by UFG | Nov 14, 2024 | News
Many sign shop owners are all too familiar with the frustration of a job going off the rails, leading to lost profits, or the disappointment of working long hours only to find that the profit at the end of the month or year just isn’t there.
We are in an industry that is custom by nature and will always demand process improvement to find success. The good news is that you don’t have to accept this for your business. Instead, you can explore solutions for improvement. By focusing on culture change and process enhancement, you’ll find that manufacturing efficiency and quality control will improve as a result.
For example, there are systems that exist in today’s manufacturing environments, such as Lean Manufacturing, Kaizen, and Six Sigma, that aim to provide these very solutions.
We are currently using the 5S methodology in our shop, and over the past 5 years, we have seen significant improvements in quality, employee engagement, and profit. Below are six areas that we focus on daily, weekly, and yearly to ensure these improvements remain consistent.
Reduce Production Waste: In a well-run shop, waste simply cannot exist. This is not just about material waste but a waste of time and movement. Processes must be designed and implemented to be exact and precise. Tools must be kept where they are used and be the right tool for the job.
Identify Current or Potential Bottlenecks: As we grow and improve, there will always be part of the process that slows things down. Most of these bottlenecks can be solved with technology, equipment or reorganization. You must recognize that they exist and address them promptly.
Improve Employee Performance: You cannot do this without buy-in from your employees. To a big degree, each employee must be involved in their development. Improvement in this area requires training and encouragement. Culture starts at the top, and employees must see and feel your commitment to change.
Automate Operations When Possible: You simply cannot keep up without the right equipment in today’s fast paced way of doing business. Automation both speeds up the process and improves quality. The days of hand producing a product are over.
Stay Organized: We spend at least 30 minutes each day cleaning and organizing in every department. By keeping our work area clutter-free, we eliminate waste in the long run, as we no longer need to hunt for materials and tools. Things are where they are supposed to be, and everything has a purpose.
Quality Control: Develop a process where quality still takes precedence over speed. Doing a task right the first time will always be more productive and profitable than doing it fast two or three times.
If we are to repeat a process frequently, and perfect that process, we must address the one-off or completely custom jobs that produce the most errors and overspend of time. This is probably one of the hardest concepts to implement. It means being focused on the products and services that are meaningful and profitable. It also means eliminating products and services that are not important to the company’s success.
As you refine your processes and implement quality control, you will find a less stressful and more profitable business future. You will also notice happier and more productive employees. If you’re feeling stuck and don’t know where to start, I recommend tapping into the many resources that are available online, such as Kaizen and 5S.
This article was originally published by Wide-format Impressions
by UFG | Nov 14, 2024 | News
Students from around the globe will learn more about career opportunities in the sign and graphics industry during Sign MFG Day. The event is sponsored annually by the International Sign Association and the National Association of Manufacturers.
On October 4, sign and graphics companies and print shops bring in students from local high schools, technical schools and community colleges for tours and to hear directly from the people who design, fabricate, install and sell on-premise signage. Through the years, participation in Sign MFG Day has led to the creation of job-shadows, internships, coops, and post-graduation hires.
This year, 105 sign and graphics companies around the world are participating, reaching out to their local contacts to organize tours. In addition, 19 schools reached out to ISA to express their interest in connecting with a local company to learn more.
“Sign MFG Day addresses the greatest existential threat to our industry, developing in the next generation of employees and future leaders,” said Lori Anderson, ISA president and CEO. “Since ISA has been hosting this day, we have found that students only need to be told about our industry to express interest in careers. Many companies have hired directly from Sign MFG Day while most have developed ongoing relationships with schools, leading to a pipeline of job candidates.”
