Thursday, June 25, 2009

RetroTax Identifies Ideal Markets For Growth – 200 EZs,RCs, Less Developed Census Tracts and Rural Renewal Counties, but for now...

Throughout the last year, RetroTax’s growth has been focused on the start-up of our new franchisees and the addition of a few more. Now, with their operations up and running, we're all focused on connecting our services with business owners in five major cities, while continuing to focus on our next stages of development: Growth into new markets.

While there are many markets prime for RetroTax’s operations and services, we have strategically identified our next “hot” markets as the Federal Empowerment Zones and Renewal Communities of Washington, DC, Baltimore, Milwaukee, Southern California, San Antonio and Columbia/Charleston, SC. Our concept has attracted significant interest from prospective clients and franchisees and the media alike. From the prospective client and media side, there is always a great deal of intrigue around our not-so-widely known core services, the administration of wage-based tax credits for business owners. For prospective franchisees, the focus is on our unique business model, it's low cost of entry and overhead, the B2B lifestyle and of course the desire to fulfill one’s dreams.

As for who's right for us, when we began, I believed the profile of our ideal candidate would be someone with strong interpersonal skills, and intangible sales experience. High level, intangible sales experience. Someone who would be comfortable in the C-Suite, going toe-to-toe with an executive, business owner or high level corporate officer.

While I still believe those traits are paramount, I have learned along the way that previous business ownership or management experience is every bit as important. Our franchisees must focus on both long-term strategies and the big picture, while at the same time executing the day-to-day tactics required to successfully market, farm, hunt, and harvest new business.

We are all very focused and committed. Together, we are building a culture and a brand the right way, in the right places, with the right people, at the right time. That is what will propel us even deeper into the cities and businesses that we strive to work closely with.

Wednesday, June 17, 2009

On Nationwide Tour of Zoned Tax Credit Cities, Milwaukee Impresses

Each minute of my three days last week in Milwaukee was so highly charged that it was like trying to take a drink of water from a fire hydrant.

My first meeting which I really thought of as a social call, turned into anything but. It was to catch up with a restaurateur that I met back in 2003-04, when I was still at Wing Zone. Back then, this gentleman came to Atlanta for one of our Discovery Day programs, but at that time, chose not to move forward with our Milwaukee opportunity. We liked this guy a lot though and I still do. That’s why I phoned him in advance of my trip into Milwaukee. I, of course, figured that since he still owned his restaurant, I might be able to do him some good with tax credits.

After getting caught up on what he’s been up to for the past five years, it turns out that his current business interests, high profile and network of connections in Milwaukee, make him a really strong candidate for a RetroTax franchise. I’m very much looking forward to receiving a preliminary application from him and his partner and then bringing them to Indy for a RetroTax Discovery Day. Perhaps this time, we’ll come to a different conclusion.

As witnessed by this reconnection, my search for a franchisee in Milwaukee could actually be over before it even starts, given the application that I am expecting to receive and the upcoming Discovery Day that will follow. A second potential candidate has also expressed interest in the market, but is not quite as far along in the process just yet.

What a bonus and sweetener all of that that turned out to be. My Milwaukee trip was originally scheduled because I was invited to participate in a meeting of the Milwaukee UEP. (Urban Entrepreneur Partnership) The UEP has local chapters nationwide, designed to encourage entrepreneurship in urban areas, particularly among minority entrepreneurs. This partnership combines public, private and nonprofit sector resources to expand entrepreneurship and jobs in historically neglected and economically underserved areas across the country. At the local level, this meeting very much reflected the work that I have recently jumped into with both feet at the national level, with the US Chamber of Commerce and its BCLC (Business Civic Leadership Center).

I came to speak to these civic and business leaders in Milwaukee, about the benefits and advantages of wage-based tax credits and the positive impact that they can bring to businesses located in and around Milwaukee’s Federal Renewal Community. Attendees at this meeting represented leadership from the public and private sectors, bankers, CEOs, financial professionals, attorneys, academicians and the Federal Reserve Bank of Chicago’s, Community Affairs Director, who assists with the facilitation of this UEP Chapter and its work.

My interest in this market is spurred by the fact that some 70 percent of Milwaukee’s city limits are located inside the boundaries of the city’s Federal Renewal Community. Milwaukee also has a strong urban residential population. These two factors together spell significant opportunity for the identification and generation of wage-based tax credits. Add to that the charm of the city and its people and that Milwaukee is a great place to do business, especially at this time of year.

