Fear And Consequences Of Failure: A True Story Retold

· 6 Comments ·

I’ve been asked time and again to post the following article that I’ve written about my own personal experience as a multi-unit franchisee where I succeeded at first, only to crash and burn later on. This article has been posted on several of my blogs, and picked up by numerous other blogs and online magazines. I have received numerous comments and inquiries about the article, individuals sharing their personal experiences and requests for assistance. Although I cringe at the thought of any business failing, I admire and respect the fact that franchisees and franchisors alike know when to put their pride aside and ask for assistance, and I look forward to providing my experience and expertise to help determine a practical resolve to their problems.

I’m proud to say this article has been instrumental in helping a number of businesses keep their doors open and work towards recovery. On the other hand, I’m also sad to say several businesses were not as fortunate, but at least the owners were able to exit with dignity and in few cases, with less liability than they previously thought possible. And, in one case, the owner actually exited in the black when we were able to facilitate the sale of her business when she previously thought about just walking away.

Fear and Consequences of Failure

failure-photo

I can personally relate to the trials and tribulations of owning franchise businesses as I have “been there and done that” and have experiences on both ends of the spectrum from achieving overwhelming success to dealing with bitter failure. I have definitely come to understand the fine line between success and failure in trying to nail down the American Dream.

I know it is sometimes counterproductive to even mention failure which is why the subject is always avoided and never discussed. Yet, it’s out there and it’s real. Once franchisees face the possibility of failure and its very real consequences they can be motivated to understand that failure is not an option and commit 100% to a plan that addresses immediate problems and provides solutions accordingly. Even if it’s necessary for the plan to be quite drastic or aggressive due to prevailing circumstances, franchisees that unequivocally realize that failure is not an option are prepared for immediate action.

Let me emphasize one point. Franchisees should not view poor sales and disappointing profits as either potential or immediate failure and stick their heads in the sand. I made that mistake in the past and suffered the consequences. Instead, franchisees should build upon the courage it took to become a franchise business owner and recommit to success as they did when they first took the entrepreneurial plunge.

They need to remember their wishes, hopes and dreams that prompted the decision to own their own business? They need to remember the admiration of family and friends when they heard about the new venture? They need to remember the excitement when they actually signed the franchise agreement?

Unfortunately, there’s a very distinct possibility the root of the problem is embedded in the franchisee’s actions, non-conformity to the franchise system and unwillingness to face reality. However, as there was some shining light evident during the franchise award process, it may not be a totally lost cause if the franchisee is made to completely understand the implications and consequences of failure.

As franchisors are faced with the potential of closed units [during this recession] that may be the result of things out of their control, it’s imperative they don’t lose even a single unit just because a franchisee just flat out needs a snap back to reality. It’s worth the effort.

Let me clarify something. I failed as a franchisee. Not because of anything the franchisor did or didn’t do but because I put and kept my head in the sand and did not face reality. I could go on and make excuses about things that happened around me but at the end of the day I could have turned things around if I got my own head out of the sand, made some difficult decisions and took full, immediate responsibility.

Unfortunately I was scared of failing. I was afraid of what people would think. I was ashamed at what other franchisees, ones I put in business, would think of me. I couldn’t even think of facing my family. All lame excuses for not taking responsibility. Maybe a hard swift kick you-know-where would have helped.

Did I mention that I previously ran the franchise company where I failed as a franchisee? Did I mention I was elected by fellow franchisees, President of the National Advisory Council? Did I mention that I owned and operated five franchise units?

If I had clearly understood the implications and consequences that were looming on the horizon and if I was able to get my big ego out of the way and address things head on, maybe I could have survived. Maybe I could have at least implemented an exit strategy that would have, in some small way, paid back the loyalty and support of my employees, family and friends.

In the end, I may not have survived because it may very well have been too late when and if I finally took action and responsibility. But maybe I could have at least exited with some dignity. Also, I could have saved many innocent people a great deal of hardship, embarrassment, wasted effort and ill-spent resources if I did face reality. This includes my family, my employees and yes, my franchisor; all who believed in me.

