By Simon Gamble, Mako Networks

Opening a new franchise or taking over a group of existing stores can be an exciting time.  There’s no shortage of items on the to-do list: hiring staff, promoting the business and managing the store ?t-out all take precedence in the mind of the owner. But if you have more than one store, or if you need to pool together ?nancial information, you’ll need a computer network between stores to connect your business.

It’s easy to overlook the information technology (IT) component of a business. With so many other tangible aspects to operating a successful franchise, spending money on an IT system not visible to customers can seem like a low priority.  However, the reality is the IT system is actually a part of the vital infrastructure. Computers are part of any business.  As soon as you connect to the internet, you’ve become part of an extended network.

There’s no question that for the most part, building and maintaining a computer network is usually best left to professionals. However, if you’ve got enough business sense to own and operate multiple store locations, there are a few things you should certainly be aware of to ensure you get a network that delivers maximum value to your franchise.

Following is a list of some of the most pertinent issues to consider when networking your franchise.  This is by no means a comprehensive list, but certainly should help spur a discussion about the relevant issues in the initial stages.

Connection quality

Whether your business is small or large, the internet connection to your franchise locations must remain up and running.  Not having a reliable internet connection is as disruptive to business as an unreliable cash register.  Selecting an internet service provider (ISP) is a big decision.  Your choice will probably also impact your other communications services, like landline and mobile phones - as these services are often bundled together.  There has been increasing competition from ISP companies in recent years.  As new companies sprout up, the selection process becomes more confusing and crowded as these companies compete for shrinking market share.

Franchise owners should approach this selection stage with patience and consideration to find the company with the right mix of pricing, services and support. Switching to a less proven ISP to save $5 per month is seldom worthwhile.  Make a choice based on factors like service and support quality as well as from evaluating customer references.

Also remember that if you are opening a new store location, there could be some waiting time to establish a DSL connection.  Though available in most areas of New Zealand, this faster internet service is based on location and proximity to a connection point.   If there is not one readily available nearby, or if it’s already operating at capacity, it could take three weeks or more to get the DSL line established.

Cost-effectiveness

We’ve covered the necessity of a reliable network from the outside - as in choosing a reputable ISP to deliver a steady internet connection to your premises.  That is the first step to ensuring a functional and cost-effective network.  Reliability is also dependent on your internal network’s components.  When building a network, it’s important not to skimp on the cheapest network components that simply do the job.

Conversely, it’s also a fairly foolhardy practice to buy the most expensive network gear available and over-invest on features and specifications that aren’t needed.  It’s a bit of a Goldilocks exercise - spend enough, but not too much.  Having an ultra-reliable network is great, but if that comes at too great a cost, then it’s not delivering the results you need either.

Productivity

In small franchise scenarios, where a store may only have one or two employees, maximising the labour productivity of those employees is critical.  Making sure that their time is focused on business tasks rather than other activities will help your profit margin and reduce wasted labour.

The internet can be a valuable business tool, but unfettered access can also lead to ‘cyberslacking’.  This accounts for up to 20 per cent of the working day if left unchecked. There are a variety of network monitoring options that can assist in keeping employees on task.  These programmes can be provided by a third party, or on the computer system itself.  Monitoring employee usage provides a useful management function, but the same software can often be used to block or restrict access to a speci?c list of websites.  It helps keep inappropriate material off screens and also prevents access to social networking sites, known for harbouring security risks and also as enticing time-consumption.

These monitoring tools provide total control over network usage, including what can be downloaded.  This can prevent MP3 files, movies or programmes from crossing your computer system.  This is important from a legal perspective; if an employee downloads copyrighted material, it’s the business that’s liable.  But these ?les often also can contain malicious software code that can impair, damage or break into your system as well.

Coupled with the hardware and software, a clearly articulated usage policy can help spell out the permissions and expectations for employees on the system.  These policies are becoming increasingly common and offer a good common-sense backup against potential misuse.

Security

Think of protecting your network like guarding a castle.  You can build very high walls, but if no one is patrolling regularly or keeping the walls in good repair, it’s easy for the bad guys to get in.  It’s the same with a network.  You can deploy a great ?rewall to protect your system and keep out intruders, but if you’re not keeping the software patches updated, it’s not protecting your network properly.  Security requires continual vigilance, either by automated systems or by regular scanning.  It’s not a checklist to be completed once per year, but instead an ongoing commitment to maintaining protection against threats.

Security ought to extend to protect customers as well.  Credit card fraud has been on the rise in recent years, and criminals are increasingly targeting smaller businesses and franchises.  For example, in 2009 fraudsters targeted a fast food chain in Western Australia and ended up stealing more than $2.5 million from customers by obtaining their credit card details.

To help combat card fraud, the payment card industry has created data security standards (PCI DSS) that apply to any businesses that process, store or transmit credit card details. These standards help ensure that a minimum baseline of security is in place at businesses to prevent fraud and ensure that payment cards can be processed securely.  In short, if your business accepts credit cards, it will need to address the PCI DSS.

Redundancy

It’s easy to think of the best case scenario and how your network will operate when everything is working as it should.  However, the best networks are built for worst-case scenarios.  There are multiple layers of functionality so that if one part of the system should go down, another can fill the gap and prevent the whole network from collapsing. This is called redundancy, and it’s one of the features that separate good networks from bulletproof ones.

How would your network function if the internet connection went down?  Some networks can be built with failover features, so that if the main connection fails or gets interrupted, it can reconnect using a cell phone signal.  These systems can be set up so that they only activate when needed, providing peace of mind in a worst-case scenario.

Conclusion

The reality is that installing a proper network is beyond the expertise of most.  It is likely a professional will need to be engaged to do the job properly.  But awareness and consideration are also vital parts of the decision making process.

As your franchise business succeeds and expands, a well-designed network will permit ?exibility and grow with your business.  You’ve likely bought a franchise because it’s a proven business model with a good degree of success.  By acknowledging the importance of your IT system and by considering the factors within this article, which are also proven and successful, your business will be set and safe to thrive.

Simon Gamble is Co-Founder of Mako Networks.  He is an expert in payment card industry data security standards and often speaks at industry events in New Zealand and abroad about security and the payments industry.

Mako Networks is a worldwide network management company that specializes in payment card security for small businesses. The award-winning Mako System provides partners with a true point of difference in the market and a service offering that enhances their clients’ business.

For more information please contact: Simon Gamble Phone: 09 448 1340 Email: This e-mail address is being protected from spambots. You need JavaScript enabled to view it Web: www.makonetworks.com