The Science of Shopping, and Shoppers

Happy Halloween!

We had a nice night in the neighbourhood. We live at the top end of a court, and thus don’t always get many visitors. Tonight was rather slow, especially given the favourable weather. This is the first year that I stayed home and dished out the treats. My wife took our youngest son around the neighbourhood. I missed going with him, but enjoyed my time at home also.

I sat out on the front porch, with our cat, the treats we were offering, a little glass of brandy, and Paco Underhill’s Why We Buy: The Science of Shopping.

I’ve read Why We Buy before, but certainly enjoyed the refresher. Underhill was one of the first to actually study what goes on within a retail environment. Many companies study their cash register receipts. And many others conduct surveys with customers. But few actually study the behaviour of “humanus shopper” in his/her natural environment. Underhill makes this a science.

Underhill offers countless anecdotes throughout the book. Such as the very effective senior executive that thought almost every one that entered his outlets made a purchase. After all, they were a “destination store”, not an impulse buy. A quick study found that 48% of people entering the store actually made a purchase.

I also quite enjoy the “runway” concept. It turns out that right after we enter a store, we are not actually mentally “in” the store. This is less pronounced in a shopping mall, and more pronounced if patrons enter from the outside. As we enter, we’re in this no-man’s land between the outside and the inside. We’re adjusting our coat. Our eyes are adjusting to the lighting. We’re quickly scanning a vast space. We are not paying attention to whatever is happening immediately around us. The area just inside the door is the “runway”, and it is extremely difficult to get the attention of shoppers while they’re still on the runway.

Many of Underhill’s revelations are not entirely applicable to a Parmasters center. We offer very little merchandise, and actual “shopping” is a very small portion of the Parmasters experience.

However, the runway concept may offer some learning. A typical Parmasters features a large lobby area, just inside the doors. Remember, most visitors are carrying golf clubs or entire golf bags. Space is important. But this can also cause a very long runway effect. Something for us to consider.

Underhill also talks about the challenges shoppers face, especially in winter months, juggling a coat, perhaps another bag or purse, and perhaps an item they wish to purchase. In our Parmasters centers, we must consider what people will do with their winter clothing. Will coats be strewn around the green? Will snow be tracked in? Is this desirable?

There is much to consider. And I did not quite finish Why We Buy. A neighbour stopped by and we began plans to resurrect our annual street barbeque party. It died off when another neighbour, the organizer, moved away. That to-do item will wait for the spring …

Why am I an entrepreneur?

It’s been a very busy and productive day. I started with a workout; no cardio, all weights. I simply didn’t feel like running today. Not sure why.

My wife is off work this week and next. I mean, she does not have to report to her job outside of the home. Clearly, she does most of her “work” within the home – she carries, by far, most of the day to day chores – and thus she is actually very rarely “on holidays.” She was very helpful today, and often is, handling many business-related tasks that I simply don’t find the time to tackle. This contributed to our overall productivity today.

Outside of that, I simply got a lot done. And I’m quite certain I worked on the right things also.

I continue to improve my ability to “fly a desk.”

Some people have asked why we’re doing this. Why are we launching Parmasters? Why did we purchase the rights to southern Ontario?

The answer really has two parts. First, tonight, I will answer the question, why am I an entrepreneur? In the next few days I will answer the second question, why Parmasters?

Why am I an entrepreneur?

I was fairly entrepreneurial in throughout my adolescence and undergrad years. But after we married, and settled into a certain lifestyle, my drive to create businesses seemed to disappear.

In 1994 we celebrated the arrival of our first son, and my first mid-life crisis. Thus, we became parents, and after considering many other programs and schools, including the Ivy League south of the border, I enrolled in the MBA (Masters in Business Administration) program at Wilfrid Laurier University.

To make a long story shorter, in late 1996 – I took the part-time, 3+-year MBA – I was struggling to find a course that interested me. I eventually chose a course on Entrepreneurship. The professor was Dr. Laurence Hewick. I found Dr. Hewick’s anecdotes to be quite inspiring. By the time that the second lecture had ended, the entrepreneur in me had been reignited!

So, why am I an entrepreneur? In some ways I’ve always been entrepreneurial. I love creating things. I love creating companies. I do not enjoy repetitive tasks. However, in many ways, the path leads back to a course in Entrepreneurship at WLU.

