Temple Daily Telegram Highlights Minorities Rise in Business

Let's hear it for Texas. Some might argue that it is still the Wild, Wild West and a less progressive state than others, but when it comes to minority business ownership and job creation, many of those others could take a lesson from the Lone Star State.

Carroll Wilson's article, titled “Small business, minorities in business on the rise in Texas in the Temple Daily Telegram,” is cause for celebration.

America's face is changing and as it does, so should the faces of America's would-be entrepreneurs and business owners. They should reflect the faces of the residents of the communities that they serve. From the sounds of this article, health care and social services are taking the lead in terms of jobs created by small business owners. Now, savvy franchisors from these and all market segments would do well to invite business ownership, not just opportunities for employment, from members of these communities.

To read more about minority franchise ownership opportunities, visit the International Franchise Association (IFA) at http://www.franchise.org/ and search for information regarding Minority Fran. As the second term Chairman of the IFA's Minorities in Franchising Committee, First Vice Chair of its Diversity Institute, and one of the architects of this Minority Fran initiative, I'm proud to see Texas out in front on this one.

Did You Know You are Missing Money?

While there are billions in tax credits and incentives available to business owners each year, only a fraction are claimed. As we approach the end of another year, business owners should become better educated on what tax credits are available to them and how to collect them.

Tax credits are issued by state and local governments for a variety of reasons. As it pertains to the work that we do at RetroTax, these are employment or wage-based credits that are offsets to a business owner’s personal or business taxes. These credits are earned for the jobs that the employer has created for certain demographic groups or because the place of employment and the employees residence are located within one of nearly 200 geographic zones that the Federal government has slated for development.

The demographic credits are “one-time” events per new hire and can be equal to as much as $9,000. The geographic credits can be worth as much as $3,000 per year, per qualified employee and can actually be recaptured from the past three years (thus our name, RetroTax). Most everything that we do at RetroTax starts with a look back, then ahead. More about these credits and their values can be found on our Web site at http://www.retrotax.com/ under the tab titled “services”.

Over recent years, some notable tax credits have been added, especially for those businesses in areas where Mother Nature has taken a swipe at us and left victims of storms such as Katrina and Wilma and more recently, the floods in the midwest.

As for who can collect tax credits, who ever said that size matters? Most business owners, regardless of size, employing people that are not immediate family, may benefit from these credits. The point is, no matter how big or small your company, you should not pass up the opportunity to at least explore how much money you are missing by not redeeming these credits.

Again, for more information, visit http://www.retrotax.com/

Youth Movement Will Be Interesting

To my surprise, with no pushing or prodding, completely on his own, my son shocked me this fall, when as a high school senior, he told me that after years of hearing me pontificate, (to no avail) he decided to join DECA. He made me extremely proud, both of him and his decision to join legions of other young visionaries who will lead America's next wave of marketing and business professionals.

During my years of involvement with DECA as a judge, mentor and advocate of their national advisory board, I've met many DECA kids that blow me away with their appetite for knowledge, initiative, and an uncanny instinct for business. I've also met those who are still "testing the waters" and “just want to chill”. I think each matures at his/her own speed and accordingly find their own watermarks at the appropriate times.

Those kids that are driven to climb to the top, will potentially have a great impact on franchising. Franchising has always struggled with generational issues and legacy. Often, great “first generation” franchisees retire and leave the business to the next generation that may (or may not) possess the same level of commitment and/or passion for the franchised business. With the impact that today's DECA is having on higher education and creativity, today’s youth will, I hope, step in, step up and innovate the business model of franchising in the years ahead.

Another trend, that has been highly publicized in industry trades, is the “youth movement” that is afoot in franchising. I for one, have not just seen a lot younger applicants recently, but older, as well. Gen Y is certainly on the rise and there are many new concepts that lend themselves to the younger set. As we continue to slide into what certainly appears to be a deepening recession, I think too, that more and more boomers might try getting out of the stock market (if they still can) and reinvest what's left of their 401, 301, or hopefully not 201 (K's), into franchised businesses that they can control and protect, rather than sticking it out on Wall Street and praying for miracles.

