This year, Chad Jones and I had the opportunity to attend the Utah 100 awards ceremony at the Grand America Hotel in Salt Lake City. The room was packed. There were probably around 500 people there. 130 of the companies were there that were winners of some kind, including Five Star Painting. The Utah 100 honors the 100 fastest growing companies in all of Utah. At the ceremony, we learned we placed 33^rd among the top 100 fastest growing businesses. We could not be more pleased and proud.  We have won some awards in the past but have never before placed in the Utah 100. There are many great companies who placed this year and we are so excited to be numbered among them.

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As a franchiser and a strong believer in the franchise business model, it might be surprising to hear me say that franchising is not for everyone, but it’s true. There are certain reasons that would (and should) deter even the best entrepreneur from becoming a franchisee:

1.       The opportunity you’re looking for doesn’t fit a franchise mold.

There are lots of franchising opportunities available and odds are you will probably be able to find an opportunity that fits your particular interest… unless you’re interested in an industry that really shouldn’t be franchised. Certain businesses simply do not fit a franchise model, such as a farm or a computer chip manufacturing plant. The process of franchising consists of fragmenting and spreading a business over a more widespread territory – in the case of a farm or computer manufacturing plant, taking business away from the epicenter in order to “expand” would only weaken the company. If you are set on franchising, make sure it’s for an industry that can support successful franchises.

2.       You are not well-financed

By the nature of the beast, when you buy a franchise you are going to spend thousands of dollars at the beginning. You are paying for the years and years of research and experience that multiple owners, founders and partners have utilized to create a successful, well-supported system – think of it as your “tuition.” Keep in mind that this franchise fee costs much less than the costs of the mistakes you will make if you try to start a company on your own. It is worthwhile to avoid those mistakes that only experience can prevent by buying into a franchise. But if you don’t have capital for start-up, you won’t be able to buy into a franchise and you certainly won’t be able to finance a start-up business of your own. If this is the case, try being an employee for a while. Make money while gaining experience until you have the money and ability to run a successful business.

3.       You have a strong independent streak

Many subscribe to the idea, “If you want something done right, you have to do it yourself.” That mentality will destroy an organization. Successful franchises are based on a team effort, especially within a service industry like Five Star Painting or Five Star Holiday Décor. Running a business takes a lot of knowledge and experience in a number of different specialties. For a franchisee to be successful he needs to trust the corporate team’s expertise.  Five Star, for instance, provides personalized websites complete with a slew of search engine optimization and management

'Lone Ranger' types don't want to rely on others to get the job done.

campaigns. We also provide a comprehensive 24-hour sales and support center complete with a first-contact lead system, marketing planning and management. Franchisees are also provided the Five Star branding as well as in0house software that produces accurate computerized estimates, reports and customer tracking.

There are some people who feel a strong need to be in control of everything, that it has to be done their way. They believe they’re “my customers” and no one else can talk to them. That’s the individual that wants to be in business all by himself – book keeping, finance, every single department run by himself.  These types of people make great consultants. They can be a successful one-man show, but they can’t run an operation. If you’re looking into starting a business but aren’t looking for help, franchising is not for you.

Are you selling a product or an experience?

A cup of coffee is, all things considered, probably worth less than fifty cents. How then does a company like Starbucks get its customers to pay upwards of five dollars for that same cup? The answer is that Starbucks is not simply selling a cup of coffee; they are selling an experience. Starbucks provides an environment and a culture that makes a simple (or not so simple) cup of coffee worth that much more.

This idea is explored in the book The Experience Economy: Work is Theater & Every Business a Stage by B. Joseph Pine II. Alongside Starbucks, The Experience Economy examines the work of Walt Disney who created the world’s first theme parks which provide guests (never “customers” or “clients”) a living, immersive cartoon world with rides that not only entertain but involve guests in an unfolding story. Disneyland and Starbucks both provide more than a simple commodity; they provide an experience.

