Category : Newsletter
Looking for additional ideas to grow and build your franchise system? One idea to reach your magic goal is finding individuals who are already in your type of business. I am not referring to conversion franchising, although for some franchising companies this method has proven quite successful. Of course, the down side to conversion franchising is that the converted facility has to be reformatted to your trade dress, and the prospective franchisee normally has a closed mind to a different system of doing business. In many cases, if we really analyzed conversion franchising, we would find that if the individual in business were successful, they normally would not be interested in converting. Since conversion franchising may not be the most beneficial way to obtain franchisees, other means of prospecting should be explored.
Perhaps a more successful means of obtaining prospective franchisees is to look for a person that has worked for some other company in the same or similar business and now wants to have their own business. This concept is really not new; it has been used in many other areas. When my favorite college, Auburn University, hired a new football coach, he found the program lacked the quality athlete for the football program to be competitive. To build the program he used the traditional approach of recruiting from high school. He also recruited Junior College players. This last step put the booster rockets on the program and helped it climb back to the top as one of the elite football schools. This coach in essence did what we are talking about. He found a prospect who had worked in a similar line of
business (Junior College) to be his franchisee. The chances that the new athlete (franchisee) would be successful were greatly enhanced because of the athlete’s previous experience.
One of my clients tried this concept of recruiting prospective franchisees from the same or similar business by giving a discount on the initial franchise fee based upon the number of years experience the prospect had in its type of business. They not only increased the number of franchises sold but the success rate for these franchises was much greater and thus, their bottom line increased.
There are all kinds of wrinkles but the idea is to generate a new way of adding numbers to your system. Because the prospect already has had experience in a similar business they will not require the extensive training of someone with no knowledge of your business. The likelihood of the prospect’s success is also much greater since the learning curb will not normally be nearly so great. Further you are now marketing to attract a particular segment and your dollars are much better spent to reach those individuals most likely to choose your industry.
There are a number of avenues to target prospects in a particular market. Give us a call if we share any ideas or consult with you on a particular need you may have.