Why Agencies, SEO, Ads, and Funnels Keep Failing—And What Actually Works Instead

There’s a moment most business owners eventually reach. It doesn’t happen at the beginning, when everything is new and full of possibility. It happens later—after the effort, after the investment, after the repetition of trying things that were supposed to work. It sounds something like this: “I’ve done everything I was told to do… so why isn’t this working?” That question doesn’t come from laziness. It comes from experience. Because by the time someone asks it, they’ve already tried the pieces. They’ve run ads. They’ve redesigned their website. They’ve invested in SEO. They’ve posted on social media. They may have even hired agencies, bought courses, or implemented funnels that promised results. And for a moment, each of those things worked—just enough to keep going. But nothing held. That’s where the deeper realization begins. The Core Problem: Why tactics alone don’t fix your marketing Direct answer: Most businesses struggle because they were sold individual tactics instead of a complete system. Without structure and sequence, even good strategies produce inconsistent results. The modern marketing world is built around specialization. Every platform, expert, and agency focuses on a specific function. Ads bring traffic. SEO improves visibility. Websites present information. Funnels guide conversions. Each piece has value. But none of them are designed to stand alone. When you buy marketing this way, you’re not building a system—you’re assembling fragments. And fragments, no matter how well designed, don’t create stability. They create motion. This is why so many businesses feel like they’re doing a lot, yet not getting anywhere. There is activity, but no cohesion. Effort, but no continuity. You were never given something broken. You were given something incomplete. The Shift: What it means to move from pieces to sequence Direct answer: The shift from pieces to sequence means organizing all marketing components into a structured order, where each step has a defined role in guiding a customer from awareness to decision. Sequence is what turns effort into outcome. Without sequence, everything competes. Ads try to sell. Websites try to explain everything at once. Content tries to educate, entertain, and convert simultaneously. Sales conversations carry the burden of resolving confusion that should have been handled earlier. With sequence, each part becomes focused. Attention is created first. Not forced—invited. Then clarity follows. The message sharpens. The noise fades. The prospect begins to understand not just what you do, but why it matters. Trust builds next. Not through persuasion, but through alignment. The experience starts to feel coherent. And finally, the decision happens. Not as a pressured moment, but as a natural resolution of everything that came before. This is the difference most businesses never see. They don’t need more effort. They need the right order. Why disconnected marketing creates inconsistent results Direct answer: Disconnected marketing creates inconsistent results because each tactic operates without alignment, causing breakdowns in messaging, conversion, and buyer understanding. When sequence is missing, friction appears in subtle ways. A potential client clicks an ad, but the website doesn’t match the promise. They read the site, but still don’t fully understand the offer. They book a call, but arrive uncertain and hesitant. The conversation turns into explanation instead of resolution. From the outside, it looks like a conversion problem. But underneath, it’s a sequence problem. Each step failed to prepare the next. So the burden shifts forward, accumulating friction until something breaks. This is why businesses often misdiagnose the issue. They blame the ad, the platform, or the salesperson. But the real issue is structural. The system was never built to support itself. Why this feels different (psychologically) Direct answer: A structured system feels different because it restores clarity, control, and confidence, replacing confusion and guesswork with a clear understanding of how the business operates. There’s a psychological weight that comes with fragmented marketing. It doesn’t just affect performance—it affects perception. You begin to feel like you’re constantly adjusting, constantly reacting, constantly trying to catch up to something just out of reach. Every new strategy carries hope, but also quiet skepticism. Every decision feels heavier than it should. Over time, this creates a subtle but powerful shift: You stop trusting your own judgment. Not completely. But enough that you start leaning on external opinions more than internal clarity. You look for answers outside, because nothing inside feels stable enough to rely on. This