General Business and Finance Blog

Any small to medium sized company in any field of business has to acquire the most suitable office and business telephone system and matching telephone equipment so that it can compete with its rivals in the market. A business concern based in Miami FL will have the same minimum requirements for an office and business telephone system and corresponding telephone equipment as any other business concern in any other location in the United States. This includes the necessary telephone cables, telephone wiring and network wiring. The most reputable suppliers and service providers of office and business telephone systems and telephone equipment usually represent top brands like Panasonic and NEC telephone systems or PBX.

A business concern should choose a supplier and service provider that is capable of supplying an office and business telephone system and compatible telephone equipment that have already been preconfigured and pre-programmed to meet all of its specific requirements.

When PBX is mentioned, this means Private Branch Exchange. This was formerly referred to as PABX or Private Automated Branch Exchange. At that time, the label PABX was used for the earlier types of analogue office and business telephone systems. That system consisted of analogue telephone handsets and analogue telephone extensions which were monitored through an analogue telephone console managed by a receptionist.

The old PABX system has now acquired modern digital components in the new office and business telephone systems. This is why they are now referred to as “key systems” or “digital key systems.” While the new high tech office and business telephone systems already have fully digital handsets, however, they also still utilize some analogue telephone extensions. These early models are still used to be able to maximize cordless telephones and fax machines.

The new office and business telephone systems that provide a smooth integration of advanced digital technology with the old PABX system is now labelled as PBX. While the core foundation of the new office and business telephone system is now digital, it also maximizes the features and functions of the old PABX system. With the combination of the old and the new in today’s office and business telephone systems, the actual needs of users are being met.

It is therefore evident that the office and business telephone systems referred to as PBX these days actually also include components of the early PABX. There is another factor being taken into consideration in the use of the two terms, though. Hybrid office and business telephone systems with 200 or less telephone extensions are called PBX while those with more are called PABX.

One example is the Panasonic IP PBX. This office and business telephone system combines digital, analogue and IP telephone extensions to achieve wider coverage, better flexibility and improved roaming services.

Pac Systems, Inc. based in Miami FL is one example of a reputable professional supplier and service provider of high quality office and business telephone systems and telephone equipment. Any company can source Panasonic and NEC telephone systems or PBX and all matching requirements from Pac Systems, Inc.

A small business company, whether in Tampa or anywhere else in the United States, will always need a small business VOIP phone system at the core of its operations. This is necessary not only to remain competitive but also to continue to grow and even expand. If the business is in Tampa, it would be best to also find a suitable supplier and service provider in Tampa.

A reputable supplier and service provider should be able to maintain the client’s current phone systems and provide local and long distance phone service; IP/VoIP telecommunications solutions; digital phone systems with IP/VoIP capabilities; SIP trunking; Voice T1; ISDN PRI T1; new and used phone systems with voice mail and warranties; computer networking; internet access; recording of phone calls, emails, screen shots and instant messaging; recorded promotions played while on hold; loudspeaker paging and music for offices or plants; and voice and data cabling.

The best choices in phone systems these days are the NEC phone system, BCM phone system and Vertical phone system. It would be good to find a supplier and service provider that offers these.

Having a VoIP phone system is a basic need of any small business. VoIP stands for Voice over Internet Protocol. While the old phone system used the Public Switched Telephone Network or PSTN, the VoIP phone system sends voice communications through the internet and other IP networks. This is why the digital phone system is also called as IP Telephony or the IP Telephone System. It transforms the analog voice signal a digital format which are transmitted online as internet protocol packets.

For the VoIP phone system to be functional, the use of SIP / VOIP phones is required. The three different kinds of SIP / VOIP phones are software based SIP / VOIP phones, USB SIP / VOIP phones and hardware SIP / VOIP phones.

The software based SIP / VOIP phone, also referred to as the soft phone, is not a physical telephone but a computer program or software. When installed in the computer it enables the caller to use the computer’s built in microphone and speakers or an attached headset to make a call through the internet.

The USB SIP / VOIP phone combines the software or computer program of the soft phone with an actual physical telephone. The physical telephone is plugged into a computer through a USB port in order to be able to use the software while functioning as the microphone and speaker or as a headset.

The hardware SIP / VOIP phone is almost exactly like any normal telephone except for the fact that it shares a network connection with a computer by being connected to the same mini hub.

Any small business VOIP phone system requires a wide range of voice and data cabling products and installation services for its full operations. A supplier and service provider should, therefore, be an expert in all these. It is always best to work with a supplier and service provider that has a long established reputation. One such company is Digital South Communications which has been serving over 3,000 clients satisfactorily since 1991. Although based in Tampa, it serves clients throughout the country with its network of affiliated dealers.

A small business VOIP phone system is a must as one of the core equipment of any small business company in Tampa, or in any part of the country for that matter. This is needed for the company to maintain its competitive edge and therefore to continue its growth and expansion. It is, therefore, crucial for any small business company to be able to source out a reputable and reliable supplier and service provider in Tampa.

Among the expected services to be offered by a reputable supplier and service provider are maintenance of the client’s current phone systems and provision of local and long distance phone service; IP/VoIP telecommunications solutions; digital phone systems with IP/VoIP capabilities; SIP trunking; Voice T1; ISDN PRI T1; new and used phone systems with voice mail and warranties; computer networking; internet access; recording of phone calls, emails, screen shots and instant messaging; recorded promotions played while on hold; loudspeaker paging and music for offices or plants; and voice and data cabling. It should also be able to offer the top brands in phone systems such as the NEC phone system, BCM phone system and Vertical phone system.