Fly a Desk

I’ve blogged a little less this week. Mainly because it’s been busier than normal. However, I believe this level of activity is about to become the new norm. An object in motion will tend to stay in motion …

So one of my to-do items for this weekend is to look for new efficiencies. How can I become more efficient in all that I do? Are there tasks that I can completely eliminate? Are there tasks that I can ask my family members to take over? Are there tasks that I can become more efficient at?

One of my favourite ways to go about this sort of contemplation is to use the 80-20 rule. Generally, 20% of our activities generate 80% of our results. Applying this principle, wouldn’t it be interesting if we could identify the activities, tasks, habits, and time-wasters that lie within the 80% above, and eliminate most of them. What if we spent far more than 20% of our time on activities that generate our maximum results?

I took my eldest son to hockey practice last night. I generally take some reading or work with me. I watch half the time, and work the other half.

Last night I leafed through Denzil Doyle’s Making Technology Happen. I can’t recommend this book highly enough to anyone building a company, regardless of previous experience. The first half of the book deals with how to identify business opportunities within technology, how to do the research and then write a business plan. However, the second half of the book talks all about how to create a company, and instill the proper systems to ensure the best chance of success.

Doyle speaks specifically of systems to get the most out of board meetings, management meetings, board-President interaction, etc. He lays out schedules for monthly, quarterly and annual reporting, and notes the important roles of a strategic plan, a budget and a forecast.

Doyle also notes the importance of learning how to “fly a desk.” This speaks to the efficiencies that I must contemplate this weekend. I feel I’m quite strong in this area, but we can all improve.

Making Technology Happen is required reading for all companies with which I consult. Its simplicity is inspiring.

Self-confessed "Unbalanced Force"

Momentum can be so critical. As Newton’s first law of motion states,

“An object at rest tends to stay at rest and an object in motion tends to stay in motion with the same speed and in the same direction unless acted upon by an unbalanced force.”

Regarding our efforts to capitalize Parmasters Waterloo Region, Newton’s law of inertia has definitely been in full view.

For the first couple of months, it seemed the effort was “an object at rest.” That was not really the case, of course, since during that period we spoke to many potential/future investors. We also identified other potential investors that were not interested, for a variety of reasons, predominantly very personal and financial in nature. This is wonderful since it helps us focus our efforts.

But the fact remains, for the first couple of months we did not “close” any investment deals.

But now, after significant effort, we have closed our first few deals. We are gaining momentum. This is fantastic news, especially as we work to prepare offers to lease space.

So, due to the efforts of myself and those that support me, the object is no longer “at rest.” And we are absolutely focused on ensuring that “an object in motion tends to stay in motion.”

But if one reads the above characterization of Newton’s first law carefully, all of this leads to one ultimate conclusion. That is, of course, that I am an “unbalanced force.”

Comments Anyone?

I’m still paying the price for having taken Sunday off. There were several things I wanted to accomplish before the investor presentation mentioned in a previous post. We worked as a quite a team last night, my wife and I, preparing some paperwork.

A friend noted that I’m not yet getting any comments on my blog. That’s true, of course. So I thought about.

At this point, most people following the blog are potential investors. They’re either considering investing themselves, or considering recommending the investment to friends or family. And of course, financial matters are private matters.

So, I’m really not all that surprised that there have not yet been many comments. Most followers of this blog do not want to identify themselves.

I have in fact received several comments, which I moderate by the way. The comments received have not been, shall we say, on topic, or relevant.

All of that said, I do plan to do some reading and seek some advice on how to transition a blog into more of a dialogue, how to elicit a few comments. I think the discourse could be quite enjoyable and fruitful.

Paying the Price for Taking a Day Off

Very busy day today. It started with a workout and will finish up later this evening, as always, with some reading. I’m currently reading The Tipping Point. Interesting book, but I’ve only just begun.

I paid the price today for having taken a day off yesterday, Sunday. I did get a lot of reading done on Sunday, and some organizing, and spent some good quality time with my family. But, I was really behind the 8-ball, so to speak, today.

We met today to consider the buildings we’ve viewed thus far, and whether we are ready to submit offers to lease. We decided to draft them up. Our agent is working on them. Exciting times. We’re most interested in two sites in Cambridge. They have huge potential to capture a lot of Guelph, all of Cambridge, most of Kitchener and Waterloo, and lots of 401 corridor traffic. We're a destination, not an impulse purchase. But still, proximity plays a role. Ideal!

My discussions with investors are also bearing fruit. The changes to the deal are really starting to resonate with potential investors. This is good news.

