Success | October 30, 2008

How to Keep the Glass Half Full

Posted by Joanna Meiseles at 5:09 PM

To be successful, you need to focus on success. It is impossible to bring more success into your life when you focus on the lack of it. The power of positive thinking works in all aspects of your life -- success, love, wealth, and happiness. You cannot feel bad when you are thinking good thoughts. They are diametrically opposite, and cannot happen simultaneously.

So, if you want to be successful in business, think of thoughts tied to triumph and accomplishment. Get a clear picture of what success looks like, and focus all of your energy on making that picture become your reality. Here are a few things you can do to help yourself along:

Listen to your thoughts. When your mind starts turning and playing your thoughts over and over in your mind, do not judge them -- just review them as if you were a third-party observer. Realize that you have control and start turning your negative thoughts into positive affirmations.

Make a vision board. Gather items that help you visualize your success. Find magazine pictures, symbols, or any visual aids that keeps your picture of success clear in your mind. Look at your vision board every day, and tell yourself you are on your way.

When you feel overwhelmed or that success is elusive, give yourself a "gratitude break." Take a moment to relax with deep breaths. Create a list of things that you are grateful for. You can pick a topic relating to your business (or anything else you choose), and then just start rattling off items -- no matter how small.

You will find that you have more to be grateful for than you might have realized, and this will put you in a more positive mindset. In fact, with each exercise listed above, you will slowly begin to focus your energies in a positive direction. Remember, you cannot feel like a failure when you focus your thoughts on success, and when you focus your thoughts on success, you achieve it!

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Success | October 3, 2008

Change You Can Really Believe In

Posted by Joanna Meiseles at 12:53 AM

I just read a quote from a desk calendar that said, "You get to fill the blackboard of your life with whatever you want. If you have filled it in with baggage from the past, wipe it clean. Erase everything from the past that does not serve you, and be grateful it brought you to this place now, and to a new beginning. You have a clean slate and you can start over -- right here, right now. Find your joy and live it!"

Cheesy… but inspiring.

How long would you stay in a bad situation before making a change for the better? Maybe it's a job, a relationship, a lifestyle, or something else entirely. In my work at Snip-its, I see this all the time. Just about every franchise prospect I speak with tells me they have dreamed of owning their own business for a long time, but they were either too scared, too stuck in a job, or too financially strapped to make their dream a reality. Nine out of 10 times, these prospects end up not purchasing a franchise of Snip-its or any other concept. They go back to their comfort zone, even if they are not living their dream.

Starting your own business, even with a franchise partner, is a risky venture. In my experience, there are certain character traits that make one person more likely to take the plunge than another. From my observations, people with these character traits are more likely to live the complete life that brings joy and fulfillment -- in every aspect, not just in their careers.

Dreamer. A visionary. A dreamer is someone who can imagine fully what the future looks like. Having a dream is the first step to fulfilling it.

Risk-taker. Someone who risks loss in the hope of gain. A risk-taker in the sense that I mean a taker of calculated risks, not life threatening or thrill-seeking risks.

Analyst. Separating a whole into its elemental parts. This is someone who enters a situation with their eyes wide open, does their homework, and understands the risk/reward ratio.

Connector. A person who makes relations easily. They seek connections with other people that are good at gathering the resources needed to start and operate a successful business. As I've said before, the best way to turn a business vision into a business plan is to talk a lot about it. A connector is most likely to do that.

So what are you waiting for? Make your life the best it can be! Like the calendar said, "Find your joy and live it!"

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Employee Management | September 5, 2008

What Does It Really Take to Inspire Employees?

Posted by Joanna Meiseles at 6:13 PM

For as long as there have been businesses with bosses and employees, leaders have been looking for ways to make their teams more productive, to deliver better service with lower turnover rates. Poor performance in all three areas can cost companies millions!

The hair salon industry -- my industry -- is notorious for employee turnover. In fact the national average is over 300 percent per year! That means that the average hair stylist will stay at her job for only four months. Imagine if we could find a way to lower that number. It would save not only on recruiting costs but also boost productivity. New employees are slower and have to learn the ropes before they become super-productive, and once they get their productivity up, they quit! Imagine the benefits of having a long-term staff that is happy, knows your customers, and delivers great customer service.