For those boomers that do jump into franchising, there will still be the need to be reliant on our youth, to help operate their businesses. Organizations like FBLA, SIFE and my personal favorite, DECA, all provide incredible platforms for real-world experience for today's kids and tomorrow's business leaders. I am really looking forward to seeing how DECA helps shape my son's future interests and where my son and his peers go with their careers. While times are certainly changing, let's always remember that change is certain... GROWTH, is optional.

Franchise Industry Shows Cautious Optimism at West Coast Franchise Expo

This past week, Nov. 7-9, I traveled cross -country to speak at the annual West Coast Franchise Expo in Los Angeles. Some might suggest that it was less than a perfect time for the Expo, given the state of the economy, its impact on franchising and how the recent elections will impact both.

Everyone I spoke to though, seemed to express a similar sentiment – cautious optimism. Certainly, everyone is concerned about the state of the economy, but no one was willing to concede defeat or believe that the economic meltdown would defeat our (franchising’s) ability to continue to thrive as a business model. Nobody was going negative.

On the surface, some suggested that foot traffic was lighter than years past, but most franchisors that I spoke with were extremely pleased by the steady stream of quality of prospects that they saw. If traffic was lighter, it could easily be attributed to the state of the States. My belief is that the "perfect storm" of sub prime and what it did to tighten credit, coupled with the downturn in the economy and melt-down on Wall Street is the only reason why franchising's gotten caught up in the storm. Once credit issues loosen up though, even in a recessionary market, we should see franchising pick up steam again. The few franchisees I got to speak with were on par with franchisors in that they seemed upbeat and optimistic that today's economic troubles would not prevail.

The one thing I saw universally from franchisors, franchisees and suppliers was the absolute unwillingness to fold the tent and quit. That’s a testament to the backbone of those who live and breathe the American dream. I fully expect similar views and responses at upcoming franchise industry events. Just around the corner, I will be attending the Franchise Expo South in Florida, (Jan. 11-13), which will be my last opportunity to get a collective gut check from my peers, prior to the IFA convention in February.

One last word about the West Coast Franchise Expo... From top to bottom, Tom Portesy, president of MFV, continues to foster a great culture of professionals. Rich Del Giorno, Steve Gross, Joel Goldstein, Scott Burford, Fabio “Skinny” Scocimara (holy smokes how much weight has HE lost) and the rest of the MFV team have become like family to me. I look forward to seeing them as much as anyone else, when I attend these shows.

What The Election Means for Franchising

This is a historic moment in time for Americans of all races, creeds, religions and genders to celebrate. In his own words, Barack Obama said it best last night when he addressed his victory party in Chicago:

“If there is anyone out there who still doubts that America is a place where all things are possible; who still wonders if the dream of our founders is alive in our time; who still questions the power of our democracy, tonight is your answer.”

With a new President in office, franchising will face some new changes in the coming months and years. This election was a big win for organized labor. What bodes well for unions, though, does not bode well for employers, as well as for everyday “Joes”.

I am concerned about how all the “Joe the Plumbers” will fare under the new leadership. Everyday “Joes” that aspire to own a business and fulfill the American dream of limitless opportunity will likely be confronted with unlimited taxes. This will be something to watch out for in franchising, especially as franchisors continue to find ways to support their franchisees. Tax credits will become all the more valuable for all business owners, and the need will be paramount, for our franchisees to educate them on how the tax credits that we administer will help them through some potentially tougher times.

Thankfully, as far as the Senate is concerned, it fell short of the 60 seats needed to exercise complete control and avoid filibusters by the Republicans on controversial legislation. Some aspects of franchising will likely face some new and critical challenges, as new leadership steps in.

