IFA Convention Less Than One Month Away

As you probably read on my previous blog post regarding Franchise Expo South, I am convinced that franchising will rebound from our tough economic situation more quickly than many other market segments. Still lots of rocky road ahead, but hopefully, this prediction will be shared by others in San Diego, at the upcoming annual IFA Convention.

This is going to be a compelling year for new ideas to come to the fore, regarding the growth and development of franchised businesses. These challenging economic times make attendance at this year’s convention all the more compelling.

Start-up franchisors – IT IS ESSENTIAL FOR YOU TO ATTEND THE CONVENTION. Once you are registered, start your planning. Use the Convention as your opportunity to get focused. This conference has gotten too big to just attend without an action plan. Tailor your plan around learning during the concurrent educational sessions and networking on the floor of the tradeshow. Don’t leave anything to chance with reference to connecting with and speaking to those who can most positively impact your business. The days of just running into the right people at the IFA are gone. Anymore, the convention is just too big to go and just "hope for the best."

Established franchisors – this applies to you, too. It’s a whole new world out there and you want to maximize every opportunity to positively return your investment of time and money.

Last word in these challenging times, for ALL franchisors, regardless of size or maturity of your brands, I invite you to make yourselves rockstars to your franchisees by offering them the opportunity to glean the benefit derived from the tax credits that RetroTax administers. By telling your franchisees that “but for the fact that you’re one of our franchisees, RetroTax would quite likely never have known about you or your business... and that because of that, RetroTax will perform these services at the single unit level, something that is usually available only to much larger businesses.” Feel free to email me (stan.friedman@retrotax.com) to schedule some time to talk, either at or before the Convention. I am looking forward to making many new friends at this year’s IFA, as well as seeing all of my long-time associates from all over the world of franchising.

Miami Franchise Expo Shows Traction, Despite Economic Woes

After attending last weekend’s franchise expo in Miami, I am pleased to report that franchising is still alive and well, as demonstrated by the strong attendance, and of course 80 degree temps. with sunny skies and low humidity didn’t hurt.

While the country is still in the throes of a credit squeeze and deepening recession, none of that seemed to get in the way of robust crowds in attendance at both the educational sessions and crowded floor of the show on Saturday. That said, let’s keep it real. Everyone is still nervous about what ’09 will bring and how long the economy will remain sluggish. (quite likely until the banks start loosening up their purse strings) Make no mistake though, there is no shortage of SBA guaranteed funds available. Rather, there is however, a stubborn, hoarding of cash, as banks just refuse to make loans and release funds.

On the networking side of things, I was able to enjoy some great success for RetroTax. I made many new contacts for business, both for our core services as well as referrals for franchisee prospects – and yet another, FROM OF ALL PLACES, ANOTHER FRANCHISOR!

This year is going to be tough, though, for everyone. If there's a bright side in the equation, it is that the extensive job loss our nation is facing should lead to stronger franchisee development. The credit squeeze more than the recession, is what's adversely impacting us right now. I believe that most are confident that once the second half of the TARP money gets released, the economic stimulus should start heating things up again.

Business in ’09 will not, cannot be done like it was in years past. There will be winners and there will be losers. The difference, in large part, will be determined by how one plays his hand. Let me hear from you with your thoughts.

Readers, what did you think about the expo?

DECA Student Earns All 121 Scout Merit Badges – A Nearly Unprecedented Feat

When my phone rang at about 6pm on New Year’s Eve, the Caller ID said “unknown caller,” I hesitated before answering. But then I thought, “What telemarketer would be making calls now?” I took the call and to my surprise, I was glad that I did. It was Shawn Goldsmith calling.

Who, you ask?

Well until last spring I would have asked the same question. When I met him, Shawn Goldsmith was a remarkable, 17-year-old graduating senior at Oceanside High School, on New York’s Long Island. We met last April, when I had the privilege of representing the IFA at the DECA International Career Development Competition (ICDC) at Atlanta’s Georgia Dome. IFA invited me to present the award of their Don DeBolt scholarship to its 2008 winner, on stage and in front of a crowd of 18,000 at the Georgia Dome, as part of DECA’s annual Main Event. That winner was Shawn Goldsmith. (See more about DECA and the ICDC in previous blog posts or at www.deca.org)

Now, let’s fast forward the tape to Shawn’s phone call to me on New Year’s Eve. Was he just calling to wish me a happy new year? Well, sort of, but it was more than just that.

It was with incredible pride and enthusiasm that Shawn explained that he had achieved yet another amazing feat and wondered if I had seen or heard about it on the news. Seems that this young guy, now a freshman at NY’s Binghamton University has once again achieved something that few before him have accomplished. Shawn, a long time Boy Scout has gone on to the ranks of Eagle Scout, which in and of itself is an achievement to be proud of, but hardly remarkable. What is almost unprecedented though, is that while it takes 21 Merit badges to achieve Eagle Scout status, Shawn did not stop there. In fact, he achieved all 121 Merit Badges offered by the Boy Scouts of America, something that the local arm of the organization called, “an almost unheard of feat.” Now, that IS remarkable.