is the hidden cost of operating without a system. It erodes authorship. But when the structure is built correctly, that begins to reverse. Clarity replaces confusion. You can see what each part of your business is doing. Control returns. You understand where problems are coming from and how to fix them. Confidence grows. Not from hype, but from visibility. You’re no longer guessing. You’re navigating. And that shift—more than any tactic—is what creates momentum. What changes when you build sequence into your business Direct answer: When sequence is implemented, marketing becomes predictable, conversion improves, and decision-making becomes easier because each part of the system supports the next. Externally, the results become more stable. Leads arrive more consistently. Messaging resonates more clearly. Sales conversations feel more natural and less forced. But internally, something more important happens. The business starts to feel… coherent. Instead of juggling strategies, you’re managing a system. Instead of chasing results, you’re observing patterns. Instead of reacting to problems, you’re anticipating them. And that changes the role you play. You’re no longer the operator trying to make things work. You become the architect who understands why they do. Why this shift matters now more than ever The environment has evolved. Search is no longer just about keywords—it’s about interpretation. AI is shaping how information is discovered and presented. Buyers are forming opinions faster, often before they ever speak to you. In this environment, disconnected tactics don’t just underperform. They become invisible. Because visibility now depends on clarity. And clarity depends on structure. Which means the businesses that win are not the ones doing more marketing. They’re the ones building systems that make their marketing work. Final Thought: You don’t need more pieces If you’ve been trying different strategies and nothing seems to hold, it’s easy to assume the answer is out there somewhere—one more tactic, one more adjustment, one more breakthrough. But the truth is quieter than that. You don’t need more pieces. You need sequence. Because when the structure is right, the pieces you already have start to work in ways they never did before. And that’s when everything begins to change. Ready to See Where Your System Is Breaking Down? If your marketing feels scattered… If your results are inconsistent… Or if you’ve tried multiple strategies and still feel like something is missing… Let’s take a look at it together. Book a 15-minute call , and we’ll unpack: Where your system is breaking down What’s actually causing the inconsistency How to move from pieces to sequence And what the next step should be No pressure. No pitch. Just clarity. Because once you see the sequence… You stop chasing answers—and start building results.

What Does “Motion Without Progress” Mean in Marketing? Motion without progress is when a business is actively investing in marketing—ads, websites, SEO, social media—but still experiences inconsistent leads, unpredictable revenue, and constant rebuilding. It works like this: effort increases, activity expands, but results do not compound. Most business owners assume the problem is execution. In reality, the problem is structural. The Old Marketing Model: Why It Breaks For years, businesses were taught to build marketing in pieces. Websites functioned as digital brochures SEO focused on ranking for keywords Marketing became a mix of ads, social media, and funnels AI was treated as a collection of tools and hacks Agencies delivered activity, reports, and updates At first, this creates momentum. You see traffic spikes. Engagement increases. There is movement. But it doesn’t last. Because none of these elements are designed to work together. The result is predictable: short-term gains followed by collapse. Businesses end up chasing the next tactic instead of fixing the system. This is why so many companies feel stuck—even while doing “everything right.” Why Traditional Marketing Feels So Inconsistent Most marketing fails not because of effort, but because of fragmentation. Here’s what typically happens: Ads drive traffic, but the messaging doesn’t convert Websites look good, but don’t guide decisions SEO brings visibility, but not qualified buyers AI produces content, but without strategic direction Agencies optimize activity, but not outcomes Each piece works independently. But marketing doesn’t scale independently—it scales through coordination. Without a unified structure, results will always fluctuate. The New Model: Marketing as a System Modern marketing requires a different approach. Instead of building isolated tactics, high-performing businesses build systems. At Minieri & Company, that shift looks like this: Website = Revenue