Yes, it was a tremendous learning experience but not one I would bestow or wish on anyone. Now, all I can do is to offer my experience to anyone in the franchise industry that needs assistance. As we [prepare to enter 2012] in the realms of economic uncertainty, I’m certain already difficult situations have been compounded but I’m confident a snap back to reality could only help. If just one franchise business is saved from the consequences of failure, then we’ve made progress. Progress we’ll continue to build upon.

Franchise Sales: A Tale of Two Theories

· 2 Comments ·

franchise_salesA couple of years ago, there was a discussion in the Franchise Executives group on LinkedIn with the posted question, “Who is using outside franchise sales groups [brokers]?”

Below are some interesting responses from group members that are not franchise consultants or brokers:

An experienced franchise executive stated: “Why wouldn’t you develop your own small sales group? Using a service that sells multiple franchises diminishes your quality control to some degree. I have been a part of 2 franchisors for 25 years and neither has ever used any of these groups and we have had lots of success. What are you trying to achieve by using these”groups”? Lower cost of acquisition, less hassle, expecting more leads, more foot soliders?”

The president of a national franchise concept wrote: “We do not work with an outside group. In talking with our prospects it seems important to them to know that our development staff are part of the company and experts on the concept they are selling. We even have a dedicated sales team for each concept. My advice is to talk with some of your new franchisees to see if it would have made a difference in their decision making process.”

A franchise attorney posted his response: “…if you use an outside broker in the true “sales” role, they can lose credibility if they appear detached and not knowledgeable about what they’re selling (often happens when your brand is only one of many in the broker’s portfolio). That should factor into your due diligence process when you’re looking at outside brokers. But when the relationship stays between the franchisee and the sales person, the prospect’s going to be let down when that sale is done and the sales person is on to the next prospect. Besides, I always wanted my sales person’s relationship with the prospect to taper off once the sale was done – the franchisee’s relationship should be with someone on the development then someone on the operations team. Two points – first, I always caution my clients to use brokers more as “matchmakers” rather than “salesmen.” What should really “sell” the franchise is not the sales person (internal or external) or the broker, but the confidence that the prospect has in the brand and in the ability of the management team; and, second, if my clients use outside sales people, I always make sure the outside sales team attend the same training I give my client’s internal team and do so at the same time. That way the outside sales folks get entrenched into the company’s culture, they know what to expect from management, they see how to use management to “sell” the franchise, and they know what management expects of them.”

A Vice President of a national franchise concept went on to write: “For a variety of reasons I’m personally a big believer in building sales teams from within the company. But then again I’ve had the luxury of working for established franchisors and had resources to either develop salespeople from within the company, or rely on referrals to hire from outside and train them to become franchise salespeople. Both methods take time – generally about 12 months for a franchise salesperson to really “hit their stride”. Many franchisors don’t want to wait that long, or can’t wait that long, or don’t know how to train franchise salespeople. In those situations it may make sense to bring on outside franchise sales groups.”

So, that’s what franchise professionals were saying a couple of years ago… but what about today? Please, let us know your thoughts!

Social Media: Looking Back to 2010 – Has Anything “Really” Changed?

·

Four years ago, I submitted an article for the International Franchise Association publication, Franchising World. The article was about capitalizing on what was then a relatively new but increasingly mainstream technology, social media. When looking back at the article I quickly realized that not much has really changed from my philosophy in effectively utilizing social media, and especially in a franchise environment. Sure, some of the platforms have changed and some social media have gone by the wayside while new ones have popped on the scene, but from a strategic standpoint, my philosophy remains in-tact as does the [potential] value social media brings to franchise organizations. But, I’ll let you decide for yourself as you read on and I look forward to your feedback…

Simplifying Social Media for Optimum Results
As published in Franchising World – August 2010

The key to effective technology usage is developing an integrated plan, choosing the most complementary tools and implementing well-planned strategies.