I took an hour today and considered Parmasters vis-à-vis the Blue Ocean Strategy concepts. We definitely compete on several factors that other indoor centers do not pay attention to. And we definitely do not spend resources on at least two factors that other indoor centers definitely do focus on. I need to put more work into this, and want to discuss with some trusted advisors, but it definitely bodes well!

I also found some time today to do a little consulting with a local tech company called Principal Online Solutions. They’re not really a start-up, since they’ve been around for a few years. But they’re product has really been in beta for that time, and is only now ready for “primetime.” I’m helping them with some advice on commercialization, first sales, and marketing, as well as some introductions to candidates for the role of sales leader/VP.

I’m presenting to a small group of potential investors on Wednesday. I wonder how many are reading. This is my first “presentation” to investors. All previous discussions have been one on one. So, most of this evening was spent in preparation. I’ve opted for a simple white-board-and-markers approach, rather than PowerPoint. This was suggested by the host for the event, and it makes sense to me. To a large extent, when the group does invest, they’ll be investing in me. It’s all about my ability to execute. So, perhaps it’s best that they see more of me, and less of a polished PowerPoint presentation.

Well, time to do some reading. Tomorrow starts with a breakfast meeting, then a lawyer meeting. There’s a joke in there somewhere, but I’ll pass …

Blue Ocean Strategy

Long time, no blog. There’s been a lot on the go!

Thursday was spent finalizing the revised offering, and Friday was spent talking to investors. Both days were quite fruitful.

As we’re now moving towards offers to lease, I spent most of Saturday considering site selection. I used an online mapping tool to determine the distance (in both kms and time to travel) from each postal code (in Kitchener, Waterloo, Cambridge and Guelph) to each of the sites we are considering. I then used the Canada Post database to determine the number of households in each postal code, thus providing a weighting to the averages. This data, and analysis, will feed into site selection decisions.

I read Blue Ocean Strategy over the weekend. It’s a great book with a great message. Basically, don’t compete with your competition (within the red ocean). Make them irrelevant by creating an entirely new market space (i.e. a blue ocean).

In the indoor golf experience industry, our competitors tend to compete on things like technology (golf simulators); how life-like or golf-like the experience is; price; service; and ambiance (how nice the facility is). Blue Ocean Strategy suggests that the first step is to clearly understand the few factors that our competitors compete over. Then determine which of these can be eliminated, which are irrelevant to our new market. We will also add new factors that our competitors are not focusing on.

When competing in the red ocean, all competitors are moving the same levers, adjusting the same factors. They can reduce some of their cost structure factors, and be more competitive on price. Or, they can increase price and be more competitive on some of the other factors (which means increased cost structure).

In the blue ocean, you reduce your cost structure by eliminating some of the factors (that are not relevant in your new market), and thus eliminating some costs. You then introduce new factors (or services, or features) that appeal to your new market. Overall, your cost structure remains the same, but you are in a new completely uncontested market space.

Clearly there is far more between the covers of this thought-provoker than I can summarize here. I highly recommend this book!

I now have much more work to do, to ensure that Parmasters Waterloo Region swims in vast, calm, uncontested waters.

Capitalizing Parmasters Waterloo Region

Capitalizing Parmasters Waterloo Region continues to be a fascinating experience. It’s taking a little longer than hoped and if I really think about it, probably a little longer than anticipated also.

I’ve made some changes lately, both to the “deal” that I’m offering to investors, and also changes to the way I am approaching investors.

I can’t really get into the specifics of the “deal” in this venue. Suffice it to say that the offering is now far more lucrative. I’ve basically eliminated almost all of the risk, and made the upside far more lucrative. Thus, the risk-return ratio has changed very dramatically.

I spoke to many trusted advisors, some of whom do a fair bit of venture investing, late last week and over the weekend. I also met with my Parmasters regional franchisor and the President and CEO of Parmasters on Saturday. Lastly, I conducted a small survey amongst some friends that had passed on the opportunity.

It’s not that things are going poorly. That’s really not the case. My investor funnel continues to grow. I continue to speak to more and more people – my network of contacts is growing substantially – and most are interested. I simply have to improve my close percentage.

The consensus that developed through the many discussions last week and over the weekend, and was confirmed through the survey results – thanks to all those that returned the survey! – had many dimensions. These included:

- I’m asking people to help me with my dream. I’m asking for their support. Thus, I really should do everything I can to make it as easy as possible for them to support me.
- One step in this direction involves eliminating the downside, most of the risk. Thus, I’m now offering full personal guarantees.
- As another step, as noted above, the offer is now far more lucrative.
- And lastly, clearly, in the future, when any of my investors approaches me and asks me to invest in their dream, assuming it has the vast potential that Parmasters has, I’ll be the first to sign up.

