepsy Society, while pursuing her writing career at the same time.

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Expert Advice: David Banfield | President | The interface Financial Group

Do I Have

Time

For This?

David Banfield

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It has come to our attention that everyone has the same number of hours in their day, and that number is 24. Not exactly an earth-shattering statement but for many people who constantly crave an extra hour or two each day, it does represent reality.

Living in the age of instant gratification, where everything needs to happen this instant, puts enormous pressure on people to complete as many tasks as they can in the shortest time possible. This quite often is at the expense of some thought that would perhaps contribute to a better result in the long run. We have somehow lowered ourselves into believing that the greater our output, the greater our success.

Quality seems to have slipped, or even disappeared at the hands of quantity.

How is it then that some people can appear to move mountains of paper and still have time for other activities, while on the other hand others are burning the proverbial midnight oil to move everything from A to B? In many cases the answer is simple - it is all down to planning and organization. Even the simplest task needs a planned approach. Just rushing at an activity in order to get it completed is often not the best approach. It is also true that some tasks, if left to rest for a while, in fact solve themselves and require little or no response.

Planning your day and knowing what you want to achieve, and in what time frame, is absolutely crucial and is something that needs to be undertaken on a day-byday basis. There are plenty of books, publications and inspired papers on the art of time management - and they certainly have something to contribute – however each individual will have a different approach geared to their own needs, timetable and ability.

Therefore, at the beginning of each day one should look at the

tasks ahead and determine what will be completed today and what can be deferred for a later time. Having made that determination, it is then imperative to write that down so that it becomes the to-do list for the day. Writing them down will focus your mind on completing the tasks, and dealing with the achievements, in the appropriate order of priority.

If your day really does not have enough hours – or perhaps it should be work hours – then it’s not the day that is lacking, but rather the volume of work that needs to be completed. Sometimes the workload is without doubt greater than one person’s ability and, as such, an obvious solution must be found. If on the other hand the workload is comparable to others, then perhaps it comes back to the organization and planning of the day. Always remember that organization incorporates prioritization in dealing with what has to be done rather than dealing with what is easiest to be done.

Procrastination is much easier than planning and, when in doubt, so many of us opt for the former. There is probably nothing inherently wrong with procrastination providing we have prioritized the tasks for the day, and the ones we choose to defer or even ignore are those that fall at the bottom of the priority list.

Delegation is not a dirty word – there is no reason why we should not delegate more than we do, other than the fear that it will reflect badly on us. Often sharing the workload makes us believe that we are losing control of the big picture, so we tend to do everything ourselves which, in turn, creates a work overload. Delegating to team members is an appropriate approach to getting the job done, and certainly not a sign of weakness in an individual. This is not to say that one delegates everything and ends up with nothing, but rather that there is a sensible and equitable prioritization and sharing the results is a win – win situation for all involved.

Do I have time for this? Well if you have in fact read this far in, you do have time for this and you should continue to make time to read and review as that, in turn, will give you a better insight into your own time management. There are only so many hours in the day - the key is to make the very best use of each and every one.

David Banfield is the President of The Interface Financial Group, a position that he has held for over 20 years. He has been instrumental in starting Interface as a franchise opportunity and building it to its current international status. Prior to his involvement with Interface, he worked extensively in the banking, credit and factoring financial service areas. www.interfacefinancial.com/franchise

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Expert Advice: Rick Bisio | Franchise Coach | FranChoice

Franchises in Your Price Range When people consider whether they should go into franchising, they naturally have some fear and reservations that comes from making such a major career decision.

Do they possess the skills and leadership abilities to run their own business? Will

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they get enough training and support from the franchise system? They also often wonder if they have enough money and can get the financing to purchase a franchise.

Sometimes people may believe they must be independently wealthy to afford a franchise and the investments all cost $500,000 to $1,000,000 or more. That may be the case with certain retail franchises that operate with a storefront location, such as a restaurant or clothing store. In addition to the physical location, the most

expensive operations also have ongoing expenses such as rent, a large number of employees and marketing programs that make it more expensive than other businesses.

