Millennials and the Importance of Marketing Online!

Posted by Jim Otto on Thu, May 11, 2017 @ 14:05 PM

marketingmillennials.jpgWe think the best way to prepare for future marketing trends is to study the behavior of the demographics that will soon be the dominant buying power! Our goal as a franchising system is to stay ahead of this trend, and help our franchisees create creative marketing strategies to connect to our target market now, and in the future. But this is something that applies to all businesses and their owners  (who are looking for ways to be even more successful in their communities) - not just kids haircutting salons!

For example, in studying our website traffic, we've seen that most of it comes in from a mobile device or smartphone. What this tells us is that our customers are likely very internet savvy, and looking for information readily available about what we offer through social media, search engines or our web site. We also understand the importance of social media marketing and reviews - as well as word of mouth marketing, which continues to be one of the best ways customers can learn about what your business offers.

So how does this fit in with millennials? Between 18 and 35 years old, millennials are projected to outgrow baby bo0mers in population size by 2028. Wow! Furthermore, it's reported that millennials are spending an average of 25 hours a week online, and are using the internet to engage with others more than any other age group that came before. Plus, as around 25% of the US population is a millennial, experts are saying that at least 75% of the US workforce will be comprised of millennials by 2025! 

Essentially, millennials will be the bulk of your customer base over the next 10 years, with a huge amount of descretionary buying power resting in their hands. Furthermore, around 89% of millennials say that they trust recommendations from friends and family, versus claims made by a company. Remember what we said about word of mouth marketing and social media reviews? This is where that comes into play. About 44% of millennials are willing to promote, or voice concerns over products and services online through social media - with many of them saying that user generated content on a company website influences what they will or won't buy. 86% of millennials would rather read a blog written by someone to learn about a company, rather than reading an ad in newspaper or print. Pretty cool stuff.

So in conclusion, Millennials are hyper connected online, but seek out offline activities with companies that create a positive experience and add value to their lives. Plus, despite ad blocking, millennials are actually more open to receiving branded messages than older generations of consumers have typically been, provided that content is targeted to their needs and interests. When millennials have a great experience with a company, they get online and share that experience on social media (via pictures or videos) with hundreds of their friends. This is awesome for a business, as they can become your number one, absolutely free marketing department out there practically promoting your busines 24 hours, 7 days a week!

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth and business success), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business that provides a positive experience in helping children and their families? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Exploring a Children's Salon Franchise

Topics: Small Business Franchise Information, Business Tips, small business how-tos, growing a small business, marketing strategies, franchising, franchisee support, franchise growth, franchise ownership, franchise success, Millennials, business ownership

Tips on Becoming a Multi-Unit Franchisee!

Posted by Matthew S on Thu, May 11, 2017 @ 14:05 PM

multiunit.jpgAsk almost anyone who has opened their own franchise business, and they'll tell you that success rarely happens overnight! Building your store into a thriving business sometimes takes a healthy financial commitment, as well as patience, perseverance and of course - hard work! But after you've opened your first store, should you consider opening another? What about three or four? Or 25? In the world of franchising, with hard work and setting goals, you can achieve these dreams. But understandably, you have to make sure you don't bite off more than you can chew! 

While many franchisees may be perfectly happy with achieving success through opening one franchise location, opening multiple units requires certain abilities which may catch some people by surprise. For example, a franchisee will find that it's a completely different ball game managing multiple units. It's not like it was when they only had one store to worry about! Now, with many moving parts and employees to manage, a franchisee will need to step into a role more like that of a CEO (with managers, human resources and accounting staff to help grow the business). In other words, it'll be a lot more difficult and stressful to try to micro-manage every detail when multiple units are owned. This is where hiring the right people and trusting them to help you grow with multiple units is extremely important when pursuing this path. And sure, under a multi-unit model your employees might not do it exactly the way you would have done it, but as long as it's delivering the results, don't sweat it.  If you can get an employee to do it 80% of the way you would have - you have a great employee!

Additionally, a franchisee considering opening another store should make sure that they're not just falling prey to a "bigger is better" mentality. Because if a franchisee has opened 4 locations and 2 are losing money, it may end up being less profitable than having one or two stores that they're much more able to capably manage and grow - and ultimately make even more money than they would have made with 4 locations. Without the right systems in place for multi-unit ownership, it can become really difficult for one person to manage the growth of numerous locations, and the great customer service or experience that was once provided with just one or two stores might be an unfortunate casualty.