Businesses that have caught onto this idea of experience economy have learned they can charge more for their product. People want don’t just want to buy stuff anymore, they also want to be entertained. Restaurant theaters have caught on to this, being able to provide a meal and a show, involving the audience in the experience. Movies have become that way with 3D. Some take the stuff out of the equation altogether; owners of corn fields have learned that they can make a much larger profit by creating a corn maze than by simply selling the corn for consumption. Something that has been around forever, like corn, can be turned into an experience for a much greater profit.

It is this same notion of the experience as a commodity that has gotten us so interested in working with Sub Zero. Sub Zero is not your average ice cream shop. On the Sub Zero website, it states, “Our secret is Cryogenics, the science of ultra cold where we use direct contact freezing. Our process takes a matter of seconds. This is the best and fastest ice cream you will ever see or taste.” Sub Zero has turned ordinary ice cream into extraordinary ice cream. “Nothing is frozen before you order.”

Ice cream is a product that has been around forever, but with Sub Zero, they are selling the experience. Couple that experience with an amazing product and that is what will be successful.

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I was on Facebook the other day when I saw a friend’s post about a book by Stephen Covey on the speed of trust. Curious, I did a quick read on the topic. Though I didn’t dig much deeper than that, I have thought about the idea of the book since. How much does trust impact business? How do you build trust quickly?

During the training of our franchisees we often discuss the fact that customers don’t buy from people they like, but from people they trust. If you can build trust quickly it usually leads to improved sales. The thing about trust is that it has to be authentic. In other words, if your only motivation for building trust is to improve sales you won’t be as successful at building trust.

Everyone has a different level at which they are comfortable trusting others. I think we all know people who blindly trust everyone (some may call them gullible). This continues until they get burned, after which they learn to be more cautious about giving their trust so freely. Some become cynical, feeling as though everyone is out to get them, and trust no one. Somewhere in between there is a balance of letting others earn your trust while also awarding that trust and maintaining the belief in the overall good nature of people.

So, in business, how important is trust? Can you even do business if you are not able to earn people’s trust or trust others? Having had a number of business partners to date, I argue that without trust you may as well not even bother starting a business with any partner. Trust forms the foundation of any strong business, partnership, employee or franchisee.

Back to the question of how to build trust quickly. Here is a link to Covey’s book’s synopsis. I think it’s worth giving a read. Having not read this book beyond the abstract and a couple forum discussions, I make the following observation:  Trust is likely the reason so many do business with close friends or family, where trust was earned outside of business and then extended to business dealings.

What do you think? How do you earn trust, and how do you award it to those around you? What is the number one thing that builds trust in your relationships?

I thought I would do a blog post on the motherland. I am a proud Canadian who loves his hockey, Cadbury chocolate bars and health care. I have had the opportunity to be an entrepreneur in both the USA and Canada and have found things to rave about from both experiences. Today I find myself in the USA, specifically in Utah and have to say there is an incredible entrepreneurial spirit that is supported and celebrated here in Utah. It makes doing what I do more enjoyable.

If you are thinking of taking your business from the USA to Canada or from Canada to the USA I thought I would offer a few pointers from personal experience.

Taxes – not all states are created equal in the USA, Delaware and Nevada are both done have an income tax BUT Delaware does charge fees based on your assets or your shares outstanding which in some cases can be beyond what you would have paid. Not all province/state are created equal either. If you are going to set up a corporation in Canada, be aware there are some very competitive laws for small business earning under 200k/year that keep your taxes lower than in the USA. I am not a tax accountant, but that is the prevailing message I get from the professional I use. In Canada be prepared to keep track of both provincial sales taxes as well as federal sales tax – GST. Definitely a pain in the butt but I believe that is the definition of taxes isn’t it?

People – For the most part Canadians and Americans think the same, if you are from out East in the USA you are much closer culturally to the east coast of Canada than to Texas. The border of Canada and the USA really should have been divided East West instead of North and South. It would have collected a closer mind set in each country. One thing that I will say that is universal in Canada is Hockey and health care, not to mention beer. If you have ever watched Bob and Doug McKenzie you may be slightly off your typical Canadian, but not too far.