Integrated Franchise MarketingSocial media technology is evolving at a rapid pace. New tools enabling increased communication with various constituencies are being introduced on a frequent basis. While the franchising community is not yet embracing social media at the levels of the public-at-large, its members are beginning to understand the multi-tiered value that social media participation can provide to their firms. This value includes:

• Creating or improving brand awareness that drives business to franchise locations,

• Creating interest in franchise opportunities or franchise-candidate lead generation, and

• Establishing or improving communications and information-sharing throughout the franchise organization.

A frequently-cited impediment to the franchising industry’s adoption of social media is the perceived time commitment required to achieve optimum results. There are many implementation methods and technology tools that can be utilized to execute a firm’s social media program in a way that will maximize ROI, minimize time requirements and achieve complete integration into its overall marketing strategy, all of which will serve to achieve optimum results.

Saving Time

A big part of the challenge with building a substantial brand presence on social media is the need to ensure that a brand is reaching its target audiences on the various social platforms where it is participating, and since the number of social media platforms now numbers in the mid-hundreds, it’s obvious why this can be perceived as a daunting process. Participation on any platform necessitates building a profile there and then adding new content on a regular basis to keep the brand’s audience interested and engaged. While firms do exist that will concurrently build a company’s profile on up to several hundred sites (for a fee, of course), these tend to be very generic profiles that will not serve to attract the interest of a target audience and are therefore not recommended.

A better plan is to begin by identifying the top 10 social media platforms where a franchise will find the audience it is seeking. Typically this will include one or more of the top three platforms: Twitter, a micro-blogging platform with wide and diverse appeal; LinkedIn, a networking platform for a business-oriented audience; and Facebook, which began as a way to communicate with friends and family, but has evolved into a leading marketing platform for brands large and small to communicate with a potential audience of over 400 million members.

Many other social-media platforms exist including those that are targeted to specific geographic areas and those that appeal to specific demographic targets. A good place to start reviewing platform options is the blog, “Marketing with New Technology.” After a brand has been established and built a following on the originally selected platforms, then it can consider whether it wants to begin exploring additional social platforms to broaden its base of followers.

The second step will be to build the firm’s profile-corporate pages on each of the selected top 10 platforms and to concurrently authorize the development of any employee or franchisee-managed profiles that will be linked to the franchise account.

The third step is where the franchise will begin to achieve significant time-savings by using social media. This is to incorporate the use of a social-media aggregator into the social media program (see list on Page 14 of the digital August 2010 Franchising World).

A social media aggregator will allow a firm to attach the selected social platforms to one account and then upload content only once, but publish it to all of the selected platforms, thereby avoiding the need and the time to move from platform to platform to make posts.

The best aggregators will allow a firm to be very selective about which platform each piece of content publishes to, enable the attachment of multi-media content such as photos or video, permit the identification of a specific date and time that the item will actually post and finally, allow a franchise to incorporate multiple levels of authorized access so that several people can post content, but only certain ones can actually authorize it to post to the social media platform.

This type of tool allows the workload to be distributed while ensuring compliance with franchisor branding and messaging guidelines. Aggregators are available at costs and functions ranging from free, with very basic services, to more than $25,000 per year for enterprise-level programs which provide the highest levels of functionality and security. Some of the aggregators even incorporate the ability to post blog entries, e-mails and text messaging.

Read the complete article HERE.

The Changing Franchise Relationship

· 2 Comments ·

PAC14_Brochure_cover_small_view“…the summer of 2014 saw two major judgments that underscored the changing times. While these two rulings address different parts of franchise operation, they both serve as actions seeking to level the balance of power between the franchisor and the franchisee.” – Franchise Direct

The quote above was from the beginning of a recent article on FranchiseDirect.com, The Changing Franchisor-Franchisee Relationship. It was for this article that I was asked to be interviewed. I’d like to thank the team at Franchise Direct for the opportunity to share insight and perspective about the upcoming International Franchise Association Public Affairs Conference in Washington DC. As well, I’d like to express my gratitude to IFA Staff for their assistance in preparing responses to interview questions. I believe it’s very important to deliver the correct message on all issues so their assistance and guidance was greatly appreciated. Their professionalism is second to none!

