1. Semester 1- Class 3 Turn Key Copyright 2007 Duane Hoversten – Instructor South Central College

2. Use the Turn Key Franchise Idea zThe Franchise Phenomena zMcDonalds - The most successful small Business in the world.

3. Franchises zTrade Name Franchises yCoca Cola - Cadillac zBusiness Format Franchise yAn entire system of doing business yTRUE PRODUCT OF THE BUSINESS IS THE BUSINESS ITSELF.. yTHE HAMBURGER WASN’T THE PRODUCT - THE BUSINESS WAS..

4. Business Format Franchises z95% Success Rate in 1st Year z75% Success Rate for Business Format Franchises in 5 Year Period McDonalds: cleanliness - satisfy the customers every time Learned at Hamburger U

5. Business Format Franchise “Proprietary Way of Doing Business that differentiates every Extra-ordinary business from one of its competitors.” How do we build businesses to make that idea work for us? How do we make businesses that work predictably and profitably every day? How do we get business owners in control of their business rather than the businesses controlling the owner/manager??? MAJOR QUESTIONS ARE:

6. We Created a Turn key Business for Wayne zCreated goals zCreated Organization Structure zHired a bookkeeper zCreated schedule zDid last two years taxes zCreated paperwork to track jobs zCreated paperwork to track work on jobs

7. Your Business in Not Your Life!!! zA Business Owner must understand that the primary purpose of a business is that it serve him/her not that he/she serves the business. Work on the Business Not in the Business..

8. What is a Franchise Business Rules – There will be 50 more stores or locations like this one z1 )The Model will be consistent value for: yCustomers yEmployees y Vendors yBankers etc

9. Business Rules Continued: z2) Business will be operated by Lowest Possible skills yIf business needs high skill level, you can’t replicate it yWE develop tools and keep improving the tools for this business yIf we assume low skilled labor, we acutally build systems that will work

10. Business Rules continued z3) The place will stand out as a Place of Impeccable Order yA business that looks orderly has customer’s assuming you know what you are doing yA business that is orderly will have it’s employees believing in what it does yA business that is orderly has structure in place

11. Business Rules z4) All Work will be Documented in Operation Manuals yThere is a “way” to do every job (cleaning bathrooms) yEmployees want structure to full fill their psychological needs of their job yIt states the purpose of the work

12. Business Rules z5) The model will Provide a Uniform product to the customer yGet a great big steak one time yGet a small steak the next time yEven if it was good, you now ask what next??

13. Business Rules zThe model will have a uniform color, dress and facilities code yColors are important xMore sales wearing a blue sport coat than any other color yShapes are important yUniformity is important

14. Create a Turn Key Business to Sell- Same Requirements!!! zThe model must be consistent and create a consistent Value to Customers, Vendors, and Employees, and other stake holders. zThe model will be operated by people of the lowest skill possible zThe model will stand out as a place of order zAll work will be documented by operation manuals zThe model will provide uniform customer service zThe model will have a uniform/office/car/building code

15. Systems in Your Business zFinancial zMarketing zHuman Resource zManagement zOperations zRisk Management

16. Financial Systems (Procedures) z100 Billing and Collections z110Budgeting z120Cash flow Measurement z130 Financial Statements z140Inventory Control Systems z150Pricing System z170Purchasing System z180Tax Preparation z190Vendor Selection

17. Marketing z200Lead/Quote Generation z210Marketing Budget z220Marketing Calendar z230Marketing Measurement z240Sales Training z250Marketing Plan

18. Human Resource z320Job Descriptions z330Recruiting/Hiring z340Training z350Employee Manual z370Payroll System z380Personnel Files z390Wage Scale

19. Management z420Business/Strategic Plan z430Communications/Culture z450Organization Structure z460Planning/Time Mgmt/Goals z470Professional Partners

20. Operations z520Costing Measurement z530Customer Satisfaction z540Phone Answering z560Production Measurement z570Mail z575Office Supplies

21. Risk Management z620Data Backup z630Emergency Plan z640Insurance z650Key Employees z670Safety z680Security

22. Business Area & Systems Worksheet Business Areas and Systems Work Sheet zBusiness Area:___________________________System:___________________________ zProcedures/Activity: 1.___________________________________________________________ Who:________________________________________________________ When:_______________________________________________________ Where:______________________________________________________ Why:________________________________________________________ What:_______________________________________________________ _______________________________________________________

23. End Class 3 zNext Class October 20 at 8 am Finish Emyth zRead Chapt 10-14 in Emyth Creating Business Systems