When I started my business 13 years ago, my salon's turnover rates were just below the industry average. So was my customer service and productivity. My stylists were slow and the quality of the service -- both customer interaction and technical haircut results -- were inconsistent at best. I tried everything to make it better: I offered more money to my better employees. I offered productivity bonuses for speed and revenue generated. I even offered a $50 bonus for each quarter an employee lasted at my salons. Needless to say, my tactics failed. I learned an important lesson: money isn't the only reason people work. Having a boss that cares and appreciates her employees is equally important, if not more so, than money. The key is to cultivate a culture of teamwork, camaraderie, friendship, and support. Here are a few ways I have found to do just that:

Ask your employees what their dreams are. Get them to think outside the four walls of the business and tell you what their life goals and desires truly are. They may be skeptical at first, but if you are sincere, your employees will be happy to know you care and take interest in them outside of work. And, if you can actually help an employee achieve a dream, they will be living a better life outside of work, be happier people, and be more committed to you and your business. I was actually surprised to learn what my hairdresser's dreams were. Several wanted to buy a car and others dreamed of moving out of their parents' homes. One wanted to get away from an abusive boyfriend. I was touched to get to know my team in a more intimate way, and by sharing dreams we bonded.

Make a plan to help your employees achieve at least one dream. Sit down with each employee and make a plan. Use the system called SMART goals: Specific, Measurable, Actionable, Rewarded, and Time-framed. With a detailed action plan, you can work with your employees to make their dreams become reality.

Check in once a month. Schedule a one-on-one meeting each month to see if the dream has changed or evolved, review the action plan, and make adjustments. Don't drop the ball on the program or you'll end up worse than when you started.

Rally the team to help. If appropriate, get others involved. You might even want outside help. Use whatever resources you have available to make progress. For example, I had one stylist who wanted to purchase her own car. That was her dream. I asked her if I could share her dream with the team because I was sure we had some resources that could help her. She agreed. Among the 10 employees in the salon, we managed to come up with a contact for a financial planner and a mechanic who could check out a used car to be sure it was in good shape. Both offered to help this stylist for free.

I worked with this stylist for about six months on her car-buying dream. We implemented a plan to help her earn more money, save more money, and get a great deal on a car she could really feel good about. Late last year, she bought a bright red 2004 Honda Accord, and we all took turns going for a ride with her so she could show it off. I don't know who was happiest -- the stylist, her friends at work, or me.

I love managing my business by helping my employees dream and achieve goals. I am happy to say that since we have been keeping track about five years ago, we have had over 100 dreams fulfilled -- some big, some small. We have reduced turnover to less than 60 percent system-wide, and our customer service and productivity have never been better. Helping people achieve their dreams is good business!

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Business Planning | July 24, 2008

What Are Your Core Values?

Posted by Joanna Meiseles at 5:01 PM

When contemplating a major decision, such as buying or starting a business, I find it very helpful to take some time aside from writing business plans and do some personal exercises that will help identify your core values and how to use your personal strength to achieve happiness and success. This exercise can be fun -- and very insightful.

First, think about your childhood influencers -- your father, mother, brothers, sisters, teachers, coaches, mentors, or any other person who was important during your childhood. Pick three or four of the biggest influencers and write down how they lived their lives and what their values were.

In order to determine your core values, get some insight from others. Ask significant people around you what they think your values are and write them down. Ask each person to name at least three values they feel you demonstrate in the way you live your life. This provides a window into what our core values are, as well as how well we are demonstrating them through our actions. Some people you can ask include your spouse, children, parents, siblings, close friends, and business or professional associates.

Second, look at your unique abilities. Understanding our own unique abilities can help us gain clarity on what is most important to us in our life. You'll want your core values to be in sync with your unique abilities. Answer the following questions:

• What are your God-given gifts, talents, and unique skills?

• What are you really good at doing?

• What do you love to do? These are things that you enjoy, that bring you energy. When you're doing something you love, time passes quickly.

• What are you passionate about? This could be something like a charitable cause, a humanitarian passion, or a dedication to something that is beyond your needs.

• If you wrote a book about your life to-date, what would the title be?

