Economic Improvement Continues – My Economic Predictions

For those of you that read my blog regularly, you know that I remain optimistic about the future, despite these challenging times that we’re all living through. It’s been a while though since I last commented on how I see things, so an update seemed in order. While on some fronts I believe that economic conditions surrounding the recession may finally be close to bottoming out, I’m still a bit concerned about the potential for another meltdown in real estate. This one though, on the commercial front. With so many business failures recorded during the first half of the year, there is the potential for a commercial crisis, stemming from landlords unable to meet their mortgage commitments on unoccupied retail and office spaces.

Needless to say, when it arrives, economic recovery will be good for all businesses, franchised or otherwise. I think though, that it will take a bit of time for demand to catch back up with supply on the real estate side. Overall, as a business model, I believe that franchising would have weathered this storm with far less stress, but for the perfect storm caused by the simultaneous impact of the recession and credit freeze. More than anything, it was the latter that has gummed up the works for franchising, keeping displaced employees from becoming aspiring new entrepreneurs.

Through all of this, IFA members should all be extremely proud of their membership in the International Franchise Association. Now, more than ever, the IFA, it’s Board of Directors, its Government Relations Team, and members on all fronts, franchisors, franchisees and suppliers have made their voices heard at the White House, on Capitol Hill, at the Federal Reserve and the U.S. Treasury.

Don’t miss your chance to do the same by voicing your concern to your elected officials at http://www.franchisingvotes.com/ and by attending the IFA’s fall Public Affairs Conference on Capitol Hill in mid September. More about that opportunity to meet with your elected officials can be found at http://www.franchise.org/publicaffairs.aspx. Each of these efforts support the loosening of the purse strings so that banks again begin lending to existing and/or soon-to-be franchisees. That will provide the best assurance of sustainable growth for our economy and the creation of new jobs and businesses on Main Streets across America. In addition to the obvious value propositions provided by the IFA, like education and networking, in my opinion, there is nothing more powerful than the voice it provides in terms of political action.

As for the future – or the end of this economic drought -- I wish I could read those tea leaves and see through the haze. I do think though, that what happens (or hopefully doesn’t,) between now and summer recess on Capitol Hill, will speak volumes to where we can expect things go from here.

As the old saying in TV news goes, “film at 11.”

RetroTax Welcomes Bob Ritter, Franchising Industry Veteran, to the Team!

As the co-founder and President of an emerging franchise concept, supporting existing franchisees, along with the ongoing growth of the network, are my two top priorities. Well this week, in one move that I am extremely proud to share with you here, RetroTax has accomplished both, when Bob Ritter, veteran franchise professional, joined the team as Vice President of Franchising and National Accounts.

As has been the case with so many industry peers, I met Bob Ritter through the IFA. Bob and I first connected at an Annual IFA Convention back in the day, and we have become really good friends since. I’ve always been impressed with Bob’s tremendous appetite for knowledge and how well networked he was with the franchising community’s leadership. It’s been during the past two years though, that we developed an even stronger business bond and personal friendship. All of this occurred at the same time that Al Newcomb and I were creating and launching RetroTax.

During this period, I’ve been traveling more frequently to Bob’s home-town of Indianapolis. Indy also happens to be Home Base for RetroTax. When Bob and I first began talking about my new business concept, (over a beer or two, I might add) he became extremely intrigued by the RetroTax concept. Like me in years past, Bob has spent a great deal of time involved with a concept that occupies a highly competitive, crowded market space. Conversely, RetroTax represents a unique b2b offering and is a virtual stand-alone, in terms of competitive franchise offerings. Before learning too much more about our concept, this fact alonw, captured Bob's attention and interest.

As Vice President of Franchising and National Accounts, Bob will perform multiple roles, as a powerful utility player on the RetroTax team. His diverse experience will be called upon to assist with the development and training of new franchisees, support of existing franchisees, and the growth and management of our National Account relationships. Additionally, Bob’s skill sets will also provide a real boost to the leadership development of our Indianapolis-based franchise support and tax credit processing teams.

Recruiting someone with Bob’s expertise and strength of reputation is a major coup for the RetroTax team and we are extremely proud to welcome him to the family.

Back from the 4th, Let's Talk About a Slice of Americana!