The complete article may be read HERE, but I’ll share my interview below…

Commentary from an Industry Expert

A noted franchise industry expert and speaker, Paul R. Segreto, CFE, was nice enough to answer some questions for Franchise Direct about the legal fight the franchising industry is enduring. Paul is a current member of the IFA Franchise Relations Committee. In addition, Paul is currently the CEO of Franchise Foundry, a franchise development company, as well as the host of Franchise Today on Blog Talk Radio. You can find out more about Paul here.

What will be the main points of discussion at the IFA Public Affairs Conference (September 15-18 in Washington, D.C.)?

The Public Affairs Conference is the best opportunity for IFA members to advocate for their business and communicate to lawmakers the challenges we are facing. In July, the National Labor Relations Board (NLRB) Division of Advice announced that a franchisor could be designated as a joint employer of its franchisees employees. The IFA is fighting this dangerous assertion because it is unlawful and will harm job growth, the economy and locally-owned franchise small businesses in every state. Franchisees have invested their capital in the business and stand to lose equity in their businesses if their franchisors are deemed joint employers. During the Conference, IFA members will take this message to Capitol Hill to fight for franchising and educate those on the success of the franchise business model and the growth that it continues to provide to our economy.

What is the risk to the industry from some of these judgments that have been handed down?

If franchisors are joint employers with their franchisees, these thousands of small business owners would lose control of the operations and equity they worked so hard to build. The jobs of millions of workers would be placed in jeopardy and the value of the businesses that employ them would be deflated.

This recommendation is a drastic and overreaching solution. Ample federal, state and local remedies are available – and are regularly used to enforce current law, including more limited NLRB action, state attorneys, general action and private rights of action – to deal with labor violations of various kinds. Destroying the fundamental tenets of the franchise model would eviscerate the most successful business model in existence.

Why do you believe so many cities and states are reviewing their franchising policies?

The Service Employees International Union (SEIU) is leading organized attacks against franchising and these jobs they create. The labor unions multi-pronged attack at the local, state and national levels, including having the federal government declare entire franchise systems as a single unit rather than the collection of separate, small business owners they actually are. The SEIU wants to undermine the franchise business model so they can more easily unionize entire franchise systems, as it is much more difficult for unions to organize thousands of independent small businesses under the current regulatory system.

What specific actions are the IFA taking, or considering, to protect the rights of both franchisors and franchisees?

With our continued fight to defend the franchise business model, the IFA is ensuring that franchise small business owners are well informed of policies that could alter the way they do business so they are armed with the tools necessary to educate lawmakers. The IFA’s Franchise Action Network is a new strategic initiative that mobilizes franchisors, franchisees and suppliers at the grassroots level. A coalition of the franchise owners, all promoting a single mission, is the best way to protect our industry from an increasingly hostile legislative and regulatory environment at the federal, state and municipal levels.

How does Aziz Hashim’s ascension to chairman underscore the changing relationship climate between franchisors and franchisees?

Aziz Hashim is going to elevate the role of franchisees in everything IFA does. The nature of the game has changed. There has been no more important time for franchisees to be engaged with the IFA on public policy issues. Legislators need to hear the concerns these business owners have about policies that impact their relationship with their franchisor.

Technology As The New Norm – Are We There Yet?

·

As we’re at mid-year, it’s essential we look forward to the second half of the year and review our goals and objectives. But, too often we don’t take into consideration how we’re going to make certain we achieve those goals and objectives… understanding what’s involved, doing the necessary prep work, learning about technology that will help, etc.

As the world rapidly moves towards “everything digital” it is vitally important, and absolutely essential we stay on top of technology. This cannot be stressed enough! It is reality and is paramount to any type of business success. The key is not to look at this from a negative perspective. Instead, embrace it for what it is, and for what it can do to help grow your business. Technology is not the enemy. It truly is your friend and one that can help you in more ways than you could ever imagine.

Imagine doing business today without computers? Without the internet?

Many business owners in the late ’80’s were reluctant to embrace computers and many thought the internet was a fad and would wither away. Many of today’s business owners have the same thoughts about social media and digital technology. Heck, many are still complaining about Web 2.0, when Web 3.0 is already here!