Infrastructure Designed to guide, filter, and convert—not just inform SEO = Search + AI Discoverability System Built for both traditional search engines and AI-driven discovery Marketing = Structured Decision Architecture A sequence that moves buyers from awareness to clarity to commitment AI = Integrated Leverage Embedded into the system to enhance performance—not replace strategy You = Translator, Architect, Builder In control of the system instead of dependent on outside activity This is not a small upgrade. It is a complete redefinition of how marketing works. What Happens When You Build It Correctly When marketing is structured as a system, the experience changes. Clarity replaces confusion. Instead of guessing what’s broken, you can see it. Instead of rebuilding constantly, you refine. Instead of chasing leads, you guide decisions. This creates something most businesses never fully achieve: Flow. Clarity → Flow → Conversion → Scale Each step builds on the last. Each component reinforces the system. Growth stops being unpredictable and starts becoming repeatable. Why Most Businesses Haven’t Made This Shift The challenge isn’t a lack of strategies. It’s that the strategy ecosystem itself is fragmented. Business owners are exposed to: Conflicting advice Isolated tactics Tools without context Experts without accountability So they do what seems logical: stack more on top. But stacking tactics without structure only increases complexity. The breakthrough comes when you stop asking, “What should I try next?” And start asking, “What system am I actually building?” The Bottom Line If your marketing feels inconsistent, it’s not because you haven’t tried hard enough. It’s because the model you’ve been given was never designed to scale. The businesses that win today are not the ones doing more. They are the ones building correctly—structure first, sequence second, leverage last. And once that foundation is in place, everything else starts working the way it was supposed to. If you’re seeing pieces of this in your business—if leads are inconsistent, marketing feels fragmented, or you’re not sure what’s actually broken—it’s worth getting clear on it. I offer a 15-minute strategy call where we’ll look at your current system, identify where things are breaking down, and determine whether Minieri & Company is the right fit to help you rebuild it correctly. If it makes sense, I’ll walk you through exactly how we would move forward. No pressure. Just clarity. Book a time, and let’s take a look together.

Published in Forbes | July 31, 2023 | Author: Thomas Minieri -- In the first few chapters of my book, I tell the story of how I started my first company in my mid-20s, with only $30 to my name. I was a struggling artist, and after getting fired from my not-so-well-paying job, I found myself being an unemployed, broke artist. I took the plunge into the crazy world of entrepreneurship as an act of sheer desperation. Ten years later, my company had 16 locations in six states and employed about 50 professionals; revenues surpassed $12 million. Recently, I was at a business conference, and I shared this story with the small group of colleagues sitting at my table. To my surprise, one of the people at my table boldly stated, “Everyone knows you can’t start a business with $30.” Fortunately, my mid-20s self never got that memo, because I did in fact start my company with $30. Here’s how I did it and what other entrepreneurs can learn from my story. Not only was I out of money when I started my company, but foreclosure proceedings had just begun on my small townhouse because of non-payment on my mortgage. To raise money, I listed all my possessions on eBay, including things that were sentimental to me. Most notable among those items was a rare model train set that my father—who had passed away a few months earlier—had given me. I made $2,000 on that sale and about $500 selling everything else I owned. That money gave me a few months’ budget buffer for food and basic living expenses. If you feel you do not have any money to start a business, then go through every possession you own—no exceptions—and evaluate if you would rather keep that possession or use it to pursue the lifestyle being a successful entrepreneur can bring you. You may be surprised by just how much money you can scrounge up to get your business off the ground. To further keep me financially afloat, I got a second job in the morning, as I needed to be available for my business which primarily operated in the evenings. Getting a second job while you build your business can be smart so long as the second job doesn’t hinder your entrepreneurial ambitions. Is juggling two jobs exhausting? Yes, very much so. But I was willing to do whatever it took to get my company off the ground. Leverage Skills Or Gain