Sign companies scheduled to participate:
- Acroads Vadodara, Gujarat, India
- Advertising Concepts, ADCON Signs Fort Collins, Colorado
- Aey Electric, Youngstown, Ohio
- Al Waqas Fabrics, Lahore, Punjab, India
- Allen Industries, Inc. Greensboro, North Carolina
- Allied Electric Sign & Awning, Vineyard, Utah
- Alphagraphics, Dallas, Texas
- Aludecor Lamination Private Limited, New Delhi, Delhi India
- Always A Good Sign, West Berlin, New Jersey
- American Awning & Sign Depot, Inc., Bronx, New York
- American Lift and Sign Service, Omaha, Nebraska
- Anuncios Lumicolor, Santa Cruz De La Presa, Aguascalientes, Mexico
- Apex Sign Co., LLC, dba Ad Light Group, Denver, Colorado
- Atlas Sign Industries, West Palm Beach, Florida
- Awesome Graphics LLC, Hobbs, New Mexico
- B.M.R. Mfg. Inc., Campbellford, Ontario
- Bakers Signs, Conroe, Texas
- Branded Sign Solutions, Helena, Montana
- Cardinal Signs, Brandon, Manitoba
- COMET SIGNS, San Antonio, Texas
- Comet Signs by Stratus, San Antonio, Texas
- Cool Touch Graphics LLC, 1 Saint Charles, Missouri
- Creative Media Studios, Festac Town, Lagos, Nigeria
- Creative Sign Company, De Pere, Wisconsin
- Cupples Sign Company, Paragould, Arkansas
- DaNite Sign Co, Columbus, Ohio
- Design Team Sign Company, LLC, Adamsville, Tennessee
- Digital Color Depot, Miami, Florida
- DMR Graphics, Conshohocken, Pennsylvania
- Doer Signs, Orlando, Florida
- Dprint, Lakeland, Florida
- D’sign Shop, Aibonito, Puerto Rico
- Engrave-Tech & Graphics, San Antonio, Texas
- ESCO, Watertown, South Dakota
- ESCO Manufacturing, Watertown, South Dakota
- FASTSIGNS of Durango, Durango, Colorado
- FASTSIGNS of San Ramon, San Ramon, California
- Federal Heath, Jacksonville, Texas
- Federal Heath Sign Company, Delaware, Ohio
- FLORIDA COLOR GRAPHICS, INC., Stuart, Florida
- FSG Signs, Austin, Texas
- Galaxie Signs, Burnaby, British Columbia
- Go Print USA / 247 Graphx, Oklahoma City, Oklahoma
- Graphik Display and Sign, Lindon, Utah
- Grasshopper Wholesale Signs, Farmington Hills, Michigan
- Hansen Signs, Moncton, New Brunswick
- High 5 Signs, Kissimmee, Florida
- Hoffmann Admiral Signs, LLC, Scott City, Missouri
- HONDUPRESS, San Pedro Sula, Honduras
- Image One Industries, Bensalem, Pennsylvania
- Image360 Lexington, Lexington, Kentucky
- Image360 Traverse City, Traverse City, Michigan
- Innvoke LLC, Conshohocken, Pennsylvania
- Johnson Sign Co., Ypsilanti, Michigan
- Latitude Signage + Design, Grinnell, Iowa
- Lauretano Sign Group, Terryville, Connecticut
- Leaman Signs, St. John’s, Newfoundland
- Legacy Sign Group, Westville, Indiana
- Les Enseignes iCubic, St-Laurent, Quebec
- Mass Signs LLC, Westfield, Massachussetts
- Metro Sign, Oklahoma City, Oklahoma
- Midwest Light & Sign Inc., Farmington, Missouri
- Munn Enterprises, Hattiesburg, Mississippi
- National Branding, Troy, Michigan
- On Top Printing and Signs, Orlando, Florida
- Orion Signs and Graphics, Oxford, Michigan
- Peach City Customs, College Park, Georgia
- Persona Sign, LLC, Watertown, South Dakota
- Quicksigns LLC, Everett, Washington
- Rago Neon Inc., Hayward, California
- Ramsay Signs/Heath Northwest, Portland, Oregon
- Roland DGA, Irvine, California
- Schurle Signs Inc., Lawrence, Kansas
- Sierra Signs Service Inc., Mesa, Arizona
- Sign Shop Illuminated LLC, Colorado Springs, Colorado
- SignAgent, Burlington, Ontario
- Signarama, West Palm Beach, Florida
- Signarama – Springfield / Ozark, MO, Ozark, Missouri
- Signarama Louisville, East Louisville, Kentucky