I guess the most important thing to realize, and probably quite different than looking back at technological advances in the ’80’s and ’90’s is the fact that today’s consumer has embraced technology and has incorporated it into their daily routine. Of course, let’s not lose sight of the younger generations that utilize technology because, quite frankly, they don’t really know any other way of doing things. It’s the norm to them. Actually, many in the younger generations don’t even look at it as technology!

So, back to today’s consumer… As they have embraced technology at a quicker pace than in the past, they demand, correction, expect, brands to have embraced it as well. They also expect brands to be ahead of the curve, and at the very least, ahead of where they are as consumers using technology. I guess a key question to ask at this time is, “At what point does today’s and tomorrow’s consumer meld together and eliminate the transition stage?” I ask that because the transition stage is today’s business owner’s comfort zone. It’s the comfort zone relied upon that minimizes the sense of urgency to embrace technology. It’s the comfort zone that has many business owners stating, “I have time. I’ll check it out next year.” or, “Our customers are older. They don’t use this new stuff. I’ll worry about it when I have to.”

Understand, today’s consumer, regardless of age, has embraced, or at the very least, accepted technology. Their expectations are growing by the minute, and most have ventured far beyond their own comfort zones. Add to this the influence of younger generations that in the past would have been considered to be bringing up the rear, that are now pushing forward, and pushing hard. Before you know it, the transition stage, the comfort zone, will be gone, and business owners that have not embraced and accepted technology will not survive.

Franchise Candidates: A Changed Mindset

· 5 Comments ·

This article was originally posted on August 13, 2009 as Franchise Candidates: A Changing Mindset. Well, I guess we can revise the title slightly to reflect candidates’ current views – A Changed Mindset. Nevertheless, the article may be even more relevant today as franchising attempts to rebound from the economic downturn and continues to explore more viable lead generation strategies that will attract today’s franchise candidate. Many continue to explore social media and have realized its position as an integral and effective component of these strategies… of course, when utilized according to a plan.

caution-01A look at today’s franchise candidates will reveal they are more sophisticated, better educated, and more technologically advanced than ever before. In addition, and even more so because of the economic downturn, they are extremely cautious.

Today’s candidates are spending more time researching opportunities, and doing so at a much slower pace. In order to be diligent in the process, more time is spent online pouring through page after page of information, constantly bookmarking, and moving back and forth from new information to saved information. They’re comparing notes with other franchise candidates on social networking sites. As well, they’re gaining invaluable insight monitoring online discussion groups and forums.

Ultimately, today’s franchise candidate desires and needs to be certain the franchise opportunity is as close to perfect for his or her situation, as humanly possible. In the past, and especially after previous recessions, franchise candidates took their capital gains and invested in a franchise opportunity. Many times leaving the principal investment untouched. There was a sense of throwing caution to the wind because they were investing profits. Many times ungodly profits, at least by today’s standards. Does anyone remember when money markets kicked out 17% profit margins?

Unfortunately, many individuals looking at franchise opportunities today are looking at things differently. They have to. Many are transitioning corporate executives staring at the back end of illustrious careers trying to squeak out just ten more years before retirement. Facing the challenge of younger talent, new technology, and a rapidly changing business environment, many opt to “buy” a job and explore franchising and small business ownership.

What Changed?

Here’s the difference between today’s recession, and of those in the past. As huge fortunes have been lost, and large gains have not been realized in current financial markets, today’s candidates are forced to invest all or part of their remaining nest egg in order to enter the world of business ownership. Of course, everyone knows and fully understand the risks involved in owning a business. But in yesterday’s business environment, many franchisees and business owners were “gambling” with profits.

Certainly, no one wanted to lose money in a business venture. But, many had fallback positions with funds still in retirement accounts and of course, if they had to, employment. For many of today’s candidates, failure is not an option because fallback opportunities are fast becoming non-existent. Actually, I believe many of today’s candidates might not have even considered franchise or small business ownership in the past.

