1. WELCOME Todays webinar will begin at 11am Sydney timeWHAT WELL COVERPresenter KatePresenter Peter What are the 7 Things? How to identify risks Practical business tipsThis material may not be reproduced without permissionwww.smartfranchise.com.au1 2. GETTING TO KNOWYOUwww.smartfranchise.com.au2 3. Poll #1www.smartfranchise.com.au3 4. THE 7 THINGS SURVEY Why we did itwww.smartfranchise.com.au4 5. There are significant costs when a business has financial difficulties Financial Time Humanwww.smartfranchise.com.au5 6. THE 7 THINGS SURVEY How we did itwww.smartfranchise.com.au6 7. 1,100 people invited Written responses Varied backgrounds Accountants, Insolvency Practitioners CEOs, Senior Managers, Field staff Franchisees Lawyers, Bankerswww.smartfranchise.com.au7 8. INSIGHTS Identified 7 key themes Produced a reportAPPLICATION Workshops Business Toolswww.smartfranchise.com.au8 9. HERE THEY ARE .. The 7 Things that can send a franchise brokewww.smartfranchise.com.au9 10. #7 NOT RESPONDING TO CHANGEwww.smartfranchise.com.au10 11. They still do the same things that worked for them prior to the GFC... the market has changed significantly since then.www.smartfranchise.com.au11 12. Consumer behaviour Competitors Costs Regulations Demographics Business finance (availabilty, cost) Your personal situationwww.smartfranchise.com.au12 13. #6 DIFFICULT CHILDHOODwww.smartfranchise.com.au13 14. No matter how much due diligence you do Reality turns out different from what you expected.www.smartfranchise.com.au14 15. Financial results different Cashflow Costs ProfitIts not easy to run a business!www.smartfranchise.com.au15 16. #5 LACK OF BUSINESS RIGOURwww.smartfranchise.com.au16 17. Poll #2www.smartfranchise.com.au17 18. People dont usefinancial information the way we think they do.www.smartfranchise.com.au18 19. I really dont understand what the accountant is saying to me. Its expected they know this stuff, but no one shows them or explains it.www.smartfranchise.com.au19 20. Hold regular business meetings Have up to date financial info Use financial & non-financial informationwww.smartfranchise.com.au20 21. #4 PEOPLE DO CRAZY THINGSwww.smartfranchise.com.au21 22. Theyre mad..! They spend all their money on toys!www.smartfranchise.com.au22 23. Improve daily lifestyle Take a holiday Buy a new house, car, bike, boat Invest in shares, property, 2nd businesswww.smartfranchise.com.au23 24. Extra commitments taken out against the business in good times cause financial stress in a downturn.www.smartfranchise.com.au24 25. Financial commitments increase Additional financial burden makes business harder Theres an impact on: Marketing & sales Service Costs Morale www.smartfranchise.com.au25 26. #3 NOT ENOUGH SALESwww.smartfranchise.com.au26 27. Poll #3www.smartfranchise.com.au27 28. Any person in business is selling something. Most people have little or no training - or experience - in this area.www.smartfranchise.com.au28 29. Over reliance on marketing Dont know how to sell Dont know how to teach people to sell Staff not trained Staff turnoverwww.smartfranchise.com.au29 30. #2 PRIDE &EGOwww.smartfranchise.com.au30 31. I can sum it up in one wordPridewww.smartfranchise.com.au31 32. Business owner wants to be successful Things dont always go as planned Dont know who to talk to, or how Might feel embarrassed Not sure what to do So they put off the conversationwww.smartfranchise.com.au32 33. Pride can Blind us to weaknesses or threats Stop us from listening Stop us from taking adviceBut we all need help sometimes!www.smartfranchise.com.au33 34. #1 CANT PAY THE BILLSwww.smartfranchise.com.au34 35. Income too low Costs & expenses too high Didnt see upcoming commitmentswww.smartfranchise.com.au35 36. Thats why its so important to LOOK AHEAD!www.smartfranchise.com.au36 37. ActivityCurrent Financial Position$www.smartfranchise.com.au37 38. Tomorrows ActionsFuture Financial Position$www.smartfranchise.com.au38 39. WHERE ARE THE RISKSIN YOUR BUSINESS?www.smartfranchise.com.au39 40. Poll #4www.smartfranchise.com.au40 41. Not responding to change Difficult childhood Lack of business rigour Doing crazy things Not enough sales Pride & ego Cant pay the billswww.smartfranchise.com.au41 42. SMART FRANCHISE TIPSwww.smartfranchise.com.au42 43. 1.2. 3. 4.Know where you want to go Set sales targets Hold regular business meetings Monitor financial results monthlywww.smartfranchise.com.au43 44. QUESTION TIMEwww.smartfranchise.com.au44 45. www.smartfranchise.com.auwww.smartfranchise.com.au45