- Signarama Philly, North Wales, Pennsylvania
- Signarama Sugar Land, Stafford, Texas
- Signararama, Troy-Metro Detroit, Troy, Michigan
- Signco Fabrications, Inc., Elk Grove Village, Illinois
- Signmans LLC, Coral Springs, Florida
- Signs & Services Co., Stanton, Colorado
- Signs By Tomorrow – Arlington Heights, Arlington Heights, Illinois
- Signworks, Inc., Indianapolis, Indiana
- Signworx, LLC, Metairie, Louisiana
- Sleek Signs, Regina, Saskatchewan
- Splendor Signs, Houston, Texas
- Springfield Sign, Springfield, Missouri
- Squarpix, North Bergen, New Jersey
- Stancosignage.com, Santa Ana, California
- Stone’s Sign Shoppe Inc, Saint Charles, Missouri
- Strategic Factory, Owing Mills, Maryland
- Stratus, Lexington, South Carolina
- Sunsigns Inc, Columbus, Georgia
- The Sign Gallery, Manchester, New Hampshire
- True Sign Experts, Waller, Texas
- University of California, Santa Cruz Santa Cruz, California
- Urban Sign Group, Holmes, Pennsylvania
- Vivid Sign and Design Inc., Mt Pleasant, South Carolina
- VMD PUBLICIDAD, Miami, Florida
- Whithlaser by Sumiflex, Sunrise, Florida
- YESCO, Salt Lake City, Utah
Schools participating:
- Baldwin High School A College & Career Academy, Milledgeville, Georgia
- Banks County High School, Homer, Georgia
- Blackstone Valley Tech, Upton, Massachussets
- Carson High School, Carson City, Nevada
- Clinton Middle School, Clinton, Oklahoma
- Coronado High School, Gallina, New Mexico
- Destinations Career Academy of Colorado, Westminster, Colorado
- Durango High School, Durango, Colorado
- EdAdvance, Terryville, Connecticut
- Idaho Falls High School, Idaho Falls, Idaho
- Lake Travis High School, Austin, Texas
- Lodge Grass High School, Lodge Grass, Montana
- Murray High School, Murray, Utah
- Oakland Schools Technical Center Northwest, Clarkston, Michigan
- Riverdale Ridge High School, Thornton, Colorado
- Sandy Grove Middle School, Lumber Bridge, North Carolina
- Sato Academy of Math & Science, Long Beach, California
- University Schools, Greeley, Colorado
- Wood River High School, Hailey, Idaho
- Youngker High School, Buckeye, Arizona
While most companies choose to participate on the first Friday in October, they are free to choose dates that align better with their schedules or their local school calendar.
This article was originally published by International Sign Association
by UFG | Nov 14, 2024 | News
Why are small business owners so fixated on revenue over profit? Is it that high revenue numbers create the impression of success? Or is it that revenue indicates a company’s market share or dominance over a competitor? Maybe since it’s impolite to talk about how much money we make, quoting our revenue instead of our profit keeps us courteous?
There’s an old business quote that says, “Revenue is vanity, profit is sanity and cash is king.” The author is unknown, but it makes you wonder if he came from the sign business.
I occasionally get a chance to speak with new sign franchisees and one question I pose to them is, “How many of you would be happy with a store that sold $2.1 million and took home 10%?” After the show of hands, I ask, “So, which is more exciting to you, the $2.1M in revenue, or taking home the $210,000 profit?”
I find it interesting that when owners first start their business, they always answer with $210,000 net profit, but once they’re up and running, they tend to focus more on growing revenue rather than concentrating primarily on growing profit.