Luckily, not all franchises operate from a brick and mortar location, and many are available at a much more affordable price. The least expensive businesses are often home-based and are predominately sales-driven as opposed to marketingdriven. These lower-cost businesses are

“In some cases, these businesses with low initial investments can grow into franchises that make millions of dollars each year.�

Rick Bisio

to hire businesses that can handle these maintenance duties.

By taking the service directly to the customer, home service franchisees do not require a physical business location and are able to save a great deal of money in startup costs and ongoing expenses. They can often open their business from their home or a small office.

mostly home service franchises, as well as personal service franchises.

can be quite successful if it is with the right franchisor.

Home service businesses bring their services directly to the customer and perform a unique and valuable function that saves time and money for busy homeowners. Some examples of these businesses are ones that specialize in window-washing, painting, plumbing, flooring, handyman services, or disaster remediation. There are many home service concepts currently operating, all of which

There has been an increased need for these types of services in recent years. Most homes will require regular maintenance inside or around the house, and the work is often very time consuming or requires specialized tools or training. Whether it is a busy family needing to take their kids to weekend activities or an older couple no longer able to keep up with repairs, there is a considerable demand from homeowners

When we talk about the expense of these low-investment franchises, many cost between $75,000 and $150,000. An important distinction to know, however, is that some people make the mistake of looking only at the franchise fee and think that is the final cost. To determine the actual cost of a franchise, I always recommend to look at Item 7 of the Financial Disclosure Document (FDD).

Item 7 of the FDD is called the Estimated Initial Investment, which is a comprehensive list of expenses that go towards opening a franchise. It includes everything to get the business open and operating, along with the cast-flow requirements for the first three months.

If a franchise fee is $25,000, careful examination of Item 7 will show the true

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Expert Advice: Rick Bisio | Franchise Coach | FranChoice

“The least expensive businesses are often home-based and are predominately sales-driven as opposed to marketing-driven.” cost of owning and operating the franchise may be closer to $150,000.

As a franchise coach, I work with many people who are operating with a tighter personal budget and are exploring lower investment franchises. One of their primary concerns is being able to finance a franchise opportunity. The SBA Express Program grants loans up to $150,000. If people have good credit, they can get a loan to cover most of the cost of a franchise purchase. A SBA Express loan is a great option for many people to quickly secure the money needed to own and operate a franchise.

One advantage to operating a homeservice franchise is that they tend to be less impacted by a potential economic downturn than many other retail businesses. While people may cut back on discretionary spending habits like going out to dinner or a trip to the movie theatre during a recession, they will still need to repair and maintain their home the same way, regardless of the economic climate.

Another benefit of these home-based franchises that do not require a storefront location is the ability to open the business much faster than others. That is very important to some people, particularly those who have left a job to become a franchise owner and can’t afford to wait nine months to secure a lease and build a location. With these types of businesses, people can sign an agreement, go into training one month later and open their business a month after that.

Although there are many positives to low-cost franchises, it doesn’t mean they are easy to operate and will always be successful. Home service franchises require a lot of work from the owner and are not manager-run businesses. You can’t just buy the franchise, hire someone to run it and hope it will be successful. The first couple of years require a lot of focus, determination and effort from the franchise

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owner. Over time, they can earn freedom and flexibility with their schedule.

I believe the outlook for servicebased businesses is very positive. It used to be that many franchises were storefront businesses. Now, advances in technology allow a franchisor to deliver significant advantages to help a home service franchise be as successful as possible. That includes CRM (Customer Relationship Management) systems that can control scheduling, billing, routing software and marketing platforms.

These systems make it possible for people to grow their home service businesses much larger and more effectively than they had in the past. In some cases, these businesses with low initial investments can

grow into franchises that make millions of dollars each year. The demand for their services and advances in technology will continue to allow franchisees to have a competitive position in the marketplace, outperform their competition and be successful as a result.

Rick Bisio is a leading franchise coach with FranChoice, the creator of the FDD Exchange and the Franchise Glossary and the co-host of Rick Bisio’s Franchise Focus. Since becoming a franchise coach in 2002, Bisio has assisted thousands of aspiring entrepreneurs nationwide explore the dream of business ownership. www.afranchisecoach.com/the-coach

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Expert Advice: Christopher Johnson | Senior Vice President and President, Global Financial Services | Pitney Bow

Breaking Down Barriers to Growth for SMBs Small and medium sized businesses (SMBs), including franchises, have an influential role to play in the economic health of their communities, and in the country as a whole.

the solution they’ve been looking for.