I sent an email this afternoon to a very successful franchisee, who is now a franchisor. The title of the email was “Am I crazy?” The rest of the email was basically just some venting. This gentleman is one of my mentors. I wondered if he’d ever been where I am. He replied that he had, and in fact, in some ways, he’s back there again. He noted that it’s all about momentum, and wished me “good hunting.”

He also noted that the founder of Starbucks pitched in 100 boardrooms before he found his investor. I tend to pitch in coffee shops more than boardrooms, due to the nature of the business, but I’ll happily surpass the 100 figure if need be. Whatever it takes!

Barter System

My wrist remains quite sore, but it worked well enough tonight to produce a few goals during our pick-up game. I had it wrapped with a bandage for support. Perhaps that was the difference.

Met with a good friend tonight. I’ve been asked by a local small, but not really young, company to assist with a staffing position, and possibly some sales leads. They’re doing me a favour. I’m doing them a favour. Back to the barter system. I like it.

The fellow I met with tonight could be a perfect fit as a sales professional for this small organization. Hopefully we’ll arrange a face to face in the next few days.

After that evening meeting I was home for a late supper, and watched a little of the Buffalo-Philadelphia NHL game with my sons. Philadelphia was Buffalo’ed, 9 to 1. Buffalo is playing like Tiger Woods on a Sunday at a major. Extremely entertaining, unless you’re cheering for the other team! With Buffalo scoring 6 goals – I believe – in the 2nd period, it seemed we were constantly hitting the rewind button to review the play.

Having now caught up on some email and paperwork, it’s time for a little reading and then some much needed sleep.

Tomorrow I will be contacting a large number of potential investors. I’ve changed my approach. I’ve made it easier for them to say yes, and more difficult for them to say no. And the offering is now far more lucrative. Tomorrow is a big day for Parmasters Waterloo Region!

Weeks Can Blur Together

Busy day today, again. I worked most of the weekend, and so today didn’t really feel like the start of a new week.

My wrist injury is really hampering my workouts. I tend to do 45 minutes or so of weights and then get out for a brief 3k run. And I generally tend towards heavier weights, with fewer repetitions. That’s a real challenge due to this wrist injury. I may have to seek medical attention.

Started the day with some emails and organizing, and then headed into a meeting with a “future” investor. He operates a very successful clothing store in a small town just outside of Kitchener-Waterloo. I should get his permission to mention the store! He truly understands customer service, just like Mr. Girard.

The rest of the day was spent working away. Many of my outstanding tasks right now involve major decisions. I spend a lot of time consulting trusted friends, crunching numbers, and contemplating various scenarios. Sometimes this work flows easily, like today, and sometimes it’s more challenging.

Also had some Kitchener and Waterloo Community Foundation work that occupied about an hour today. Feeding into the fall newsletter, and discussions about how I may best serve the Foundation.

I broke for about half an hour for supper around 7:00pm. Then it was right back at it. Shortly thereafter my eldest informed me that he needed some help with some homework. My first impulse was to suggest that he give me a little more warning next time. But I refrained. Fatherly duties. I set everything aside, and helped. It didn’t take long, and it was good bonding time.

Have I shared this quote before?
“Things which matter most must never be at the mercy of things which matter least.” -Goethe

Right now, a little RnR, some reading, and some sleep, “matter most”. Early start tomorrow.

The Secret – Love Your Customers

Have you watched The Secret?

Yes. Great. How has it affected you?

No. Then do so, this week!

Joe Girard understands The Secret. I read about Mr. Girard in the Harvard Business Review, July-August 2006, page 25.

Mr. Girard was born into poverty and eventually took a job selling cars. Not fleet sales. Individual car sales. His accomplishments include:
- 13,001 cars sold in 15 years
- the Guinness World Record for being the world’s greatest salesman
- 1,425 cars sold in 1973
- 174 cars sold in one month

To quote Mr. Girard:
- “When you bought a car from me, you didn’t get just a car. You got me. I would break my back to service a customer …”
- “That’s what makes businesses big: word of mouth. If you create it, it’ll make you. If you don’t, it’ll break you.”

He took all of the service people out to lunch at a nice restaurant every third Wednesday. He invited them all over his house once a year for a barbeque with his family. He told the service people he loved them. He did love them. They loved him back. And they treated his customers like gold.

