News and Events
View our large collection of articles, events, media and interviews within.
View our large collection of articles, events, media and interviews within.
Category: Articles
This week, the fears and predictions of many in the franchising sector came true as South Australian Minister for Small Business appointed a strong proponent of state-based franchise legislation to the role of deputy Small Business Commissioner in South Australia.
So, what’s all the fuss and why is it important?
Reading Business Franchise Australia and New Zealand suggests you fit into the category of investing in your own business to achieve your personal and financial objectives.
So why would you choose franchising over starting up your own venture?
If you’re like me, you’re tired of hearing about the world’s economic woes. Every day there seems to be another bad news story. It’s not that I’m unconcerned or flippant about the difficult trading conditions or the fact that many businesses are struggling. It’s just that sometimes, it’s good to read a positive story – if for nothing more than a little balance.
It’s taken longer than our US and UK counter parts, but in 2011 the Australian Retail Sector finally accepted that the idea that “retail sales belong to bricks and mortar retailers”, is finally dead.
As we head into a new year, let’s reflect on 2011 and see how the Australian retail sector dealt with the 5 stages of grief. Will acceptance allow Australian retail to finally start competing online?
There’s no question business has had a tough year (or two). Without being flippant about the difficult trading conditions or the fact that many businesses are struggling, it’s sometimes good to focus on the positives – if for nothing more than a little balance.
Due to the discretionary nature of restaurant spending, the industry has faced difficult trading conditions as a result of the recent economic downturn whereby consumers chose to save by eating at home more often.
Further, already low margins were squeezed as consumers sought value for money in food purchases.
Small business owners often dream the dream of becoming the next success network and brand. Inevitably, such thoughts and aspirations consider the question of franchising at some point or other.
So, before you decide to jump head first in to the franchising sector, you need to answer a few critical questions.
Building a successful business takes more than a great product that meets the market’s needs. We’ve all heard stories of businesses with great products that have failed to grow or even disappeared altogether.
Conversely, we’ve all seen successful businesses and wondered how they came to be so large. In fact, we buy books about how to grow your business and successful business builders to gain insights into how they did it and to learn the secrets of their success.
There’s no doubt that finding (or rather having a franchisee find you), screening and selecting franchisees is one of the most difficult tasks facing franchisors in today’s market.
During such times, it pays to go back to the fundamentals and ensure your recruitment and selection process is first class.
The unfortunate reality of firms attempting to expand internationally is that most fail. Why do only a small few succeed? The answer comes down to taking a proactive approach rather than simply jumping at the first sign of interest in an offshore market.
Of course, there is no magical formula, but in our experience; successful companies understand a few basic factors:
There are few more exciting things in the consumer world than when new products, or extensions to a previous product, are introduced to the market place. Herein lies the hope of finding solutions to our unfulfilled needs or discovering holes in our lives that we previously did not know existed. Who would have thought a library of books could be stored and read from the palm of your hand?
If you can present something that appears to improve my life, my attentive juices rival a pack of Meerkats standing together on their hind legs.
Businesses at different stages of growth have vastly different requirements from their leadership functions. The importance of aligning the capabilities of leaders with the requirements of the businesses cannot be understated and doing so correctly will help the company grow sustainably and according to the overall strategy of the company. …
Traditional methods of distributing and selling products are changing rapidly. E-commerce channels have developed from small add-ons in distribution models, to often be the sole or primary distribution route as they now offer rapid and low cost channels to market with enormous reach to customers and niche segments. So the …
This year, online shopping in Australia is tipped to hit $13.6billion dollars according toFrost & Sullivan; an increase of more than 13% year on year and it’s a trend that is expected to steadily continue for at least the next few years. Whilst the figures might seem strong, consider that in …
DC Strategy congratulates Hairhouse Warehouse – Established Franchisor of the Year and Appliance Tagging Services – Emerging Franchisor of the Year on their awards which were presented at the Franchise Council of Australia’s Excellent in Franchising Awards dinner last night. DC Strategy was heavily involved in the development of both …
Collins Food Limited listed on the Australian Stock Exchange in early August. It is the largest IPO to date this year on the market, more than twice the size of the previous largest IPO. What is more significant about this is that Collins Foods is a network of franchisees across …
