Tina Tower, founder of early learning franchise Begin Bright, shares her experiences trying to find just the right franchisees to build her business including the prospect who wonders if he has to do any selling!
One of the most common complaints from business owners is that they can’t find the right people for their company. When looking to recruit franchisees, this is even harder. There are some companies that will take anyone who applies and has the cash to invest readily available. This is an excellent short-term view as the franchisor will probably have a great income for that year. However, the following year when 90 per cent of the franchisees are failing, the brand starts to build up a bad reputation, word spreads that if you get into that system you will lose money fast and the franchisor subsequently goes broke.
When looking for that right person, you need to have set criteria. A checklist of attributes that you believe an effective franchisee must possess. Obviously if you are franchising your system, you have had good success with your business. As vain as it sounds, sit down and write all of the personal attributes that you hold that has contributed to making you a success. You now have a list of things to look for.
The search for the perfect franchisee can seem at times quite elusive. But surely if you wait and hold out for the perfect candidate, you will feel comfortable with them, they will feel comfortable with you and you start on a wonderful business relationship. You may start a little slower than others, but history shows that those with a stringent recruitment process prosper. After your first year, franchisees will be profitable and pumping because you chose the right person to represent your brand. You will become well known as a company that provides a great return on investment and a great company to be a part of.
Attending a course by Jason Gehrke from the Franchise Advisory Centre, I was told that people rarely list money as reason for buying a franchise. They do it mainly for reasons such as lifestyle and self-fulfilment. What’s interesting is that the number one reason for leaving a franchise system is lack of money. This shows that money indeed is a very important factor when buying a franchise. As a franchisor, you need to make sure that you are going to recruit people that are willing to put in the hard work and effort required to emulate your systems and procedures that will make them financially successful.
Yesterday I spoke to a prospective franchisee who asked the question “Is it really easy to get customers, like, do I need to do anything for that?” If there were no work required to run a successful business, everyone would be self-employed and be very wealthy. The fact is, to run successful business, no matter how small takes some degree of effort. Every business is different, but as business coaches will tell you, there are always common threads. To find the right person to become a part of a franchise system, it must be someone who is motivated, has goals, is happy by nature, hungry for success, willing to follow a system, great communication skills and willing to serve their customers. Find this person, and you will have the greatest hope of them being successful and in turn you will be successful.
As we stand right now, I have six licensees but no franchisees (searching for the person mentioned in article above). Follow me through the trials and tribulations of starting a successful franchise system.
Written by Tina Tower, Director of Begin Bright, mother of two.