Q. I am doing research about starting or buying a business. What are the advantages and disadvantages of buying a franchise?
A. One plus, according to the International Franchise Association, is that you gain the experience and proven operating system of the franchisor. One of the minuses is the restriction of having to follow a set system. Other advantages are training, possible access to cheaper supplies because you are part of a large buying group, ongoing advice, and research and development through the franchise, the IFA said. Another challenge is costs, which tend to be higher than starting on your own. What many would-be franchisees don’t realize is that a franchise is not a guaranteed success, that it might take a long time to be profitable, and that it can take a great deal of time, labor and financial resources, the IFA said.

Q. Where can I get statistics about franchising in my area?
A. Accounting and consulting firm PricewaterhouseCoopers conducted a report for the IFA Educational Foundation, which is broken down by state and congressional district. The information from that report, "The Economic Impact of Franchised Businesses" is online at www.franchise.org.

Q. What is the best source of information about a franchise?
A. You should carefully read the franchisor's Uniform Franchise Offering Circular required by the U.S. Federal Trade Commission and some state laws, the IFA said. You should also talk with current and former franchisees and accountants or attorneys who specialize in franchising. By Jan Norman

Thanks to Jan Norman

Finding the Perfect Fit

Here are six easy questions to ask yourself. The answers, however are difficult and will take lots of thought.

1. What position do you own?
Instead of asking who you are, you ask what position you already own in the minds of your customers. Trying to change minds in an already crowded society is difficult – it’s easier to work with what is already there. Don’t let egos get in the way. You will discover what position you have from the marketplace, not from your marketing manager. It is better to find out now as opposed to later, when perhaps nothing can be done about it.
Sabena’s problem was not the airline, but Belgium - the country. Seven-Ups problem was not the public’s attitude toward lemon/lime drinks, but the over-whelming share of mind owned by the colas. “Give me a soda” invariably meant a Coke or Pepsi. Looking at the big picture helped Seven-Up develop its’ very successful uncola program. Many products today are like Seven-Up before the uncola campaign,. They have no position or a very weak one in the minds of the consumer. What you must do is find a way into the mind by hooking your product , service , or concept to what is already there.

2. What position do you want to own?
Here is where you bring out your crystal ball and try to figure out the best position to own from a long-term point of view. Own is the key word. Too many programs set out to establish a position that is “owned” by another company.
When Richardson Merrill was trying to position an entry into the cold remedy field, they wisely chose not to try and compete in a world crowded with competitors. They instead went after the “nighttime user” as opposed to the “daytime user” (where everybody else was) and chose to own the nighttime cold remedy position for Nyquil.
Stanley Steemer locked into an 800 number (1 800 Steemer) and has branded their way into cities everywhere in the face of dozens of competitors, managing to usually keep the #1 market share.
Don’t make the mistake of trying to be all things to all people. If you do, you will wind up with nothing. It is always better to narrow your focus – to be a specialist, not a jack- of-all-trades generalist.

3. Who do you have to outgun?
If your proposed position calls for an attack against a marketing leader, forget it. It is better to go around an obstacle than over it. Try to select a position that no one has a firm grip on. Prospects don’t buy, they choose. Among brands of automobiles. Among brands of insurance. Among Realtors. The merit, or lack of merit, is not nearly as important as your position among the possible choices. Coming to grips with the competition is the main problem in most marketing situations.

4. Do you have enough money?
It takes money to build a share of mind. It takes money to establish a position. It takes money to hold a position once you have established it. The noise level today is fierce. There are just too many me-too products and too many me-too companies vying for the mind of the consumer. Getting noticed is even tougher. During the course of a single year, the average human mind is exposed to over 1,000,000 advertising messages. When you remember that a 30 second commercial is this years’ Super Bowl will cost about $2.6 million and it is only one of those impressions, the odds against an advertiser must be seen as enormous. Fortunately, competing on a local level in your city is not as formidable. Only a few local advertisers “brand” themselves well. The door is open for the small entrepreneur to put their product or service on the ladder in the prospects minds, before they are in the market to buy. Remember, “branding”. “equity position”, “top-of-mind-awareness”, “franchise position”, (all these mean the same), are only possible through intrusive media: radio, broadcast television and subscription TV (cable). It is virtually impossible to brand with print advertising.

5. Can you stick it out?
Think of our society as a world of constant change as one idea replaces another in bewildering succession. To cope with change, you must take a long range point of view and then Stick With It. You have to hang in there, year after year. Most successful companies rarely change a winning formula. Tom Shane started his jewelry company over 35 years ago. ”You have a friend in the diamond business”. Years later, from one store in Denver to 24 nationwide; “You have a friend in the jewelry business” and “You have a friend in the wedding business” are the only subtle changes. Mr. Shane took his basic strategy and improved it. Owning a position in the mind is like owning a valuable piece of real estate. Once you give it up, you might find it’s impossible to get it back.

6. Do you match your position?
Creative people don’t like think about Positioning because they believe it restricts their creativity. And, you know what? It does. How many companies have strategized, charted and planned their scientific approach with regard to their position, and then turned it over to the creative people and watched their strategy disappear in a cloud of technique, never to be seen again. Do your advertisements match your position? Creativity by itself is worthless. Only when it is subordinated to the positioning objective can creativity make a contribution.

Thanks to Al Reis and Jack Trout