Tag Archives: franchise marketing

3 Ways to Build Your Business to Franchise It

If there is anything that this recession has taught me as a franchise consultant – its that if people were afraid to grow before, they are damn near petrified to do it during a recession. Its such a pity – although you can understand when part (or two thirds) of the recession is based on the bank’s poor management or utilisation of financial tools. The small entrepreneur doesn’t have the support or resource of funding from a “trustworthy” institution to help spur and encourage his growth.

So, after reading a blog article about the ways to build your business on a budget, I thought that after the year I have had on the consulting front – it wouldn’t hurt to put together my Top 3 Tips on how to build you business towards franchising…so that you can do it in the next 2 years and not wait for the banks to sort themselves out.

TIP 1: PROVE AND DOCUMENT THE MODEL

Everything you are doing now is fantastic, but want I’d like you to think about is actually taking it a step further. Take an extra 30mins to an hour a day to reflect on the system or process that you enacted or initiated in that day – map it out and put it to one side.

At the end of the month – pull out the maps you have done through the month and stick them on your wall so you can stand back and look at them. This is a nifty way of trying to “third” position your business and pretend you are looking purely at the flow of actions. Do they make sense? When did you last update them? What is the most effective way to do something? What obstacles have you overcome?

These elements are the bits that will heighten your value to a prospective franchisee.

TIP 2:  PRICING FOR PROFIT

We all know that when we first start out in business, we don’t actually know how to price our services and proucts. Make a concerted effort to really make sure that your pricing:

  • Includes a true reflection of the time and effort you put in to market and deliver the service/product
  • Covers all costs incurred to put that service or product together (don’t forget delivery and collation where applicable)
  • Includes a good margin for profit (anywhere between 15% and 30%) – don’t forget that this is why you are in business

If you haven’t done a good competitor litmus test on pricing – make sure you take the opportunity to …and compare like for like. Pricing is big hurdle for newbies to business – but having this sorted for a franchisee and having proof that the product/service sells (well) at those prices – that’s a big PLUS.

TIP 3: PUT IT IN A PRETTY DRESS

We all know that it takes a lot of hard work to make a business successful and there are no “real” easy fixes, however…we also know that if we love what we do …the degree of “hard” diminishes. If you are thinking of growing your business and want to consider franchising…make sure you make the proposition attractive enough to get the deserving interest.

I’m not saying lie about what the business entails – I mean make sure that you build in the elements that would make the business look exciting and enticing to join (look at elements of branding, support, tools, alternative avenues for revenue, etc). A pretty dress attracts the interest, but its the person (or business) wearing it that will retain the attention – if that makes sense at all!

So – take those three tips and build your business towards the opportunity of growth (while we wait for the dearly mis-directed banks to get their act together and see that businesses need them to help them grow and pick the economy up!)

If you have any comments. questions or feedback you would like to give about your experiences of trying to grow in this environment – please share them with me below!

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Franchising Going Digital?

I knew it would come, in fact, I was waiting for one of my news feeds to have brought me a story about it a long time ago. An American serial entrepreneur, Jim Piccolo, has not only jumped into the world of franchising (for what seems the first time), but he has also leaped into the ‘new’ fandango world of digital marketing. Digital marketing is a relatively new field which has grown off the back of the rise of social media and all the channels that it opens up for business owners in marketing their businesses online.

Piccolo reportedly expects to invest $45million in starting the BizziBiz Franchise business, with the franchisee paying $18,000 for  a franchise with two employees and $25,000 for a franchise with unlimited employees. The franchisee will in essence be selling localised digital marketing – i.e. encompassing social media, search marketing, free and paid media, and blogging.

As ever, I am more than pleased to hear of new and innovative franchise models, but I do still hope that certain rock solution keystones are in place:

  • The Franchisor can recoop what he has invested in building the model
  • The franchise model is sustainable long term
  • The Franchisee can recoop his investment within a relatively GOOD period of time
  • The franchisee’s profitability is secured (i.e. the model isn’t based on a loose wing and a prayer)…obviously matched with a hardworking, amibitious franchisee!
  • The Franchisor makes money in the long term success of the franchisee (and not in the upfront fees and/or a wish for a quick exit at a high return)

So, I wish Piccolo the  best – its great to see a digital marketing franchise take to the stage – I will be very interested to watch how it progresses and grows over the next year.

Recruit SMART, Grow SMARTER

One of the (many) things I do harp on about to new prospective franchisors is: be specific and very clear about what a good franchisee looks like and then go out and with the precision aim of an assassin….find them, bring them on board and LOOK after them.