Location is another factor to consider when owning multiple units. Of course establishing a business in the right area to maximize profits is always key. But it's also good to be aware that the farther apart your franchise locations are from each other, the more challenging it might become to manage properly. Not only that, but distance might impact how much shipping or delivery of retail from your warehouse costs, which could cut into profit margins as well. 

And then there's those unexpected emergencies that might happen when you own more than one store. For example, what happens if one of the stores you've opened is located in a great area, but road construction for several months impacts the flow of customers? Because of this, it's sometimes a good idea to make sure that you have multiple ways to support the business in case of those scenarios that temporarily causes a dip in your profits. To illustrate this concept, consider a business owner who owns several book stores. In order to diversify incomes for unexpected financial situations, this owner also sells books online, hosts school book fairs, and perhaps works as a small publisher for local authors.

In the end, there's sure to be a lot of other valuable decisions to think about before investing the time, energy and monetary resources into multi-unit development. But with careful research, networking with other multiunit franchisees, and attending workshops or conferences, those business owners interested in the potential that this exciting avenue of franchising represents will be better equipped for whatever comes down the road!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salons in the industry today! If you would like to learn more about this franchise opportunity or small business marketing, great marketing strategies, franchise development, resources for small businesses, how to grow your small business or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Exploring a Children's Salon Franchise

Topics: franchise buyers, Small Business Franchise Information, Business Tips, successful franchisees, business growth, franchising, franchisee support, franchise research, franchise growth, franchise, franchise success, franchising, franchise success, business ownership, multiunit franchise

Seven Things Every Franchisor Should be Doing

Posted by Janon Otto on Tue, Feb 14, 2017 @ 17:02 PM

7things.jpgMany business owners will often take a look at their business and ask, "how can I grow?". Friends will look at them and say "Hey!  You ought to franchise!".  Sounds good - franchise your business!  Easy, right?!  Just find some people who want to do what you do, teach them to do it, and then sit back and collect all that royalty! Wow - So Easy!

WRONG!  Running a franchise is work!  It is running a business that is totally different than the business that you are franchising. If you're someone who is thinking of starting a franchise, or buying into one, you'll want to remember the list of the seven important things that the franchisor had better be offering their franchisees. If they aren't, then the system is not worth doing or investing in!

1.  Putting franchisee profits first!  

2.  Staying current with all marketing methods, evaluating them as they relate to the franchise business, and teaching franchisees about them.

3.  Continuing to develop the concept so that it stays up to date with the times and trends.

4.  Developing standards to help all franchisees evaluate their success or areas that need improvement. As an example from a salon business standpoint, this would be such relevant information as how many haircuts should a stylist perform in a given time period, how to figure out what to pay your stylists, what products to offer in your store, etc.?

5.   Developing benchmarks  for success.  How is each franchise doing compared to others in the system?  Are all franchisees given access to the best information?

6.   Continually developing new content that potential customers see as fresh.  Website, social media platforms, in store materials, etc.

7.   Constantly improving franchisee support - both access, systems, & communication.

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Would you like to sign up for our Monthly newsletter? If so, click HERE!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD

Exploring a Children's Salon Franchise

Topics: salon franchise, franchise buyers, buying a franchise, how to buy into a franchise, Small Business Franchise Information, how to franchise, small business how-tos, growing a small business, franchising, franchisee support, franchise research, franchise growth, franchise ownership, why buy a franchise, franchise success

Franchise Warning! Are You Getting Sold or Recruited?

Posted by Jim Otto on Tue, Nov 15, 2016 @ 15:11 PM

warning.jpgCandidates often ask me why we pay for all their expenses when they come to Discovery Day to see our award winning children’s salons. Well, first of all that isn't quite accurate, as we do ask our best candidates to buy their own plane tickets (that way they have a little “skin in the game”). But other than that it’s pretty much on us. Now don’t get me wrong, there is some qualification that goes on and candidates that come into see us take our free no-obligation webinar, and have sent us some financial information that we check out. We don’t feel like it would be a prudent use of company funds for us to treat candidates to a  hotel on Kansas City’s Country Club Plaza district if they weren’t financially qualified to join our system. But for those that meet our qualifications, we do feel like Discovery Day is an important part of the process.

Franchising, more than any business I can think of, is a relationship driven model. The Franchisee relies heavily on the experience, knowledge, training and systems of the franchisor. In turn, as the franchisor, we are looking for people who will work hard, follow our proven systems and expand our brand. When that relationship works like it's suppose to, both sides benefit. Or putting it another way, it’s a “win-win” situation!