He told his customers that he loved them too, all the time.

He got down on his hands and knees and begged his first customer to buy a car. He made his first sale. His family was starving. But not any more.

“So I appreciate every person who bought from me so much.”

Mr. Girard – I cannot simply call him Joe given his accomplishments – understands The Secret. He lives it every day. He was not simply about sales. He was all about service and commitment.

I’m not sure Parmasters Southern Ontario can live up to Mr. Girard’s example. But I can’t think of a better guiding light.

Parmasters Cambridge?

Busy day today. The meetings started in Guelph at 8:00am and carried on throughout the day. I finished up in St. Jacob’s at a farewell get-together for two people that have recently left SlipStream (my former employer, and now a division of RIM). It was nice to catch up with many friends.

I’ve pushed on the franchisor of late, suggesting that I would start working on partnerships and marketing plans for Parmasters Kitchener-Waterloo. We speak frequently, of course, including weekly conference calls. The franchisor insists that I should wait until I’ve secured a site before approaching marketing partners. I defer to their judgment, for now. I wonder how many franchisor staff have subscribed to my blog …

While I have been referring to our first site as Parmasters Kitchener-Waterloo, there’s now a good chance that we may build first in Cambridge. Perhaps I should broaden the moniker to Parmasters Waterloo-Region, for now.

Busy day tomorrow, and more reading to do tonight.

Three Roles Within A Business

I mentioned advisors and the board of directors in an earlier entry. There are three very distinct and separate roles within any business. Entrepreneurs and investors often get them quite confused. This cannot and will not happen within Parmasters Kitchener-Waterloo.

Investor – Contributes capital to the business. Owns a certain number of shares in the business. May realize a return on his/her investment via dividends (income) and/or an exit event (gain). Is entitled to:
- receive periodic updates on the state of the business (quarterly reports)
- receive annual updates on the state of the business
- attend the annual shareholder meeting
- vote his/her shares during the annual meeting as directors are elected, auditors are appointed and other business is conducted
- receive dividends as/if declared by the Board of Directors

Director – Provides guidance and governance as member of the Board. May or may not be an Investor. The two roles are completely separate. May be compensated with a mixture of salary, meeting pay, stock options and other incentives. Responsibilities include:
- hiring, mentoring, monitoring and, if necessary, firing senior management
- attend periodic (monthly or quarterly) Board meetings
- may also serve on one or more committees established by the Board
- review and approve budgets, plans, strategy and direction put forth by senior management
- and many other responsibilities, the list of which has grown significantly lately

Employee – Is employed by the business to fulfill a certain role within the business. Is compensated with a mixture of salary, commission and other incentives. May or may not be an Investor and/or a Director. All three roles are completely separate. Responsibilities include:
- fulfill the mandate of the position
- always conduct his/herself in a way that is beneficial to the business
- contribute in a very positive way

The point is, there are three separate and quite distinct roles within a business, and they must not be confused. Confusion often happens when an individual occupies more than one role.

- An Investor who also sits on the Board of Directors may try to dominate a Board meeting because he/she owns the majority of shares, when in fact all members of the Board, aside from the Chair, are equals around the table. One vote per Director. The Investor’s majority holding only counts once per year, when voted during the annual meeting.

- An Investor may also be an Employee. Perhaps an assistant manager in the case of Parmasters. I have seen cases where a dominant Investor does not take direction from his/her manager, because the Investor owns more shares than the manager. Once again, the majority holding counts at the annual meeting, not during the day-to-day operation of the business.

- A Director may visit the business and find something out of place. He/she may decide to direct staff to fix the problem. The Director is acting like an Employee. In fact, the Director should talk to senior management, who will then talk to other staff.

I believe the point is made. As I build our team of Investors, and establish the mechanisms and systems that will be used to facilitate communication and governance, I will be very cognizant of the many problems that can arise when people are not clear on their roles within the business.

I will ensure all are clear.

Family, Turkey, Indoor Golf Centres

Happy belated Thanksgiving to Canadian readers. I hope you have found many things for which to be thankful!

My weekend was filled with family, turkey and, of course, much work. My wife and I grew up in/around the same small southern Ontario town, and actually started dating in high school. Our parents still reside there, and we visit on all major holidays.

Saturday started with some office work, a round of golf with my boys, some more work, and then off to a hockey game involving my eldest. From there we were off to our home town for dinner with my parents. The pumpkin pie was delicious.

