How does a small local company multiply its success in one location to other parts of the city, in other cities, in other countries or globally? McDonalds, 7-Eleven and other companies have done it. I studied this strategy and presented it in the past. Have a look at what I presented. I hope it generates some ideas.

1. 1
How to multiply your
small business
Single Owner to Business Executive
Source: The E-Myth Revisited:
Why Most Small Businesses Don't Work and What to Do About It,
Michael E. Gerber, HarperCollins Publishing
Ron McFarland Tokyo, Japan

2. 2
In start-up businesses, there
are three roles the owner plays.
The Technician
The Entrepreneur
The Manager
Ron McFarland Tokyo, Japan

3. 3
The Entrepreneur
The Entrepreneur
1. He lives for the future.
2. He is an innovator.
3. He is a grand strategist.
4. He is the creator of new markets.
5. He is the builder of businesses.
Ron McFarland Tokyo, Japan

4. 4
The Manager
The Manager
1. He lives for the past and uses what is known.
2. He wants control and order.
3. He comes along and cleans up messes
caused by dreaming entrepreneurs.
4. He keeps the business going and achieves
goals through current processes.
Ron McFarland Tokyo, Japan

5. 1. He is the doer. He does things himself to insure they are
done right.
2. He lives in the present and addresses current issues daily.
3. He thinks if he is not doing something right now he is not
working.
4. He is highly individualist and works best on his own.
5
The Technician
The Technician
Ron McFarland Tokyo, Japan

6. 6
A huge 70% are
technicians that are
good at doing something
and marketing it. He
wants to be his own boss
and take control of what
he does.
Only 20% are
managers.
Only 10% are
entrepreneurs
actually.
At the point of start-up…….
The role when starting a business
Ron McFarland Tokyo, Japan

7. 7
At some point, he can not keep up with the
work and the business suffers or fails.
First few years of operation
Over the first few years, the owner does all the
technical work until he becomes overloaded.
Ron McFarland Tokyo, Japan

8. 8
Staff has to be added.
People like people who are similar to them.
But hired technicians become employees and are not owners.
They do not have the desire and business ownership passion.
If the “technician type” owner looks like this,
he will more than likely hire someone similar.
Ron McFarland Tokyo, Japan

9. 1. Lack of attention.
2. Trust in the way they work and perform can only go so far.
3. Accountability is only on the owner.
4. The owner can not just give assignments and forget about
them.
5. He must put in procedures in written form, have them
explained, practiced and monitored.
9
Adding staff
These people think differently. They don’t care about
the long-term success of the business. Therefore,
performance is different.
Ron McFarland Tokyo, Japan

10. 10
The Entrepreneurial
Perspective
He knows how to build a
business that gets things
done.
He knows how to develop
business practices.
He knows how to standardized
business practices.
The Entrepreneur’s & Technician's Perspectives
The Technician’s Perspective
He knows how to do things.
Ron McFarland Tokyo, Japan

11. 11
Business Model Questions for the Entrepreneur’s
What is important to him is how things
are done, not just what is done daily.
Ron McFarland Tokyo, Japan

12. 12
From the answers to these questions a
Business Format Franchise is created.
Forming a standardized business model
Ron McFarland Tokyo, Japan

13. 13
The Business Format Franchise will determine how the
business operates and what is expected in each position.
Business Format Franchise
This type of franchising is not just brand name but practices.
Ron McFarland Tokyo, Japan

14. 14
Why a franchised format vs. an independent format?
First year –
50% success rate
First 5 years –
20% success rate
First year –
95% success rate
First 5 years –
75% success rate
The system, to every detail, manages the
business and makes the decisions. The staff
just perform the functions as assigned.
Independent
Ron McFarland Tokyo, Japan

15. 1. Start with creating a single prototype of the organization including
an operations manual and checklist for each job in the organization.
2. Run the operations for a give period of time and make adjustments
and additions as need be.
3. Once there is confidence that these are the ideal procedures start
to duplicate it in an another region.
4. Once the pilot duplication is successful, move to other regions
15
Confirmed Prototype
Procedures for setting up a franchise operation
First Prototype
Ron McFarland Tokyo, Japan

16. 16
Procedures for franchising
Explore minor modifications in the franchise model
on quarterly and yearly basis. These should be so
minor that they do not drastically impact the overall
character and values of the organizations (small
additions to assignment check sheets, etc.)
Ron McFarland Tokyo, Japan

17. 17
Franchise business model rules
Ron McFarland Tokyo, Japan

18. 18
Tasks to achieve target
What you standardize must be
quantifiable and measurable.
Ron McFarland Tokyo, Japan

