Too often than not, franchisees are of the mindset that they’ve bought into a franchise system and just need to sit back and wait for the business to flow through their doors. Sometimes, it’s ignorance and perception that clouds their thoughts. Thinking that the brand name they invested in should be enough for instant business success at their location. But, most of the time, it’s just plain old arrogance that gets in the way. It’s the arrogance of having committed hundreds of thousands of dollars to buy a franchise as being the sole reason for success. It’s also the basis of feeling that with this level of financial commitment, the franchisor should be solely responsible for making sure franchisees succeed. Almost demanding a guarantee of success!
Well, it is not the franchisor’s sole responsibility, under any circumstances, for making sure that franchisees succeed. Sure, the franchisor must provide franchisees with a proven system and field-tested tools, that when utilized diligently and effectively, should provide them with the foundation to succeed. But, it’s just that, a foundation. And, the franchisor should have systems in place to monitor franchisees’ progress, provide additional training and guidance, and further the overall development of the brand which all contributes to solidifying that foundation. But, as detailed and comprehensive as all this sounds, it still is not enough for most franchisees to succeed without their own desire, drive and determination. And, not just words, but actual action.
Failure or Success?
Years ago, I was working with a franchise group on a complex marketing project. The project was ultimately a success and achieved most of the goals and objectives that were established prior to launch. Most of the franchisees embraced the strategy and were extremely instrumental in executing the plan. However, there were five franchisees that just couldn’t get out of their own way to realize the benefits of the plan, and did not realize positive results as their fellow franchisees had.
As with many of my franchise clients, the franchisor requested that I work with these franchisees, ascertain the root of their problems, and develop an aggressive plan of action to move their businesses forward. You see, the franchisor truly wanted to see their franchisees succeed! By the way, these franchisees represented the bottom of the franchise group in average unit sales. Definitely, that was no coincidence. Well, to make a long story short, the obvious problem in each case pointed back to the franchisees working “in” the business, as opposed to “on” the business. Mix in some procrastination, entitlement attitudes, and of course, total denial, and the recipe for total business failure was complete.
I was able to determine that these franchisees were compensating for their path to failure by being at the business location longer hours, spending more and more time taking care of customers, while spending less and less time on anything else. All claimed to be working harder than they had ever worked before. Was it because they had to cut payroll and do the job themselves? Ironically, that was not the case as I found employees standing around while the franchisee did their jobs. Often, I witnessed franchisees literally stepping in front of employees to take care of a customer. When I addressed the same with the franchisees, all were actually preparing for failure but didn’t want to be considered the actual cause of failure. All thought that by being seen at the business long hours every day and working non-stop behind the counter, no one would be able to say they didn’t work hard at making the business a success. Certainly, they wouldn’t be blamed for failure.
Of the five struggling franchisees, all but one was anxious to listen and make firm commitments to improve their situations. The remaining franchisee was thoroughly convinced he would fail and there was nothing he, or anyone else, could do to change the situation. He placed total blame on the franchisor, claiming they didn’t provide support, and strongly professed that he, himself, did everything humanly possible to succeed. When I asked what he was referring to, he pointed to the long hours every day. When I asked about marketing efforts, he claimed he shouldn’t have to do anything in that regard and pointed back to the franchisor. He ranted about how the franchisor should have spent money on his behalf in promoting the business and how he spent over $300K on build-out and equipment and that should have been more than enough to ensure his success. Further, he felt he should be able to open the doors everyday, and if the brand name was strong enough, success would occur in a relative matter of time.
As I indicated, four of the franchisees decided to move forward. Agreeing that failure was not an option, we developed and executed an extremely aggressive, yet cost-effective, plan of action centered around getting outside the business location every day to promote their business wherever and however they could. They all agreed they should have been doing this all along but always seemed to procrastinate in actually getting the job done. They attributed a big part of their procrastination to a strong sense of entitlement that the franchisor should be doing more because they, the franchisees, were the ones that already made an investment to grow the brand. As such, they had convinced themselves that any possibility of failure would fall firmly on the franchisor’s shoulders. In turn, they buried themselves “in” the business and were awaiting the inevitable.