I find a trip to my home town often brings new perspective, or brings clarity to my thinking. Thus, I often take some thinking/reading/designing tasks with me. This past weekend was highly effective.

Sunday started with some new found clarity on where I am, and where I’m going. Very energizing.

To further ground things, I asked my father to show me the old family farm. This is where one of my great-great-grandfathers originally settled upon arriving from Ireland. After half an hour of driving on progressively smaller and eventually gravel roads, we found ourselves traveling deep into some woods, on a “cow path” barely wider than my truck. After a few more kilometers of this path, we came upon a gate in a fence to our left, and the abandoned ruins of a foundation just beyond. I just parked the truck in the middle of the “road” – not much traffic. We stood there for quite some time, in absolute silence. It’s good to know where you’ve come from!

The rest of Sunday was spent on more reading and designing, and eventually dinner with my wife’s parents and family. Another (piece of) pumpkin pie and yes, it too was delicious! More reading after the extended family left.

Monday started with a round of golf with an old friend, of some 40 years. Yes, I’m 40 years old. You get the idea.

After golf, and a bit of lunch, we started our journey home. We planned to visit several indoor golf facilities in the greater Toronto area (GTA) as we traveled home.

We started with the Markham Golf Dome. They have an outdoor range and small putting green, and an indoor range and green. Very similar to the Sportsworld dome that would be familiar to all Waterloo Region readers. They charge $999 for a one-year membership that allows up to one hour per day in the dome.

We then visited the Oasis Indoor Golf Centre. Unfortunately, they were closed, and we couldn’t see much peaking in through some windows. They claim to have 2 simulators and some 25 “full swing hitting stations” (where you hit into nets). They also include sand traps, water hazards, a putting green and other features. This is all located in a flat-roofed, light industrial building. Unfortunately, the building is tucked away behind several other neighbouring buildings. I can imagine many people being less than comfortable pulling up, or walking to their car, after dark.

We decided to skip the Metro Golf Dome, as we suspected it was much like the Markham Golf Dome.

We then visited the Launch Golf Centre. Interesting concept. It’s an outdoor range, but you hit from inside. Simply picture a two story apartment building with the outside wall sheered off. The indoor hitting bays are sheltered and heated, but you hit to the outside. They had a small putting green, a food service area, a club repair business and some merchandise.

Lastly, we visited the DiMarco Golf Dome, visible from highway 401, just west of Dixie Road. This site too was closed. It appeared to be simply another dome operation. The setting is very heavy industrial, and the dome seems to site right on the same site as an aggregate or road construction company. And of course, with Pearson Airport next door, jets traveled low overhead quite frequently.

Visiting these sites was a good exercise. They will not be competitors, given the distance from Waterloo Region. But people will compare us to them. Given what I saw on Monday, I REALLY hope that comparison happens a LOT! We will compare VERY FAVOURABLY!

Advisors, Mentors, Governance

I’ve been asked to consider what sort of governance and/or advisor structure I plan to put in place. It’s a great question and one that, admittedly, I have not had sufficient time to ponder.

I start with a few beliefs.
- I strongly believe in surrounding myself with people that are much smarter than me. This does not generally just mean higher IQ score, but tends to reflect a certain area of expertise. This point was stressed by Guy Kawasaki in a presentation I attended today. (More ENGAGE! and Entrepreneur Week stuff.)
- I also believe that investors should have reasonable access to management (me) to discuss the business. Typically this happens at the annual meeting. In an entrepreneurial venture like this franchise, I believe this process should happen quarterly.
- I believe all stakeholders in the franchise should act in a way that is appropriate for their role in the business. Investors are not necessarily members of the Board of Directors. Nor are they managers. The Directors are not the General Manager. These roles must be kept separate and distinct, and not confused on a day-to-day basis.
- I believe my investors can form the nucleus of my advisor team.

A friend operates a clothing store in a small town outside of Kitchener-Waterloo. He truly understands customer service. He uses customer service as one of his key differentiators. I want him on board as an advisor, and an investor. Service absolutely must be one of our strongest differentiators. We are a membership driven business, and members must be serviced. This gentleman can help me.

I also believe that an entrepreneur can get too much advice or guidance, or advice from different sources that when all mixed together does not create a winning recipe. An entrepreneur must be strong and focused, and must be willing to disregard advice when it doesn’t feel right.

An entrepreneur will always be most passionate about executing his ideas, not the ideas/passions of others. If the entrepreneur surrenders the vision to his advisors, the company is doomed.