19. 19
Company procedure example #1 (hotel)
Procedures should be set so the person doing it
does not have to think, he just does it.
All front desk clerks must start with this question when a customer
checks in.
Hello. Have you
been to our hotel
before?
Great. We have a special
for people who have never
been here before.
Great. We have a special
for people who have been
here before.
No
Yes
Ron McFarland Tokyo, Japan

20. 20
Points Meeting and Greeting Activities
/ 3 Did the salesman get the customer's name and start using it? (3 points extremely well, 0 points not at all)
/ 5 Did the salesman closely observe the customer? (5 points extremely well, 0 points not at all)
/ 3 Did the salesman match the customers voice level? (3 points extremely well, 0 points not at all)
/ 3 Did the salesman match the customers posture? (3 points extremely well, 0 points not at all)
/ 1 Did the salesman match the customers facial expressions? (1 point extremely well, 0 points not at all)
/ 5 Did the salesman match the customer's language ability? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman smile? (5 points extremely well, 0 points not at all)
/ 3 Was the salesman's dress appropriate for the situation? (3 points extremely well, 0 points not at all)
/ 5 Did the salesman have good eye contact? (5 points extremely well, 0 points not at all)
/ 3 Did the salesman ask permission to ask a few questions? (3 points extremely well, 0 points not at all)
/ 36 Meeting and Greeting Total Points
Another example #2: How salesmen are to sells to
regional hardware distributors
Ron McFarland Tokyo, Japan

21. 21
Points Qualifying and Counseling Activities
/ 5 Did the salesman use open-ended questions? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman get the customer talking 80% of the time or more? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman determine the customer's dominant buying motive? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman determine what product to present? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman determine what features on the product to present? (5 points extremely well, 0 points not at all)
/ 25 Qualifying and Counseling Total Points
Another example #2: How salesmen are to sells to
regional hardware distributors
Ron McFarland Tokyo, Japan

22. 22
Points Presentation & Demonstration Activities
/ 5 Did the salesman present a pamphlet of the product to the customer? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman explain labels outside and inside the package (5 points extremely well, 0 points not at all)
/ 5 Did the salesman play the video and explain the features? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman explain the applications? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman explain displays, assortments or promotional material? (5 points extremely well, 0 points not at all)
/ 10 Did the salesman demonstrate the performance in front of the customer? (10 points extremely well, 0 points not at all)
/ 10 Did the salesman let the customer use the product? (10 points extremely well, 0 points not at all)
/ 5 Did the salesman ask a trial close question? (5 points extremely well, 0 points not at all)
/ 50 Presentation & Demonstration Total Points
Another example #2: How salesmen are to sells to
regional hardware distributors
Ron McFarland Tokyo, Japan

23. 23
By using this format the salesmen knows how to
best serve the customer and the company.
Points Closing the Sale Activities
/ 10 Did the salesman present an order form and ask a closing question? (10 points extremely well, 0 points not at all)
/ 5 Did the salesman determine specifically if there were any objections? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman ask the customer if he would buy if his objections were answered? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman start high in his negotiating, at the distributor net price? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman come down slowly in his discounting? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman give reasons for reducing the price? (5 points extremely well, 0 points not at all)
/ 10 Did the salesman wait for the customer to raise his price? (5 points extremely well, 0 points not at all)
/ 10 Did the salesman continue to sell value? (5 points extremely well, 0 points not at all)
/ 5 Did the salesman make the negotiating fun and interesting? (5 points extremely well, 0 points not at all)
/ 10 Did the salesman get a signed counter offer? (10 points extremely well, 0 points not at all)
/ 70 Closing the Sale Total Points
Another example #2: How salesmen are to sells to
regional hardware distributors
Ron McFarland Tokyo, Japan

24. 24
People Strategy
How do we get our people to follow the operations manual?
Look for
people who
are willing
to follow
procedures.
During the
interview,
present and
explain the
operations
manual in
the most
detailed way
possible.
During the
interview,
introduce
the person
who will be
supervising
the activities.
Present and
give an
agreement to
the candidate
and confirm
his
willingness to
follow the
procedures
included.
Have the
new
candidate
sign the
agreement at
point of
employment.
Ron McFarland Tokyo, Japan

25. 25
Franchise Certification
After all the people in a new franchise have been trained
and are skilled to perform the tasks, a certificate of
completion is presented, and the franchise has the right
to operate.
Ron McFarland Tokyo, Japan

26. 26
Thank you
Franchise development
-the road to multiplying a small
business success-
Ron McFarland Tokyo, Japan