After many hours of discussion and debate about vision, passion, drive and determination, all four franchisees decided to take responsibility for their actions and would hold themselves to a high level of accountability, to their business, employees, family, and themselves. Each was relentless in their quest to turn their businesses around. They spoke to whoever would listen about their products and services. They were tireless in their efforts to discover new groups and organizations that might listen and learn about what their business had to offer. They were almost to the point of being ruthless in their desire to ask for referrals and recommendations. They were all thinking outside the box, always asking themselves, “What more can be done?” and never accepting a “nothing” answer. Needless to say, their new attitudes became contagious and before they knew it, everyone seemed to be spreading the word. Nowadays, we would refer to that as a “viral” effect.
The Final Tally
One franchisee sold his business to an individual he met when spreading the word about his business. The new franchisee became a multi-unit operator and eventually sold the business for a significant profit.
Two franchisees took on partners they met in their efforts within the community. All are now multi-unit operators within several franchise systems.
One franchisee continues to operate her business and although happy to have survived, never had the desire to open additional locations.
And, the franchisee, who said he would fail… was absolutely right!
This post was originally published on this site October 2010
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.
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?
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.
In continuing with our focus on increasing sales in franchise organizations at all levels, we will build upon yesterday’s article about sales prospecting and today, discuss sales presentations. Remember, the points we’re making are from one of our recent B2B training sessions. But the fundamentals remain the same and are applicable for any type of sales.
Average vs Professional Presentations
Research indicates that most salespeople put 80-90% of their time into presenting and demonstrating and leave only 10-20% of their time for other things. Professional salespeople, however, spend only 40% of their time presenting or demonstrating; not more than 10% prospecting; and about 50% of their time qualifying and planning.
Let’s look at these figures one more time. The professionals spend half as much time demonstrating or presenting as the average salesperson does, yet we find that he or she still manages to turn in at least twice the volume. And this is a conservative figure. Actually, the professional brings in between four and ten times as much business as the average salesperson will. It’s not uncommon for a single salesperson to outsell the entire bottom half of the sales force, and keep on doing it month after month, year after year.
So what is it that the true professional does to stand above the rest? By far the greatest difference lies in his or her attention to and ability at planning sales, at selecting and qualifying the right people to sell to, at overcoming objections and closing, and at deserving and obtaining referrals.
So as important as presenting and demonstrating is, if you do it with the wrong people because you didn’t qualify properly, it’s all for nothing. If you’re working with the right people, but you let their objections beat you because you haven’t prepared properly, it’s all for nothing. And if you have no capability in closing, you’re working for nothing. If you can’t close, many sales you could and should make will go to the next competitor who comes along because you built the structure for the sale but couldn’t close the door before he or she got there. You have to be a strong presenter or demonstrator to sell strongly. You also have to qualify strongly, handle objections strongly and close strongly.
There are three things you should cover in your presentation:
1. Tell them what you’re going to tell them. This is your introduction.
2. Tell them what you’re there to tell them. This is your presentation.
3. Tell them what you just told them. This is your summary.
That’s the outline of all successful speeches, presentations and demonstrations. In other words, we use repetition. We don’t say exactly the same thing three times, of course, As outlined above, we begin by introducing our new ideas, then we cover our points in depth and relate them to our future clients’ interests and needs and finally, we draw conclusions from our points and indicate the direction that things should take.
Repetition is the mother of learning, yet average salespeople don’t like repetition. For one thing, they have used their material so many times that it’s stale to them. All too often, average salespeople have gone worse than stale on their presentations and feel it would be better off buried. The professional, on the other hand, never tires of phrases that work, ploys that sell, and ideas that make sense to his or her buyers.
There is no doubt about it, one of the keys to the professional’s greater skill at presenting or demonstrating lies in his or her ability and willingness to use repetition effectively to reinforce every point. He or she doesn’t mind repeating the sales point because he or she knows it leads to repeated sales to the same type of clientele.
So think in terms of tell, tell, tell and remember: Repetition is the seed of selling.