All this takes me back to whether you are being “sold” a franchise, or being recruited to join a brand. Franchisors that are out there only to sell franchises typically are looking to collect franchise fees and will sell a franchise to anyone who will buy. They are typically focusing on “quantity” instead of quality and turn a blind eye to marginal candidates. At Shear Madness our focus is on franchise “recruitment”. We want our candidates to match our profile, culture, and generally want them to be the type of people that have the same values as we do. We want our tag-line, Where Every Child Matters to really mean something to them. Understanding our culture is the starting point to a long happy marriage of franchise and franchisor, which is truly a ‘win-win” situation.

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantage of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own  small business? We are one of the fastest growing kids hair salons and franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, business tips, how to grow your small business, or how to become a owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

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Topics: franchise buyers, buying a franchise, Shear Madness Haircuts for kids, how to buy into a franchise, successful franchisees, nourishing success, business relationships, franchising, franchisee support, franchise research, why buy a franchise, brand building

In Business, One is the Loneliest Number!

Posted by Jim Otto on Tue, Sep 13, 2016 @ 16:09 PM

lonelybusiness.jpgWhen starting a new business by yourself, sometimes it might seem like doing your own research and going at it alone is the most attractive option. But ultimately, this might not be a good idea. Not only could you possibly be doing the wrong research and making investments that might not be financially profitable over the long run, but you just might not have all the necessary information at your fingertips that can help ensure business success! You've probably heard the phrase, “You don’t know what you don’t know”. Well, once when I was out of work I went to a job fair for a major pharmaceutical company. There were perhaps around 200 people in the room, and the meeting started off something like this, “all of you who have experience in the pharmaceutical industry get on this side of the room, and everyone else stay where you are.” Needless to say, I never interviewed that day. You see, that company knew there was no substitute for experience, no substitute for having "been there, done that”, and no substitute for having to start all over training someone to learn the pharmaceutical industry.

Let me offer you a solution. Let me tell you about a way to shorten your learning curve, save yourself all that research, stop yourself from making mistakes that someone else already made, and thinking that you know how things work when you really might not. It’s called Franchising. You see, someone else has already made all those mistakes that you are about ready to make. Someone else has done all that research. Someone else had those same wrong thoughts that you think will work, but they really don’t! That same someone, or group of someones will teach you how to succeed at a much faster rate. Why? Because they have already “been there and done that”. Put another way, by going alone - how long will it take, how much money will you spend, and how many mistakes will you make before your business must close it's doors or succeed? 

Don’t get me wrong, there are a few rare people out there who can start a business from scratch, and lo and behold it succeeds. Biz Stone, the Co-Founder of twitter is one of those. He says that, “timing, perseverance and ten years of trying will make you an overnight success”. But why would you do that when you can “pay” for a system that works and gets your business up and running at a much faster rate? That's why one is the loneliest number in business! You are either going to be in business by yourself, or you're going to have the support, systems and people to guide you. At the end of the day, what side of the room do you want to be on?

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own  small business? We are one of the fastest growing kids hair salons and franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, business tips, how to grow your small business, or how to become a owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Exploring a Children's Salon Franchise

Topics: franchise buyers, buying a franchise, Shear Madness Haircuts for kids, what is a franchise, small business how-tos, growing a small business, nourishing success, franchising, franchisee support, franchise ownership, why buy a franchise

The Big Red Flag of Franchising!

Posted by Jim Otto on Sun, Jul 17, 2016 @ 22:07 PM

Bigredflag.jpgPeople are requesting information about our franchise on a daily basis. The two most often asked questions I get are, “how much does it cost?” and “how much can I make?” These are questions that most interested franchise buyers have the right to know. If I may, I'd like to offer prospective buyers a question that would answer the other two and save everyone a lot of due diligence and research. You see, I think the most important question that franchise buyers should ask is, “How many of your locations have closed?”

Closing locations are the BIG RED FLAG of franchising. Why? Closing locations are a sign of several franchising problems.

Number one (and the one most people don’t ask enough) is that closings are caused because the franchise may not make enough money. This may not even be the fault of the franchisor, it’s just that it may not be a franchisable business model with enough demand from its customers. Remember: most franchising systems need several key components to be successful. The system must be easily taught to someone else, and that person in turn can teach it to someone else. Most successful franchising models create a recurring revenue model that continuous to expand and produce more and more revenue over time. That’s called scalability.

Number two is that closed locations can be a sign of poor support and training. Franchisors that don’t properly train and then support their franchisees usually suffer from lots of closed franchise locations. Running a business is hard and franchise systems that don’t help get their franchises “over the hump” and through the most difficult part of business, the startup, usually have closed locations.