Finally, make sure you give yourself plenty of time to both complete this exercise and evaluate it afterwards. It is particularly helpful if you have a professional coach or therapist who can work through your answers with you. The information gathered should give you a clearer view of your core values and how you demonstrate them.

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Employee Management | June 27, 2008

Building a Strong Team

Posted by Joanna Meiseles at 5:59 PM

Many small-business owners underestimate the value of strong leadership and a cohesive, high-achieving team. A highly engaged workforce can take an organization to impressive and profitable heights. An indifferent workforce can ruin it. Every business owner wants to make their work environment better for employees, but many do not know where to start or what key drivers they should focus on. Here's a roadmap:

• First, every business needs strong management and leadership -- whether that's you, the business owner, or a highly trained manager -- to make sure the vision and plan of the owner is implemented effectively on a day-to-day basis.

• Next, you (and/or your manager) need to clearly identify and communicate your organization's objectives and goals. Make sure they are fair and attainable, but not too comfortable. Communicate this, and put it in writing where everyone can see.

• Align team members' strengths, egos, and personal interests with those objectives. Meet one-on-one with each person and get his or her buy-in. If there are objections, try to use personal interests and motivations to find an area of strength where each person can contribute positively.

• Foster shared decision-making, so the team feels like they are part of the planning process and individual members take ownership of the shared goals.

• Finally, keep score and keep coaching. Track progress towards the stated goals on a daily, weekly, and monthly basis. Revise the goals if necessary, and reward positive contributions. Make the process itself fun and engaging so your team will be receptive and motivated.

And, remember, compensation and perks are not the only reasons people work. Personal satisfaction in a job well done, recognition by peers and supervisors, and team spirit and friendship are usually more important than money in creating a positive and productive work environment.

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Business Planning | June 3, 2008

Opportunity is in the Eye of the Beholder

Posted by Joanna Meiseles at 11:30 PM

The “R” word -- recession -- seems to be on the tip of everyone's lips these days, and people are scared of what the future holds. The only thing sure in these uncertain times is that if you do nothing, you will receive nothing in return. So try something, find an opportunity that excites you, and go for it. Opportunity is in the eye of the beholder. Here are a few tips:

Analyze your skills, talents and interests. Make a list of things you learned in school or at a job that you feel could help you in business. Do the same for things you are good at naturally and things that bring you joy. Play into your strengths as you contemplate your business venture.

Look at franchise opportunities and see what jumps out at you. It could be that the business you've always dreamed of already exists, and all you have to do is sign up and follow the plan. If not, at least you will see a broad spectrum of businesses that should add fuel to your fire. Be honest as you contemplate what color your parachute is.

Surround yourself with quality and passion. Seek out business experts, talk to family and friends, and network with others who are either starting or have successfully run a similar venture. Get all the advice and enthusiasm you can find.

Build a solid foundation and stick to your values. Be honest with yourself. If there are areas of business you are not strong at, either consider a franchise so you have the support of the system, or find a partner or advisor to help you. Be very clear on where you want to go and how you are going to get there, and don't waiver from your core values.

Tough times are challenging, and there is a lot of detail that goes into choosing, launching, and operating a successful business, of course. The points above are just a few of the many things to consider. The more prepared you are for tough times, the more likely you will be to emerge victorious. Tough times can happen in any business and in any economy, so recognize the potential pitfalls, plan strategically, and forge ahead.

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Business Planning | May 21, 2008

Buying a Franchise: The Top Three Pitfalls

Posted by Joanna Meiseles at 1:16 PM

Entrepreneurs buy into a franchise concept to live the dream of business success without the risk of going it alone. Of course, any business can fail -- even a franchised one -- but there are three financial mistakes that business owners make with some regularity that could easily be avoided. Don't fall into these traps.

Building pro forma financial statements without substance. It is easy to make assumptions about your business before you know the reality of how your business will perform. Build a pro forma business plan from the ground up. Use information from other franchisees, the franchisor, industry standards, economic circumstances, and anything else you can think of that will help you ground your plan in reality. With a strong financial footing, you'll be one big step closer to success.