Relationship – The relationship between Canada and the USA is the closest and most extensive in the world. This includes bilateral trades which sum up to $1.5 billion a day in goods, as well as hundreds of thousands crossing the shared border every day. Canada and the USA work closely together on federal and local levels, whether it is about law enforcement, protecting the environment, or fighting terrorism. The USA is Canada’s largest foreign investor and Canada is the USA’s fifth largest investor. They rely on one another for manufacturing, financing, mining, and other services.

Traveling – When traveling back and forth from Canada to the USA, you must have proof of citizenship such as a birth certificate with a photo ID, a valid passport or visa – that is by ground and air. For more information on what is prohibited when crossing the border, click here.

If you have any questions about taking your business from the USA to Canada or from Canada to the USA, please leave me a comment and I will get back to you.

Entrepreneurship can be a ball and chain, it never leaves you no matter where you go, but it can also give you a lot of freedom. Now with smart phones being as advanced as they are you can get into your network and access all your files right from the dock of your summer home on the lake. When I was visiting with a fellow entrepreneur about this we laughed about how connected we are with our businesses and actually kind of like it.

Passion for your business comes out in everything you do, you live your brand, it is part of you and your DNA and it makes life more enjoyable. Years ago when I worked in a more “corporate” environment, weekends were looked forward to, now I often look forward to the weekdays. Strange I know, I think I may be sick but for now I love it.

So why are people so interested in entrepreneurship? It is not only the freedom, but it is also acknowledged as the key driving force for the incredible growth of capitalism. As risk increases so does reward. You make your future, you make your schedule, you create the opportunities, and you feel fulfilled. That is the foundation to entrepreneurship.

What makes you tick? Is there something that you find yourself dreaming about while at the office? Whatever your dreams are, pursue it, life is too short and you will always wonder what would have happened if you did.

Click here for more information on entrepreneurship.

Would you donate half your fortune to charity? Msnbc.com wrote an article about Bill Gates and Warren Buffett, America’s two richest people, who are embarking on a campaign to persuade their super-rich peers to give half their fortunes to charity in a move that could change the face of philanthropy.

The effort, if successful, could funnel a colossal amount of money into nonprofit groups. If the individuals on the Forbes 400 list of richest Americans pledged half their net worth to charity, it would amount to $600 billion, Fortune magazine says.

The campaign began just over a year ago, when Gates and Buffett — who represent a combined net worth of $90 billion, according to Forbes — invited several billionaires to a secret dinner meeting in New York.

Melinda Gates insisted that both husbands and wives be invited. Her reasoning, according to Fortune: “Even if he’s the one that made the money, she’s going to be a real gatekeeper. And she’s got to go along with any philanthropic plan, because it affects her and it affects their kids.”

Billionaire pledge

The principals eventually settled on a goal of 50 percent of net worth, though Buffett himself is pledging 99 percent. They set up a website, The Giving Pledge, about the effort. Read Warren Buffett’s Philanthropic Pledge.

“While the Giving Pledge is specifically focused on billionaires, the idea takes its inspiration from efforts in the past and at present that encourage and recognize givers of all financial means and backgrounds. We are inspired by the example set by millions of Americans who give generously (and often at great personal sacrifice) to make the world a better place.”

The giving pledge focuses for now on American billionaires, but the effort may eventually extend worldwide. The money from the participating billionaires isn’t being collected or distributed; rather, the pledge is a commitment to give.

I love what Buffet is doing. 99% of his wealth is being given to charity. Five Star Painting has committed a portion of its earnings to charity through the Five Star C.A.R.E.S Program and Habitat for Humanity. Personally giving time is a big part of our culture.

During the summer, the dress code in the workplace becomes lackadaisical because everyone has their own idea of what’s appropriate. If you look around, you probably know some people who really take liberties with their wardrobe.

