A Secret To Success Teaching Guitar
Robert Kiyosaki (author of Rich Dad Poor Dad) talks a lot about business networks. He goes as far as to say that an understanding of networks is what separates average small businesses from highly successful ones primarily due to the network effect. So I want to explain how this applies to you and your business and what you can do to employ the network effect.
The franchise network example
To explain how effective a network can be in business I will explain how it works in a franchise situation. In a franchise network every franchisee benefits from the growth of the network itself due to Metcalfe’s law. It’s a classic win win for everyone involved in the franchise. Some of the most successful businesses in the world today are franchises. The largest music school network in the world is Yamaha with organisations like School of Rock growing quickly. These franchises operations do well not just because they get more publicity and become trusted brands but they get what’s called leverage. Many of their costs are reduced because they are shared across the network plus they get to share knowledge and skills.
Two of the most talked about networks in the world today are AirBnB and Uber. These companies have harnessed the power of networking on an extraordinary scale. AirBnB is now the largest provider of accommodation in the world and Uber the largest taxi service in the world. Both are worth billions and both were virtually unheard of just a few years ago. This is the power of networking and when done right networked businesses grow very quickly.
How does this apply to G4 GUITAR?
G4 GUITAR is applying a similar networking model. We are leveraging the Internet to connect guitar teachers and students around the world. This means that our brand and reputation is growing at an exponential rate. An independent guitar teacher who focuses on local marketing can only do a certain amount of marketing due to time and budget restraints. G4 franchisees have two distinct networks whereas independent guitar teachers only have one. The two networks are global (G4) and local (their own students). Both are important but 1+1 in this case does not equal two.
Networking even on a local level is very important to your success. Each and every student should be seen not just in terms of how much they spend with you each month but in how much value they get from you and your business. Networking allows you to bring more value to your students. For example imagine if someone was working behind the scenes of your business every week developing teaching resources, teacher training, business systems and doing marketing on your behalf. This is what happens within a network. You literally have a team working for you behind the scenes and it’s how businesses grow quickly.
The G4 network increases the value for everyone
The G4 global network increases the value and reputation for each franchisee and this will only continue to grow. What’s even better is they don’t have to do anything. Good networks tend to be self organising. G4 is not just about a bunch of individuals sharing ideas. It’s the network effect of bouncing ideas and having insights that would not have come about independently. This is not just our interactions but it’s also the individual investments each franchisee makes. So as you can see networking is extremely powerful and although we are still very much in the early phases of our growth we are growing exponentially.