Skills I was in the performing arts industry, but I was also a talented visual artist and had dabbled in graphic design and website design in high school as a hobby. I didn’t realize it at first, but having these skills was invaluable. I was able to leverage my abilities and create a decent website and brand for my company. As a marketing coach now, I do not recommend do-it-yourself website projects for underfunded entrepreneurs who are inexperienced with website design because a poor first impression can kill any hope of making sales. What I do recommend to broke startup entrepreneurs is investing time into learning the ins and outs of graphic design, website design and sales copywriting. These skills are a must if you want to start a business and can be costly if you pay someone else to do these tasks. I caution anyone against hiring a cheap designer or copywriter; you get what you pay for. Cheap often means low quality, and a low-quality brand tends to yield low sales. If you are not creatively inclined, it may take you time and push you out of your comfort zone to learn these types of skills, but they could prove to be some of the most valuable short- and long-term ones you develop as a modern entrepreneur. Use Clever Advertising So how did I spend my $30? It—along with every penny I made for the first six months—went into advertising. People like unexpected surprises. I made a clever certificate that awarded its recipient a free month of my services. “You’ve just been awarded...” is a more enticing proposition than “Call for a free...” All $30 went to printing a giant stack of these awards. My girlfriend—now wife—helped me stuff mailboxes with these awards. We targeted all the wealthy neighborhoods in the area. Within a few days, I got my first customer, then my second and then my third. While grassroots marketing (passing out flyers or business cards, attending networking meetings, posting on social media, or other low-yield, time-heavy promotional activities) helped me get started, I quickly realized that these were not sustainable methods of promoting my business. Not only did these types of marketing methods consume my time, but they simply didn’t give me the reach I needed to find success. The best I could expect was to pass out maybe 40 to 50 flyers in a day’s time. The problem with grassroots marketing methods is that they do produce some results, which convinces many new entrepreneurs to keep doing them. But these methods don’t tend to produce constant, consistent and predictable results. Instead, consider implementing a marketing model that automates your prospecting efforts and dramatically improves your reach. The sales copy on my flyer proved effective, which gave me the confidence to push it out to the masses. I stopped stuffing mailboxes (which reached dozens of homes) and leveled up my marketing by putting my flyer in a local magazine (which reached tens of thousands of homes). Clever messaging paired with a broad-reach approach was a winning marketing strategy for me. Conclusion If you want to start a business on the cheap, then you’ve got to put everything on the line because you’ll need at least some money for basic living expenses and advertising. Get a handle on your marketing skills and get away from small-scale random acts of marketing that produce little to no results to work toward the fast track to success.

Published in Forbes | April 13, 2023 | Author: Thomas Minieri -- When determining your marketing budget, there are several key factors to consider. Marketing encompasses everything from branding and website development to communications and sales. It is a big header, and each component needs to be well thought out to ensure your entire marketing system is firing on all cylinders. Branding Overview Building a brand is not just for large companies. It is the foundation of every business of any size and in any industry. Your brand is your first impression; it is comprised of the visuals that represent your products or services combined with the words used to communicate those products and services. Everything from logo design to sales copy is what makes your brand unique. A successful brand conveys credibility, while an underfunded brand creates doubt. One of my favorite sayings sums up the vibe of branding: How you do anything is how you do everything. Does your brand image tell prospects that you are professional, or does it send the message that you are low budget and disorganized? Branding is about perception. Branding Spend Start off with a professionally designed logo, a defined color palette, a selection of unique photos or carefully selected stock images and well-written sales copy. With a focus in marketing on return on investment (ROI), it might be challenging or impossible to track the effectiveness of many