A VoIP phone system, meaning Voice over Internet Protocol, is basic for every business concern nowadays. The VoIP phone system, also known as the digital phone system, IP Telephony and IP Telephone System, sends out voice communications via the internet and other IP networks. This modern phone system changes the analog voice signal into digital format and transmits it online as internet protocol packets.

There are three kinds of SIP / VOIP phones used in the VoIP phone system.

The software based SIP / VOIP phone is also called the soft phone. It is actually a computer program or software and not a physical telephone. The program or software is installed in the computer upon which a call can already be made through the internet using the built in microphone and speakers or an attached headset.

The USB SIP / VOIP phone is made up of both the computer program of the soft phone and a physical telephone which also has to be plugged into the computer through a USB port. The physical telephone is then used to make the online call.

The hardware SIP / VOIP phone is a physical telephone that makes a call through the internet by sharing a network connection with a computer. The telephone and the computer will have to share the same mini hub.

For a small business VOIP phone system to be able to be operated fully, it requires a wide range of voice and data cabling products and installation services. The company’s supplier and service provider should provide all the necessary expertise for all of these. It should also have a solid reputation in this field, based on experience and client satisfaction. Digital South Communications in Tampa, for example, has been satisfying more than 3,000 clients since 1991, reaching even clients in other parts of the United states through a network of affiliated dealers.

Imagine opening 20 new business locations without having to foot the bill for real estate, equipment and development costs or taking on any of the risk. Even more, imagine finding managers to run all those locations, who are just as committed to growing the company as you, and you don’t have to pay them a dime. Finally, imagine that these managers will hire, fire and manage all employees as well as foot the bill for all operating costs and expenses. Sound far-fetched?

Not if you’re planning to enter the franchise industry, one of the fastest ways to grow a small business without breaking the bank. For many companies, franchising a business (or licensing) is a sensible way to achieve rapid, profitable growth without giving up any control or ownership. Going from a single location to a dozen in a couple years, or a hundred in ten years is possible and well-documented because franchise owner-investors put up all investment capital, shoulder all risk and assume all day-to-day operating responsibilities.

It’s expansion, using OPM – Other People’s Money. Also, the franchise company gets paid handsomely for teaching others the secrets of how to operate its business. First, there’s the up-front “membership” or franchise fee of ,000 to ,000 paid for using the brand name and operating methods. In addition, there are continuing royalties of 5% to 10% of gross sales for ongoing advice and consultation. In essence, a franchise development program allows a company to get out of the trenches and become a highly-paid general overseeing its soldiers. Long-term options are also attractive. Build an empire and relax, or let the franchise company be acquired by an increasing number of large companies that look for small, but growing franchise companies. According to the International Franchise Association, 900 new companies have franchised in the last three years.

ENTERING A NEW BUSINESS
A company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills. Since these new skills are rarely present within existing personnel, an outside franchise expert is needed to train existing personnel and plan the transition. The first step involves determining whether or not a business can franchise, and if so, what needs to be developed. Next, strategic franchise planning is necessary to create a “blueprint” for successful expansion efforts. Experience shows that, just like a building, the foundation developed at the beginning will create lasting consequences affecting the relative success (or failure) of the entire venture. Legal (franchise disclosure document, franchise agreements) and operational documents (franchise operations manual, franchise training program) are prepared and drafted and finally a franchise registration process is required in some 14 states, depending on which state(s) the company sells franchises. These phases are discussed below.

THE FRANCHISE FEASIBILITY PHASE
An indispensable step before any franchise development program gets underway is an analysis of the concept and business model. Has the concept been sufficiently proven in the marketplace? How profitable are existing prototypes or company-owned outlets? Franchising will not solve existing problems, it will only intensify them – and usually at a serious cost to franchise investors. Franchising should not be viewed as a method to raise capital, expand a business that has existing problems, or a way to get rich quickly. There must be sufficient profitability in the business model so that royalty and other payments can be made and leave the franchise investor with a sufficient profit. With a franchise feasibility analysis, a determination can be made about:

(a) whether franchising or licensing expansion ideas should be pursued, postponed or abandoned; and
(b) assuming a positive result in (a), what needs to be fine-tuned or developed from scratch for the franchise program.

Besides determining if and when the business can franchise, the analysis should also include providing guidance and direction so as much of the groundwork as possible can be done by existing personnel. This has proven to be a very effective approach and significantly reduces franchise development costs. If the feasibility analysis is positive, the other phases discussed below follow. My twenty-eight years of experience in the franchise industry lets me share a valuable insight about franchise feasibility studies. Too many companies leap into franchising without doing a feasibility study, or if one is done it is performed by a franchise consultant or group that tells everyone good news – they’re all “franchise-able.” The vast majority of franchise feasibility studies I’ve done either identify areas that need attention before franchising makes any sense or tell the client to forget about it and pursue other options.

THE FRANCHISE STRATEGIC PLANNING PHASE
A successful franchise development program begins with a solid plan – a foundation for franchising. The long-term goal is to establish balanced, integrated, successful business relationships with qualified individuals who support the company’s goals and image. Creating an enduring relationship requires a comprehensive strategy that addresses all aspects of the franchise endeavor.

