Controlled Growth Key to Success for New Franchise Concepts!

Working with entrepreneurs exploring franchising as a business expansion strategy, I’m often asked the question, “How does a new franchise company sell franchises without brand recognition?” Here are my thoughts…

Initially, the founder is the brand. It’s his or her passion for the business. It’s how he or she treats customers and employees alike. It’s how the business is promoted within the local market. Not just through typical advertising efforts, but through solid grassroots, organic efforts.

The initial franchise candidates are actually the “low hanging fruit” of the original business. These are the customers that inquire whether or not the business is a franchise and how they can learn more about owning their own. Most are interested because the business appears to be thriving and they’ve seen the owner (founder) time and again, always smiling and shaking hands. Public Relations efforts should ensure this occurs.

They admire the owner a great deal and will base their decision to open a franchise location, on the potential of establishing a relationship with the owner. They’ll compare the opportunity to other franchises and justify to themselves that they’re in on a ground floor opportunity with a direct line to the founder. As such, they feel their probability of success is greater because their location will be in the home office city and if they need help, they could easily approach the founder and the home office because of the proximity to their franchise location.

Ideally, the next few franchisees will also be in the same market as the original business and the first franchise location. It’s prudent to only expand locally until critical mass is established in the market, ad cooperative is developed and support systems are perfected. Now the concept is ready to expand outside the initial market.

However, it is often financial suicide to entertain requests from candidates all over the country. Instead, development efforts should be concentrated on one or two cities relatively close to home office city. For instance, if original business and home office is in Houston, the natural progression would be to promote the opportunity next in San Antonio/Austin and Dallas/Fort Worth areas.

As these markets start to become established with franchise locations, it’s advisable to promote the concept in another two or three areas. Maybe, explore another “hub” that is similar to Houston with two additional cities that are close by like San Antonio/Austin and Dallas/Fort Worth.

Let’s say, Atlanta as the next hub. Expansion efforts should be the same as they were in Houston and expansion out of that market shouldn’t occur until Atlanta has a critical mass. Then, when that occurs, the opportunity could be promoted close by in Nashville and Charlotte. Now, you see the spokes of national expansion beginning to form.

While this is going on, maybe inquiries start coming in from the San Francisco area. So, the next phase of expansion might be in the Bay Area. The Bay Area becomes another hub, and once developed, the franchise opportunity could be promoted up the road in Portland and to the East in Sacramento and the process continues.

It’s all about controlled growth and the founder exhibiting tremendous restraint in expanding too fast and in areas far away from his core group and subsequent hubs to be able to provide ample support, create ad cooperatives and build the brand geographically. Chances of franchise success are far greater at all levels of the franchise organization within the parameters of a controlled plan of development.

So, to answer the often-asked question directly, I suggest everyone in the system having a clear understanding of the founder’s vision and if it includes anything but a controlled development plan with his or her firm commitment to actively participate in the franchise sales process, the chances of selling the first ten to twenty franchises will be a frustrating, monumental task that most likely will fail miserably.

FREE Webinar – Consumer Ratings And Reviews Effect On Business And Search Engine Rankings

PRLog (Press Release) - Free Webinar will present proactive approaches to managing Customer Ratings and Reviews

May 7, 2012 (Birmingham, MI/Houston, TX): Melih Oztalay, CEO of Smartfinds Internet Marketing and Paul Segreto, CEO of franchisEssentials, will present a webinar discussing Customer Ratings and Review Management for businesses.  Interested parties can register for the June 14, 2012 one-hour free webinar at https://www3.gotomeeting.com/register/875579678.

6 in 10 consumers make their buying decisions based on the experiences from your customers who have posted their ratings about your business and their reviews about the experience they have with your staff, products and services.

In addition search engines are and will be basing their decision to rank a local business listing or website based on the star ratings, which are quantitative and make for a easy mathematical equation.

How does a business manage this very overwhelming problem when there are over 200+ websites and databases in geographic marketing for local business listings for consumers to post their ratings and reviews?

Smartfinds Internet Marketing, an Internet Marketing pioneer for more than 20 years and leader in web marketing including Geographic Web Marketing and Local Web Marketing, will present the issue and solutions by Melih Oztalay, CEO of SmartFinds Internet Marketing.