So, as many individuals explore their options, they will focus more and more of their efforts online. Franchisors must embrace this fact, and dedicate more resources to the internet and look to social media to complement, not replace, their traditional franchise marketing strategies. By doing so, they’ll realize multiple benefits for their entire system including:

– Creating or further developing brand awareness with franchise candidates and consumers alike
– Generating franchise leads that are genuinely interested in exploring what franchising and small business ownership has to offer, and how a particular concept may be the vehicle to achieve their goals and objectives
– Establishing an interactive environment of communications and information sharing that will become the backbone of future franchise relationships throughout franchise systems

Last, many franchise candidates previously viewed franchising and small business ownership as a way of achieving their wishes, hopes and dreams, regardless of what those may have been. Today, it’s more about goals and objectives, and necessities. We, as an industry need to fully realize this, and understand the mindset of today’s franchise candidate.

Defining Franchise Success

·

imageLast summer, just prior to completing the acquisition of Franchise Foundry and accepting the position of CEO at FranchisEsource Brands International, I was interviewed by Lizette Pirtle, CEO of Expansion Experts. Lizette had the vision of creating a series that, in essence would document franchise success AND provide information to newcomers to franchising that would help them succeed. I am humbled to have been asked to share my perspective. More importantly, I am honored to call Lizette a friend!

Franchise Success: It is All in the Culture

Paul Segreto, CFE, is the CEO and President of Franchise Foundry and serves as the CEO of several of their clients’ companies. I met Paul in 2009 upon my first engagement in Social Media. From day one it was obvious that Paul was a man of honor. I loved his honesty, his straightforward style, his heart, his thirst for knowledge–and most of all, his passion for franchising and for sharing and helping others. Paul has a rich franchising history having been a franchisee as well as leading several franchise companies in many management roles. He is the first one to talk about the ups and downs of his career and all the lessons he has taken from both turns. Paul is always filled with great ideas; his mind never stops, always learning, and always passing on the lessons. He never rests and never gives up; his tenacity and perseverance are equal to none. I was thus delighted when he agreed to be part of this study on Franchise Success.

Paul first defined Franchise Success academically as: “the combination of bottom line profitability and bottom up profitability and growth.” In other words, “You can’t kick in high gear the growth of your franchise network until you have unit and overall company profitability,” Paul explains. “But, it is really all about culture,” he shares as he starts getting into his passion. “Franchise Success is about building a culture that creates positive, memorable experiences at all levels and at all times. Many franchisors get this at the customer’s level, but forget about it when it comes to their franchisees or their staff. It has to be a culture that produces these types of experiences for everyone,” Paul goes on.

“So how do you do that?” I asked. According to Paul, it comes from the realization that success is not a permanent state. He says, “You can go from total success to total failure in an instant if you take your eye off the goal. You must have processes and procedures in place and you must make sure that they are followed at all times. You also must be constantly aware of and foster the interdependent relationship that exists between the franchisor and the franchisee.”

Paul considers the greatest challenge he’s had to face in franchising as “getting franchisees to realize that you truly have their best interest in mind. When a relationship is fragmented, trust disappears, and without it, healthy relationships can’t exist.” Paul has always found himself in situations where he has had to introduce a new way of doing things and has inherited cultures that haven’t been the most conducive to true and honest communication. Although he thrives in the challenges of making a difference and turning around companies, he also has to deal with recreating rather than creating, which is always more difficult to do.

Paul believes that as important as trust is in a company’s culture so is the resilience of its members. The ability to change is crucial for the longevity of franchise companies. “Moving your brand forward requires you and all of your franchisees and staff members to adapt to change. Comfort levels are shaken when we embrace change, so not everyone is going to like you; and I am OK with that,” Paul shares.

Paul deals with these challenges in his usual honest and straightforward style: “By putting my money where my mouth is; by knowing that I must earn the right to people’s trust, that I must lead by example and that I must put my ego aside and say ‘I am sorry’ when needed and try a different approach.” Paul does not sugar coat his communications with franchisees, or anyone else for that matter. He helps them understand how their results are directly related to their actions, and also to their lack of action. The company cultures he creates are not only resilient and trust-filled, but they also include personal accountability at all levels as well as transparency.