So how do you know how many of a franchisor’s locations have closed?

The FTC requires that a franchise list all of their closings in the back of their Franchise Disclosure Document (also known as the FDD). If there are no closings listed, then make sure that you ask the franchisor to make sure. Under the FTC’s guide for buying a franchise, which you can find online, they'll say that if the numbers show that more than a few franchised outlets have closed, transferred to new owners, or transferred to the franchisor - then it could be due to problems with the franchsor’s support or because franchises aren’t profitable. 

This is not to say that there is a franchising system that exists with no closings. All franchising systems have locations that close. Running a business is hard and it takes lots of time, effort and perseverance to succeed, no matter how good the systems are. Plus, many people just lack the skill it takes to run a business. But if it were me, I'd always be sure to ask the question, “how many of your locations have closed?” Asking that one question will save you a lot of time and money!

Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores in providing franchisee support (in order to encourage continual growth), and have sometimes seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a business before, having someone who can advise them is a significant advantages of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own  small business? We are one of the fastest growing kids hair salons and franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, business tips, how to grow your small business, or how to become a owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Exploring a Children's Salon Franchise

Topics: franchise, salon franchise, franchise buyers, buying a franchise, franchise opportunity, how to buy into a franchise, Small Business Franchise Information, how to franchise, franchising, franchisee support, franchise research, haircare franchise, evaluating a franchise, franchise ownership, red flag, franchise success

What a Franchise Buyer Wants?  What do they Need? We Asked - The Top 8 Answers Below!

Posted by Janon Otto on Sun, Jul 17, 2016 @ 22:07 PM

franchisebuyersWhat are prospective franchise buyers looking for when it comes to buying into a franchise system? We opened this question up to some of our Shear Madness Haircuts for Kids franchisees, and this is some of the feedback we received. We hope it helps you as much as it did us!

1. Communication is Key: It may seem like a given, but it's true! Franchise communication is important through all aspects of franchising - from being able to effectively communicate with customers, to being able to have great communication channels between potential area developers, franchisors, franchisees, and everyone in between. As such, franchise buyers should be looking for a communication system that ensures consistency and timeliness of communication. Similarly, a means by which franchisees throughout the system can easily and effectively communicate with each other is also very helpful. Many franchisees join a franchise for the systems and support, so it's critical they get it!

2. Process Support and Education: Running your own franchise can be a challenging, yet rewarding experience. That's why when a Franchisee needs help, especially during the start-up phase, there's a tried-and-true system in place that gives them the support they need. This includes great communication channels with the franchisor and other franchisees, as well as franchise training provided through conferences and monthly meetings.

3. First Class Marketing: Franchisees want to know their marketing dollars are going toward creative, expressive messages that effectively reach their customers and help build their business. Some of these marketing efforts might include social media advertising, traditional advertising (newspapers, magazines, ads in sporting venues), posters for the store to use, banners for outdoor advertising, and much more!

4. Transparency: Franchisees want to clearly see evidence of the franchisor's support of the franchisee's efforts to attain and maintain success. There needs to be the feeling in the franchisee's heart that every day, everyone is working towards success.

5. Independence, Flexibility and Personal Challenge: Many franchisees are seeking to escape the politics, rigidity and frustration of working for others. But they also don't want the risk and harsh learning curve of trying to start a business entirely on their own. Franchisees are also highly motivated by achieving results directly linked to their own creativity and hard work. A successful franchise system allows for all these things!

6. Respect: Each franchisee is going to have different motivations, but ultimately they need to be treated like business owners, and not employees. Franchisees desire the respect of friends, family and peers, and are often a helpful force in the development of new initiatives and programs. Their experience and desire to succeed can also identify emerging trends in their respective industries.

7. Making a Difference: Franchisees often treat their staff as extended members of their own family, and take pride in helping them grow personally and professionally. They also get great satisfaction in helping customers and making a contribution to their local communities!

8. Utilizing Expertise: A franchisee wants to leverage upon the expertise of a franchisor, as well as using the name of an established brand that a franchisor has acquired. A franchisee also expects the franchisor to provide assistance in helping with staffing, training, business planning, operational and business related troubleshooting. This is so the franchisee can accomplish their business goals through an organized business mechanism in the minimum possible time!