The starting point is a detailed analysis that covers:

(1) identifying profile characteristics of who will be the best franchise owners for the particular business;

(2) competitive positioning to make the franchise stand out from the other 3,000+ franchise companies;

(3) geographic scope – where and when will franchises be sold;

(4) analysis of the company’s organizational strengths and weaknesses relative to franchising;

(5) identifying the appropriate franchise organizational structure as well as staffing requirements and responsibilities; and

(6) structuring the franchise relationship for a balanced, win-win scenario.

What should emerge from this detailed analysis is a specific strategic plan and framework for guiding virtually all franchise efforts. Despite the long-term importance of the franchise planning step, too many emerging franchise companies enter franchising with no plan or planning – other than “let’s try and sell a lot of franchises.” They rush through (or neglect entirely) the strategic planning process, thereby creating future franchise litigation land mines that are ticking franchise lawsuits waiting to happen.

Often, this is because they only utilize the services of a franchise consulting firm or franchise attorney, where little or no attention is paid to critical strategic planning, operational and organizational issues. Normally, these firms draft “boilerplate” franchise disclosure documents, franchise agreements and franchise operations manuals based on a questionnaire completed by their client, who is presumed to have made all strategic decisions. The franchise documents are presented, along with an invoice and a handshake – hardly the ingredients for success in the new business of franchising.

THE FRANCHISE DOCUMENTATION PHASE
If the company has made doing a good job at the planning stage the number one priority, franchise documentation goals will be apparent. Proprietary and intellectual property assets (like operating techniques, customer information, recipes, formulas and methods) need to be identified and protected. A trade secret protection program is developed and implemented. The name, logo and tag lines should have been previously registered as trademarks or service marks.

franchise operations manuals
Franchise operations manuals and training programs are developed, often from scratch, to impart business operating skills to the franchise owner as well as ensure uniformity of products and services. The franchise operations manual and training program curriculum must be drafted with a particular focus. Certain topics, chapters and policies found in manuals for a company-owned chain, for example, are entirely inappropriate in a franchise environment, creating significant liability (lawsuit) issues for the franchise division.

I routinely find franchise operations manuals drafted by franchise consultants or do-it-yourself manual kitscontaining inappropriate chapters or topics. Not knowing where the bullets come from in franchise litigation, they proceed blindly ahead using “boilerplate” manuals where most (but not all) instances of “hamburgers” are changed to “tax returns.” The support aspect of the franchise relationship needs to be carefully considered, structured and reflected in the franchise operations manuals.

Deciding who writes the franchise operations manual is a relatively simple question to answer, yet many new franchise companies also fall into a trap here. Bewildered by the new business of franchising, with its legal requirements, franchise operations manuals, training programs, etc., they decide to “delegate responsibility,” usually to a high-priced franchise consultant who produces the operations manual and sometimes even the legal documents. Putting aside the practicing law without a license issue on the legal documents, does using someone to write your franchise operations manual who knows literally nothing about your business, ever make any sense?

The best practice approach, developed over almost three decades of my writing, editing and reviewing hundreds of franchise operations manuals is based on common sense. Let the true “expert” in your business write the operations manual. And who is that expert? It’s usually the founder of the business or a handful of your management personnel who know the business inside and out. It’s true, an outside franchise expert should be involved in the process, but this should be limited strictly to a planning and editing capacity – helping develop the overall Table of Contents, giving samples of writing styles and technicques, then reviewing each chapter after it’s drafted by you or your management team. This approach produces a professional, easy to use and update franchise operations manual. It also ensures the most efficient use of resources and talent.

franchise disclosure documents
Finally, and only after all of the above are underway, a Franchise Disclosure Document, similar to a securities (stock offering) prospectus, is prepared by competent franchise counsel and registered with various regulatory agencies to comply with applicable federal and state laws. This document can contain thousands of discrete disclosures within its twenty-three chapters and attached exhibits, and obviously needs to be prepared by a franchise attorney. Doing it properly and with a balanced and fair perspective can help keep the company out of the courtroom later. In addition, a franchise registration process is required before any franchises can be advertised or sold in those 14 or so states having a franchise registration requirement. Having one firm author, edit and review all documents is not only cost-effective – it also avoids inconsistencies that can plague the franchise company as franchise legal pitfalls in the future (see discussion below).

RECOMMENDATIONS
My twenty-eight years of experience has demonstrated that in order for a franchise company to get off to a good start, a heavy emphasis should be placed on strategic franchise planning to manage future franchise relationships as discussed above. Then, before the franchise program begins, management needs training in how to effectively operate a franchise organization. At a minimum, the following programs should be in place before franchise marketing efforts begin:

1. Franchise Lead Processing System (sm):
Two key considerations for all franchise companies engaged in franchise marketing are the careful screening of franchise applicants and adopting the proper media plan, schedule and budget. Only the cream of the crop should be allowed to join the franchise network. Eliminating applicants at the entry stage is far easier than waiting for inevitable and costly problems later on. An examination of franchise networks plagued by troublesome franchise owners (who often ripen into future lawsuits) shows a lack of planning and attention to this relatively simple concept. Given the unlimited personal liability risk inherent in franchising, companies neglecting this important concept, or those using franchise brokers, are simply asking for trouble.