Online retailing is fast changing the way consumers shop - but most of the talk about online retailing has been about shopping online and the migration of consumer behaviour from instore to online purchasing. This is still one of the major challenges retailers and many franchise systems face today. Many of these …
Licensing arrangements and franchising models are sometimes seen to be one and the some thing. But there are in fact, significant differences between the two. Understanding the legal and commercial differences between and their implications is important if you are considering applying one of them to your business. John Di …
At last, the legendary Ben & Jerry’s scoop shops have launched in Australia. It’s taken more than thirty years for the company to reach Australia from its roots in Burlington, Vermont. Recently, the company launched its franchised scoop shop program at DC Strategy’s offices in Sydney. Ben & Jerry’s selected …
Both options have their attractions. It all depends on your appetite for risk and hunger for reward. Should prospective franchisees look at buying into a new franchise on a greenfields site or would they be better off buying an existing and successful franchise? That is the question many franchisees ask …
What franchisees are willing to invest and what they expect to receive in return are often two very different things. Anyone involved in franchisee recruitment will confirm that a significant proportion of potential franchisees have grossly unrealistic expectations as to the investment levels required, what they get for their money …
If one franchise unit is good, does that mean two units are better? There is some evidence that the incidence of multi-unit franchising is growing and Australia is following the US in the trend, albeit years behind. So is multi-unit franchising something you ought to consider? At present, approximately 75 …
While low unemployment levels are good for the economy, they’re not as helpful to franchisors that are looking to recruit new franchisees. As job security and wages increase, individuals are less likely to take the risk of leaving the safety net of paid employment as the potential rewards from acquiring …
Turning your business into a franchise system can be an easy growth strategy but it requires planning and commitment. The worst reason to franchise a business is the misguided notion that creating scale will lead to a more successful business, executive director of franchise consultancy DC Strategy’s Rod Young says. …
Just about every franchisor will boast of the support provided within the system to franchisees but what does franchisee support really mean? John Di Natale outlines some points to consider when researching a franchise opportunity. Whether you’re close to making a decision to invest in a particular franchise or are …
There is some evidence that the incidence of multi-unit franchising is growing and Australia is following the US in the trend albeit many years behind. So is multi-unit franchising something you ought to consider? At present, approximately 75 percent of franchisees in Australia are single-unit franchisees. This reflects the desire …
The majority of franchisees say they chose a franchised business rather than establishing their own because of the potential financial returns and the opportunity to be their own boss. However, it could easily be argued that these responses can equally be applied to independent businesses as they also provide the …
Most people reading this article will be glad to see the back of the year that was 2009. Like many other businesses, yours was probably characterized by one word: survival. But while the past year saw the acronym GFC (global financial crisis) come into daily use, over the coming financial …
Franchisors, franchisees and consumers recognise the benefits franchise networks offer; as the world gets smaller, conditions tighten and the demand for consumer and business products and services through branded outlets accelerates. As a result, franchising is gathering momentum, triggered by the slowdown in many markets that have stopped traditional business …
All businesses face the issue of growth. Which growth strategy to choose is heavily dependent on the goals of the businesses and the owners. Franchising It has been estimated that by 2050, 60% of Australian businesses will be franchised. What makes this business model so popular? Franchising utilises the motivation …
Women make up more than a quarter of franchisees. While this group continues to grow franchisors lack a strategy to attract women to their system. In the quest for franchisees, franchisors are often presented with the task of appealing to female operators to join their system. While the usual hooks …
The world of corporate structures is frequently a maze. What do you really need to protect your assets and maximise the potential for wealth creation? At a basic level, businesses are composed of a number of different “asset” types: intellectual property; plant and equipment; and cash The main “driver” …
Once considered a distraction, online social networking has changed the way businesses communicate and interact with customers and staff (and vice versa). Social networking is a category of websites and services built around user-generated content and community networking. Popular examples include Facebook, Twitter and LinkedIn. Businesses attempting to leverage social …
There’s an old saying in franchising: “Franchisors get the franchisees they deserve.” The reverse is also true, as many franchisees continue to make uninformed decisions or waive the requirement for legal advice. The quality franchisors like Dymocks, Grill’d, Muffin Break, Enzed, Xpresso Delight, and Nandos all share the same important …