Pitney Bowes recently launched Wheeler Financial, a new subsidiary dedicated to helping small to middle market clients acquire the critical assets they need to grow and expand their business. Wheeler Financial will help clients purchase new equipment and services critical to the industries in which they operate with loans, leases, and other financial structures.

To maintain this influence and prosperity, they must have a strong focus on delivering growth. Generating growth is a huge milestone—it’s a foundation for the future, providing stability, security and protection against risk—but small and medium businesses face barriers that inhibit this growth.

2

In my conversations with the SMBs I’ve engaged with recently, I’ve learned that there are four common issues that stifle their prosperity and potential.

1

Difficulty securing funding

SMBs, including franchises, need capital for critical assets that help them grow their business and stay competitive, such as office equipment or software. Yet, it is harder than ever for them to secure this financing. The number of banks willing to lend to SMBs is falling as financial institutions favor larger, more profitable loans, and this lack of access to financing is inhibiting growth and stifling potential.

As a result, SMBs are looking beyond the more traditional institutions towards alternative financiers and partners to find

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Constantly-changing compliance

Regulatory compliance is critical for every SMB and franchise. The risks of non-compliance are high, with businesses facing severe penalties and serious reputational risks if things aren’t done the right way. For some, the answer lies in outsourcing or partnering with experts, but this is often a short-term solution and can be costly. The SMBs I’ve spoken with that have succeeded in addressing compliance concerns are those that have invested in the technology and processes that improve efficiency and productivity and drive compliance at the earliest point. Leading businesses are those that communicate changes and coach employees in behaviors that drive compliance, adopt a culture of best-practice compliance across their organization.

3

Pressure to stay relevant and deliver the best customer experience Keeping up with consumers’ rapidlychanging expectations is difficult for

Christopher Johnson

businesses regardless of their size, but for smaller companies with limited resources, it can be particularly challenging. On the positive side, American consumers have a strong sense of loyalty to SMBs. A study by consumer group, Gallup, found that seventy percent of US consumers have confidence in SMBs – the highest rate since the study began more than a decade ago. Respondents in the study revealed that consumers see SMBs as the American dream and the backbone of the economy.

The strong affinity consumers have with SMBs presents a great opportunity for them to differentiate and drive growth.

Investing time and resource into customer retention, rather than on new customer acquisition, generates a strong return. In fact, a study from Bain and Company found that increasing customer retention by just 5% can increase profits anywhere

“Embracing different ways of working, such as moving to SaaS or encouraging homeworking can also reduce the burden of cost on an SMBs’ bottom line, freeing up costs to dedicate to growth”

from 25-95%. Smaller businesses know their customers’ buyer behaviors and preferences, meaning they have the ability to drive engagement, build relationships and deliver relevant, effective communications.

4

Difficulty in managing rising costs

Prices continue to increase – fares rise, real estate rents soar, insurance rates go up, utility bills increase. Franchises and SMBs are permanently being squeezed by increasing costs to their business. These escalating costs hurt businesses and hinder

growth. Unfortunately, there is no quick fix to containing costs, but a carefullyplanned approach to cost control can make a big difference. Investing in technologies that automate processes and ensure value helps. Negotiating better tariffs for cell phone contracts, broadband and utilities can be surprisingly effective. Embracing different ways of working, such as moving to SaaS or encouraging homeworking can also reduce the burden of cost on an SMBs’ bottom line, freeing up costs to dedicate to growth.

SMBs and franchises will continue to deliver innovation and drive our economy.

Those that successfully overcome these hurdles will undoubtedly generate growth and prosper in the future.

Christopher Johnson is Vice President and President, Global Financial Services (GFS) at Pitney Bowes. Christopher is responsible for the financing and lending businesses, as well as the consumer and merchant payments and risk management functions across the company. He also has leadership responsibility for the Pitney Bowes Bank, a state chartered industrial loan company. www.pitneybowes.com/us

Franchising USA

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Franchising USA