There you have it!  If you are evaluating several franchise opportunities this will give you an idea of what to ask about!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Exploring a Children's Salon Franchise

Topics: franchise, kids salon franchise, franchise buyers, buying a franchise, franchise opportunity, Shear Madness Haircuts for kids, how to franchise, franchising, franchisee support

How to Find a Successful Franchise System!

Posted by Jim Otto on Thu, Apr 14, 2016 @ 14:04 PM

successfranchise.jpgOk, so here’s the deal, according to a recent article I read, a new franchise starts in the United States about every 8 minutes. There are several things that bother me about this trend. Number 1 is that many new concepts have no history of operating successfully, so how does a business know that their systems works and can be taught easily to franchisees? Furthermore, without going through all kinds of economic environments and all the various issues that a business can face over a long period of changing business climates, how do you know if the concept will stand the test of time? One of the biggest advantages that I see of buying into a franchise is the “benchmarking” that they are able to do for a franchisee to make sure they are on pace to succeed - and those metrics only come from watching a business over a long period of time. If a franchise can’t show you a track record of success, don’t risk trying to create one for them! 

Number 2 (and this one really bothers me), is how many franchisors are out there selling franchises without actually running the concept. Heck, some franchisors out there have never even run their own concepts successfully. You will hear things like, “we are too busy running the franchise system and supporting our franchisees.” To that I've got to say, if your concept is that difficult to run, then you probably shouldn’t be franchising. And secondly, guess who is testing new ideas for the franchise system? You guessed it, the franchisees and not the franchisor. Look at some of the most successful franchise systems, like Buffalo Wild Wings - who runs about half their stores on a corporate basis. This is the same with Panera Bread! Even McDonald’s owns half their locations. We wouldn’t spend our money on a franchise where the Franchisor doesn’t own and run the concept successfully, so why would you?

It's a fact that running a business can be hard work and encompasses many challenges that most people have never encountered. This is why a strong case can be made for opening a salon franchise, as many offer the advantage of a successful business history. However, even getting a salon franchise off the ground takes effort and careful analysis when researching franchises.  Be sure to contact franchises and talk to the franchisors, look at the Franchise Disclosure documents and the Franchise Agreement, and compare business models. For example, Shear Madness Franchising franchises Shear Madness Haircuts for Kids salons. We have worked with franchise stores providing franchisee support, and have seen the unexpected happen!  When it does, we help by identifying and helping with challenges that might arise for franchisees. Additionally, we work to present options that can help prevent these events as well. As many franchise owners may not have opened a businesses before, having someone who can advise them is a significant advantages of franchise ownership!

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

Exploring a Children's Salon Franchise

Topics: salon franchise, franchise buyers, buying a franchise, successful franchisees, franchisee support, franchise research, evaluating a franchise

Inhibitors to Franchise Success - Six Major Considerations

Posted by Janon Otto on Thu, Mar 10, 2016 @ 13:03 PM

whyfranchisefailDespite franchising being a safer way of doing business, it doesn't mean that it's risk free! Because of this, it's important when researching franchises to carefully look at your options, and find out which franchise systems could cause you major problems over the long run - and which franchise systems will provide you with a great formula for franchise success! Below are some of the top problem areas in why a franchise might struggle.

1.  Lack of Systems: Franchising is all about systems. Being able to replicate a successful franchise system is what makes a business franchiseable. An ethical franchise has everything documented and systemized so that it can easily be passed on to others for successful implementation. If a business doesn't have any systems and instead relies only on the skills of individuals within the business, then it shouldn't be franchised. However, some businesses will ignore this and try to franchise their business anyway. Unfortunately, these companies usually are only interested in a quick buck, and aren't overly concerned in who may or may not have the required skills for the successful operation of the franchise.

2. No Track Record: A business can only be franchised if it has a track record. We're often amazed at the amount of people who have an idea for a franchise, but then don't actually have a business! Remember: the business comes first - it's not conceived at the same time as the franchise! Those usually wanting to start a franchise without having a business are again looking to make money fast. Make sure that the franchisor has an established track record of running a business, along with a great reputation of success in franchising!

3.  Location: Half the battle of owning a successful franchise is finding the right location for your business. And depending on the nature of your business, not all franchisees need to be in a city center location or shopping mall. However, a good franchisor will help you study local demographics and work with you to find a great location.

4.  Lack of Marketing: Good franchisors will spend money on promoting the brand nationally as well as in the local area. Ask the franchisor about their marketing activities, and what they plan on doing to help gain recognition and awareness for your franchise. In today's environment there are many ways a franchisor can help market your business in your local area, if they don't plan to help you with that it is another red flag.  A franchise system should have data on local marketing efforts of other franchises in the system, access to that information saves you lots of time and money!