Most business are capable of at least 10% extra performance. The key is motivating the right individuals. Many businesses can learn from Flight Centre’s experience. Most Australian networks rely too heavily on remuneration incentives to motivate employees. Unfortunately, incentives generally fail to produce the desired outcomes because they do not …
A little noticed trend has emerged as franchise networks start to mature. Around the world, many franchisors are experiencing the growth of multi-unit operators within their franchise networks. This trend has been driven by aspirational franchisees, rather than by a definitive strategy developed by franchisors. There is often little appreciation …
The Franchising World asked Rod Young, one of the world’s leading franchise consultants for his advice on buying a franchise. His advice has guided many franchise networks in establishing successful franchise ventures across the globe. Buying and operating a franchise is an exciting and adventurous process. For most people, buying …
Franchising presents an opportunity for an individual to run their own business. But is it an easy path to a golden fortune? Prudent investors reap rewards Those who view franchising as a sure fire, risk free road to business success, fame and fortune are in for a rude awakening. While …
A blue print for franchising in increasingly uncertain times. As 2005 approaches it is well worth benchmarking your business plans and formulating your strategy for what may be needed to survive the next 5 years. DC Strategy’s Rod Young looks at ways to blue print your system in increasingly uncertain …
If the 1990′s was a roadmap for the future of distribution in banking, the recent growth in branch numbers by Bendigo Bank, Bank of Queensland, Aussie, ANZ and NAB to name a few, indicate a map well past its use by date. The continuing evolution of distribution within financial services …
We may not be writing on stone tablets anymore, but the skill and value of the “scribe” still plays an important role in delivering usable documentation. Anyone can write a user or operations manual - right? Not quite. In the past, it seemed that writing the documentation for a project was …
How do you increase profits in times of economic slow downs or increased competition? There are important elements to consider if strategic cost reduction is to be implemented. To avoid the negative connotations that employees may have with cost cutting, it is necessary to differentiate between simple cost cutting and …
A cooperative structure is jointly owned and run by its members for the benefit of its members. The most common rationale for the cooperative structure was the power brought about by the aggregation of purchasing and creating economies of scale unachievable for a single entity. This often, but not always, …
By demystifying the sales process, businesses are able to demonstrate that selling is more a process than an art. Removing the perceived “art of selling” creates opportunities to improve sales effectiveness and performance. Far too many organisations train their sales people in the features and benefits of their products or …
Regardless of the countries chosen, the process of analysing and selecting the most appropriate countries for international expansion is one of the most overlooked, yet critically important decisions any business can make. Overwhelmingly, the natural tendency of Australian business intending on expanding internationally is to select the largest market they …
Developing and structuring a solid and flexible corporate fiduciary structure is one of the most important elements in developing a successful international expansion plan. The folly of failing to invest in robust structuring may not reveal itself for many years and, by that time, it is usually a highly complex …
The creation of a Board of Management which has several members independent from the executive and staff of a business can bring in a significant and objective perspective to the decision-making process in businesses both large and small. Many issues of corporate governance are overlooked when the operators of a …
Starting out with the right organisational structure can save a lot of time, money and heartache in the future. A simple company structure may be suitable in the early days but as the business grows more complex, the wrong structure can limit growth. Most businesses realise they are operating within …
The very thing that makes a small business successful - the role of the founder and its operating systems - is often what challenges significant growth and the transition from a small business to a medium / large enterprise. So what does corporatising a small business involve? First of all, the business …
It is common knowledge that the owner-operator effect results in a significant uplift in performance. However, an attempt to produce a similar uplift with employees can prove difficult, and a drain on the bank balance. Owner-operators are driven, in some part, by the prize at the end of the rope …
One of the key features of the most successful franchise networks is the quality of their national, and now more often, international franchise conferences and conventions. These events are planned in meticulous detail, with a focused theme to drive home to delegates the key points that the franchise management want …
Which franchise opportunity is best for you? Should you buy an existing location or start a new one? Rod Young of DC Strategy provides a path through the maze of questions…
Beauty therapists deal practically with some of our more intimate concerns while hairdresses are certainly privy to more than a few intimate secrets. When we pay a weekly or monthly visit, are we developing a relationship or simply going for the best service we can find?