branding efforts. I consider branding an investment that makes every other part of your marketing strategy more effective. A poor brand hurts everything while a great brand helps everything. A business owner may spend anywhere from $1,000 to $5,000 for initial startup branding and additional funds for ongoing updates and further development. Advertising Overview Any effort that directly promotes your business to prospects can be considered advertising. Options may include running paid ads on social media or search engines, posting on social media, email marketing campaigns, direct mail campaigns, billboards, radio spots, outside salespeople or networking events. Your advertising budget should also include the cost to create any content that will be utilized in the actual advertisements as well as the cost of managing advertising campaigns. Advertising Spend My rule of thumb with respect to advertising spend is to have two budgets in mind: one to sustain current revenues and another for robust growth. If you want to maintain current revenue amounts, then 5% to 10% of sales allocated toward advertising may suffice. If you want rapid growth, then you may need to push that number higher, possibly to 20% or more depending on the industry and type of business you operate. A startup business should commit to a fixed number for their advertising spend as their revenue may be too low to utilize a percentage of sales as a gauge. For many small businesses, $1,000 per month is a reasonable minimum advertising spend. Communications I call communications "marketing insurance." If you are going to spend money on branding and advertising, then make sure leads are managed properly. The first step to achieving this is to streamline the methods by which prospects can connect with you. Having too many methods (such as telephone, email, chat, texting and messaging) can be overwhelming. I prefer the good old-fashioned telephone. While I also like chat for website communication, I strive to get the prospect on the phone as soon as possible. Personal correspondence with prospects is crucial in many industries. Communication Spend The costs for proper communication can vary between industries. Spend what needs to be spent to ensure you are not losing leads due to unresponsiveness. Failure to manage your communication systems properly can be fatal to a business as money is being wasted on advertisements that are not turning into sales. Another aspect of communications and "marketing insurance" is customer service. The last thing you want is for a new customer to ask for a refund due to poor service. Sales Sales is under the marketing umbrella as the prospect has not yet purchased. The prospect saw your credible brand promoted in an advertisement, then they visited your website to learn more and now they are ready to make a purchase! Sales Spend Like communications, your sales spend will vary between industries. The goal here is to develop professional sales presentations or sales methods that clearly explain in detail the benefits of your offerings in a manner that encourages the prospect to make a purchase. Graphic design slideshows can work well and may help your team stay focused when presenting. Keep them fun and interesting. Videos and other media are also smart investments to improve sales results. If you rely on a sales team, they should be properly dressed, polite, knowledgeable and able to clearly communicate your products or services. Make sure they have the tools they need to succeed. Customer Acquisition Cost I tend to summarize marketing spend into one primary data point: customer acquisition cost (CAC). This is the total cost to get one new customer and includes your branding efforts, advertising spend, designer and marketing team salaries, and sales process costs. To find this number, simply add up all the above expenses and divide by the number of customers you acquired in that same timeframe. It makes for good business practice to evaluate your CAC annually and work to get that number lower each year without diminishing your brand. Avoid cutting your marketing budget, rather work to refine your marketing effectiveness. Starving your business of crucial marketing components is never a smart decision. Conclusion A well-thought-out marketing plan can make or break a company. It can also separate a company that is stuck in a revenue plateau from one that is soaring to new heights. I took my first company, a service-based studio business, from a small underfunded startup to a bustling national franchise in just six years. My CAC was about $250 per customer in years one and two. As our brand and marketing systems were perfected, I was able to lower that number to $110 per customer. This improved profitability and made my brand attractive to prospective franchisees.