For business owners and executives, being involved in groups and associations that are intertwined with your business model is a very important component of success. As a franchisor, I believe that it's essential to be involved with the IFA, (International Franchise Association) because of the opportunities that it provides for political advocacy, education, the sharing of best practices and obviously, for networking with other franchising professionals.

Equally as important in my view, is the need to engage with commercial/civic associations that help to advance the core offerings of your business model and it's concept. For me, that screams the value proposition being served up by the U.S. Chamber of Commerce and their BCLC. (Business Civic Leadership Center).

Last March, I was exposed to the U.S. Chamber and the BCLC for the first time, as I was invited to speak at their Annual Conference. The program was themed around “Corporate Community Investment" and my topic was, you guessed it: "The power of wage-based, tax credits, and the impact that they can have on your bottom line." (See previous blog posts for more about this topic) This event brought together, some 300 business and civic leaders from all over the U.S.A.

When I arrived at the pre-conference reception, my first impression was that the gathering seemed a bit small, given that this was a national conference. That impression was quickly erased though, as I started talking with some of the other speakers and attendees. In fact, I was very quickly reminded why it is NOT a good idea to judge books by their covers. Truth is, there was a great deal of power harnessed in this group and it was the BCLC that brought it all together. This assemblage represented a cross section of America's DNA, it's very engine, if you will. Included were: for profits, not-for-profits, representatives of both the public and private sectors, executives from large corporations, mom and pop operators from Main Streets across America, fledgling, community-based non-profits, standing alongside representatives of mega-large corporate foundations. Representatives of local and regional Chambers of Commerce attended, as did the Mayors of large and small American cities. Also found in the mix were representatives of the U.S. Governors Association, the U.S. Small Business Association, The Department of Defense, even the White House was represented at this conference. Beginning to get the point? It was no doubt, an eclectic group.

Regardless which market sector you represented when you got there, the BCLC and the Chamber brought this public/private sector conglomeration together for the purposes of attacking a single common focus: that being, how to expedite economic recovery in America. In fact, "Together for Recovery" was the subset of this entire summit. A lot of incredible results were born out of this conference, but there is still a lot of heavy lifting left to be accomplished. Look into joining the BCLC and the U.S. Chamber. If you are not aware of the good that they do, visit www.uschamber.com/bclc/about/default , and get involved! Help make a difference, as only YOU can. Whatever effort you put forth, will pay you back ten-fold.

Personally, I developed some great relationships as the result of this two-day BCLC conference. Consequently, I am now working closely with several organizations that I might never have otherwise been introduced to. I’ve also been smitten by the BCLC, the U.S. Chamber and the dedicated team of professionals that make this organization work. This has culminated in my commitment to do more for and through this organization for the common good of myself, my business, the BCLC, the U.S. Chamber, its members and the people that they serve.

Five Things You Didn’t Know About Tax Credits, But Should

Many business owners and executives don’t know the first thing about wage-based tax credits. Frankly, that’s OK with me, especially since that’s what we’re all about. RetroTax was conceived to help remedy that problem and then assist with the administration of these very complex programs.

Business owners that do know about these programs often stray away from them because they seem too complicated to manage. Once again, RetroTax provides the fix to that dilemma. Here then, are five things you didn’t know about wage-based tax credits, but you should:

1) These programs are not only available to mega large corporations: In fact, wage-based tax credits are available for all companies – small or large. You don’t have to be the big guy to benefit from these credits – you just have to employ people. They need to meet certain demographic or geographic criteria, but odds are that some percentage of your employees will qualify for something.
2) In reality, almost any business employing 10 or more people will be eligible for something: So, don’t leave money on the table, especially in today’s economy. There could be significant amounts of money available, that you are missing, simply because you didn’t know these programs existed for you to benefit from.
3) Tax credits are like money in the bank, as they can be carried forward for as long as 20 years: So, even if you are not tax liable for some reason in the year you earn these credits, that’s no problem, you can hold on to them and apply them in future years.
4) Several of these programs are retroactive: Meaning that just because you didn’t know about this previously, you actually still go back and reclaim credits that you were eligible for, from the past three years.
5) April 15th is the only day to focus on for tax credits: WRONG. As many as eleven categories that qualify you for these credits only apply to future hires. So, each and every day that you wait could cost you thousands of dollars.

There is absolutely no reason why any business shouldn’t at least inquire about these possibilities. All it takes is a simple conversation and a little research into the possibilities. So, what are you waiting for. Give me a call today!

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.

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.

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.