The key lies in striking a balance. An entrepreneur must surround his/herself with people that REALLY can add tremendous value. He/she must constantly ensure that everyone truly understands the current state of the business at any given point. He/she mustn’t deny the current state of the business. Understand it. Embrace it. Ensure all advisors understand it. Thus improving the quality of their advice.

An entrepreneur must also have a structure, systems and processes around interacting with advisors. Well defined, well planned quarterly meetings, along with quarterly updates and annual reports, may be the way to go.

Investors are not managers, and they do not get privileges beyond those described on their share certificate. They do not direct staff. I direct staff. They do not get free merchandise. No one gets free merchandise. They do not get to manage the business. I will manage the business.

I have much more work to do in this area. Something to get going on soon.

Another future blog topic, the three roles within a business.

Site Selection - An Appealing Public Space

We visited more potential sites/buildings today, starting with a site in Waterloo, then two in Kitchener and two in Cambridge.

Two of the buildings are older, metal clad industrial/manufacturing facilities. Both had desirable interiors. For us that means a high ceiling – ideally more than 18 feet – and large open spaces, with few pillars. Unfortunately, both were rather ugly on the outside. Very little curb appeal.

We had a potential investor join us for the site tours – I wonder if he/she (I’m not going to say) is reading this – and he/she really understood one of the key factors for us. Our site must look and feel like a fairly high-end golf/golfing club. We offer high-end quality at affordable prices. We offer the average golfer the opportunity to have an inexpensive golfing membership.

Our building, our site, must be very appealing. In some ways, we’re building a public space that must be very inviting, very comfortable, very appealing. Members will derive value, at least partially, from how much time they spend at our site. The more time they spend at our site, the greater will be their perceived value of the membership. Part of having members spend more time at the site, is ensuring that the site is simply an amazing place to be.

We also toured a brand new building today. We all agreed that it will likely end up near the top of our list. It has fantastic curb appeal, in a good neighbourhood, along with a fantastic interior.

After the tours the potential investor and I grabbed a bite of lunch had further discussions. He/she had many insightful questions. One such question focused on advisors, mentors and governance. I’ll blog on that in the next few days.

Later in the afternoon I was off to another Entrepreneur Week event to check on our ENGAGE! progress. Have you signed up for ENGAGE! yet? If not, please do so!

Tonight has been mainly focused on catching up on some reading. More sharpening of the saw. I’ve fallen behind on my reading. Still finding this entrepreneur’s life balance. All things in due time …

Over lunch this quote came up. It will definitely be part of our culture at Parmasters Kitchener-Waterloo. The word “reputation” can be replaced with “members”, “brand equity”, “word of mouth”, and many others.

“If you lose dollars for the firm by bad decisions, I will be very understanding. If you lose reputation for the firm, I will be ruthless.” -Warren Buffet

Competitor Scan

Shorter day today, as I didn’t get up and work out. My injured wrist kept me from sleeping much last night, and thus I had little energy for a workout. I feel guilty. I don’t skip many workouts, but it does happen, and I always feel some guilt. I clearly couldn’t have lifted any weights with this wrist, but could have gone for a run.

If the wrist is not better tomorrow, I’ll be off to see a doctor.

Today was spent communicating with potential, or should I say ‘future’, investors, and also doing some research.

I went back and continued my search for local – within an hour or two – indoor and outdoor golf practice facilities. There are lots of ‘driving ranges’, but not many practice facilities, and very few indoor facilities. I did this same research while considering the franchise, of course. But it never hurts to go back and see if anything has changed, or if there are new competitors.

Most facilities identified are either golf domes (bubbles) or small, strip-mall operations with two or three simulators and a food service area. Most are located in the greater-Toronto area (GTA).

I’m not going to name these competitors here, as I don’t necessarily need them to know about me just yet. And many may have Google Alerts, or some other technology, scanning the web for mention of their name.

The competitive landscape has not really changed since our decision mid-summer to proceed with the franchise. There are competitors, but not many. And we definitely have a large niche to fill.

Tomorrow, we visit more potential sites/buildings. I must also check on our ongoing ENGAGE! work during Communitech’s Entrepreneur Week. Lots of meetings. Should get some rest…

In Search of ... Ice

Typing is a little difficult tonight. I hurt my wrist playing hockey late this afternoon. Must be getting soft in my old age. Seemed like a pretty innocent play, but then they always do. Like the time I dislocated my shoulder in my teens, again on the ice. Don’t dislocate your shoulder. It’s not much fun. The wrist injury is far more bearable!