Let’s look at a revenue focused shop verses a profit focused shop and compare the differences. The revenue focused shop sells $2.1M and makes 10%. The profit focused shop is a $700,000 business making 30%. Both stores show a net profit of $210,000, but which store has fewer employees with less equipment, debt, risk and stress? Which owner feels like they’re making more money?
A more impactful way we can look at the net profit % of two shops is to understand what it would take for each of them to earn $100,000 more profit. Assuming their financial ratios stay the same, the 10% net profit store must sell an additional $1,000,000 in signs to take home $100k, but the 30% store only needs to sell an additional $333,000. They can make the same amount of profit, with a third less work.
Broken down even further, the 30% net profit store can take home $100,000 more a year with just an extra $1,300 a day in sales. This probably wouldn’t require any more space, employees, or equipment. The additional $1 million in sales needed for the 10% net profit store would certainly require more employees, and possibly more equipment and more space. This additional $1M of work would certainly add more risk, not to mention more stress and possibly more debt.
The factor that impacts net profit % the most in a retail sign shop is the balance between in-house and subcontracted products. We call this Product Mix. You can bet that a 30%-40% net profit retail sign shop makes almost all their products in-house. But if this shop starts to sub-contract a large percentage of their business, they’ll find their net profit % declining and will have to increase revenue to make up for the lost profit.
When you think about it, a retail sign business is essentially two separate operations. The first operation, the products we make in-house, is super profitable with very little risk. Cost of Goods is super low, with most in-house products having markups of 5x to 10x. The best part of this business is that its team members can run the majority of the day-to-day without the owner’s involvement.
The second operation consists of the products we sub-contract. These projects come with significantly more risk and much lower margins, with markups usually averaging around 2x. Since shops have little control over the quality and timeline with subcontracted projects, these jobs can create super stressful situations if products are made incorrectly or if deadlines are missed. Because of the higher price tag of most subcontracted work, the owner often feels the need to personally oversee the projects, resulting in less work being delegated to their team and more work for the owner.
Subcontracting too large a percentage of their sales will usually cause a retail sign shop to struggle with low profitability. If 50% of their business is subcontracted, they’ll water down their overall margins so much that there often isn’t enough cashflow to consistently cover wages and expenses. In many cases, a store could turn down a large portion of their subcontracted jobs and actually take home more profit. Especially if they focused their sales efforts on higher-profit, in-house customers, they could often work less, have fewer employees, and take home more money. Isn’t this really the goal of a small business owner?
When I do this math with sign shop owners, I find that the vast majority won’t give up subcontracted revenue to ultimately pursue higher and easier profits. They forget what excited them when they were brand new and will give every reason why an in-house focused business model that generates 30% – 40% net profit just wouldn’t work. It’s like someone who won’t give up a luxury car lease to become debt free. Just as the luxury car is a measure of success, the million-dollar revenue, the large shop, the cool equipment and all the employees can feel like a measure of success as well.
As entrepreneurs, we know the risks involved with starting a small business and that high-risk investments should generate high returns. If you’re just looking to just earn 10%, a good mutual fund might be a much easier route. So, which will you choose, vanity or sanity?
Roger Robinson has owned Signarama North Dallas for 23 years and teaches the brand’s Profit-Focused Sign Shop Master’s Class as part of Signarama’s Masters Academy.
This article was originally published by Wide-format Impressions
by UFG | Nov 14, 2024 | News
Though it might sound like an Italian bakery, Cannoli Kitchen Pizza is a newly franchising fast-casual pizza chain based in Florida with six locations. Since announcing franchising last September, the company has signed eight franchise agreements in Florida, Alabama, Michigan, and Georgia with 30 total in the works.
Cannoli Kitchen Pizza is part of United Franchise Group, a family of affiliated brands and consultants. Cannoli Kitchen Pizza is part of UFG’s food division, Big Flavor Brands, which also includes Graze Craze and The Great Greek Mediterranean Grill. Cannoli Kitchen began franchising under UFG-affiliated company, Accurate Franchising Inc.