Published in Forbes | September 8, 2020 | Author: Thomas Minieri -- My experience working with franchisees and small business owners has given me a unique vantage point when dealing with common problems that ail many entrepreneurs. A very common trait I’ve noticed in small business owners is their struggle discerning the difference between smart financial decisions and blanket cost-cutting. While cutting costs may be beneficial, it can also be fatal if done without careful consideration of outcomes. Companies do not grow by cutting costs; they grow by increasing sales. Therefore, if the owner, in an attempt to lower expenses, deprives essential business systems of needed capital, then it could lead to stagnant growth or negative cash flow. It’s important to consider the unintended consequences of not spending money on important business systems. Many business owners may think they are being frugal when in reality they are being cheap. Frugality leads to efficiency, while being cheap leads to a whole host of problems. GO BEYOND THE ESSENTIALS Only spending money on things that are essential will make your company bland and indistinguishable from competitors. For discussion purposes, consider a restaurant business bathroom. Can the owner get away with white walls, a standard sink and a standard toilet? Sure. While extra nice fixtures in the bathroom may seem frivolous to some, many customers will be positively impacted by a high-quality bathroom experience. It may make a lasting impression and send the message that the business exudes quality and has a unique personality. Just because something isn’t absolutely needed doesn’t mean you shouldn’t invest in it. Your company’s image is worth the money! MARKET & PROMOTE In my experience, small business owners all too often don’t spend enough money on proper marketing and advertising. My personal rule of thumb is to spend 5 to 8% of your goal gross revenue. This means that if you want a company that generates half a million dollars in sales, then you should start spending $25,000 to $40,000 in advertising now. Once fueled with proper marketing spend, your company should be on its way to achieving your goal. Avoid spending based on where your company is today; instead, spend based on where you want your company to be tomorrow. If this formula is legitimately not possible for your business, then take it in stride. The idea here is that the common 5% to 8% of revenue philosophy may be too low for actual growth, especially if you are a startup with low revenues or a business in a highly competitive industry. Alternatively, consider two marketing spend percentages: one that sustains your current gross revenue and another that promotes growth. NEVER NEGLECT INSURANCE Smart business owners use insurance as a hedge against losses. In my experience, many business owners get hit with life circumstances they did not foresee. A simple umbrella plan or policy that pays you cash if you can’t work due to injury or illness can make all the difference when faced with the unexpected. It’s not frugal to ignore insurance; it’s cheap. And it may cost you everything. If you don’t have adequate insurance, get it today. It’s simply not worth the risk. WHEN IT COMES TO MARKETING, COVER YOUR BASES Make sure that your customer service and sales teams have every tool they need for success. This is what I call marketing insurance. The idea is to take every action possible to ensure that your marketing dollars (the 5% to 8% of goal gross revenue mentioned above) actually turn into sales. It’s bad business to spend money on marketing only to ignore things like training your receptionist who answers the phone or buying tools and materials for your sales team who closes deals with customers. It’s almost always money well spent when it comes to communications systems with customers, sales presentations for product clarity and modern equipment for your workers. In short, if you’re going to spend money to get the phone to ring, make sure there are no broken links in your sales process chain. NOT EVERYTHING CAN BE DIY In general, I believe too many people are overconfident when it comes to projects that should be handled by professionals. The desire to save money and “do it yourself” often comes with unintended consequences. Unfortunately, in business, many of those unintended consequences are not easily identifiable. For example, the business owner who decides to save money by building their own website may never realize that their company is suffering due to their desire to save a few thousand dollars. Branding and marketing DIY projects often backfire because they tend to yield low company credibility. Construction and repair projects can also prove costly if not handled by professionals. I once had a new franchisee who asked me about a plumbing issue. I told them not to mess with plumbing or electrical despite the temptation to save money. They ignored my advice, and like clockwork, I received a desperate phone call when this franchisee’s brand-new facility flooded with water. My advice the second time around? Shut the water main, and call a plumber! While some DIY flops can create those “we’ll look back at this someday and laugh” moments, many can seriously stifle company growth due to lack of awareness. The smart business owner knows their strengths and hires professionals to fill in the many gaps. LEARN FROM THOSE WHO CAME BEFORE YOU The cheap business owner avoids spending money when they can and should. Being frugal in business means you look past the short-term solution and consider the big-picture consequences with respect to time and money. If you think about how spending or saving a small amount of money today will impact you tomorrow, then you are well on your way to becoming a savvy entrepreneur. The last tip in this article is to remember to seek the advice and guidance of those who have gone before you. Education and training, especially from successful entrepreneurs, is always a smart investment choice, and one that may not only save you money, but help you grow and scale to your heart’s content.

