February 13 to 17 is “Social Media Week” so no better time to get the industry in perspective. In the week when a report suggested Facebook and Twitter are more difficult to resist than alcohol or cigarettes it’s time to ask why SMM needs to be an important part of my marketing strategy.

I’ve been a member of Linkedin for years and frequently complained to anyone who would listen that I never got a single lead from it. But Linkedin got a new lease of life when—at the invitation of specialist Bob Flynn—I formed a Group called The Irish Franchise Forum. I told my 400-odd Linkedin contacts about it and Bob weighed in by inviting contacts of his own. Within weeks I had more than 700 members! The membership base will be a useful resource when I stage seminars during the year.

I enjoy contributing to the discussions, but managing a group like this and being a member of other groups on Linkedin is not easy. It needs my attention on a daily basis. My inbox is constantly filling with notices, blogs and newsletters some of which drag me into discussion threads which is time consuming and sometimes distracting. But I’ve convinced myself the effort is going to be worth it. Well, everybody knows you must use SMM…

It’s a different story with Facebook and Twitter. I have a business page on Facebook but rarely use it. Facebook is great for keeping in touch with friends and sharing photos (provided it doesn’t get too personal—you never know who’s watching)– but I don’t think it can benefit my business. Same with Twitter. I can see how Twitter can be useful if you sell ice cream and have a new flavor to promote, or if you want to start a revolution. But I’m in franchising, where nothing happens instantly and announcements are not an everyday event. I confess I’m not really interested in hearing what people are having for breakfast or what new tricks their dog can perform.

Having said that, I do use Twitter. I tick the box to make sure my Linkedin posts also go to  Twitter (and Facebook) and occasionally I’ll think of something outside my blog or Linkedin that’s worth a separate Tweet. My good friend Kevin Bambury advises me on my Twitter strategy. I have 237 followers and I’m following 217 Tweeters. Kevin was able to tell me recently that I am in the Top 50 Franchise Experts on Twitter. Wow! That’s really something. Well done, Kevin.

Having someone handling SMM for you is considerably cheaper than paying for SEO which is another imponderable.

In a recent survey more than half (55 per cent) of marketers said they will increase SMM spend in 2012. On the whole, are they getting the basics right? Not according to Daniel Rowles of online consultancy Target Internet. “Right now, most companies are in a mess with social media,” says Daniel. “We’re still in the experimental stage. Objectives and measurement aren’t always clear and knowledge is in short supply.”

I can see my journey is just beginning!

Now open to all Service leavers, regardless of the date of their discharge, the scheme offers start up grants and loans for any business model of up to £7,500 and up to £30,000 in growth funding once the business has been running successfully for six months.

The Legion provides health and welfare to the serving and ex-Service community and their families. Part of the Legion’s resettlement programme for Service leavers and funded by a grant from the UK Department of Business Innovation and Skills, the scheme is delivered by the Legion through experienced business professionals across England, Wales, Scotland and Northern Ireland.

It has had more than 1,000 registrations in its first year of operation, including many people looking at opportunities in franchising. Applicants and their businesses must be domiciled in the UK and existing businesses seeking funds must have traded for no more than two years. They welcome applications from Service leavers who have an injury, long-term health conditions or a disability.

First step is a programme to evaluate your specific needs and assistance in developing a business start up or business growth plan. A funding proposal is then assessed by the Legion’s professional partners. After receiving funding, the applicant benefits from ongoing mentoring along with period business health checks.

Under the new scheme the government will take 75% of the residual risk, while the bank is in for 25%. While this move is certain to be welcomed by the hard-pressed SME sector—starved of even basic funding from banks since the start of the economic downturn– it doesn’t mean that every application will be approved.

It will apply only to viable trading businesses and there are certain sectorial exclusions, such as agriculture and wholly exporting companies. The government is relying on the banks to screen the applications.

And there won’t be any 100% loans: the applicant will be expected to put up some of the investment required. Just how much an individual borrower can get has yet to be announced, but expect loans from €10,000 to €250,000 and up to €1 million in certain circumstances. This is the level of funding that franchisees were used to getting in the good old days–before the banks ran out of money. Bank staff are currently being trained and readied for the expected demand.

For the first time a common loan application form has been agreed: participating banks such as Ulster Bank, Bank of Ireland, and AIB will want exactly the same information about you, the people behind the business, your financial projections, and timelines.

There’s hope, too, for budding entrepreneurs who don’t qualify under the scheme. Anyone who has been declined by a bank because they can’t offer the required security can apply for a loan from the Social Finance Foundation which is administering €10 million provided by the government to fund projects that do not meet the banks’ usual lending criteria.

Again, terms and conditions have yet to be announced, but the expectation is that qualifying applicants should be able to borrow up to €25,000 on foot of an unsupported personal guarantee.