“The franchise brand is transforming Italian take-out and delivery to a super-fast-fresh experience,” a representative for the brand said. “For nearly 30 years, Cannoli Kitchen Pizza has been creating fine classics like baked pasta, calzones, salads, garlic rolls, and pizza by the pie or by the slice; this is the place where grandma’s lost recipes can finally be found….This concept offers a unique opportunity in a booming industry with an affordable investment, multiple streams of revenue, and complete support provided by UFG.”
The next franchises to open will be in Boca Raton; Macomb, Mich.; and Greenacres, Fla. The company has also signed three new franchise agreements in Dallas.
The overall average check is $25.75 with an average location size of 1,200-1,600 square feet.
This article was originally published by Nation’s Restaurant News
by UFG | Nov 14, 2024 | News
Expanding into a multi-unit franchise is a significant step for any franchisee, and understanding when the time is right is crucial to success. In this Q&A, A.J. Titus, president of Signarama, shares his expert advice with StacheCow on the signs that indicate readiness for expansion, the importance of ensuring stability in your current location, and how to navigate the challenges that come with managing multiple units.
StacheCow: What signs show a franchisee is ready to expand into multiple units?
A.J. Titus: There are several key indicators that suggest a franchisee is ready to expand into multiple units. While gaining customers from a particular area or spotting opportunities in neighboring markets are positive signs, there are additional factors to consider.
Consistent financial performance over 2-3 years is crucial, demonstrating stability and growth potential. Operational excellence, including streamlined processes and a well-trained team, indicates capacity for additional responsibilities.
Strong leadership skills are also essential for managing multiple locations effectively. Market demand, particularly in areas outside the current territory, can signal expansion readiness.
A positive relationship with the franchisor, characterized by active engagement and adherence to systems, is important as well. Additionally, franchisees should have a clear expansion strategy and necessary resources, both financial and human capital, to support growth.
StacheCow: Why is it important for a current location to be stable before expanding?
Titus: A stable location serves as a solid financial foundation for growth. It provides the resources needed for expansion and acts as a safety net during the challenging early stages of a new unit.
The cornerstone of this stability is your staff. You need to ask yourself: Do you have the right team to run your existing business in your absence? A capable, trustworthy team is crucial because expansion demands your time and attention elsewhere. Your current location must operate smoothly without your constant presence. This means having employees who understand the business, can make decisions, and maintain the quality of service your customers expect.
Stability in your current location, anchored by a competent team, is not just important — it’s fundamental to successful expansion.
StacheCow: What challenges come with moving from one location to multiple, and how can they be handled?
Titus: Expanding from one location to multiple brings significant challenges, but also opportunities. The primary hurdle is scaling your processes effectively. What works for one unit may not seamlessly translate to multiple locations. You need to ensure your operational systems, management strategies and quality control measures can be replicated without losing efficiency or consistency.
Another challenge is maintaining distinct operations while leveraging shared resources. Each location should operate independently to serve its local market, but you can benefit from economies of scale in areas like marketing, purchasing, and administration.
To handle these challenges, focus on standardizing your processes and creating robust systems that can be easily implemented across locations. Invest in technology that facilitates communication and oversight. Develop a strong management team capable of running each location semi-autonomously. Finally, regularly review and optimize your shared services to ensure they’re benefiting all locations without compromising individual performance.
StacheCow: What factors should be considered when deciding if now is the right time to expand?
Titus: When considering expansion, you’ll want to first assess the current market conditions. Is the economy growing? Are there opportunities to acquire new locations at favorable prices? A challenging economy might actually present unique prospects for those prepared to invest.
Equally important is evaluating your leadership team. Do you have capable individuals ready to take on expanded roles? Your current team’s strength and readiness are vital for successful growth.
Also, consider your financial position and access to capital. Expansion requires significant resources, so ensure you’re on solid financial footing.
Analyze the potential new markets. Is there demand for your services? What’s the competitive landscape?
Lastly, reflect on your personal readiness. Expansion demands time, energy and focus. Are you prepared for these increased responsibilities? Remember, timing is critical, but so is your comfort level with the investment and your confidence in the team leading the expansion.