For example, Five Star Painting’s very own Conrad has a unique taste that only a few can understand. Conrad is a man of efficiency, which means that all clothes must be worn until there are literally only a few threads left. By doing this he maximizes his utility of any garment by spreading the cost of it across as many decades as possible. In addition to this, he loves hot climates, so of course the more holes the better as he tries to reduce carbon gas emissions through reducing the need for air conditioning. Lastly, Conrad loves to show a little skin so flip flops, shorts, and shirts that are barely holding on are a staple in his attire.

Here are some guidelines that work for many workplaces. Possibly nine of the 10 tips apply to your company. Still, the bottom line is that you should put some thought into what you wear, because your wardrobe affects your professional reputation.

Here are 10 summer-attire taboos:

1. Flip-flops
Professional or dressy sandals are acceptable in many workplaces, and you know better than anyone if you work in such a place. Flip-flops and other recreational footwear are rarely acceptable for the same reason blowing a bubble with gum in a meeting is inappropriate: You look out of place and inconsiderate to your audience. Plus, that annoying sound of the flip-flop slapping against your heel will not make you any friends.

2. Bathing suits in any form
This tip might sound obvious, and hopefully it is. However, in case it’s not, remember that sprucing up your bathing suit with a nice shirt, a belt, shorts or any other accessory will not fool anyone. If you’re going straight to the pool after work, just change your clothes in the bathroom or a private office when the day is over.

3. Sunglasses indoors
Yes, the sunlight is blinding when you walk outside or drive to work, but sunglasses don’t belong indoors. People can’t tell if you’re paying attention to them when your eyes are hidden behind dark lenses, and everyone will wonder if your pupils were just dilated.

4. Shorts
Shorts automatically take the professional image down a notch, which could be a good thing for some places. For example, if you walk into a store that sells surfboards and wetsuits, you want to be greeted by someone in shorts and a tee, not a suit and briefcase. In most workplaces, however, shorts detract from a professional demeanor. Even nice shorts that are more suited for a day the country club than an afternoon painting your kitchen aren’t as pulled together as a pair of pants.

5. Tank tops
Regardless of the season, you should be wary of showing too much skin. In the summer, tank tops are prevalent in many wardrobes, and you might be tempted to sport one to work. Don’t. From an aesthetic standpoint, tanks make people think of a six-pack of beer, not of a six-figure salary. A professional look should lean more toward the latter.

Another issue that exists in some organizations is the idea that no one, male or female, should have bare arms. Remember when Michelle Obama took flak for her sleeveless blouses? As with many of these tips, use your best judgment. Unless your occupation involves some form of labor where sleeves affect your work, you should keep your upper arms covered.

6. Apparel that smells like or carries remnants of the beach
Who doesn’t love the beach? The sun, the waves lapping against the shore, the sand between your toes. If you need to bring a starfish home as a vacation souvenir, by all means, do it. Just don’t wear your beach clothes to the office — especially if they have that aroma of fresh ocean life or are leaving a trail of sand behind you. If, by some chance, your beach wardrobe is suitable for your workplace, at least have the good sense to run it through the washer once or twice.

7. Funny shirts or shirts from your vacation destination
Your “I’m Not as Think as You Drunk I Am” shirt might make your best friends laugh, but your boss, colleagues and customers or clients will disagree. Clothing shouldn’t announce itself, so steer clear of humor. And shirts bearing the name of your last vacation destination (“Mexico!” or “Missouri: The Show Me State”) will probably make your overworked colleagues begrudge your time off.

8. Not being prepared
Even if you’re allowed to be casual during the summer, have a backup outfit or piece of clothing to dress up your attire. If you’re in jeans and a plain T-shirt and your biggest client calls a last-minute meeting, it wouldn’t hurt to have a least a blazer or nicer shirt on hand. Being prepared is never a bad thing.

