Alright. So I know that you thought of, well headquarters needs information. So they need either technology that can be phones, alright. That can be iPads, right? That can be any way to get information in. They need their local representatives to have a check list. And to basically somehow file that checklist after each part of the day so that headquarters knows what's going on. And those hundreds of tours. Where are we behind? Where does there seem to be a blip? Where do we need to put some emphasis? If there's a problem, do you need help fixing it? Alright? They need to have basically taught their people on the ground if this happens, do this. If that happens, do this. How to react. They go through what we call scenario planning. What would happen? What would happen if someone got very sick? What would you do? Each city. What doctor? What hospital? Where to go? What if the car is in an accident? What would you do? Thinking through all these eventualities that occur. What is our plan? What is our process? How do we deal with the stuff? Because you've already learned Running a business is like living a life. Stuff happens. Okay? Never goes according to plan. There always has to be a backup plan. And remember one of the entrepreneurs, we talked about that said, no single point of failure. Same entrepreneur also said trust but verify. Trust your people but check. That's why you have processes. So let's keep going. We talked a little bit about India and before moving on. Okay? To how they expanded to Africa, and then to South America. I want to talk about employees. [UNKNOWN] and his partner had a very interesting concept about employees, didn't they? Okay? Great term. I never have seen it before. I've never seen it before. They wanted to hire freshers. What in the world is a fresher, alright? Now, I assume when you read the case, you said, wow, what's a fresher? And what is a fresher? Talk to me. What is a fresher? Yeah, I'm waiting. You're right. Some of you are right. You remembered because it's a key part of how he built this business. A fresher is someone who has not worked in the travel industry specially in India. He want to hire very bright people, who lived mainly outside the country where his customers were, in united states. Or in the United Kingdom or Germany. But, we're either from India, they either were educated in the United States, or they were on visited, they went to work, they knew India, and they knew the country of the customer, but they didn't know the travel industry. Then you're saying to yourself, wow, why would you want to hire someone with no experience in the industry? Think about that. What do people with experience come with? They've learned to do it a certain way, somewhere else. But we didn't want that, because he was trying to deliver a different experience. And he was concerned, that if people had experience doing it one way, It would be hard for them to change and learn the enchanting travels way. He made the decision it was easier to teach and train without having those biases or those preconcived notions about the business, so he hired fresher. And it's interesting, he also followed another concept, hire people like your customers. And what do I mean by that? Hire people who understand your customer. I'll give you the example. When my wife dealt and planned our trip to India, which, by the way was wonderful, great country, loved it. Our tour. Planner, alright, was based in India, but she had lived several years, in fact, in Chevy Chase, Maryland, the United States, a little suburb outside of Washington, DC. Where we had lived once. So she knew and she talked to my wife. About oh well you know we both know the area. What type hotel would you stay at in Washington or Chevy Chase if you visited? What type of restaurants did you like? Did you enjoy going to this museum? Do you enjoy going to this government building? She understood where we were coming from. She understood what we were used to. She sort of. She understood, 'cuz she had lived it. She had been there. She was able to understand the customer, and translate the customer's desire, tour desires into, what would work in India? She knew nothing about the travel industry, but she knew who her customers were. And many of the people that they hired came from the countries or had work experience in the countries where the customers came from. Think about it, his customer segment was primarily Canada, the United States, the United Kingdom and Germany. So he had people who knew and loved India, who had either lived, worked or traveled extensively in the countries of their customers. And so, that was interesting, wasn't it? Freshers. Better to train fresh, rather to retrain and get rid of bad habits, when you're going for world class service. Now, he expanded next to Africa, and they did it a little differently there. They did an experiment. because Africa's one, very large and each country in Africa very, very different. So you read the case. What they do? They tried something. They did an experiment. Yeah. You're right. They did a joint venture with a partner, their first partnership, and that partner was responsible for delivery in the countries in Africa, building out the infrastructure, using the Enchanting Travel processes, hiring and training the people, et cetera. Alright? So they had a partnership. Very different. That means that Preak, alright? Preak and his partner owned the Africa business with a local partner. Okay? They shared the profit and they shared the downside. Okay? They shared the financial risk. It took them longer than expected, because of the complexity in Africa to basically get it right. Then, once they got it right, they said, hm. What do we really need in our business model? Well, we have a lot of customers from the United States and Canada. They'd been to India. What's the likelihood they're going to come back to India in 2 or 3 years? Not high, if there's other places they'd like to go to. Where does the research say that U.S. citizens or Canada, Canadian citizens would like to go, that fits our business model? Remember what the business model is, exotic locations that are complex, hard to get around, travel issues that our job at Enchanting Travels is to make that easy and customize a package. Wrap. The customer up in good care. And they said, South America, Argentina, ultimately Chili and Peru. So they decided to start in Argentina. Wasn't it fascinating how they did it? I bet you were surprised. I was. When I interviewed [UNKNOWN] for the case, I was. [UNKNOWN] actually moved to Argentina and lived there for almost six months, visited the cities, the hotels, the resturants and basically created If you will the list of hotels and restaurants, cities, sights, tourist attractions, that would be in the package to be customized for the customer. Think about it. Left his family and moved to Argentina for six months. You're saying to yourself wow that's hard. Yes it is. Wow it took 6 months to do the research. That's a long time. Yes it is. And that's one of the challenges of their business model that we're going to talk about after we, in a, in a minute How do you basically scale the business model quickly? Do you have to do that in every country? Okay, now the purpose of this expansion. Go back to what I said in the beginning of the class. All this stuff ties together. There's 2 ways to scale a business. And we'll put it in Enchanting Travels language. Sell more trips to India to more people from the United States, Canada, United Kingdom, and Germany. And customers like Ed and Kate, who came to India. Sell them trips to Argentina, to Chile, to Tibet, to China, to Africa. Either, sell what I'm already selling to more customers or sell more stuff to your existing customers. Okay? Now. In order to do that he had to put in place structure. We talked about that previously. You read the case and you saw [UNKNOWN] and his partner Alex split responsibilities. They had seven people reporting to them. Remember the number seven, we went through that in the structure. Very important. And, if you will, they had to figure out the technology side of scale. And, I want to read you another side of the case for a moment. Because, if you think about it, go back to Julie Julie says, as I grew my business, the stuff on my worry plate changed. As enchanting travels grew, they had the problems she had, remember? She talked about upgrading. How do I upgrade people, processes and controls as I grow? Okay. And the critical thing, okay, alright. The critical thing that they focused on, and I'm looking for the part that I want to read to you, okay. We had to set up processes geared to offer High quality tailor made, okay. And we basically had to, if you will, continually upgrade the processes as we expanded. So that because people working for us were in different countries and we weren't there every day we had to know every day about the quality. That is mission critical for them. Okay, now, I want to go back for a moment. And talk about. No, let's stop here. I want to stop and give you time to think. because I'm throwing a lot at you. Okay? You can even go back and replay the tape. But I want to stop here and I want you to write down three things. That you want to think deeply about vis a vis either a business, your business, or growing a business that we've talked about in this case. This case is such a rich rich reservoir of learning, Okay. So let's take 3 minutes. Don't go away, come back. Because we're going to basically get to the question the case asked. Should Enchanting Travels franchise its concept? Why? and Why not? and i hope you follow about that. Back to you in 3 minutes.