Politics aside, the election of our nation’s 44^th President is a historic mile marker for all Americans. No matter who won the election, change was necessary because nothing stays the same. While some shun it, change is a fact of life. Certainly, with the global economic meltdown and the state of the world in general, change is not a bad thing. Change, though, just for the sake of change, or change for the sake of emotion is not enough. Yes, we needed a change and we certainly got one, but now comes the difficult part.

Let’s see how the new leadership impacts us and where they take us. I am certainly happy that this 20-plus month election is finally over. Now it’s time to hunker down, adjust accordingly and get on with business.

Get the Most Out of Industry Meetings -- NETWORK

FRANCHISE UPDATE FALL LEADERSHIP CONFERENCE:
Pictured from left to right: Casey McEwen, Partner, FranSystems, Josh Greenbaum, student, Stan Friedman, Steve Greenbaum, CEO PostNet and Chairman, IFA

While attending franchise industry meetings, conventions, conferences, etc., my takeaways come from collecting information and experiences from the speakers. But there's more than that, much more. Beyond the speakers, the greatest value at these events comes from networking. Be it with a prospect for a franchise, a company executive that can benefit from our (RetroTax’s) services, someone that needs to meet me or someone that I need to meet... I cannot ever remember leaving an industry event without some golden nuggets... I'm talking about gems that make me richer for the experience, born out of networking.

In our down economy, franchise executives and partners are searching for better, more creative methods to grow their business – especially when attending industry events – and they're focusing more than ever, on building connectors, networks of shared information. Such was the case at the recent Franchise Update Fall Leadership Conference in Chicago. I know of no other industry or business conference where the franchising professionals in attendance are as caring and sharing as they are at this one, bar none.

The IFA Convention, in San Diego, will be the next big networking opportunity for the industry. By then America will have elected a new President and the economy will most certainly be in a different state than today (not necessarily better or worse, just different). It will be interesting to see what types of information franchisors, franchisees, and suppliers try to pull there. While the IFA Convention is the granddad, the largest of all franchise industry conferences, as with anything else, you'll get what you give at this event. Earlier this year I got to thinking about the upcoming IFA and said to myself, "Maybe this year I will go as a spectator, lighten my load and just enjoy the convention with fewer commitments than usual. Then I thought about it again – and said, nah.

IFA’s convention is loaded with incredible amounts of intellectual capital, crossing every conceivable discipline of franchising. Franchise development, operations, marketing, relationship building, legal updates, etc. There’s just so much opportunity to give, to get, and network. Whether you're attending for the first time, or for the 20^th, get focused on one or two issues that you deem to be amongst your highest priorities. Lock and load on those topics and drill down deeply with speakers, exhibitors and peers who are all there with you, at the same time, in the same place, for the same reason.

Don’t miss this opportunity to network and find business solutions. Then, fasten your seat belts and get set for the ride of your life in 2009.

Are You in Atlanta? The ATLFA Wants You!

For those of you not familiar with our franchise group, The Atlanta Franchise Alliance is a networking group that I Chair in Atlanta. Our mission locally, is to follow the IFA's model of bringing franchising’s best practices and people together. We meet several times a year to network, learn, share fellowship, and exchange valuable nuggets that help us each individually and collectively, to strengthen the business model that is franchising. Whether you are a franchisor, a franchisee or a supplier, you are more than welcome to attend any of our events.

In 2008 our Alliance grew significantly and in 2009, we are going to get bigger and better. We will grow by bringing in more people to our networking events and providing them with everything that they came looking for and more. We will host networking events on the following dates, so mark your calendars: January 15; May 21 (also an IFA franchise political action committee fundraiser); August 20; and November 12. Locations for these meetings are TBD and will be posted on our Web site, at least two weeks in advance of each event (http://www.atlantafranchisealliance.com/).

Anyone interested in attending these meetings can find more information at our site. Don’t hesitate to email me (http://www.blogger.com/stan.friedman@retrotax.com) either, if you have questions or would like to be added to our mailing list.