Kindy Dance Time (KDT) provides educational dance classes for children between the ages of two and five, with an emphasis on making all activities fun and enjoyable. KDT began operations in mid-2001. Lara Gandini is the owner of the business and was actively involved in growing the business from its …
Hairhouse Warehouse was established by brothers Tony and Joseph Lattouf initially as an extension of their Lattouf International hairdressing business. Hairhouse Warehouse combine a hairdressing salon with a specialist hair and beauty retail business, selling a full range of branded hair care products and accessories in a retail and salon …
Color Bar is a new hair and beauty concept, which specialises in colouring men’s and women’s hair. The business was established in October 2006 by Neil and Amanda McCallum who each have over 20 years of experience in owning and operating hairdressing salons. Neil and Amanda had identified an opportunity …
Not all franchise systems are created equal. What is it then, that elevates one network above its competitors and how can a potential franchisee select the right business opportunity based on the limited information available during the recruitment process? In the experience of DC Strategy the attributes that make a …
Caesars Palace, Las Vegas, Nevada, USA Each year the International Franchise Association (IFA) holds a convention in the United States that attracts franchisors, franchisees, franchise executives, lawyers, consultants, national and international government agencies, service providers and movers and shakers in the global franchising galaxy. Attending international franchising conferences creates the …
Spending 24 years with the Golden Arches exposed me to the good, the bad and the ugly of growing a truly global franchising food retail brand. McDonald’s have an outstanding success story made possible by trying new things, pushing boundaries, making mistakes but mostly learning from them. Here are some …
Which franchise opportunity is best for you? Should you buy an existing location or start a new one? Rod Young of DC Strategy provides a path through the maze of questions. You’ve dreamed and planned and now the time has come to invest in a franchise opportunity. The most fundamental …
Pandora Jewelry is a fast growing and unique jewellery company which offers consumers the opportunity to design their own distinctive fashion creations. Originally from Copenhagen, Denmark, Pandora Jewelry has quickly spread across the globe to become one of the most well-known and popular contemporary jewellery designs. Inspired by Greek mythology …
Succession planning has always been an issue for business owners to confront, let alone plan and implement. A primary challenge is the almost exclusive focus on the people component, which is only one piece of operating a successful business. The changing demographic structure of society over the next 15 years …
It may come as a surprise that despite strong emphasis placed on providing satisfactory remuneration, training opportunities and working conditions, people are still unhappy at work. Often, employees who are unhappy at their workplace remain in a job solely because they enjoy and derive fulfilment from the nature of their …
In many markets across the globe, both domestic and international franchises compete. But what makes the market leader or one particular emerging franchise system so much better than their competitors? Rod Young highlights what sets them apart. One of the issues that must concern any franchisor or any prospective franchisee …
Figures recently released reveal that only 5 per cent of Australian small businesses are currently franchised – meaning the room to grow remains substantial. Domini Stuart pinpoints the hot growth areas for the year ahead, and showcases some of the rising starts of franchising set to soar even further in …
Disruption in the first degree! “Innovation” is a woolly beast. It has many disguises and aliases; to get face-to-face and down and dirty with innovation is no mean feat. Let’s take a look at the Apple iPod. Besides being the hottest Christmas gift idea for the past few years, is …
Given the value it provides, it is surprising that many franchisors don’t measure and evaluate the comparative profitability of their franchisees on a cost to serve basis. Many believe the whole process is either too hard or not of high enough priority. However, it is entirely possible that some franchisees …
Stories of this techno savvy, opportunistic, well-educated and ambitious group of young workers are flooding the business press, but what does Generation Y mean for employers? Despite what some commentators suggest, Generation Y aren’t remarkably different to other generations. They want a good work-life balance, they want meaningful work, career …
Variously described as a marketing concept, a distribution model or a HR strategy, franchising by its very nature overcomes many of the hurdles that challenge traditional business structures. The franchise business model succeeds for three key reasons: Ownership: franchising combines a committed, motivated owner-operator with a proven business. Interdependence: in …
With a new franchise being rolled out every other week, it can be overwhelming for those in the market to run their own business. It could be easy to be seduced by the hype. But franchise consultant Rod Young warns that there are several key questions you should be asking …
Breaking up is hard to do. The breakdown of personal relationships can be devastating for everyone involved. But the collapse of a business partnership and the ramifications it has for the parties is often underestimated. Most people don’t go into a personal relationship lightly. Often they will have a lengthy …