Before franchise marketing efforts start, a company should adopt a customized Franchise Lead Processing System that includes instructing key personnel in:

(1) adopting the proper organizational structure;

(2) defining the appropriate profile characteristics of prospective franchise owners;

(3) developing effective interviewing techniques, marketing materials, procedures and checklists;

(4) using a series of tests and other measures to ensure that inappropriate candidates are disqualified before joining the franchise network;

(5) detecting (and then avoiding) red flags that arise in the franchise marketing cycle; and

(6) adopting the appropriate media plan, schedule and budget.

2. Legal Compliance Program (sm):
A franchise lawsuit can result if inconsistent or misleading communications occur when a franchise is first sold. Most of the legal risk is franchising centers around what happens during the marketing cycle: the twenty-three chapters of disclosures in the franchise disclosure document as well as who said what, and when. Defending any franchise lawsuit, even a frivolous one, can be enormous. Franchise companies involved in franchise litigation are shocked to discover they have fallen into a quicksand that swallows up time and money without limit. The cost of prosecuting or defending even a “small” franchise lawsuit can quickly exceed 0,000, and up. Exposure can run into the millions. Although one study of franchise disclosure documents indicated 27 percent of franchise companies have a history of franchise litigation (slightly greater than 1 in 4), the real percentage is much greater and probably north of 50 percent. This is because only pending litigation and final judgments must be disclosed in franchise disclosure documents. Most franchise litigation cases, like other litigation cases are settled, so they’re only required to be in the franchise disclosure document from the time they’re filed until settled. After that, they vanish without a trace. And whether the chances of getting sued in a franchise lawsuit and getting embroiled in franchise litigation is greater than 1 in 2 or 1 in 4, who wants to get involved in a time-consuming, stressful and expensive mess?

It is almost impossible to avoid potential franchise liability unless a genuine program of education and instruction is conducted with marketing personnel as well as middle and executive franchise management. An integrated Disclosure Compliance Program that specifies rules and expectations (including legal rules in selling a franchise), manages franchise disclosure documents and controls the dissemination of all information is absolutely essential. It is also one of the best investments a franchise company will ever make. For all of the above reasons, the use of franchise brokers is definitely NOT recommended. Their statements (or other actions) made to “close the deal” will make the franchise organization (and the personal assets of its officers) liable for violations of federal or state franchise laws. This also explains why the overwhelming majority of successful franchise organizations set up their own in-house franchise marketing department so that actions and statements made during the franchise marketing cycle can be monitored and controlled within the framework of a Franchise Sales Control System (sm).

3. Franchise Sales Control System (sm):
Franchise Sales Control is the other half of the entire compliance equation. While legal compliance specifies rules and expectations, franchise sales control is the mechanism for detecting gaps and inconsistencies. When detected, their causes can be identified and corrected before injuring the franchise effort. A Franchise Sales Control System should be designed with this in mind, and should include a variety of feedback mechanisms to monitor performance and retrieve pertinent information for review by management. This not only increases the effectiveness of franchise marketing efforts – it also greatly reduces the likelihood that sales personnel will deviate from established procedures in selling franchises. Finally, a well-designed Franchise Sales Control System creates a complete back up file for every franchise sold that will qualify as business record evidence in the event of a future franchise dispute. It also satisfies the legal requirement of various states that franchise companies maintain a complete set of books, records and accounts of franchise sales. Since most of the legal risk in franchising arises during the franchise marketing cycle, a comprehensive Franchise Sales Control System is the company’s best protection against the quicksand of franchise litigation.

4. Managing Franchise Relations:
As franchises are sold, the communication lines that develop between the parties will have a major impact on the success or failure of the ongoing franchise relationship. Controlling who is brought into the network through the steps outlined above is the critical first step. Once inside the franchise network, franchise owners must be taught to realize they are members of a system of mutually dependent outlets, each working for the better of the entire network. Developing an awareness of this concept early in the relationship and implementing a franchise feedback system will create a positive attitude, encourage innovative ideas from franchise owners, ensure timely royalty payments and prevent franchise relationship problems later on.

© 1982-2008, Kevin B. Murphy, B.S., M.B.A., J.D. – all rights reserved

For more information, visit the Franchise Foundations website.

Forex Day Trading Systems

Forex day trading systems are a great way to help you get money. But in condition to produce a profit of a trading strategy you have to use one this am able to operated and not recently indicate you to exhaust money. There are multiple trading methods out there on the region but you need to pick the right one. Forex institutions are a dime a dozen, but if you follow such tips, you will find the one that runs and affects you the profit you want. Forex Day Trading Systems

1. Always research your trading strategies you purchase and if possible, try out a demo version before purchasing. There are numerous programs available but you need to pick the program for you carefully. Forex Day Trading Systems

2. Do not look into a Forex trading system that has an 80% accuracy rating and has little or no draw down. Usually these Forex systems have a hypothetical track record. These figures are actually made up by the manufacturer in an effort to sell the product. Forex Day Trading Systems

3. Invest in a system where you can actually read them before purchasing the system and conducting any trading with it. You have to understand the logic behind the system in order to feel comfortable trading with it. Try to avoid any system you cannot understand. Forex Day Trading Systems

4. The simpler the Forex trading strategy, the better. You do not need a complicated trading system in order to make a profit. If the system only has a few rules and parameters to learn and understand, then you will be able to use the system confidently and trade wisely. Forex Day Trading Systems