9. Anything see-through
Another tip that should go without saying, but just in case: Skin and undergarments should not be seen through the fabric you’re wearing. Lightweight linen that’s breezy and comfortable on the beach is inappropriate at work, not to mention uncomfortable for your co-workers.

10. Testing the limits
If your employer gives you wiggle room with the dress code by using words such as “appropriate” and “reasonable” to describe acceptable attire, use your brain. A ketchup-stained T-shirt, scandalously short shorts and dilapidated tennis shoes are acceptable in your personal life, but not at work. And you know that. So don’t ruin summer wardrobes for everyone.

10 taboos provided by Anthony Balderrama: Writer and blogger for CareerBuilder.com

For more information on opening up a Five Star Painting franchise, click here. For a painting FREE estimate, call 1-866-965-STAR.

I have been teaching a class on entrepreneurial business planning now and have just finished up the course at the local University. As part of this course we brought in guest speakers from various backgrounds – entrepreneurs, managers, venture capitalists. Each of them had a great story to tell in the classroom about business philosophy, bootstrapping, big hairy audacious goals (I learned the BHAG concept in this class) and how to raise money. Probably the biggest take away from this class had nothing to do with business and everything do to with lifestyle.

For a short few years I put my time in a big office tower wearing suits all day and keeping busy with regular meetings with executives and people way smarter than me. As my father would say, the modern day coal mine. I punched in and punched out every day, missed a few holidays to get that report out on time and work hard to bring honor and glory to my employer and maybe even get a raise or bonus at the end of the year. The paycheck would arrive like clockwork and I felt warm in the corporate security blanket. During these years I learned that I was not made for Corporate America, but rather made to make corporations. This is what I believe drives franchising today and what has brought into an industry that I have come to love.

Say good bye to regular paychecks and say hello to a new life. As risk increases so does reward. You make your future, you make your schedule, you create the opportunities, you feel fulfilled. That is the foundation to entrepreneurship. What franchising does for the foundation of entrepreneurship is provide a few recipes for success, and improved probabilities for success.

I have regular calls with our owners and the most rewarding aspect of what I do is to hear people talk about what their business means to them, how it has helped them achieve their goals and in many cases those goals are not always monetary but time, freedom, sense of control.

There has been some debate over whether franchising is in fact entrepreneurial, and I have read a few articles and blogs on this subject. A quick read on the words definition should shed some light on the subject:

“Entrepreneurship is the act of being an entrepreneur which is a French word meaning “one who undertakes innovations, finance and business acumen in an effort to transform innovations into economic goods”. This may result in new organizations or may be part of revitalizing mature organizations in response to a perceived opportunity. The most obvious form of entrepreneurship is that of starting new businesses.”

We have had a lot of different buyers in our business from Kung Fu teachers, to Police Officers, to Actuaries and MBA students, all of them have started a business and many of them have brought to our business innovation, finance and business acumen. In my opinion, the title “Entrepreneur” belongs to our franchisees and fortunately the title is gaining the attention it deserves to be among the more noble professions in America.

If you have considered opening up a franchise, please feel free to learn more about Five Star Painting Franchise or give us a call at 1-866-965-STAR.

Interested in franchising? Well today is your lucky day. Five Star Painting focuses on franchising as a means to increase growth. Franchising represents one of the largest economic drivers in the Unites States today, representing nearly nine percent of gross domestic product. The franchise model attracts entrepreneurs from all walks of life looking to take advantage of Five Star’s years of experience in the painting industry. It is widely accepted that most small businesses fail in the first three years, the franchise model has been shown to increase the likelihood of success. This success is partly due to the combined buying power and brain power of entrepreneurs under one brand.

The painting industry is estimated at nearly $100 billion annually, is it one of the oldest and largest industries in America. It is not difficult to understand why; with ever changing trends, homeowners and business owners are regularly changing the interior and exterior paint colors of their homes and businesses. The result is a stable and growing industry.

If interested in learning more about opening up a Five Star Painting franchise in your area, click here.