Now can be a great time to hunt for new customers - but take care to expand cautiously.

By Emily Maltby, CNNMoney.com staff writer Last Updated: April 9, 2009: 5:42 PM ET

FARMINGDALE, N.Y. (CNNMoney.com) — Like many business owners fighting the recession, Mark Rickard is looking for ways to draw in new customers. The challenge: How to expand beyond his firm’s traditional services without confusing customers or taking on more than his company is equipped to handle.

Rickard List Marketing is a direct mail marketing company that Mark and his sister have run since their father’s retirement. Rickard wants to use this slow period to rebrand the company, but he has questions about how to make the transition. He’s brought the issue to a gathering of The Alternative Board (TAB), a panel of seasoned business owners who meet monthly to swap advice on their business challenges.

“I believe our core clients would appreciate us making more connections for them, but I expect they would be skeptical about our ability to add value outside our comfort zone,” Rickard says. “I’m not sure exactly what services to offer initially or how to publicize the change.”

“It’s a no-brainer, because you already have the clients,” says Frank Kelly, president of Kelair, a heating and air conditioning company that is based in Port Chester, N.Y. “But what do you actually want to do?”

“I want to do search engine optimization, market research, circulation analysis, media placement, insert media, data managing and processing …”

“Wow,” interjects John Dugan, partner at Farmingdale Physical Therapy. “Rome wasn’t built in a day. You need to build a bigger umbrella before you put all these things under it. Pick the ones that are most secure in this market and the ones that you feel most comfortable doing.”

“Well, my plan was actually to outsource some of the things I don’t feel 100% comfortable doing to affiliates,” Rickard says. “I already have relationships in place with designers and copyrighters.”

Ask yourself what kind of firm you really want to be, advises Buonfiglio, president of employee benefit broker C&B Consulting Group in Syosset, N.Y.

“At one point we partnered with a firm to provide services we could not perform in-house,” he says. “Eventually the clients let us know our partners’ work wasn’t as good as ours, so we ended up creating those capabilities in-house, with far superior results.”

“Do you think I risk clients by expanding like this?” Rickard asks. “Will they think my eye is not on the task?”

Think about the long-term future, Buonfiglio says. Building up new lines of business will inevitably take some of Rickard’s time away from current customers and projects, but that temporary trade-off can be worth it if the expansion will pay off for the company down the road.

“You’ll have to consider opportunity cost versus reward,” he says.

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By Matt Bolch
As published in: Franchise Times - April 2009

At a time when stocks are trading at half what they did 18 months ago, the loss of 10,000 franchise estab- lishments doesn’t seem so bad. The key, of course, is to make sure that it’s not your business that closes.

Staying on top of your game

If franchisees ever needed a little sage advice, now is the time.

“We’ve never been more relevant and never been more effective,” says Jason Zickerman, president and CEO of The Alternative Board, an international peer advice and executive coaching franchise based in Westminster, Colorado. “Executive coaching is kind of recession-proof. In good times, owners can afford it, and in bad times they need us more than ever.”

Clients can participate through peer boards of non-competing business owners who meet to discuss challenges and strategies for success and receive one-on-one coaching about their particular business.

This isn’t the time to sit back and hope to weather the storm, Zickerman advises. Business owners have to be aggressive and proactive, finding ways to cut spending that do not include marketing and leveraging company strengths to find new customers and cement ties with existing ones.

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Keeping customers happy is a must in today’s business climate.   As a result, its time to take a hard look at your customer service. Are employees making the grade—or do they need some incentives to get there?

A board of your peers, who are members of The Alternative Board®, recently took on this issue.  Peek inside their meeting with CNNMoney.com. 

This is no time to be alone! With the help of fellow business owners led by a professional facilitator, you can make better decisions and effectively conquer the toughest business challenges.  Does it make sense to talk more about your unique business issues?

Respecfully,

Joe Zente

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Small businesses need to stay afloat during the current economic downturn. This means changing with the times and altering business strategies. Jason Zickerman, president and CEO of The Alternative Board, a coaching franchise system, says it is essential for small companies to take a stronger approach in order to survive these hard times.

“This economy will unfortunately take businesses out,” says Zickerman. “Companies need to question themselves if they aren’t making changes in the current situation.”

Zickerman offers tips to help small business owners keep focus:

— Perform a 90- or 180-day cash flow forecast. Try to update the projection each month. Sign accountants in order to better understand how to create a cash flow analysis.

— Pay attention to the certain elements that can affect cash flow. Keep up inventory; poor managing of inventory is common. Watch customers and make sure you know what they owe you. Discuss terms on your purchases and accounts payable.

— Stay in touch with customers. It is important to be aware of your clients’ feelings toward your products or services. Try to keep customers as happy as possible.

— Continue marketing. Businesses that haven’t stopped marketing are doing better in this economy. Be more aggressive; confidence is portrayed when money is spent on exposure.

— Talk with your workers. Maintain employee involvement in meetings. Gain their perspectives and include them in the company’s survival tactics.

— Keep the strong staff. If the budget calls for a staff reduction, avoid firing those who are committed and play a big part in the company. You don’t have to base cuts on seniority or salary. Try not to fire multiple employees at once. It is better to do it one at a time.

— Find support through networking. You shouldn’t be alone during these slow times. Connect with other business owners to share ideas and learn tips.

For more information, visit www.thealternativeboard.com.

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Franchising can be an attractive way to extend a successful brand - but entrepreneurs should beware high costs and management challenges.

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By Emily Maltby, CNNMoney.com staff writer

FARMINGDALE, N.Y. (CNNMoney.com) — If you’re the owner of a successful business, is now the time to franchise it?

Paul Sperry, CEO of IDP Consulting, posed that question to a group of fellow business owners gathered last month in a conference room in Farmingdale, N.Y. As members of peer advisory group The Alternative Board (TAB), Sperry and his colleagues gather monthly, like dozens of other TAB groups across the country, to confidentially discuss business issues.

IDP, a 47-person IT firm based in Jericho, N.Y., provides technology management services to businesses of less than 300 employees. Sperry founded the company in 1986, and has a personal goal to leave the business in about six years. One of his employees has been talking to him recently about expanding IDP in a franchise model. Sperry is seriously entertaining the idea, but he’s wary about the problems it could bring.

“Franchises work for companies like Geek Squad when they don’t care who they’re selling services to,” Sperry says. “Franchises that saturate the market like that lose quality. I think they lose commitments from staff, and that won’t work for me.”

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