5. Make sure the trading system you research uses the same rules and parameters for all of the markets you want to trade in. You do not have to use individual trading rules to trade one market over another. Unique trading rules for each market means the manufacturer developed the system to fit the data and the trade. Forex Day Trading Systems

6. Use a long term trading system over a short term one. Short term trends are exactly that: short. A long term trading system can trade in both the short and long term trends. Why buy a system that only deals with short terms? Forex Day Trading Systems

7. Do not be afraid to ask the manufacturer or vendor of the Forex day trading system to see some real evidence of how it performs with their money. The vendor should be confident in the system to invest their own money with it. Forex Day Trading Systems

Just remember that there are no guarantees that the system will perform as well for you as it has in the past, but that is a gamble you take. Stop what you are doing RIGHT NOW and get your Life Changing Forex Day Trading Systems Program. It’ll change your Life Forever!

Many traders are daunted by the thought of forex trading so they decide to get help from an expert mentor or guru.Let’s look at some tips on how to choose one.Firstly, the vast majority of advice sold on the net is either available free anyway, or simply does not work.Think about it:If you do trades with 70% accuracy, you would be to busy trading your way to millionaire status than bothering to crow about how good you are on the net, for $100 or so.The Day trading mythYou have seen them guys promising you 10 – 100 pips a day in profit, or systems that are so accurate and consistent they can’t possibly be true.Day trading is where the bulk of the courses are sold.The myth is you can make money consistently and long term – Absolute rubbish.Day trading is done in short time spans and all short term moves are random, so kiss goodbye to your equity.Ask for a track record and see if you get one.I never have! And by track record I mean a real not hypothetical one.And don’t fall for the testimonial from a friend, or guy with lucky trade.The More Expensive advice is the better it is.Some advice costs a lot more than $100 or so, you can pay thousands for it.The novice trader thinks it must be good as its expensive – not so.Judge A vendor simply by if they have made money – that’s the only criteria that counts.Then decide if you understand the logic (if you don’t you wont be able to follow it with discipline) and without discipline you have no method in the first place.Really want to succeed?Go to your local bookstore and pick up some classic trading books, by traders who have walked the walk rather than are all talk.Get these three great booksMarket Wizards & The New Market Wizards – Jack SchwagerThese are interviews with some of the top traders of all time and are great insight into what makes a great trader.Trader Vic – Vic SperandeoThis is a fantastic book – giving you everything you need to help you trade from money management to ideas on systems.The above will cost you around $50.00 and will be money well spent.There are other books but these are my favorites.And if you read them:They make clear that for success you rely on yourself and no one else.Devise your own system (we have done loads of articles on this ) keep it simple, trade with discipline, show patience and perseverance and you can make it all on your own.If you must buy advice get a track record and find one you understand and have confidence in but the best way to make money ( or the only way) is to do it on your own.

Article Source : http://blogatme.com/2008/08/20/forex-trading-tips-on-buying-courses-systems/

Technology, some people fear it, some resist it, and others
embrace it. As a small business owner, it could be the best
thing that ever happened to your company. With the technology
available today, small businesses are increasingly leveling the
playing field between themselves and big companies. With toll
free virtual PBX (Private Branch Exchange) telephone systems,
small businesses are combining today’s technology with
traditional customer service to take their business to the next
level.

It used to be that only Fortune 500 companies with thousands of
employees and 10- story office buildings could afford and
maintain a traditional PBX telephone system. Now, with toll free
virtual PBX services, anyone with a telephone can reap the
benefits of this powerful communications tool. A virtual PBX has
all the advantages of a traditional PBX and more without the
hassle, hardware, and expense.

A virtual PBX allows small businesses to:

(1) Project a professional, more established company image (2)
Have one unified number for office phone, cell phone, fax, and
pager (3) Make information available to their customers 24/7 (4)
Automate order taking and pre-qualifying processes (5) Have
web-based, real time access to their system

Small and home-based businesses are using all of these features
of their toll free virtual PBX systems to sound and operate like
a Fortune 500 company everyday.

Project a Professional, More Established Company Image Right or
wrong, consumers assume a company with a toll free number is a
more established and secure company. When a toll free number is
attached to a virtual PBX with an automated attendant, that
powerful image is perpetuated. An automated attendant will
answer all incoming calls with the same professional and
courteous message every time, day or night. Professional
greetings can be recorded by the business owner themselves, or
even by a voice talent, and customized for the needs of the
business. It doesn’t matter if the business is operated out of a
home office or the Oval Office. The caller hears a professional
greeting each and every time they call.

Unified Voice and Messaging System With a toll free virtual PBX
system, small businesses only need one telephone number. This
number can be an office phone, cell phone, fax, and pager all in
one. Gone are the days of having to put 3 or 4 different numbers
on business cards. Now the virtual PBX toll free number replaces
them all. When a call comes in to the toll free number, it can
be routed to any local number. It can even be programmed to
route to different numbers at different times of the day or even
different days of the week. A call never has to be missed again.
That kind of flexibility is unheard of with a traditional toll
free number or a hardwired PBX. If the call is not answered, or
is sent to voicemail, the virtual PBX system can even send out a
page to let the user know that there is a message waiting for
them. The toll free number also acts as the fax number. When a
fax is sent, the system recognizes it as a fax and can store it
in the fax mailbox for later retrieval, forward the faxed
document to a local fax machine, or even send the fax to an
email address as an attachment. The unified messaging feature
unchains small business owners from the home or small office and
allows them the flexibility to get out and build their business
while still being available to their customers.