Published in Forbes | April 22, 2020 | Author: Thomas Minieri -- When economies fall apart—and this happens more than you might think—many business owners find themselves in a position of desperation. As business owners, many of us are all in, meaning our livelihoods and the ability to provide for our families rests upon the success of our businesses. When circumstances around us change that are outside of our control, stress, fear and anxiety can build quickly. During the last major economic crash in 2008, I was a new business owner with a company that was only about two years old. To make matters worse, I sold luxury services, which, at the time, were at the bottom of people’s lists of things to buy. I was faced with the decision to call it quits or fight for my company and make it work despite the economic situation we faced. I made the decision to fight for my company and innovate to accommodate the new economic environment. The strategies I learned at that time proved most valuable because my company not only survived the downturn, but grew tremendously. This catapulted my career as an entrepreneur for many years thereafter. FOCUS ON THE POSITIVES Value is often found in going against the flow. That means having a positive outlook even when things seem bleak. It’s not that you should ignore reality; rather, approach circumstances with a positive attitude. For example, if unemployment is at 20%, focus on the 80% of people who have jobs and money to spend. Find or adjust products and services to target those people. ADJUST YOUR RATES If you need money, raise your rates. During the 2008 downturn, I adjusted our services from an $89 one-hour session to a $75 forty-minute session, which raised our per-minute rate. However, the cost of a session from a customer’s viewpoint dropped. This clever adjustment gave the perception to customers that we had lowered rates, but in reality, our rates had increased. The lower perceived cost of services undercut our competitors and allowed our luxury services to be available to a larger audience. Additionally, the shorter session time allowed us to handle more sessions per day, which further increased revenue and improved efficiency. Our customers didn’t mind paying less for a session with the trade-off being that it was 15 minutes shorter, and our die-hard customers just bought more sessions. Whatever your industry, be creative and find ways to adjust rates (not lower rates). Consider offering additional value without giving things away for free or at a discount. REMEMBER, BRANDING EQUALS CREDIBILITY There is a fair amount of evidence indicating that branding is one of the top reasons people choose a company. Many people choose a familiar brand, even if that brand has shortcomings, over a less familiar brand that may offer better quality. It’s human nature to go with a sure bet. Given this concept, I believe it is crucial for businesses to spend a good amount of energy on branding. A solid brand gives your company an impactful first impression with new prospects. In a slow economy, people are more cautious with their spending and their choices, so make sure your brand comes across as highly credible. Improve and update your logo and branding elements, as well as the fonts, themes and color palettes that represent your company. Build attractive sales presentations and establish clear marketing messages that convey your offerings in three seconds or less. It’s about credibility. DOUBLE YOUR MARKETING BUDGET In a down economy, most business owners look for ways to cut expenses. Cutting some expenses may be helpful; cutting others may be fatal. In my experience, cutting marketing is almost always fatal. In the economic downturn of 2008, I doubled my marketing budget while most of my competitors cut their marketing budgets or eliminated them entirely. It was very tight financially for us to do this, but it paid off because the marketing landscape was much less busy. Fewer competitors gave me a higher ROI on my advertising dollars. Consider finding new methods of advertising as well. Economic changes often bring changes in societal behavior. Things that once worked may not work as well anymore; things that haven’t worked may be good ideas now. DO MORE TO SURVIVE In 2008, a colleague of mine gave me some great business advice. His company operated large-scale entertainment events, and he experienced a sudden drop in attendance. To survive the downturn, he had to add 20% more events to his calendar just to make the same amount of money he was making in a strong economy. While he had to work harder to make the same amount of money, it was only for a season, and his business survived the downturn as a result. Once the economy got back on track, his business boomed due to his expansion. Sometimes expansion is for growth; sometimes expansion is for survival. Either way, you’re growing and not shrinking. GET LOANS FOR EXPANSION In a down economy, the government often lowers interest rates on loans to encourage business expansion. The government also earmarks money specifically to aid small businesses. Take advantage of this as an amazing opportunity to get cheaper money to grow your business. In a strong economy, interest rates are often so high that it is extremely expensive for businesses to finance anything. In the last down economy, I was able to get an SBA loan to purchase real estate for expansion. This opportunity allowed us to purchase discounted real estate in a down market with a low interest rate. By the time the economy recovered, we owned several commercial properties and no longer needed to pay landlords rent. Plus, our mortgage payments were far lower than rent and did not go up annually as is the case with most leases. Whatever storm you are facing will pass. Hopefully, these tips will help you discover your own creative solutions that will allow you to survive and thrive.