As you can see, my love for Milwaukee is identified in both business, personal terms. One of my Chicago franchisees actually lives in Milwaukee’s northern suburbs. That probably begs the question, “why then isn’t he a Milwaukee franchisee?” The answer is that he is “hard-wired” to the city of Chicago. Additionally, he is in partnership with his daughter and son-in-law on their RetroTax franchise and logistically, Chicago makes greater sense for them all. I’ve actually made some very significant new friends and business connections in Milwaukee who are proving to be very deep and meaningful. My links to this community are already running deep and I am looking forward to expanding them all, in good time.

Great trip, great momentum, great results – all for our growing RetroTax brand that is STILL attractive in any economy, most certainly, this one.

Wednesday, June 10, 2009

RetroTax Opens Shop in Philly; Welcomes First Franchise Industry Supplier as Franchisee

Virtually nobody in franchising will recognize my new Philadelphia franchisee by its corporate name, SFG Tax Credit Services, LLC, but they will recognize these names: Bernie Siegel, Ron Feldman and Nate Greenberg. Yes, Philly’s first family of franchise financing has become the most recent addition to the RetroTax franchise family. Siegel Capital and its principals have played a prominent role in both my professional and personal life for a great many years.

What’s more, Ron, Nate and Bernie exemplify a very significant cornerstone of what our business model is built upon: TRUST! Bernie Siegel began doing financing deals for me back in 2003, while I was still at Wing Zone. Over time, Siegel Capital went from being just one of "many" sources for our 3rd party financing, to being our SOLE source. Why? It was because they got our deals done quickly, efficiently and happily, for all parties to the transaction. Franchisees were happy because Siegel helped them avoid the endless mire of red tape associated with SBA loans. The banks were happy; because they knew that any deals that Siegel brought to them were properly vetted and correctly packaged.


As the Franchisor, I too was happy, because transactions closed and funded on schedule. There were never any wrinkles or hiccups, attributed to financing. I don't mean to speak for Bernie, Ron or Nate, but somewhere in this equation, the trust factor must have cut the other way as well. I am extremely moved by the amount of trust that these guys have placed in me, my partners and the entire RetroTax team and family. As a young franchisor, It is very flattering when anyone says yes to us, but when its guys like Ron, Bernie or Nate, prominent peers in franchising and friends that I have known personally for years, it is extremely humbling. As my partner Al would describe it, it’s rather “heady.”


In addition to the amount of credibility that these guys bring to us collectively, from within the franchise community, let’s also remember that Bernie the rocket scientist, (I kid you not, he was actually an aerospace scientist) before becoming a business broker and intermediary extraordinaire, has been hard wired to Philadelphia's business leadership for more than 20 years.

To have this group sign on is certainly a testament to the fact that those people that I take seriously in franchising are certainly viewing us in kind. There is no telling (yet) who our next franchisee will be, but it’s all good and gets nothing but better from here.

Wednesday, June 3, 2009

Update on The Recession Friendly Franchise – RetroTax

Amazing how fast this year is zipping by. With each and every meeting that we take with a prospective franchisee or business client, we are creating more and greater opportunities for the growth of our company. Right now I am at our processing center in Indianapolis, overseeing the training of our newest franchisees, RetroTax No. 6 (more to come on these “high profile” guys in an upcoming blog).

Our business won’t slow either. By year’s end I expect to have at least six more franchisees trained and operating. Being that we are a boutique type concept, this will be a tremendous measure of success for our young company. RetroTax was never contemplated to be an offering that would put out dozens or hundreds of franchise units in any given year. Six more by year end would have us at a total of 12, in less than two years. That is a number that I will be very proud of. Actually, for me the real measure of success comes from the numbers that the franchisees post, (sales and margin) not the number of franchises that we award.

For certain, times like these are troubling, but things around here are good. That said, this economic climate can be humbling. At this stage of our growth and development, our biggest challenge as a franchise concept and company, is deciding how, when and where to deploy our assets, both current and future. As we grow, we will continue to make enhancements and additions to our infrastructure. Our plan is to plow ahead aggressively with our development strategy, despite the fact that the world around us is still locked in the grips of recession. We can ill afford to sit around and wait for an upturn in the economy, before upgrading systems, technology and human resources. One such major addition is the introduction of a new position on our. org chart. RetroTax now proudly boasts the addition of a Director of State and Local Tax. That position has been filled by a very talented “recovering attorney” named Carol Stephan. Carol is an accomplished professional in the field of State and Local tax and we are extremely proud to have her on our team. Along with Carol, our recently inked alliance partnership with the Ryan Company brings a whole new level of services and programs for our franchisees to offer and for us to administer.

So, challenges like recession do breed opportunity. We face no shortage of interested parties to talk with, regarding our core services and our franchise offerings. When times are good, people like what we do, because we save them money. In times like these, people LOVE what we do and are interested in learning how they too, can become part of the RetroTax team.

More updates to come.