“As a web marketing agency working in an ever changing environment of web technologies and requirements, we have to find solutions that will support businesses not only in their search engine rankings, but also in their online reputation.” said Melih Oztalay, Smartfinds CEO.

franchisEssentials CEO, Paul Segreto, and Founder at both the FranchisEssentials Media Group and FranSummit, brings unique perspective, entrepreneurial spirit and extensive industry experience to franchise management, marketing and development. For over twenty years he has exclusively served the franchise industry as consultant and coach, senior-level corporate executive, advocate, multi-unit franchisee and area developer.

“We have been experiencing growing concerns over customer ratings and reviews over the past 5 years, since they were first introduced to the internet community by franchise owners.” said Segreto.

The webinar event will be recorded and available for download after the event for all registrants.   While we will have a focus on franchise owners, businesses in general are invited to learn more about the proactive approaches to managing customer ratings and reviews.  The idea of passively waiting for customers to control your businesses online reputation is no longer an option.

You can register and learn more at https://www3.gotomeeting.com/register/875579678.

About Smartfinds Internet Marketing

The most critical element of SmartFinds Internet Marketing services is the creativity and imagination to apply the technological aspects of the digital marketplace to the marketing objectives of a particular business. Initial research provides SmartFinds the ability to develop a digital strategy that can be measured every step of the way to insure business growth and revenue generation. Some of SmartFinds’ clients have included ComForcare Home Care, Delphi, Flagstar Bank, Guardian Industries, McCann Erickson, Penske Automotive Group, Soave Enterprises, Wendy’s, Ziebart and others. 

About franchisEssentials

Dedicated to franchise success at all levels, franchisEssentials CEO, Paul Segreto consults with founders and franchise executives of start-up and emerging franchise concepts, current franchisees experiencing difficult challenges in their daily operations, and with independent small business owners discovering franchising as a business expansion strategy or income diversification plan.Understanding the franchise sales process from lead generation through franchise award, and the importance of forming an interdependent relationship between franchisee and franchisor, Paul has successfully developed and executed marketing and development strategies for franchisors across a variety of franchise segments. As franchise candidates and consumers have become more sophisticated and technologically advanced, Paul has embraced social technology and social media marketing, and has identified both as essential to future franchise growth at all levels.

Nothing Happens Without A Sale!

This week, we focused our attention on increasing sales in franchise organizations at all levels. We discussed sales prospecting, presentations, sales questions in a B2B situation and even the sale that possibly goes wrong. Although yesterday’s segment was scheduled to be the last in this series, we received many emails, tweets and comments throughout the week basically asking the same thing, “what do you think is wrong with my salespeople?” Well, here’s an article from our archives that may best address this question. Again, realize this applies regardless of what you may be selling as they’re based upon solid fundamentals! Happy selling!

Nothing Happens Without A Sale!

Dedicating our efforts to the latest technology is essential to leading the field in any industry. However, we must not lose sight of the basics. Just as a professional baseball player practices and drills on the basics, especially when in a slump, entrepreneurs must review and stress the basics of business. And, nothing is so basic to business as sales. In fact, nothing happens in business without a sale.

With this in mind, I will take you back to the very fundamental aspects of sales from the perspective of you being the one making the sale. Share the same with your salespeople in your organization and you’ll be pleasantly surprised at how back to basics improves your team’s results.

On a very basic level, there are five ingredients needed to create a sale:

The salesperson. The qualified prospect. A need or want that the prospect has. The product or service. The selling strategy or procedure you follow that guides a prospect to the natural conclusion of the selling process; the sale.

While many salespeople would say the selling process is about the customer, they wind up making it about themselves. Think about all the fears or reluctance you may experience when it comes to cold calling or selling. I don’t want to say the wrong thing. I don’t want to look bad. I don’t want to be a nuisance. I don’t want to impose. I don’t want to be rejected or hear no. I don’t want to blow it! I, I, I, I, I!

Look at the first word that begins each statement above. Making the selling and cold calling process about you is the number one roadblock to successful prospecting and the number one cause of cold calling reluctance. Instead of making the selling process about you and how much you can gain if you sell, make it about the prospect and how much value you can deliver to them.

If you are experiencing any fear or resistance to prospecting, look at who you’re making the selling process about. Chances are, you’re making it about you! Once you shift your focus and energy towards making it about the prospect, it will immediately relieve you of the unnecessary pressure to look good and perform.

When the Sale is Critical, What if…?

This week, our focus has been centered on increasing sales in franchise organizations at all levels. We’ve discussed sales prospecting, presentations and sales questions in a B2B situation. Today, in our last segment, we’ll discuss the key sale that possibly goes wrong. From a business owner’s perspective and in light of today’s economic environment, the possibility of being in this position is quite real. This applies to all types of sales!