When talking about what is required to replicate success, my conversation with Paul got even more interesting. “Here we face an oxymoron. When we think of franchising we think of doing the same thing over and over again all over the place; but to really replicate success franchisors need to be discerning and they need to modify the concept according to the conditions present, be it economic or regional differences.” Paul continues, “For example, take McDonald’s, why have they been so successful? They have adapted. Today the locations look different depending on where they are. You have urban locations, suburban ones, and specialty ones like the one in Asheville, NC, where you live. The menus also change. So, what’s stays the same? The culture: clean bathrooms, attention to details, management controls, and some core menu items.” Paul summarizes, “To replicate success, a franchisor must be quick to adapt and change and tweak the concept slightly to ensure it works in the new area of growth or under new economic conditions without compromising the culture that is identified with the brand.”

Paul has some great tips for those who are considering franchising their businesses. He says:

– Make sure you understand that when you franchise you are no longer in the business you used to be. You are now in the business of franchising, which is all about process, procedures and relationships.
– Keep your eye on the details: ALL OF THEM.
– Give back to the community, and remember you are now entering the franchise community.
– And, most importantly: From the beginning make sure to build a culture that produces POSITIVE, MEMORABLE EXPERIENCES AT ALL LEVELS AND ALL OF THE TIME.

So, you want to do business with franchise companies…

· 2 Comments ·

First, and foremost, please understand that many, many business professionals approach the franchise industry each and every day attempting to sell them everything from insurance to office equipment to financial services. It’s an uphill battle that can be extremely rewarding if the trek is carefully and diligently navigated. That being said, the best approach is directly at the franchise organizations. By going direct, you create the opportunity of gaining the parent company’s endorsement and ultimately, accessibility to the entire franchise base. If you attempt to market to individual franchisees initially, you will spin your wheels and burn out faster than you could ever imagine.

In dealing with franchisors, I recommend a subtle, subliminal approach. You will need to become a resource for them to consider introducing you to their franchisees. That’s your biggest challenge. To conquer it I recommend contacting as many franchise publications and blogs as you can, and submit articles and posts. Of course, end them with your contact info, etc. This positions you as an expert in your field and as a resource for the industry.

You can also achieve expert status by being proactive on LinkedIn. Join as many franchise groups as you can. Keep in mind that direct selling is frowned upon in social networking forums. However, by responding to and posting discussions, you can establish your niche. By doing so, the sales intent will be subtle and subliminal, and effective. In time, I recommend you develop a webinar and invite the franchise community to attend. This is a great way to develop a target list.

Consider developing powerpoint presentations to attach to your LinkedIn profile that people can view at their leisure. Maybe a video on You Tube and post on various blogs and social networks. Improve your Facebook presence. Explore groups you’re interested in targeting and consider forming your own group and establish a business page as well. Check Twitter and integrate your messages there as well. Be sure to cross-promote wherever possible.

Basically, I’ve just outlined for you a marketing strategy that is integrated with social technology. It’s cost-effective and it works. Though, I must remind you to be patient as results take time as you “earn” the right to do business with your target audience. But when the orders start coming in, momentum can build very quickly. It can also be plenty of fun and you will meet many exciting and interesting people along the way.

This post was originally posted on this site January 2010


Bookmark and Share

CEOs & Social Media – There’s Still a Disconnect for Some

· 1 Comment ·

I’ve recently posted in the Franchise Executives group on LinkedIn with the discussion question, “Why are CEOs and other top executives [still] not buying in to Social Media.” I’ve included a few of the responses below. Please share your thoughts and perspective as well…

imageSocial media is certainly a primary means of communication that has quickly become a fundamental requirement to businesses just like the telephone, the website, or email. You could choose not to use any of those communication methods too, but it would be a brave person that tries to succeed without them. As a forward-thinking, open minded executive, how can you embrace social media in all of its glory to enhance your brand perception and be more effective in your leadership role?

“Social media is a good CRM tool for customers that are on it. Like any marketing tool it’s also demographic specific on the users. Also there’s the negative side of Social Media when a company cannot control it. Remember the Australian Subway franchise incident when a customer measured and posted a foot long sandwich on their Facebook page which wasn’t exactly a 12 inches long?”