Not everyone is happy with these proposals: many people say they’re too restrictive. While the scheme won’t solve everybody’s cashflow problems it will put more money in circulation and go some way towards getting the country moving again.

But it wasn’t all doom and gloom. Franchising still thrived as everyone faced up to the challenges. I made time to launch a new website, write an eBook on how to franchise a business (you can download for free!) filmed 17 short videos for my YouTube channel and took up invitations to speak at franchise seminars through Europe and Asia.

I also set up the Irish Franchise Forum, which attracted more than 600 members in less than a month. And to kick off the New Year I’m starting a monthly Newsletter which will keep subscribers up to date on industry developments.

Here’s to 2012—let’s make it a good one!

With a burgeoning middle class of more than 1 billion people, India is set to become a major force in the global economy and fertile ground for investment in retail and business development.

When European markets are static and likely to remain so for years to come, India has to be a prime target for franchisors seeking expansion. The stats speak for themselves: India is the world’s fourth largest economy, growing at the annual rate of 30 per cent, it’s the largest English-speaking country in the world, and 40 per cent of the population is under the age of 15.

The thirst for knowledge in India is evident everywhere. Education is paramount. I was told that a BA is not enough for most university students in India: they must have a MBA! At the seminars at which I gave presentations I had an audience of 100 to 200 young entrepreneurs who were extremely attentive and respectful and asked pertinent questions.

There are no specific laws to regulate franchising In India: instead the sector is governed by different statutes and codes. But in due course the government is expected to introduce legislation in line with international best practice.

Franchising currently accounts for only 2 per cent of retail revenues in India compared to almost 50 per cent in the US. However, that 2 per cent is growing at a fast pace and the implications point to an astounding market potential.
Franchising has a bright future here. Average income is steadily rising and people have more purchasing power. There’s a greater recognition of brand values. Improvements in telecoms and transportation infrastructure facilitate the exchange of information and goods, and Internet access has made it easier for international companies to gain an understanding of India’s culture, geography and politics.

Prospects for successful franchise opportunities include food and beverages, education, clothes, entertainment, courier services, gifts, health and beauty, fitness and nutrition.

Many of the tiresome regulations that once discouraged foreign investment have been liberalized and the government has made it much easier for companies to set up in India. However, there are serious cultural and geographical differences to consider and I wouldn’t recommend any European making the move without local advice and extensive market research.

People who create franchises have created a system to operate their business successfully. That’s S.Y.S.T.E.M as in “Save Yourself Time, Energy and Money.” That’s the attraction for people wanting to set up their own business. Franchisors provide a structure for franchisees to follow, which is exactly what people wanting to be their own boss are looking for. It’s a structure you need to put in place if you want to expand your business through franchising.
You don’t need an existing brand to franchise, but what you do need is a market for your product or service. You need to show that what you are offering is unique or something different in an established field. You need to have proven your concept over a period of at least a year– preferably two or three years–and show evidence that the business is profitable and can be easily replicated and that it is not just seasonal or a passing fad: something that it will survive into the long term.

You can’t franchise an idea, or something you thought up three weeks ago on the back of a cigarette packet. You need to show that the business works and that it can provide a good living for a franchisee in the short to medium term.
Finally, has anyone asked you for a franchise? If there is already interest in what you do, that’s a very good sign. It means someone sees your business as a franchise, even though– up to now– you might not.

You are an independent business owner operating under the Franchisor’s umbrella. But you have to follow the rules.Do consider carefully if you’d be happy to run a business under such constraints. It is not easy to get out of a franchise agreement before the term has expired and you may have problems selling it on.

Most of these people were let down badly by their employers and many will seriously look for opportunities to be their own boss. Since not everyone has the skills—and particularly the confidence—to set up their own business we can expect them to consider franchising as the only alternative.

Now’s the time for all franchisors—especially those in “hands-on” businesses involving skills such as carpentry, plumbing, and building to make plans to capitalise on this new market by tailoring attractive propositions. There’s sure to be a high level of interest in franchising from the people who are getting a helping hand to carve out a new career for themselves.

Franchising offers an established business model with a successful structure to follow, which is particularly attractive to people who have never run their own business before. By owning and operating a franchise they would be investing in a proven method of doing business where all the problems associated with a start up have already been ironed out.
Studies show that more than 90 per cent of franchises are successful compared to only 55 per cent of non-franchised business set ups.

Some €36 million of the money is coming from the European Globalisation Adjustment Fund and another €19 million is to be added from State coffers under the plan for a €55 million fund targeting affected builders. The proposal now goes to the European Parliament and the EU’s Council of Ministers for their approval. The fund will target a total of 9,089 redundancies from all and medium sized enterprises operating in the construction industry. Those eligible for help will have lost their jobs as a consequence of the financial crisis.