Powerful Automation No matter how efficient a small or
home-based business is, they simply cannot be available to their
customers all the time – unless they have a toll free virtual
PBX system. If a caller has questions they want the answers now.
If they don’t get those answers when they call, chances are
they’ll look some place else. Making sure information is
available, even when a live person isn’t, can be the difference
between someone becoming a customer or moving on to the
competition. A toll free virtual PBX allows the storage of an
unlimited amount of information for callers to retrieve 24 hours
a day, 7 days a week. Menus broken down into what kinds of
information a caller might need, make it easy for them to
navigate the system and get what they are looking for. Faxes can
even be attached so the caller can request an automated fax
back. For a business that needs to pre-qualify their callers, or
would just like to get some information about them, can take
advantage of question and answer voice mailboxes. A set of
pre-recorded questions can be asked of the caller and the voice
responses then saved in the system and emailed as a sound file.
These automated processes not only save time, but they also make
sure callers can get the information they need when no one is
available.

Web Based System Access A toll free virtual PBX is just that,
virtual. What that means for a small business owner is that one,
there is no hardware to maintain or software to buy, and two,
that they can access their system from anywhere they can get
online. Online system access is one of the most popular features
of a virtual PBX system. Web-based system access allows users to
check their voice and fax messages over the internet or have the
messages delivered directly to an email address. Of course,
messages can still be checked from any touch-tone phone,
anywhere.

A small business owner has administrative access to check the
call logs of all incoming calls to their toll free number and
use the call capture feature to not only capture the phone
number of the person calling, but also their name and address.
It also allows a user to run reports based on different criteria
chosen. For example, reports could be run to show when the
busiest time of the week is for customer service or if the call
volume increased after a specific ad campaign was released. The
applications are endless.

With all these powerful features, and most times more, it’s
amazing that toll free virtual PBX systems can be found at a
reasonable price. Most systems offered are between $9.95 and
$29.95 depending on the capabilities and size of the system.
Many will offer a varying number of voice mail boxes, features,
and minute plans. A good toll free virtual PBX service provider
can also customize systems if needed.

Technology is ever changing in today’s fast paced world. Small
business owners will either have to embrace it or risk being
left behind

Imagine opening 20 new business locations without having to foot the bill for real estate, equipment and development costs or taking on any of the risk. Even more, imagine finding managers to run all those locations, who are just as committed to growing the company as you, and you don’t have to pay them a dime. Finally, imagine that these managers will hire, fire and manage all employees as well as foot the bill for all operating costs and expenses. Sound far-fetched?

Not if you’re planning to enter the franchise industry, one of the fastest ways to grow a small business without breaking the bank. For many companies, franchising a business (or licensing) is a sensible way to achieve rapid, profitable growth without giving up any control or ownership. Going from a single location to a dozen in a couple years, or a hundred in ten years is possible and well-documented because franchise owner-investors put up all investment capital, shoulder all risk and assume all day-to-day operating responsibilities.

It’s expansion, using OPM – Other People’s Money. Also, the franchise company gets paid handsomely for teaching others the secrets of how to operate its business. First, there’s the up-front “membership” or franchise fee of $20,000 to $50,000 paid for using the brand name and operating methods. In addition, there are continuing royalties of 5% to 10% of gross sales for ongoing advice and consultation. In essence, a franchise development program allows a company to get out of the trenches and become a highly-paid general overseeing its soldiers. Long-term options are also attractive. Build an empire and relax, or let the franchise company be acquired by an increasing number of large companies that look for small, but growing franchise companies. According to the International Franchise Association, 900 new companies have franchised in the last three years.

ENTERING A NEW BUSINESS A company planning to franchise must realize it is entering a new business, offering an entirely different service (training & support) to entirely new customers (business owner-operators). This new business requires different skills, abilities and expertise. In the new business of franchising, it is critical to develop effective evaluation, documentation, mentoring, training and consulting skills. Since these new skills are rarely present within existing personnel, an outside franchise expert is needed to train existing personnel and plan the transition. The first step involves determining whether or not a business can franchise, and if so, what needs to be developed. Next, strategic franchise planning is necessary to create a “blueprint” for successful expansion efforts. Experience shows that, just like a building, the foundation developed at the beginning will create lasting consequences affecting the relative success (or failure) of the entire venture. Legal (franchise disclosure document, franchise agreements) and operational documents (franchise operations manual, franchise training program) are prepared and drafted and finally a franchise registration process is required in some 14 states, depending on which state(s) the company sells franchises. These phases are discussed below.

THE FRANCHISE FEASIBILITY PHASE An indispensable step before any franchise development program gets underway is an analysis of the concept and business model. Has the concept been sufficiently proven in the marketplace? How profitable are existing prototypes or company-owned outlets? Franchising will not solve existing problems, it will only intensify them – and usually at a serious cost to franchise investors. Franchising should not be viewed as a method to raise capital, expand a business that has existing problems, or a way to get rich quickly. There must be sufficient profitability in the business model so that royalty and other payments can be made and leave the franchise investor with a sufficient profit. With a franchise feasibility analysis, a determination can be made about:

(a) whether franchising or licensing expansion ideas should be pursued, postponed or abandoned; and (b) assuming a positive result in (a), what needs to be fine-tuned or developed from scratch for the franchise program.