“Sounds like I am preaching to the choir here, but here is my thought. We work with a few large franchisors. The difficulty they run into with social business generally falls into two distinct categories. 1. Brand protection. and 2. Return on investment. Things have changed, and continue to change every day as it relates to social. The measurement seen as success by a community manager vs. a CEO are vastly different. While likes and followers can, at times be a legitimate key performance indicator, the “C-Suite” is saying “show me the money” and “protect our brand identity”. There are options, and they get better everyday. The things we are able to deliver to our franchise clients today vs. 2 years ago would have been unthinkable. We can now control the brand pages on Facebook from one central location for an unlimited number of Facebook pages. We can change images, push offers to all pages at once, create and deploy tabs, etc. This removes the risk of brand sabotage by well meaning franchisees, yet still allows them to have a local Facebook presence. It took a lot of time and resource to develop, but we couldn’t have even imagined doing it two years ago. Funny thing is, I came to this exact group and asked in an open forum if there was anyone that would like to take a look and give feedback. Do you know how many replies I got? 0. Yep, ZERO. See, most folks don’t get it, or don’t yet understand the value. Even those who are commenting in this thread. 🙂 In reference to ROI – Another area with drastic change. The analytics technology is available now to measure all the way from a specific Tweet, Facebook, or LinkedIn post, clear to the web call to action. This shows a specific and clear path to purchase, or action, aka, a proven result. This is what the “C-Suite” wants to see. We do this every day. Its not magic, it is hard work and using the right approach. And yes, content wins and will continue to. But – Context trumps content all day long.”

“In addition to all the offers you can put to your audience we now offer a product that enables our Franchisees to push instant feedback back to the owner and the sites so that the people who really love the franchisee can share that more readily. This advocacy is a far more compelling tribute to the hard work franchisees offer to keep their clients happy! If you have a veracious appetite for growth you can get it in these channels.”

“CEO’s, other than the disruptors, like their position and want to protect their status. New ideas especially as it pertains to the increasing accelerating world of social media are threatening to those who don’t embrace and encourage leadership @ all levels within the organization. Top down is “OLD School.” Embracing existing media vehicles is “OLD School.” By the time I complete this comment 10 new social media ideas will have been hatched somewhere in the world, and it doesn’t have to be Silicon Valley!”

True Social Media ROI – Relationship & Community Building

·

Social-Media-ROICertainly, return-on-investment (ROI) is important but too many miss the boat by trying to make social media a line-item on their financials. First, social media is not advertising. So to think there will be a definitive ROI based entirely upon revenue generated against dollars invested is absolutely off-base.

One needs to look at social media as the glue that can hold several key functions of the business together such as bringing the customer experience to marketing complete with sharing operations role in making the experience positively memorable, and letting the end-user know about its objectives. Complicated? No, but not without proper planning and a long-term vision. Further, social media is vehicle that transports information from one function to another – it’s a conduit.

Social media is the communications tool that should lend itself to truth, trust and transparency in establishing or strengthening the business relationship. Last, social media is the tool that enables a brand or business to earn the right to “ask” for business from customers, clients and investors alike as it provides the platform for them to virtually see how your business operates, how it communicates and how it is perceived. The key here is in establishing community. The necessary steps are relatively simple to follow… Share, Interact, Engage and then, only then have you earned the right for a Call-to-Action. Yes, that’s when the right has been earned.

It does take training for social media to be utilized effectively at any level. But even more so at the local level as franchisees typically cannot afford the luxury of adding human resources to handle their social media. So, training and guidance is paramount. As is open communication and interaction between franchisor and franchisee in managing and monitoring social media. Yes, working together with common goals and objectives, as should always be the case in the franchise relationship. This is just another component of what I believe should be the everyday goal of working towards a truly interdependent relationship. The same should be said about all relationships in a business [and franchise] environment – franchisor/franchisee, employer/employee, business/customer, etc… Yes, it should be the norm, and not the exception.


Bookmark and Share