Chapter #2 - Kiosk Budget Basics

Back in the Featured Blogger spot, kiosk ace Marie VanDrisse continues her dialogue from last month to tackle one of the hardest -but more important- parts of kiosk planning: setting a budget.

Perhaps the most frequently-asked and important questions in kiosk planning revolve around budget. Knowing the budget helps answer many of the other questions regarding your kiosk deployment. We'd all love an unlimited budget, but the reality is that most of us have limited budgets to work with. This means we need to squeeze maximum results from minimum dollars.

The budget of any project directly affects the quality and time involved in the process. In fact, time, quality and resources are the three primary variables of any project. The more limited your resources, the more difficult it will be to hit the desired deadlines with high-quality products.

On the other hand, money can speed things up by allowing you to work on different parts of the project simultaneously; and if you can afford better manufacturers and equipment, the quality level on the product goes up too. That's not to say that effective results can't be achieved at lower price points. It just means you may have to be a little more creative to get where you want to be with what you have.

Some of the most important questions that need to be asked that will affect the budget are:

• What equipment will be required?
• How will the customer interact with the kiosk?
• What brand elements must be incorporated into the look of the kiosk?
• How much storage is needed for your product?
• What is the annual volume of kiosks that will be installed over the next year?
• What are the price point expectations for the project?
• What mall properties are you looking to get into?

All kiosks are designed to generate revenue and you must determine what will deem the kiosk a success and what the return on your investment will be. Keep in mind when doing your budgeting analysis that an innovative kiosk design will attract a higher-level of consumer. Better merchandising not only leads to better sales, but will also enhance the credibility of your product.

I will tell you too many kiosk projects don't get financed beyond a pilot stage because the project was assigned unrealistic expectations from the onset. Thinking inside, outside and all around the box is the best way a kiosk project manager can bring ideas from concept to completion within a given budget.

-- Marie VanDrisse (Check out my LinkedIn page for more about me.)

Franchise Finance & Development Conference

It's no secret that financing is a hot-button issue in franchising these days. Next week's Franchise Finance & Development Conference is sure to offer attendees a plethora of ideas and possible sources for finding financing for franchisees.

F.C. Dadson will once again be taking part in the conference though we're doing things a little differently this year. Joining up with our good friends at Javelin Solutions, we'll be co-exhibiting in the conference's networking area. From questions on real estate to how to lower build out costs, you'll be able to find an answer at the Javelin/F.C. Dadson booth.

If you're interested in setting up an appointment to meet with an F.C. Dadson rep while at the show, please call Larry Myer at (800)728-0338 ext: 110 by Friday, Feb. 26th to make arrangements.

-- Liz Blohm

Physical Fitness Is Good for Business

I guess I'm not the only one drawing parallels between business owners and athletes these days. Head on over to Entrepreneur.com and you'll find this piece by Aaron Kwittken. Don't be fooled by the title, "Physical Fitness Is Good for Business," it's more that just a bit about how working out is good for your business.

So, in adding to my list from Monday's post, Kwittken posits that like endurance sports, business ownership requires "training, preparation, and goal-setting."He also offers some "tips for getting your game on" that are worth a look.

You don't have to be a triathlete to be a good business owner, but we can all learn a thing or two from the sport.

--Liz Blohm

More Alike Than You'd Think

Ok, I am a total Winter Olympics junkie. I have favorite athletes that I cheer for. (Go Evan Lysacek!) I check out the schedule in advance so I don't miss the must-see events. Heck, I'll even watch cross country skiing and long track speed skating if they're on! So, it's really no surprise that this weekend's Olympic coverage provided the inspiration for my post today.

Now, you may not think that Winter Olympic athletes and small business owners have much in common. Sitting on my couch watching the opening days of competition, I started to discover that they are more alike than you'd think.