Given the news we seem to wake up to each day, telling us what's wrong with America, I proudly share this story with you here. Remember the name Shawn Goldsmith. This young man is a symbol of what’s right with our country. If you can think it, you can do it and Shawn provides clear and living evidence of that. I don’t know where or when you may hear his name again, but given his accomplishments to date, I'm confident that it will be sooner than later. Congratulations Shawn and Happy New Year to you too.

Franchise Expo South This Weekend

This weekend I will be heading to Miami for the Franchise Expo South. South Florida in the middle of January? Who could ask for anything more? I am most looking forward to seeing my extended franchise family, representing IFA as moderator on two panels, and did I mention being in South Florida in the middle of January?

While the expo, on the surface is designed to help franchisees find the right franchisee opportunity, I, along with many of my peers, use it as a networking opportunity, as well. I always make a point of connecting with as many people as possible. For new franchisors, make sure to take notes on the back of every business card you collect, with reference to the action item associated with it – and then, of course, be sure to follow-up on those commitments on your first day back at the office.

For those of you attending, you might find interest in the two panels I am moderating: Opportunities in Franchising for Minorities and Women, part one at 11 a.m. – 12:30 p.m. Saturday, January 1, followed by part two from 1 p.m. – 2:30 p.m. in room C221. I will be moderating this session with the help of John R. Reynolds , President, International Franchise Association’s Education Foundation; LaShawn Cartwright, Sr. Recruitment Consultant, Chick-fil-A; Alberto Eyzaguirre, Operator, Chick-fil-A; Russell Phillips, Market Development Manager, ServiceMaster Clean; Jesus Martinez, Franchisee, ServiceMaster Clean; Jose A. Negroni, Lender Relations, Small Business Administration -- Miami District Office.

In an increasingly competitive marketplace for franchise candidates, savvy franchise systems are aggressively seeking qualified entrepreneurs from both the minority and women’s communities to represent their brands. This seminar will help you understand: Pitfalls to avoid; Financing options; How to overcome stereotypes; Mastering the franchisor/franchisee relationship; Specific ethnic markets; Non-traditional franchising opportunities; Legal considerations: Who owns what? Who is responsible for what?; and how to learn what questions to ask yourself first: Am I really cut out for this? How long do I plan to do this? How long can I live without an income? Gain insight into where the opportunities lie.

I look forward to seeing you there.

RetroTax® Continues To Sign Franchisees – RECESSION? NOT HERE!

Franchisors across the nation are struggling with the current state of the economy. It is rough out there for many franchise concepts as leads are few and far between. For us, however, we continue to progress forward. I have said it before and I will say it again, the recession is not affecting the pace of our business growth, because of the business model we have put in place. While the services we provide make sense in any economy, they are nothing less than compelling in times like these.

This week we launched our Cincinnati, Ohio, franchise location. We are very proud that Jim Dahl joined our family to represent RetroTax in Cincinnati. Jim has been a sales professional since graduating college in 1987. From his humble beginnings, working 80 hour weeks in route sales, to more recently managing 26 direct reports in a three-state territory for a wholesale wine importer, Jim has both the people and management skills necessary to drive our business.

Another interesting angle on Jim is that he is a commuter franchisee. Jim and his wife Tina live in Indianapolis with their two children. However, Jim will make Cincinnati his “second home” and service the business community there. He will focus on the Cincinnati empowerment zone, which includes Hamilton, Ohio, just 20 or so miles north, and the I-74 corridor from the Indiana state line to Cincinnati. While this corridor is not in a geographic zone, there should be a great many opportunities to provide demographic credit services to vast numbers of businesses in this region.

With Jim joining our team, and yet another new franchisee (soon to be announced, stay tuned to the blog), we are growing according to schedule. Our Atlanta franchisees are doing great. They are heads down and busy stirring it up in Georgia. They have ended 2008 with new clients already secured and are actively engaged in establishing many new relationships already, for 2009.

The reason we, and our franchisees will continue to do well in recession, is because businesses need us now, more than ever. It’s not business as usual out there. Many companies that thrive in a strong economy are looking for ways to offset the slowdown in consumer spending. Many companies that are experiencing shrinkage in their top lines are looking all the harder for ways to maintain their bottom lines. Beyond the obvious plays like reduction of overhead and expenses, our core services offer an incredible opportunity to provide dollar-for-dollar tax credits against the tax liabilities of the business, and in many cases, the personal tax liabilities of its owner(s).