When the Sale is Critical, What if…?

You’re close to finalizing a major deal with a prospective client that will result in a large payout and repeat business for years to come. The time you’ve spent nurturing this prospect will finally payoff. Some of your current clients have been disappointed by the lack of attention you’ve shown them over the past year but you know you can make it up to them after you close this deal. Besides, this new client will generate a significant increase in revenue and profits that everybody knows is vital to the company’s future success.

But wait. You’ve learned in the 11th hour, the prospective client is changing directions and is exploring options with your competitor. As it turns out, the change in direction is being blamed on something you did or said that they weren’t exactly happy with. You find this out from a former employee, now employed with your competitor. He goes on to tell you the prospect would rather do business with your company but only if you weren’t involved.

You think about the potential loss of immediate and future business. What about the revenue and profits the company desperately needs? How will you be viewed by your employees (and partners) if the prospect signs with your competitor when you’ve invested so much time and resources? What happens if key employees find out the prospect could have been saved if you stepped aside? What is it that you did or said that caused the change in direction? Does it really matter now?

Forget the “this wouldn’t happen to me” response. Put aside the “it couldn’t happen like this” statement. Look beyond the “he should have seen it coming” exclamation. Let’s assume it happened exactly as it was described above – What would you do?

B2B Sales: Questions Are Your Greatest Tools

In continuing with our focus on increasing sales in franchise organizations at all levels, we will build upon the last two days’ articles about sales prospecting and presentations, and today discuss sales questions specific to a B2B situation, but can be easily revised for any sales situation.

B2B Sales: Questions Are Your Greatest Tool

Prepare, in advance, the questions you’ll ask when you actually get face to face with your prospect. Of course, every selling situation is unique and every selling situation requires some variation, but certain basic questions that come up in every interview can be planned in advance.

By carefully planning them, you can make sure you cover all of your bases and that your wording is precise. There is one caution – be careful not to phrase them so they sound canned.

Ask As Many Open-Ended Questions As Possible

Closed questions that call for a “yes” or “no” answer tend to discourage people from talking, to give only limited information, and they tend to set a negative tone. During the Probe (the questioning) step of most selling systems, ask primarily open-ended questions that require prospects to tell you how they feel, what they want, or what they think. There is room for “yes” or “no” questions, but be careful not to use too many or to use them incorrectly.

Ask Needs-Based Questions

In the Probe step you want to do more than get your prospect to talk; you want to find out what he or she needs. Therefore, frame questions that will give you insights into how prospects perceive their needs.

Ask Questions That Help You Identify Problems That Need To Be Solved

Usually there’s one overriding problem that needs to be resolved in the prospect’s mind – a situation you can understand by asking the right questions. Plus, with proper pre-call planning and strong internal advocacy, you should already know what those problems are.

Ask Questions That Help You Pinpoint The Dominant Buying Motivations

Buying motivations and needs are not always the same. Buying motivations have to do with desires, feelings, tastes and so on.

Avoid Offensive Questions or Asking Questions In An Insensitive Way

Certain types of questions can offend prospects and cause them to back away from you. Here are some examples of pitfalls to avoid:

Don’t use leading or “set up” questions such as “You do want to make a profit, don’t you?” What’s the prospect going to say…”No, I don’t?!”
Probe, don’t pry. Nosy questions can be a real turnoff.

Be careful about phrasing. For example, instead of asking “How much can you afford to spend?” you could phrase it a little more positively: “How much had you planned to invest?”

Ask Questions That Are Easy To Answer

Questions that require knowledge the prospect doesn’t have can often make him or her feel stupid. For example, asking most consumers, “What’s the maximum wattage per channel on your amplifier?” might get you a dumb look for an answer. The smarter you make your prospects feel, the smarter they’ll think you are and the more they’ll like you.

Use Questions To Guide The Interview & Keep The Tone Positive

Some people love to ramble on and on, but by skillfully using questions you can keep the interview focused and moving in the right direction. Also, ask questions to which people can easily respond in a positive manner. Studies have shown that most people much prefer to agree than to assert themselves and disagree. In other words…make it easy to say “yes.”

Ask – and Then Listen

The prospect can’t talk while you’re talking. Besides, you can’t learn while you’re talking. Don’t just get quiet and think up something to say next. Instead, listen to every word that prospect says and analyze the words, tones and the gestures. Remember, you can talk people into buying, but you can also listen them into it.