Franchisee recruitment is not dissimilar to normal business staff recruitment. You need to be incredibly mindful of the ‘job’ at hand, what the skills are that are needed to carry out that ‘role’ successfully and most of all…look for what the career growth path would be for that individual. The extra element that you want to perhaps plan for in recruiting for franchisees is cultivating a ‘perfect’ franchisee who will end up with the operational, hands-on experience that might well be useful to you in 5 to 10 years time.

What do I mean by this? Well, if you are smart (and I hope that you are) – you are setting up a franchise with two views:  1) To Grow and 2) To Exit. By recruiting some golden nugget type franchisees who have the special ‘putty’ to become fantastic, you will be sowing the opportunity for having a managing director, operational manager or even a team of super-staff who will add value and a glow to the business…making it even more attractive to a buyer. Having a team that doesn’t purely hinge on you or your operational knowledge makes a business very sellable.

Bear in mind, these individuals would not remain as franchisees should they start to work for the franchisor – so you will need to think about what you can offer them that will make the career move from business ownership more enticing. Some suggestions on what to offer them:

(a) Taylored package that is heavily incentivised by their results and input (commission %; target incentives like holidays; etc)

(b) Good company benefits (which are rare to find, especially in the UK, and will therefore be very attractive!)

(c) Small shareholding in the business (relative to their role of course)

(d) Input into how the business grows going forward (i.e. make them an integral part of the executive team)

I’m sure there are many more elements you could incorporate into  a package to tempt an existing franchisee into your franchisor fold, all I’m saying is – bear this in mind right from the beginning. Imagine having a team of strong franchisees who (at any point) you will love to be your right hand man/woman? Now compare this picture to merely having the recruitment criteria mindset that anyone with a pulse will be accepted to become a franchisee! (My fury over this point is enough to write a whole post just on this!)

So, what’s my message? When you are planning who you are going to have as part of your network: think long and hard about where you want to be in 5 to 10 years time and how much value you can add by recruiting the right people. By being SMART in your recruitment tactics, you will be growing your business in a much more planned and efficient way (i.e.SMARTER growth!)

Social Media: Branding and Franchise Recruiting Tool?

A good social media campaign will act as a very powerful brand building and recruitment tool for start-up franchisors (or those thinking of franchising their businesses in the next year or so).

One of the first things I look at when a prospective franchisor approaches me is a good brand image (or at least the beginnings of one). The next thing I look at or question is its impact on the customer target market (is it well understood; is it well respected; is it something they will tell their friends about; etc).

For any small business trying to build a brand, it is very clear from the outset that very few can afford to spend a ton of money on marketing and advertising to get their brand in the forefront of the consumer’s mind. Now, with the advent of social media and its prevalence in the new generation of consumer – growing a brand couldn’t be easier. Of course it still takes careful planning, design and message architecture, so please don’t minimise the importance of that!

Now – where do you start? What kinds of social media should you be using? Well – it does depend a bit on what your target audience is:

1) As a franchisor
(i.e. which prospective franchisees do you want to attract), and

2) As a business
(i.e. the target customer of the product or service).

The things I would suggest you look into are:

BLOGGING: This is an often misunderstood platform and a lot of people fear it because they think that they have to be writers to do it. Not so. I mean – yes its important to not make huge grammatical and spelling errors because this will lead to an unprofessional reflection on you and your business by default. The thing about blogging is h however two-fold: the number of blogger readers in the world is staggering (we are talking in the 100’s of millions) and Google loves the constantly changing and rich content.  For some blogging tips have a read of this article – Top Ten Easy Steps to Starting a Business Blog – by Denise Wiseman.

Denise rightly says : ” Blogging should be one of the cores of your business. It should be right in the middle of your social media mix—the bulls-eye, the main target.”

FACEBOOK BUSINESS PAGE: This is VERY important to set up and I mean VERY important. If you don’t already have a presence on Facebook, then I strongly suggest you get started today. Again – please pay attention to your brand, your message and what you want to get out of the exercise. If you want to know more about what Facebook is about have a listen to my podcast here and it you need tips on how to get started on Facebook, think about buying some very easy to understand guides by Kirsty Wilson of Interim Business Solutions…click here.

Through this Facebook Business (Fan) Page you will be able to engage with an audience, find out what people think about your brand, and run recruitment campaigns for new franchisees! Never minimise the importance of creating (and sustaining) a buzz about your brand or business culture.

I think to start, these two major platforms are good to go with, I don’t want to overwhelm you with too much in one go! As a business you will also need to look into Twitter and some of the social news bookmark mediums – but we’ll save that for another time!