1) Both have to be risk takers.
It was either Bob Costas or one of his many in-studio guest commentators that said it: the events in the Winter Olympics are among some of the riskiest out there. Not only are there the inherent dangers like slippery surfaces, tight turns, and sharp blades, athletes are pushing it harder than ever to gain even the slightest edge over the competition. They know playing it safe 100% of the time won't get them to the podium.

Being a small business owner is risky too - especially in today's competitive business climate. Owners are finding they have to push harder than they've had to in the past to get their doors open, win customers and beat their competition. All of that involves taking risks, and just like in the Olympics, sometimes they pay off and sometimes they don't.

2) Both need strong support systems to succeed.
In an interview following his medal-winning moguls run, Canada's Alexandre Bilodeau said that -and I paraphrase here- every Olympian needs a strong support team to be successful. This includes coaches, family, friends, etc.

Small business owners also need a support team. From family members to business partners, vendors to employees and beyond, successful owners surround themselves with a network of people who help them to achieve their business goals and raise the bar.

3) Both persevere.
Even the best athletes fall. Listening to the many broken bones and corrective surgeries many of these athletes have endured, it's incredible that they get right back up and do the things that caused the injuries in the first place! Just months after his speed skate blade sliced through his leg, taking 60 stitches to close the cut, J.R. Celski took home a bronze medal in the men's 1500m race Saturday night.

Very rarely do small businesses become overnight success stories. They take time to grow and there are usually set-backs along the way. Still, successful owners stay dedicated to their goals and press through the hard times in order to celebrate the fruits of their labor.

Go Team USA!

Go small business owners!

--Liz Blohm

3 Tips for Lowering Entry-Point Costs

In this financing nightmare that we're in, being able to lower entry-point costs is a huge asset. It could mean being able to open more corporate locations or get more franchise deals financed. Being able to put together a cost-effective program has become a necessity for many store development professionals these days. Are you in such a position and stuck on what to do? Here are three possible places for you to start.

1) Be Smart About Real Estate.
With vacancy rates at an all-time high, expanding businesses have access to a veritable goldmine of available real estate. Take advantage of this.

• Scout for spaces that previously housed a business similar to yours. They may require fewer improvements and are already properly zoned.

• Negotiate. Negotiate. Negotiate. Land lords are more willing now to make concessions in lease negotiations in order to fill empty spaces.

2) Create and Cash In On Economies of Scale.
If you are planning to open multiple locations within a given amount of time and/or in a given area, you have quite the ace in your pocket and it's called "economy of scale."

• Take advantage of volume pricing. Vendors' unit pricing generally decreases with the more units ordered. Explore all of your buying options. You may be asked to sign a contract or commitment guaranteeing purchase, but if you know you'll meet the terms and conditions, it'll be worth it.

• Look beyond "local" for vendors and contractors. The more projects you can award to a vendor or contractor, the better your odds for cost-effectiveness. You may find more negotiating power upfront, and you'll gain efficiencies with each additional location, helping to further reduce project costs.

Depending on your specific growth plans, these suggestions may or may not make sense for your business. However, many have found substantial cost-savings this way so they were certainly worth a mention.

3) Evaluate Your Current Program for Potential Cost Savings.
Take an objective look at your build out program and you're likely to discover several areas where additional cost-savings can be engineered. A good place to look? At your FF&E (fixtures, furniture (decor), and equipment).

• Look for suitable substitutes. FF&E bring aesthetic and functionality to a space, but often the same look and function can be achieved with a less expensive model. This could include buying used (from a reputable vendor of course), swapping materials for others, re-engineering fixtures to reduce tooling and assembly, and so on.

• Consolidate vendors. With multiple vendors, you're paying multiple service fees, shipping charges, etc. Finding a partner that can take on multiple aspects of your build outs will help streamline the process and save time. More importantly, though, these "one-stop" shops utilize their influence and buying power with their vendors, leading to better pricing for you.

For more tips on how to lower entry-point costs, click here.