Having just what you need and not a penny more. The disclosure documents will tell you the high and low range for initial investments. All too often, franchisees plan on being "average" and prepare their initial investment finances accordingly. Franchisees who are undercapitalized are destined to fail, so plan to have the high-side investment available, and maybe even 10-25 percent more than that. Once you have your capital secured, spend it wisely.

Spending too much money in the early stages. When your capital comes in, the money burns a hole in your pocket and you're dying to spend it. But be careful not to spend too much too soon. You'll be writing big checks for important items such as lease deposits, construction, furniture, fixtures, equipment, inventory, and more, but be prudent with every expense, big or little. Plan ahead, follow your plan, and keep reserves of cash for operations, unexpected expenses, and bumps in the road.

You can avoid these traps by being prepared, planning carefully, and making smart decisions.

Post a comment here and let me know how you are managing.

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Business Planning | May 2, 2008

Eyes Wide Open: Tips for Franchise Buyers

Posted by Joanna Meiseles at 5:43 PM

When buying a franchise, it's easy to fall into a trap that makes it difficult to make an educated and informed decision. Through the franchise sales process at Snip-its, I see many of these mistakes made by even the best of prospects.

Buy with your head, not your heart. It's great to be passionate about your business, but passion is not enough to ensure success. You'll want to carefully investigate the business, speak with existing franchisees and the support team, review the disclosure documents thoroughly, and compare your business to other businesses in the same industry, investment level, real estate market, etc. Prove that it is a smart business decision, not just a passionate one.

Make a full commitment. Many franchisees want to keep their corporate jobs until their new venture is off the ground and thriving. While this makes sense logically, it may not be practical. Any new business requires a great deal of energy and attention, especially at the outset. Be prepared to devote yourself fully to your new business, and don't be fooled into thinking you have enough energy and passion for two jobs.

Support the operations model -- don't reinvent it. Franchisees are entrepreneurs by nature, and that can be both good and bad. Entrepreneurs are notorious for wanting to reinvent the wheel, but a franchisee who wants to do things his or her own way is destined to clash with the franchisor, not to mention violating the franchise agreement. If you are buying a good franchise, the operating model has probably been well-proven by the time you come on board -- in fact, it's one of the primary assets you are paying for by buying the franchise. Wait until you have some experience before deciding you are the expert.

Be realistic. Some people think that buying into a franchise is a foolproof way to operate a successful business. It's great to be optimistic, but be careful to understand that YOU will be running the business, not the franchisor, and some franchises do fail. Be prepared for the worst-case scenario, and have a back-up plan in case your business struggles more than you anticipated.

Know what the franchise agreement promises. If you actually read the disclosure documents literally, you will see that franchise agreements generally provide very little to the franchisee beyond licensing the right to use the company's system and trademark for a period of time in a specific territory. There is actually not much else that the franchisor is required to provide. Although most franchise companies support their franchise owners with their marketing, operations, and real estate, it is usually not a legal requirement. Be sure you understand exactly what you are getting when you buy a franchise.

By identifying the potential pitfalls, you can avoid them. Franchising can be a rewarding and profitable way to get into business, so go in with your eyes wide open and minimize your risk.

If you are a franchisee or a franchisor who has experienced some of the mistakes listed here, I'd love to learn from your stories. Write me!

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Success | March 3, 2008

Do Your Homework to Validate Success

Posted by Joanna Meiseles at 2:52 PM

If you've made the decision to open a franchise, you'll need to do your homework before signing on with any franchise company. Part of the due diligence practice involves a process known in the industry as "validation." Validation is the process of speaking to existing or past franchisees of the system you are looking at to determine your likelihood of success.

Continue reading "Do Your Homework to Validate Success"

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Business Planning | February 7, 2008

Franchising: Five Reasons to Explore First

Posted by Joanna Meiseles at 12:48 PM

Why join a franchise system, as opposed to going it alone and starting your own brand? Below are five good reasons to consider a franchise as your next entrepreneurial venture.

Benefit of the Larger System -- When you join a franchise organization, you get the benefit of learning from other entrepreneurs who have done exactly what you will be doing. In franchising, we say "you're in business for yourself, but not by yourself." This means that you have an entire franchise organization, to call on for advice, best practices, and support.

Continue reading "Franchising: Five Reasons to Explore First"

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