Besides determining if and when the business can franchise, the analysis should also include providing guidance and direction so as much of the groundwork as possible can be done by existing personnel. This has proven to be a very effective approach and significantly reduces franchise development costs. If the feasibility analysis is positive, the other phases discussed below follow. My twenty-eight years of experience in the franchise industry lets me share a valuable insight about franchise feasibility studies. Too many companies leap into franchising without doing a feasibility study, or if one is done it is performed by a franchise consultant or group that tells everyone good news – they’re all “franchise-able.” The vast majority of franchise feasibility studies I’ve done either identify areas that need attention before franchising makes any sense or tell the client to forget about it and pursue other options.

THE FRANCHISE STRATEGIC PLANNING PHASE A successful franchise development program begins with a solid plan – a foundation for franchising. The long-term goal is to establish balanced, integrated, successful business relationships with qualified individuals who support the company’s goals and image. Creating an enduring relationship requires a comprehensive strategy that addresses all aspects of the franchise endeavor.

The starting point is a detailed analysis that covers:

(1) identifying profile characteristics of who will be the best franchise owners for the particular business;

(2) competitive positioning to make the franchise stand out from the other 3,000+ franchise companies;

(3) geographic scope – where and when will franchises be sold;

(4) analysis of the company’s organizational strengths and weaknesses relative to franchising;

(5) identifying the appropriate franchise organizational structure as well as staffing requirements and responsibilities; and

(6) structuring the franchise relationship for a balanced, win-win scenario.

What should emerge from this detailed analysis is a specific strategic plan and framework for guiding virtually all franchise efforts. Despite the long-term importance of the franchise planning step, too many emerging franchise companies enter franchising with no plan or planning – other than “let’s try and sell a lot of franchises.” They rush through (or neglect entirely) the strategic planning process, thereby creating future franchise litigation land mines that are ticking franchise lawsuits waiting to happen.

Often, this is because they only utilize the services of a franchise consulting firm or franchise attorney, where little or no attention is paid to critical strategic planning, operational and organizational issues. Normally, these firms draft “boilerplate” franchise disclosure documents, franchise agreements and franchise operations manuals based on a questionnaire completed by their client, who is presumed to have made all strategic decisions. The franchise documents are presented, along with an invoice and a handshake – hardly the ingredients for success in the new business of franchising.

THE FRANCHISE DOCUMENTATION PHASE If the company has made doing a good job at the planning stage the number one priority, franchise documentation goals will be apparent. Proprietary and intellectual property assets (like operating techniques, customer information, recipes, formulas and methods) need to be identified and protected. A trade secret protection program is developed and implemented. The name, logo and tag lines should have been previously registered as trademarks or service marks.

franchise operations manuals Franchise operations manuals and training programs are developed, often from scratch, to impart business operating skills to the franchise owner as well as ensure uniformity of products and services. The franchise operations manual and training program curriculum must be drafted with a particular focus. Certain topics, chapters and policies found in manuals for a company-owned chain, for example, are entirely inappropriate in a franchise environment, creating significant liability (lawsuit) issues for the franchise division.

I routinely find franchise operations manuals drafted by franchise consultants or do-it-yourself manual kitscontaining inappropriate chapters or topics. Not knowing where the bullets come from in franchise litigation, they proceed blindly ahead using “boilerplate” manuals where most (but not all) instances of “hamburgers” are changed to “tax returns.” The support aspect of the franchise relationship needs to be carefully considered, structured and reflected in the franchise operations manuals.

Deciding who writes the franchise operations manual is a relatively simple question to answer, yet many new franchise companies also fall into a trap here. Bewildered by the new business of franchising, with its legal requirements, franchise operations manuals, training programs, etc., they decide to “delegate responsibility,” usually to a high-priced franchise consultant who produces the operations manual and sometimes even the legal documents. Putting aside the practicing law without a license issue on the legal documents, does using someone to write your franchise operations manual who knows literally nothing about your business, ever make any sense?

The best practice approach, developed over almost three decades of my writing, editing and reviewing hundreds of franchise operations manuals is based on common sense. Let the true “expert” in your business write the operations manual. And who is that expert? It’s usually the founder of the business or a handful of your management personnel who know the business inside and out. It’s true, an outside franchise expert should be involved in the process, but this should be limited strictly to a planning and editing capacity – helping develop the overall Table of Contents, giving samples of writing styles and technicques, then reviewing each chapter after it’s drafted by you or your management team. This approach produces a professional, easy to use and update franchise operations manual. It also ensures the most efficient use of resources and talent.

franchise disclosure documents Finally, and only after all of the above are underway, a Franchise Disclosure Document, similar to a securities (stock offering) prospectus, is prepared by competent franchise counsel and registered with various regulatory agencies to comply with applicable federal and state laws. This document can contain thousands of discrete disclosures within its twenty-three chapters and attached exhibits, and obviously needs to be prepared by a franchise attorney. Doing it properly and with a balanced and fair perspective can help keep the company out of the courtroom later. In addition, a franchise registration process is required before any franchises can be advertised or sold in those 14 or so states having a franchise registration requirement. Having one firm author, edit and review all documents is not only cost-effective – it also avoids inconsistencies that can plague the franchise company as franchise legal pitfalls in the future (see discussion below).