I almost bailed on hockey at the last moment, but talked myself into going. I had committed to be there. If there aren’t enough players, it’s not much fun for anyone involved.

And I have been trying to re-commit to taking some ‘me’ time. Stephen Covey refers to it as “sharpening the saw”, and also maintaining your “production capacity” (PC), not simply always focusing on “production” (P). I have blogged on this previously.

As I continue to adjust to an entrepreneur’s life, I continue to seek that balance. It’s very easy to work all of the time. Days start early, and they end late. There’s always more to do. But I have also found myself must completely worn out on a few occasions. No doubt my effectiveness was very low in the days that preceded my becoming completely worn out.

It would be best to find that balance, to get into a groove of working just as much as I possibly can, without becoming worn out, and while maintaining a consistent and high level of productivity and effectiveness.

But then, it’s a little like the fountain of youth. Aren’t we all searching for this sense called ‘balance’.

So, in the end, I went to RIM Park and laced up the blades, and hurt my wrist. And yes, of course, the other players in the dressing room are all potential investors, and potential members, of Parmasters Kitchener-Waterloo! Another reason why I went, and will attempt to continue.

I was going to blog about my investor search tonight, but have digressed. Perhaps tomorrow night. Off to find some ice …

Links Golf Café

Each Parmasters golf training center contains a food service area. We call them the Links Golf Café.

And now, Parmasters is taking Links Golf Cafés beyond golf training centers, and into large shopping malls. My wife and I, by virtue of our Parmasters Franchise, are also the local franchisee for Links Golf Café.

Within each golf training center, the Café will range in size from a few vending machines up to a full food service, with meals fully prepared on site, and seating for dozens of diners. The larger the center, the larger the Café.

In a shopping mall environment, each Café will feature one or more golf simulators and several television monitors featuring golf-related programming.

While the final interior design elements for each Links Golf Café are still being finalized, they will definitely provide a very warm, casual and inviting dining atmosphere. And of course, a strong golf theme will abound.

We also expect members and others to stop to their local Links Golf Café, either within a golf training center or within a mall, for one of our custom-roasted organic coffees while en route to the office or perhaps a golf game.

As a single franchisee handling both operations, this arrangement will offer a wealth of opportunity. The possibilities to serve members at both, to drive leads back and forth, and to create countless synergies, will all enhance the bottom line for each business.

In addition, the operation of both facilities will allow new staffing opportunities, and employment flexibility.

More on Links Golf Café to follow …

I had a busy day today. I managed to squeak in a workout this morning before several meetings, calls, and countless emails. I’ve been sleeping too little lately. And definitely not reading enough. Two things to work on, starting after completing this post.

Worth a Damn

It’s been a busy weekend. Although today has been mostly R&R.

After some office work first thing Saturday, I was off to the University of Waterloo to check on the continuing ENGAGE! launch. We had volunteers staffing a booth at an Entrepreneur Week event at UW. Unfortunately, our booth materials were on there way to another event. The wrong event. So, after several minutes of calling and driving, the materials were tracked down, and delivered to UW.

I think we signed up some ENGAGE! members. Good news.

After some banking, and a quick lunch, it was off to Guelph for a Spectradigital board meeting. The company continues to make solid progress, but traction is always an issue with startups.

After the meeting is was back home for a few minutes before taking my eldest to hockey evaluations. I really enjoy watching him play, but must admit to working away on my Blackberry during some of the times when he’s on the bench.

Today I golfed. The usual weekly round. Played ok. I continue to learn more about Straight-Line Golf, the simplified swing that we teach at Parmasters. I really struggled last Sunday, but went back to the basics this past week, figured out what I was doing wrong, and played much better today. If it were not for some poor short putting, I could have been just three over on the back. The front was less impressive.

There’s a “starter” – the guy that ensure the continuous stream of golfers heading off from the first tee remains orderly and timely – where I play that would be a fantastic addition to the staff at Parmasters KW. We’re still about nine months away from opening, but I did start the conversation today.

He has a fantastic personality, clearly really enjoys people, loves the game and what the game means. I believe he’s semi-retired. Perhaps …

At Parmasters, when hiring, we first look for the value system, and the love of people and the game, that are all critical to success. We then continue to screen for skill sets, communication skills, etc.

And of course, we ensure that the work is rewarding. This quote came from a television show, of all places, but it resonates:
If you want someone worth a damn in the job, you'd better make sure the job is worth a damn. -television show, Commander and Chief