Our concept thrives in this economic state. Not all franchise concepts do. Franchisors, and all business owners for that matter, must get focused, get proactive, and get outside the box. Don’t let yourself become a victim of changing times. Make whatever adjustments are necessary and move forward. One such adjustment could be to take full advantage of any and all credits and incentives that the government makes available for you. Think of it as “your” answer to the bailout, only this one is designed for the driving force of the American economy, small and medium business enterprises.

It’s a New Year – More Changes to Come

Now that we are rapidly approaching the end of yet another year, it’s time to start reflecting back on 2008. What a year of accomplishment we have enjoyed at RetroTax.

As President of RetroTax, my pride comes more from the title of co-founder than that of President. I am extremely proud of what my partner Al Newcomb has empowered me to create and of the relationships that we have already had the good fortune to enjoy. Be those with teammates at our offices in Indy, prospective or recently granted franchisees, or those for whom we provide services and/or do business, with all over the country. 2008 was an incredible year and we’ve only just begun.

Specific to our business, tax credits are evolving more now than ever, and we pride ourselves on being positioned to scale up to do even more for our clients, in the years ahead. As the Obama Administration and the new Congress take hold, we will see how and where they move with reference to an even further commitment to tax credits and incentives. Remember, over the years, our business model has grown under the leadership of both Democratic as well as Republican leadership. There is very strong bi-partisan support for the credits that we identify and administer for our clients. So, we see much more opportunity ahead as we move even further into the 21^st century.

For RetroTax, 2009 will be a big year and each and every day will bring change. We are a young, emerging concept, building new metrics as we continue to expand. With that growth will come evolution and members of our team will grow with us as well. Some will continue doing the jobs they do now, while others will move into new positions. This will make way for new people to join us and backfill those already existing posts or take on new opportunities that are fostered by our expansion. These are exciting, if not turbulent times to be growing a business, but you know the old saying, “what doesn’t kill us, makes us stronger.” At RetroTax, we're feeling stronger every day.

For franchising, as a whole, 2009 will bring rocky roads for some and brilliant opportunities for others. While some of this will be purely circumstantial, not everything can be blamed on politics, the economy, or the state of the world. For those that rise up and embrace change, there is an impressive opportunity to build wealth and legacy, albeit in some extraordinarily challenging times.

While most are forecasting that it will be 2010 before we see signs of economic recovery, hopefully things will begin to settle down in ’09. Personally, my modus operandi is to not spend a great deal of time pondering that which I cannot control. So, instead I will keep my eye on those things that I can influence, and therein lies the opportunity to grow our business, no matter what’s going on globally. Personally, I am very much looking forward to the opportunities that lie ahead for the RetroTax team in 2009.

For Further Education, Franchisors Should Follow the Media

Throughout my career in franchising, I have become a dedicated news junkie, especially when it comes to news that pertains to franchising. In many ways, this has contributed to my continuing education. By reading and absorbing news, I have been able to generate new ideas for conducting better business as well as assisting with the development of better methods and best practices for growing the concepts I have represented.

Both newbies and established franchisors should never turn their heads away from the opportunity to absorb more education. For franchising information, I read several online resources through LinkedIn, as well as other Web-based industry standards like Franchise Times, IFA Smart Brief, Franchising.com and Bison. Additionally, for news AND commentary, I check in pretty frequently with sites like Franchise Chat and Blue Mau Mau.

Personal media outlets also get my mind rolling. My all-time, overall favorite media portal has for years been The Drudge Report. Even though Matt Drudge has become more mainstream in more recent years, he is still cutting edge in terms of breaking news “long” before most mainstream outlets even get a sniff of the stories he sheds light on.

My wake-up call in the morning is syndicated radio bad boy, Don Imus. (IMUS in the Morning…check for local station listings at WABC Radio. I am mostly a talk-radio and TV junkie with an ear toward Boortz, Hannity, Limbaugh, O’Reilly, and Dr. Bill Bennett and of course, Imus. From the other side of the aisle, I tune in regularly to Chris Matthews, Keith Olbermann and even Rachel Maddow, for the other side of the coin. For some lighter entertainment, I’ll catch occasional podcasts of George Noory’s Coast-to-Coast AM to hear what the “conspiracy theorists” are espousing as the “plot of the day.” Don’t just listen to what you agree with. You will learn a good bit more by listening to ALL points of view, not just the one that you may embrace.

My point in presenting you with my daily media routine is to encourage you to follow the media. Become ingrained in it, as the media can get your creative mind flowing with ideas for growing your franchise. For new franchisors, the IFA Smart Brief and Insider, Franchising.com, and Franchise Chat are great tools for daily chatter. For more in-depth resource news and tools, look at Franchise Times, Franchising World and Franchise Update. All three are must reads for me.