Published in Forbes | February 18, 2020 | Author: Thomas Minieri -- If you’ve thought about scaling your business, you might have wondered whether or not franchising is the right choice. For me, transitioning from a small business owner to a franchisor helped me grow my business and scale much faster than I would have been able to do on my own—all while avoiding the excessive risk of a capital-intensive expansion. Small business owners too often make the mistake of wanting to do everything themselves, including scale. If you’re ready to take your company to new heights, then consider some of these noteworthy benefits that I found during my experience as a franchisor. FUNDING FOR EXPANSION It can be costly to take your business to new markets or to expand with additional locations. One of the most appealing aspects of franchising is the ability to quickly scale by funding your expansion while avoiding taking on excessive risk, raising outside capital and increasing your overhead. With a franchise model, the franchisee typically purchases a geographical territory where they’ll operate the brand. They are often responsible for much of the startup cost associated with opening that new location, including the build-out, marketing and funding of the location until its breakeven point is reached. For this reason, franchising your business may be a smart choice if you want to expand. BETTER CUSTOMER EXPERIENCE Another valuable reason to consider franchising is to maintain high customer service as the business grows. It’s no secret in business that quality tends to decline as a company expands. If customer service is a big part of your business, then franchising may help ensure it stays up to par. With franchising, each additional location has a franchisee/owner with a genuine interest in preserving the reputation of that location because, while it’s the franchisor’s brand, that location is the franchisee’s business. You’re placing your trust in the hands of someone else, and it makes a difference when that person has invested money just like you have. A franchisee has their money on the line and will typically be more invested in the customer’s experience and overall success of their location than a store manager who is an employee of a larger corporation. Better customer service overall and a group of people working together with a vested interest in the brand is a win for the franchisor and franchisee alike. VOLUME DISCOUNTS Volume discounts are usually out of reach for businesses with only one location, but they are easy to attain with a franchise model. Utilizing a single distributor for all of your franchises often opens the door for volume discounts while streamlining your company’s distribution. The perks of instant volume discounts are appealing to prospective franchisees because they can be enjoyed even before developing their customer base — something that would be out of reach for a single small business. MARKETING BENEFITS Marketing is essential for a business’s success, especially when trying to get it off the ground. For small business owners, marketing can sometimes get lost in the chaos of everything, leading to a lack of brand awareness in their community. With a franchising model, franchisees enjoy the benefits of having a bigger marketing machine behind them, while the franchisor ensures their brand is being promoted consistently and uniformly in every market in which locations exist. TECHNOLOGY Franchising can open the possibilities of what’s feasible for your company in terms of technology as well. For a business with just one location, it would likely be cost-prohibitive to create customized software for booking, training or customer loyalty. However, a customized software solution becomes more cost-effective as the number of businesses that will be using it rises. When I began to franchise my business, I consolidated all of our appointment bookings and customer service management into one call center to facilitate all phone and internet traffic for every location. We required our franchisees to utilize this call center and pay us fees to cover the expenses needed to run it. Our call center was a huge success for our company because it eliminated the need to hire and manage a receptionist at each location, improved communications and sales with customers, and freed up our franchisees’ time to focus on other aspects of their businesses. It was a win-win arrangement and an example of capitalizing on the benefits of the franchise model. Having a customized software solution for your franchised business can make it easier for all franchises to operate uniformly, improve the overall customer experience, make reporting more accurate and give your brand a competitive edge. Franchise models can provide many benefits for franchisors and franchisees alike. Franchisors can enjoy scaling their business without sacrificing quality or raising outside funds, while franchisees benefit from entering an already proven business model with in-place resources behind it. It’s no small feat to build a successful business, and franchising may be the ideal way for you to get the most out of your company.