--Troy Schwehr (For more about me, check out my LinkedIn profile.)

Super Bowl Storytelling

Watching a tear-filled Drew Brees celebrate with his son after the Saints' Super Bowl win last night, I couldn't help but smile. Ok, I'll admit I have a soft spot for babies -especially ones wearing tiny jerseys and ridiculously-oversized ear muffs like Baylen was. But I'm also a sucker for a good story and that's ultimately why I found myself celebrating with the rest of the Who Dat nation last night.

Check out any marketing blog and you're likely to read that one of the best tools there is to promote a brand is a good story, and boy did the Saints have a great one. Rising from Hurricane Katrina's devastation, the team surprised pretty much everyone with a near-perfect season and a strong post-season to get to the big game where they came from behind to steal the Vince Lombardi trophy from a powerhouse team, giving their city a renewed sense of hope and something to cheer about.

While not always played out on a such a public stage, every company has a story. Savvy businesses use every opportunity to tell it. And if you really think about it, aren't store interiors the perfect blank page to keep the story going? Build excitement, create memorable experiences and watch your fan-base grow!

-Liz Blohm

Shh! Managing Noise Levels in Your Restaurant

When it comes to restaurant build-outs (or any build-outs for that matter), success is in the details; and one detail that's often overlooked during the design phase -as this article on The Wall Street Journal's website suggests- is acoustics. And it turns out that some customers value being able to hear more than a restaurant's edgy decor or pumping soundtrack.

The problem is that most designers aren't trained acoustical engineers and most restaurant operators are strapped for cash during start-up so they forgo hiring these sound technicians. But more than that, they're goal is to create a "vibe" that jives with their overall concept and that isn't always concerned with noise.

With baby boomers acting "younger," gen Xers and Yers looking for the "next big thing" and the economy's resulting "less is more" attitude, plush interiors ideal for sound absorption and subtle background music have given way to bare floors, exposed ceilings, open kitchens and iPods pumping out rock music.

The result is laid-back yet still hip, accompanied by a cacophony of sounds. Some dig it, some merely tolerate it, and others will choose not to come back. Some restaurant operators are making accommodations. Others are perfectly content with what they've created.

The thing to remember is that sound absorption isn't limited to acoustical ceiling tiles and carpeted floors. There are myriad acoustical products and design and architectural treatments out there that can help calm the din while still keeping up the "vibe." Knowing the challenges of your space (i.e., plentiful hard surfaces, wide open spaces, etc.) and working with an experienced restaurant designer will help you create a design that's music to everyone's ears.

-Liz Blohm

Going to the International Franchise Association Annual Convention?

The International Franchise Association is hosting its annual convention this weekend in San Antonio. F.C. Dadson's going. Are you?

Always one of our biggest shows, this year is no exception. Tim Matey, Larry Myer, and Marie VanDrisse will be representing F.C. Dadson. Marie kicks off her show at Friday afternoon's Women in Franchising Leadership Luncheon and Conference. Tim and Larry will join her that night for the Taste of Franchising reception. Saturday afternoon/evening, find Larry and Tim walking the show floor as show ambassadors. Larry continues his show fun the next day as a table host for Sunday morning's Super Session and Tim will receive his Certified Franchise Executive (CFE) certificate at Sunday's graduation event.

Interested in learning more about store build out and design? Sit in on Tim, Larry or Marie's round table discussions Monday morning (Lowering the Cost and Accelerating the Speed of Store Openings, Greening up Your Stores and Brand Elements in Unit Design respectively). And Larry and the rest of the Franchise All-Star Band will help you end the show with a bang as they rock out at Monday night's Closing Gala.

In addition to chatting at the above events, you can also catch up with F.C. Dadson's all-star line-up at our booth, #251, during exhibiting hours or by calling (800)728-0338 prior to the show to set-up an appointment to meet.

See you in San Antonio!

-Liz Blohm