5.  Competition: Check out the competition for your franchise in the local market. If there isn't any competition, there might not be a demand for the product - which may result in it not having much future market potential. On the other hand - you may have discovered the perfect franchise for your area!  There may be a real need for this business, and being first to market can be a great advantage for you.  Additionally, if there's too much competition, introducing a new franchise might be a struggle as well. Be sure to look into markets similar to your own where the franchise is operating in order to judge how well it might do in your local area.  A good franchisor should have access to information that can help you decide whether the competition factor in your area is a plus or a minus.

6.  Insufficient Funds: One of the biggest reasons franchises can fail is that the franchisee has under-estimated how much money is needed to buy and run the franchise. It's not just about having money for the investment, but about the costs you'll incur when running the business. For example, how will you plan on paying staff salaries or having enough for supplies? If your franchise business is not making money initially, you'll need to make sure you have anough money for day-to-day operating costs, as well as paying your own bills. Over-estimating what you need is a good way to calculate the cost of running a franchise.

Are you interested in learning how YOU can join the Shear Madness Haircuts for Kids family and run your own successful small business? We are one of the fastest growing kids hair salon franchise systems in the industry today! If you would like to learn more about small business marketing, great marketing strategies, resources for small businesses, how to grow a small business, or how to become a successful owner of your own kids hair salon franchise business, please click below or call 1-888-98 GONE MAD!

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Topics: salon franchise, buying a franchise, franchise opportunity, Small Business Franchise Information, business growth, franchising, franchisee support, franchise research

2015: a Great Year of Growth!

Posted by Matthew S on Wed, Jan 13, 2016 @ 12:01 PM

Toddopening1.jpg2015 was another year of GREAT franchise growth for Shear Madness Franchising! We began our expansion into the Northeast United States by signing a multi-unit development agreement in the late spring and now have a location open in New York State. This agreement will allow us to expand our award winning Shear Madness Haircuts for Kids concept into our sixth, seventh and eighth state and give us continued momentum going forward into 2016. Some of the reasons Todd Danni (our New York franchise owner) selected Shear Madness Haircuts for Kids was because of our franchise experience, our commitment to multi-unit development, a healthy and balanced relationship with the franchisor, and the ability to "test" market a location. 

AnkenyOpening.jpgMeanwhile, our existing franchise locations continued to see double digit growth in sales and revenue, and our franchisee in Des Monies opened her second location in Iowa. Shear Madness Haircuts for Kids Franchise Owner Erin Nanke notes that, “Before joining Shear Madness Haircuts For Kids as a franchisee, I spent 9 months researching the children's haircutting industry and my community to ensure there was a need and it was an underserved market.  I researched over 3 dozen different children's salons from the biggest franchises to the smallest independently owned across the country.  I made a list of pros and cons about each salon, what I liked and didn't as a potential business owner and as a consumer and mom of three children. Shear Madness Haircuts For Kids by far exceeds every other children's salon in its:  culture, aesthetic appeal, business model and franchisor support."  

conferencecollage.jpgAt our Movement to the Madness Summer Conference in July of 2015 we introduced a new Revenue Stream and a new tagline, because at Shear Madness we want to be known as the place "Where Every Child Matters". Janon Otto, CEO of Shear Madness Franchising LLC had the following to say in regards ot our awesome franchisees: "Each day I come to the office, I am inspired by your efforts! Your belief in what we are doing and your willingness to accept the day to day challenges of business inspire me on a daily basis. We could not have asked for a better group of franchisees to grow with, and I am sincerely grateful to each and every one of you!"

It should also be noted that over the past year, we've been diligent in expanding our large blog library of business tips and franchise resources, which can be found here. We've written about topics like Effective Franchise Support, Growing Your Small Business, the Five Stages of Business (Get a Head Start with Franchising), and Is a Kids Hair Salon a Good Investment?

So as we look forward to the future, we also hope that you will take the time to consider how our opportunity may fit into your expansion plans! Interested in learning more about how you can become an owner of your own exciting Shear Madness location? As one of the best kids salon franchise systems out there, we're also one of the fastest growing kids hair salons in the industry today! And we're always working hard to share our many great resources, small business marketing strategies and business tips so that our franchisees will have the tools to succeed! If you're interested in learning how to become a successful owner of your own childrens salon franchise business, please click below or call 1-888-98 GONE MAD!

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Topics: buying a franchise, franchise opportunity, franchisee support, franchise research, franchise growth