It is Important to Network in this Business Climate
It is Important to Network in this Business Climate
By Paul Eckert
As we look at the landscape of our industry, you will probably find that the average franchisor has limited resources to work with. That is why it is always prudent to look at just what resources we should allocate to any endeavor. We are living in a very unique period of time, one that affects both our economy and the business environment as a whole. As things get more challenging, we all tend to look even harder at just how we can be more efficient with both our time and our money. At times, we may feel that it’s time to cut our costs and slash all unnecessary spending. This is exactly what is happening all around the country in every organization, large and small.
In today’s economy, many business owners only want to evaluate activity with what directly and immediately affects their balance sheet. Discretionary spending is a term that we all use in our budget meetings, but the decisions that we make to balance our budget can deeply impact the growth of our business. So it is important to properly evaluate and identify just what items are important to the growth of your individual organization. All too often, in an effort to curb travel costs, the necessity to attend conferences and other industry functions are questioned. To some, the expenses related to attending these functions and other opportunities to network are viewed as something not vital or essential to the operation of their business. This shortsighted approach does not serve us well. There is an old saying “No man or woman is an island”. We need to take full advantage of every opportunity to network with others.
Why is this so important? Let me give you one example. You may have had a certain predisposition toward a particular idea or area of operating your business for years. You feel that this path has worked for you and you’re going to stay the course. It’s the old “Dance with the one that brung ya” mentality. Often the people that work for you know how you think and they may shy away from challenging your tried and true positions on a variety of business issues. This can lead to trouble for you and your organization. With this attitude, how can you ever open yourself up to new and exciting ideas and products that can enrich and grow your business? You need to challenge yourself and you need to be challenged to think out of the box. It probably will never happen in the comfortable confines of your office.
And that is why attending conferences such as the International Franchise Association’s yearly convention is so vital. Here you will find a large gathering of individuals who are facing the same challenges in the same industry as you are. It is a unique opportunity to gain many different perspectives on a variety of issues facing you every day. The old adage that the definition of insanity is doing the same thing over and over again and expecting different results has never been more relevant to the time that we find ourselves in right now. The rules of the road have changed. The way we operate and grow our business has to change. We need to have open mind flexibility about how we make decisions. We need to understand that innovative and new approaches are the order of the day.
How do we best prepare our business and ourselves for the future? We need to talk and share ideas with others. We need to disagree, agree to disagree, but most importantly, we need to think. When we go to a large convention, we not only have a program that is designed to get us to look at the key issues of the day, such as what we have with the IFA, but we also get the benefit of sharing ideas with many who face the same challenges that we face every day.
How do you put a price tag on that? It is as the TV commercial says “Priceless”. You never know when and where and from whom the next great idea you hear will come from. But there is a high probability that the process will begin by networking with your peers. And large groups can lead to great ideas that can lead to even greater results and all the benefits that come from that.
How can you get the most benefit from networking at an IFA convention? You have to approach this opportunity with the right frame of mind and the right mindset. It has to be more then just a chance to get away for a few days, with a main focus of catching up with old friends and acquaintances. That’s not maximizing your time or your effectiveness at networking. That might be the reason some may put networking way down on the budgetary list.
Preparation is key! You need to have a plan of action for every networking opportunity that presents itself. Here are a few questions that you can ask yourself: What problems have I encountered that I would like to get feedback on? How are others addressing these same issues? What key areas am I most interested in obtaining more information about – finance, operations, franchise relations, development, marketing, legal, new products, or new vendors? Prioritize your time. You can’t talk to every single person about every issue, so distill your action plan to two or three main items. Then determine whom you would like to discuss these items with. Why not get involved and volunteer to be part of a committee? Don’t be afraid to take the time to participate. Remember, the closer the connections you make with those in the industry, the better your understanding of current and future challenges will be. Make your plan and work your plan.
Don’t think that these ideas are reserved just for large conferences. Take the networking mindset local. Reach out to the business community in your area. Many independent entrepreneurs can give you insight on how your franchisees might be feeling about things in general. You will get this in an unfiltered way that will enable you to be aware of things that you had not observed before.
The real danger for Franchisor’s doing business in these economic times is in thinking that everyone is still on the same page. With the issues of obtaining good lead flow and the difficulty in obtaining financing, it is imperative that you have a clear understanding of how you and your brand is viewed in the market place. Work closely with the consultant networks if this is part of your development strategy. Often they are on the front line and know what candidates are thinking. In the current environment, it is vital to understand how your business model plays in this economy. You may need to set up a mini conference to exchange thoughts on how your brand is looked at by franchisee candidates and your customers as well.
I hear many business owners talk about scaling back, cutting their development budgets, pairing back on staff, etc. This may all be necessary and prudent in your particular situation. But before you make any decision, make sure that you are looking at more than just numbers. Make sure you take into account all of the facts. By expanding your efforts in networking, you can help round out your decision making process. In most cases, the decisions you make now will have long lasting ramifications for the future. You have to get it right. Remember, none of us are an island. We need to talk, listen, exchange ideas, encourage, and yes sometimes even commiserate, with one another. Take the time and make the effort to network now more than ever.
Paul W. Eckert is CEO and founder of Family Financial Centers and Philly’s Own Soft Pretzel Bakery. He is a member of the IFA’s Franchise Relations Committee. He can be reached at 215-230-5508 or paul@familyfinancialcenters.com.