RECOMMENDATIONS My twenty-eight years of experience has demonstrated that in order for a franchise company to get off to a good start, a heavy emphasis should be placed on strategic franchise planning to manage future franchise relationships as discussed above. Then, before the franchise program begins, management needs training in how to effectively operate a franchise organization. At a minimum, the following programs should be in place before franchise marketing efforts begin:

1. Franchise Lead Processing System (sm): Two key considerations for all franchise companies engaged in franchise marketing are the careful screening of franchise applicants and adopting the proper media plan, schedule and budget. Only the cream of the crop should be allowed to join the franchise network. Eliminating applicants at the entry stage is far easier than waiting for inevitable and costly problems later on. An examination of franchise networks plagued by troublesome franchise owners (who often ripen into future lawsuits) shows a lack of planning and attention to this relatively simple concept. Given the unlimited personal liability risk inherent in franchising, companies neglecting this important concept, or those using franchise brokers, are simply asking for trouble.

Before franchise marketing efforts start, a company should adopt a customized Franchise Lead Processing System that includes instructing key personnel in:

(1) adopting the proper organizational structure;

(2) defining the appropriate profile characteristics of prospective franchise owners;

(3) developing effective interviewing techniques, marketing materials, procedures and checklists;

(4) using a series of tests and other measures to ensure that inappropriate candidates are disqualified before joining the franchise network;

(5) detecting (and then avoiding) red flags that arise in the franchise marketing cycle; and

(6) adopting the appropriate media plan, schedule and budget.

2. Legal Compliance Program (sm): A franchise lawsuit can result if inconsistent or misleading communications occur when a franchise is first sold. Most of the legal risk is franchising centers around what happens during the marketing cycle: the twenty-three chapters of disclosures in the franchise disclosure document as well as who said what, and when. Defending any franchise lawsuit, even a frivolous one, can be enormous. Franchise companies involved in franchise litigation are shocked to discover they have fallen into a quicksand that swallows up time and money without limit. The cost of prosecuting or defending even a “small” franchise lawsuit can quickly exceed $100,000, and up. Exposure can run into the millions. Although one study of franchise disclosure documents indicated 27 percent of franchise companies have a history of franchise litigation (slightly greater than 1 in 4), the real percentage is much greater and probably north of 50 percent. This is because only pending litigation and final judgments must be disclosed in franchise disclosure documents. Most franchise litigation cases, like other litigation cases are settled, so they’re only required to be in the franchise disclosure document from the time they’re filed until settled. After that, they vanish without a trace. And whether the chances of getting sued in a franchise lawsuit and getting embroiled in franchise litigation is greater than 1 in 2 or 1 in 4, who wants to get involved in a time-consuming, stressful and expensive mess?

It is almost impossible to avoid potential franchise liability unless a genuine program of education and instruction is conducted with marketing personnel as well as middle and executive franchise management. An integrated Disclosure Compliance Program that specifies rules and expectations (including legal rules in selling a franchise), manages franchise disclosure documents and controls the dissemination of all information is absolutely essential. It is also one of the best investments a franchise company will ever make. For all of the above reasons, the use of franchise brokers is definitely NOT recommended. Their statements (or other actions) made to “close the deal” will make the franchise organization (and the personal assets of its officers) liable for violations of federal or state franchise laws. This also explains why the overwhelming majority of successful franchise organizations set up their own in-house franchise marketing department so that actions and statements made during the franchise marketing cycle can be monitored and controlled within the framework of a Franchise Sales Control System (sm).

3. Franchise Sales Control System (sm): Franchise Sales Control is the other half of the entire compliance equation. While legal compliance specifies rules and expectations, franchise sales control is the mechanism for detecting gaps and inconsistencies. When detected, their causes can be identified and corrected before injuring the franchise effort. A Franchise Sales Control System should be designed with this in mind, and should include a variety of feedback mechanisms to monitor performance and retrieve pertinent information for review by management. This not only increases the effectiveness of franchise marketing efforts – it also greatly reduces the likelihood that sales personnel will deviate from established procedures in selling franchises. Finally, a well-designed Franchise Sales Control System creates a complete back up file for every franchise sold that will qualify as business record evidence in the event of a future franchise dispute. It also satisfies the legal requirement of various states that franchise companies maintain a complete set of books, records and accounts of franchise sales. Since most of the legal risk in franchising arises during the franchise marketing cycle, a comprehensive Franchise Sales Control System is the company’s best protection against the quicksand of franchise litigation.

4. Managing Franchise Relations: As franchises are sold, the communication lines that develop between the parties will have a major impact on the success or failure of the ongoing franchise relationship. Controlling who is brought into the network through the steps outlined above is the critical first step. Once inside the franchise network, franchise owners must be taught to realize they are members of a system of mutually dependent outlets, each working for the better of the entire network. Developing an awareness of this concept early in the relationship and implementing a franchise feedback system will create a positive attitude, encourage innovative ideas from franchise owners, ensure timely royalty payments and prevent franchise relationship problems later on.

© 1982-2008, Kevin B. Murphy, B.S., M.B.A., J.D. – all rights reserved

For more information, visit the Franchise Foundations website.