As franchising grows in Australia so does the number of franchisors that operate more than the one brand. Rod Young from DC Strategy discusses the multiple-brand strategy. They may be disparate brands, not related to each other except they occupy retail shopping centre space. For example, the Pets Paradise, Warner …
Work Choices opens up a whole area of opportunity for employers to strategically develop and implement a remuneration incentive program in order to add to their arsenal of competitive advantages. Work Choices has generated some considerable negative perception in the Australian workforce. Correspondingly there is now a significant opportunity to …
The need to “connect” with the customer is becoming more important resulting in companies revising their approach to marketing, in particular customer loyalty programs and tracking buying patterns. Traditionally, customer loyalty programs have provided benefits to consumers by rewarding them for their continued support. However, with continued desensitisation to mass …
The success of any franchised business lies in the foundation of the parent company, and my advice to any would-be franchisee is to ensure that the parent company is well established, profitable and well capitalised, with a well-known trademark and reputation. Another key to successful franchising is to ensure the …
The search for the next big idea always seems to be on the agenda. Companies have been spending big to facilitate innovation in their organisations with a view of growing the business. With spend on innovation averaging 4% of network turnover and ranging between 0.5% to 20%, return on investment …
Some anecdotal evidence has suggested franchisee enquiries have declined within the Australian market over the past year. Closer inspection reveals a more educated and discerning franchise buyer, and a need to refine recruitment processes and strategies. The DCS view that the franchisor’s get the franchisees they deserve is all too …
The landscape of regional towns has constantly been a debate over the influence and presence of big city corporate brands and the role of local independent business built on a foundation of relationships. Evidence would suggest these are increasingly convergent paths when it comes to the business landscape of regional …
The current Australian landscape has anecdotally experienced a renewed focus on M&A activity in retail in the past 12 months. The ASX is on a run, earnings multiples remain reasonable, but there is a build up of demand and cash from retailers, funds, investors, and equity groups. Where will this …
The concept of skin in the game or variable pay structures is an area of business that is experiencing a renewed focus in response to the near full employment status of the Australian market and the increasing pressure on the fixed costs of business. Groups such as Flight Centre and …
The focus of franchising and the foundation of its success is the ability to bring a committed owner operator, with a capital commitment, into a business to drive customer service, revenues, and micro manage costs. Why has this become a successful business model? There is no single reason. The improved …
Training, coaching, seminars, HR, franchisee development and people development are but a few of the terms that have been used over recent years to describe the process of transferring knowledge and developing people. Is training all it is cracked up to be? The answer is naturally very subjective, but at …
If you haven’t noticed franchising is big business in Australia, and it’s only going to get bigger. As job security becomes a thing of the past, and with small business failure rate at around 90% in the first five years, many people are opting for a “turn key” business that …
The range of franchise opportunities that are available to prospective franchisees looking to go into business has never been greater. With thousands of alternatives, how does your franchise system catch the attention and bear the scrutiny of a potential franchisee? Rod Young, Executive Director of DC Strategy, discusses what makes …
Franchising within Australia consists of 60,000 franchisees and 850 franchisors. It is estimated that about 15% to 20% of current franchisees (about 10,000 to 12,000 franchises) are on the market at any one time. Rod Young, Managing Director of DC Strategy provides an insight to what happens when franchisees wants …
Fast-growing companies know the value of outsourcing – from the back office to the boardroom. But there are some disadvantages in running a virtual business. By Jacqui Walker Soon after Tony Cross took over running his parents turf-growing business four years ago, he realised that the business, Caboolture Turf, had …
The rapid growth and increasing popularity of franchises means that up to 15,000 franchise opportunities are available in Australia each year, according to business expert Rod Young. This wealth of opportunities doesn’t mean potential franchisees should rush in and grab the first one that comes along. Young, managing director of …
In a world of big box retailers, sophisticated consumers and international brands organisations are continuing to look to franchising as a catalyst for successful growth. Australia is no exception with estimated franchise sector revenues of AUD $90 billion for 2004. Australia will continue to embrace the strength of its infrastructure, …
Corporatisation is the process of developing the management structure and migration strategy of a small to medium enterprise to create an enduring business independent of the founder or single proprietor. The foundation set by corporatisation will allow the business to grow beyond the capacities of the owner/operator substantially increasing the …
We all know franchising is a low risk way of getting into business, but not every franchisee is successful There have been some franchise chains that have failed to flourish. In a small number of cases the network as a whole has failed. So in considering which franchise is right …