Do let me know how you get on!


A ‘FAN’ yet of my Expert Franchise Guide page on Facebook?
Go to: www.facebook.com/expertfranchiseguide

Marketing the Franchise Proposition

This is one of the main elements that need to be planned out along with the main strategic bits when embarking on franchising your business. The actual franchisee model will dictate a little of how the proposition will be marketed and to whom. What do I mean by this? Well…your marketing plan will consist of two parts:

(a) Brand positioning

This is where you are clear about where your position is in relation to the competition, and what the target customer looks like for the physical service or product that is provided as part of the model (i.e. these are the franchisee’s prospective customers). Why do you have to focus on this? Because this is how the brand will be identified as a whole in the market place and is how you will initially attract any interested prospective franchisees.

As a start-up franchisor: your marketing plan should include the following:

  • a pre-phase 1 step of brand pushing (i.e. before you even start to try and recruit franchisees, take a few months to do some real brand awareness about your service/product, the reputation of the brand..and educate your marketplace about your business. I would advise a minimum of 6 months in staggered proportions in various media.)
  • a preliminary step in marketing to the people that already know about your business (so this may be your current business contacts, client base etc)..and let them know that you have created a fantastic business opportunity and are looking for interested parties

(b) Targetted franchisee recruitment

This is integrated into the above  (even for an existing franchisor) although there needs to be more of a focus on what your message is in your recruitment campaign regarding the business opportunity. My biggest advice on this score is to have a staged plan of recruitment advertising and marketing, leading up to an opportunity for any interested enquirers to come and see you either at a Discovery Day or personally. Interviewing takes up a lot of time, and shouldn’t be rushed, so my advice here would be:

  • Carefully profile your perfect franchisee (in terms of  their identifiable skill set, character and ‘drivers’), so you can easily identify them when they are talking to you
  • Create an enquiry process that makes it easy for prospects to get in touch, but also gives you the opportunity to reduce the time wasters and the mystery shoppers
  • Have a fabulous, eye-catching and attention-grabbing prospectus

By perhaps using a few dates to hold Discovery Days, it will give your sales team some clear time goals to get the prospects in by a certain date and you can plan your recruitment enquiry influx better. Discovery Days are opportunities for people to come and hear a presentation from the franchisor about the franchise proposition and what it can offer them. Make the day interesting and perhaps build in a viable FREEBIE…that will be useful for them when they walk away, like a tool that can be used again, even if they don’t go with your opportunity. You will be remembered forever.

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Marketing is such a touch and go scenario, because of its subjective nature, but if you are responsive and listen really well to the feedback you receive (or don’t receive), you are already a step ahead. Here are some of my top tips which may help you cope:

1. Don’t be too proud to outsource for help

It is easy enough to outsource the preliminary enquiry processes – but make sure they are professional providers and a great ‘face’ for your business. First contact is very important!

2. Only stick with the advertising routes that work

It is expensive to advertise, so make sure you weigh up the payoffs with the cost of the route you choose. Do not continue to advertise in top broadsheets (national papers) when you don’t actually, physically get any response from them! (When you are big enough and able to…then advertising in these papers are more for brand awareness than recruitment.)

3. Think outside the box to find your prospects

Consider the options of looking at Vetfran (ex-military), disability organisations (as long as the disability isn’t a hinderance to operating the franchise), minority group associations (women, ethnic groups etc) and other kinds of organisations that have a ‘listening’ of individuals who are actively looking for alternatives to employment and want to start their own businesses.

4. Plan how you are going to manage filtering people through your application process

Always plan for best case scenario – so plan that 10 franchisees are going to signup in one month and ensure that your resource framework can handle this. If there is one time in a franchisee’s life you don’t want to mess up – its in inducting and welcoming them into your network. Make sure you have the support and training in place, so that all you need to do is ‘flip a switch’ and your systems swing into play. Smooth running is what you MUST aim for. People who don’t ‘make the cut’ need to be handled expertly and professionally…so that they are left with a great impression of how you deal with people as a business. (You never know – they may refer someone to you!)

5. Enjoy the growth and sharing your business with others

Although recruitment can be hard work, enjoy this time of sharing your business model with others, but also make sure you protect yourself in terms of how much you share at each point in your marketing and recruitment. Your adverts and marketing message in terms of the franchise proposition aimed at prospective franchisees must be ethical and wholesome, but attractive and competitive at the same time. Your enthusiasm, passion, pilot evidence and prospectus will be your main selling tools in the beginning – so use them wisely and don’t over promise (a trap you may fall into).