StacheCow: How can a franchisee assess their ability to manage multiple locations effectively?
Assessing your ability to manage multiple locations effectively is crucial before expanding. I strongly advise franchisees to leverage their most valuable resource: the franchisor.
Don’t hesitate to reach out to your franchisor with questions. We have extensive experience guiding franchisees through expansion and can provide invaluable insights. Ask about the challenges other franchisees have faced during expansion and how they overcame them.
Utilize the resources at your disposal. Many franchisors offer tools and training programs specifically designed for multi-unit management. Take advantage of these opportunities to develop your skills and knowledge.
Additionally, conduct an honest self-assessment. Evaluate your time management skills, ability to delegate and comfort with letting go of day-to-day operations. Consider shadowing a successful multi-unit franchisee to gain practical insights.
Ultimately, effective multi-unit management often requires a shift in mindset from operator to leader. Your franchisor can help you navigate this transition successfully.
Every great franchisee had help buying a franchise. Want to learn more about how 1851 helps franchisees find the right franchise opportunity? Visit www.1851growthclub.com and start your journey.
This article was originally published by Stache Cow
by UFG | Nov 14, 2024 | News
West Palm Beach franchise makes the 2024 Inc. 5000 and others celebrate record-breaking sales.
Signarama, a sign and graphics franchise, announced significant achievements and record-breaking sales for its franchisees in the first half of 2024:
- Bob Chapa, owner of Signarama Metro Detroit, has achieved multiple $1 million sales months in 2024, building on his record set in 2023 for the most sales in a single year by a single-unit franchise owner.
- Under the ownership of Sami Qureshi, Signarama of Philadelphia, Pennsylvania, has also set a new benchmark, reporting $2 million in sales in a single month.
- Chapa’s Detroit location and Qureshi’s Philadelphia, Pennsylvania, location are among 85 franchises that have qualified for Signarama’s 2024 Circle of Excellence, an accolade earned by achieving $1 million in yearly sales, marking the largest group of qualifiers in the brand’s history.
“We are incredibly proud of the outstanding achievements of our franchisees in the first half of 2024. Their record-breaking success not only reflects the hard work and dedication of our owners but also emphasizes the strength and resilience of the Signarama brand,” said A.J. Titus, president of Signarama. “As we approach our 38th anniversary as a brand, we’re excited to build on this momentum and continue providing innovative solutions that empower small businesses across the country.”
West Palm Beach makes Inc. 5000
In addition to record-breaking success, Signarama is proud to announce that its West Palm Beach franchise has made the 2024 Inc. 5000. With three-year revenue growth of 87%, owners Mike and Lino DeFeo have earned a first-time spot on the prestigious ranking, solidifying their position among the fastest-growing private companies in America.
“This recognition is an incredible honor for our team at Signarama West Palm Beach,” said Lino.
“We’re grateful to our loyal customers who have trusted us with their signage needs as well as our partners at Signarama corporate whose ongoing support enables us to grow,” added Mike.
Signarama Masters Academy
Signarama will continue to introduce and implement programming and strategies that aim to fuel ongoing growth for franchisees. The company recently unveiled plans for its next Masters Academy. Designed to help Signarama franchise owners amplify efficiency, drive sales, and increase profit, the on-location training provides two days of peer-to-peer learning in an immersive, collaborative atmosphere, with the next series slated to take place this fall.
“The Masters Academy is just one example of our ongoing commitment to franchisee success. We’re continually developing new programs, enhancing our corporate resources, and leveraging our industry partnerships to provide our franchisees with a competitive edge,” explained Titus. “From marketing support and operational guidance to cutting-edge technology solutions and vendor relationships, we’re invested in every aspect of our franchisees’ businesses. Our goal is to empower each Signarama location to reach its full potential, and the record-breaking sales we’re seeing are a testament to the effectiveness of these efforts.”
This article was originally published by GRAPHICS PRO
