The Importance of Franchise Sales Knowledge for Franchisors
Harry Truman said: “The Buck Stops Here”. In franchising the: “Buck Starts Here” that’s having a thorough and complete understanding of the sales process. Harry was right and franchisors need to take heed to his words. If a franchisor wants to expand through franchising, he has to accept full responsibility for the success of the sales effort.
Franchise Sales are very repeatable sales, and have very distinctive stages. While there are lots of skills, and tasks needed to complete a deal, it’s important to understand the sales stages.
It is important to know the stages of the sales:
Sharing the process with your candidate is vital and shows the competency of the franchisor
Setting the expectation of the sales/buying process helps the candidate understand his requirement and the commitment needed.
Be aware of every stage with every candidate.
Understand all steps need to be completed.
The only two stages that need to take place in the exact order of the franchise signing will be Qualification and Grand Opening.
Stages do not always have to be completed in the same order- but they must be completed
If a stage is missed, the sales team needs to get it completed
Understand that to move a deal forward you have to know the next stage
All the great franchises have a GREAT franchisor that can sell. Whether a franchisor is driving an internal sales team, using outsourced sales or a broker network, it is important that the franchisor needs to direct the effort and be accountable for results.
Take the time to learn about franchises sales. All great companies are led by Sales Leaders, as a matter of fact, 95% of the Fortune 500 are led by a strong Sales Leader. If you are not a great salesman, you can direct the sales. Understanding sales can help you acquire talent and skills.
If you want “Bucks” then you need to sell!
10 Best Ways to Market your Franchise
Franchising is a marketing and sales business, it takes a focused effort to build your franchise sales pipeline and establish your franchise network. Today, we will give you the best tips based on our experience on how to market your franchise.
Here are the best 10 tips that should help you get started when you first market your franchise business:
Build Your Online Presence Online
Work Social Media
Redo Your Marketing Materials
Be Content Savvy
Understand the Conversion
Redo your Franchise Logo
Understand How Critical a Franchisee Is
Leverage Your Connections
Go to Franchise Events
Work With Franchise Brokers
1. Build Your Online Presence Online
Today’s market for everything is transitioning online. Amazon and Netflix aren’t the only ones who are transitioning entirely to online business, the entire world has gone online. Find ways to add to your presence and make the investment. Add your franchise and your brand to as many listing sites as you can find, do it professionally and spend the time to get your brand in front of people who are already looking for a business. Read further below for a local franchise marketing guide.
2. Work on your Social Media
Everyone’s talking so much about social media that I’m sick of it. That is….sick that I didn’t invest in Facebook when everyone else did. Social media is here to stay and it is part of our lives, business, and everything. You need someone on your team who is driving traffic, formulating your message and pushing your franchise brand through social media. It is easy to mess this up with corny, ill-prepared social media messages, it needs to be done right or you risk looking like an MLM.
3. Redo Your Marketing Materials
Trust me, people can tell you built your brochure on a word document with stock images. Just because you PDF’d the presentation doesn’t mean that it looks professional. Put the time and money into a presentation that is well thought out, professionally done and will actually warrant someone calling you back or responding to your email follow-up. Everyone is visual today, you need a good graphic designer who can present the franchise the right way.
4. Be Content Savvy
The web is becoming more competitive for everything, particularly in the franchise space. You need to be a thought leader in your market. If you sell shoes, find something to write about shoes every week, make it engaging, and interesting and spend the time coming up with thought-provoking ideas that will build your followership. Haven’t you heard the saying, “write about it and they will come”?
5. Understand the Conversion
Marketing is a multi-step process, don’t be good at getting the person’s attention and bad and getting them to contact you. You are wasting your time on the prospecting part of marketing if people come to your site and don’t give you their contact information. Build tools that are compelling, offer something to the visitor and give them a reason to want to get to know you.
6. Redo your Franchise Logo
Someone said this to me the other day and it was like a brick hitting me in the chest. My pride was hurt, but after looking at it, the comment hit home. I bet the same is true for you, have a professional come up with something that means something and says something about your brand, not a 99Designs logo contest winner you didn’t put thought into.
7. Understand How Critical a Franchisee Is
Franchisees deserve to criticize the brand they are about to invest in, that’s their right when they are the ones making the investment. Read through your website, find the spelling errors, and know your presentation thoroughly enough to not lose a deal because you spelt “friend” wrong on your brochure.
8. Leverage Your Connections
The largest single category of franchise sales takes place through referrals (38%). This may seem obvious for the large franchise brand that is driving referrals in by the hundreds because they have locations on every street corner, but you would be amazed how many times your vendors, friends, relatives, associates and others you know will be the early on franchise investors in new franchise systems as well.
Talk to people and present to them, it’s worth the time even if you feel embarrassed trying to sell your buddy a franchise.
9. Go to Franchise Events to Market Your Franchise
Franchise tradeshows and exhibitions can be expensive to take a booth out and exhibit your brand, but you can always go and attend these events. The cost typically is very reasonable, just time and effort. The people at these shows, events and networking opportunities can probably help you either find a franchisee or they might actually be the franchisee.
10. Work With Franchise Brokers
Particularly when you are early on in your franchise system’s growth, you need all the help you can get from those who are willing to work on a commission basis with you. Franchise Brokers spend their own money to generate leads for you. Yes, you should pay 50% plus commissions if you are a newer franchise, it makes all the sense in the world, to win with royalties and franchise validation.
Most of us in business have considered the concept of franchise expansion at least one time in our business’ build up. The idea of having other people invest in your business and then operate locations as independently owned and operated businesses under a common brand is a powerful concept, why wouldn’t you consider it? Then of course reality hits and the question comes to the forefront, is my business ready to be franchised? Do I have the right elements in place to franchise my business now? Much of what is discussed during franchise consultations revolves around this common question business owners have who are considering the idea of franchise development. So what indicators can you look to in order to know whether it is the right time to franchise the business?
First and foremost, let the market dictate your timing on franchising. If customers are asking about opening locations, people are filling out your web contact form asking about franchises and you are getting calls from strangers asking how you started and whether you could help them start the business, the timing could be right. Nothing is a better indicator as to whether you are ready to franchise then when the potential franchisees are already asking for the business and demanding the franchise. After all, if you don’t franchise the business, these interested parties will either go elsewhere or just become your competition.
Make sure the business is financially viable and showing profitability that would be enticing to a potential franchise investor. Any franchisees that you would actually want to buy your franchise will look for numbers that make sense. In today’s “Item 19 Driven” franchise market, the financials of your business are critical in being able to effectively sell your first franchises. Good franchise models don’t need to make people millionaires with a single unit, they just need to show consistent income and a strong return on investment for what it takes to get the business open.
Confirm that there is a consumer market demand for your product/service. You want to see that people are asking for your product line or want your services in more places than where you are today. If the demand is high, the franchisees will perform well when they open for business in their new market locations, if not, it’s tough to be a successful franchisor. You typically can find market data on your industry growth online or purchase through industry research databases.
Is your business replicate-able yet? Some indicators of this are if you are able to hire staff and keep them, put people in leadership positions successfully, open additional company owned businesses and teach what you do every day. Entrepreneurs that make good franchisors are typically further along in their development as business people and get the idea of delegation, management and putting people in positions to succeed.
For more information as to whether your business is ready to franchise, contact us: