I once had a client who was miserable in his career, well capitalized and had dual incomes as both he and his wife were employed. There was one problem…
He was miserable in what he was doing…
The hours were too long, his boss was overbearing and there was no fulfillment in his career. This is where franchise brokerage will differ from franchise consulting. A lot of people think franchise consulting is nothing more than sales, and while that certainly is a BIG part of the equation, the role is more geared towards coaching and mentorship…. And here’s why….
There is a common saying in the franchise industry. You don’t sell franchises… you help people buy them. The reason for the phrase is simple. Buying a franchise is a significant commitment both financially, as well as a lifestyle adjustment. Gone is the certainty of a regular paycheck. The owner must invest a large portion of their savings, and head into the uncertain world of business ownership.
This is where the franchise consulting, or “coaching” aspect comes in. It’s very common for people to become afraid. It’s fear that stops people, and in some cases, it can be a good thing. Owning a franchise or independent business is NOT for everyone. It’s very important for people to understand the risks associated with the investment. While not everyone in the franchise industry follows the best business practices (this is no different from any other industry for that matter), the fact is there are people who can help their clients and coach them through the process.
In the case of the client above, the issue was clear.
He was unhappy.
He had the financial resources to cover the purchase of the business.
He had the experience and ability to be successful.
He had adequate income from his spouse to cover living expenses.
The question that kept driving the client was “certainty”. He wanted to make sure the investment would be successful. What I told him was simple. There is no way to know, as there is risk in EVERY investment. It’s really up to you to be comfortable with the concept of making the change.
This is where most of the discussions go in my franchise consulting practice. While we spend a lot of time talking about business planning, researching the franchise and discussing goals and objectives, it almost always comes down to assessing the risks and overcoming fears.
In my experience, this is something that has to be addressed by the client. It’s up to them to determine if they are comfortable with the risks and believe in both the franchise model and their ability to operate the business successfully. If you find yourself frozen and unable to move forward, take some time to assess your fears.
Are they reasonable and warranted?
Is this something you really want?
If you are not successful… can you handle the impact?
These are difficult questions and one of the reasons the business of franchise consulting is more coaching than sales oriented. In my experience, it’s always advisable to seek counsel from your CPA, financial advisor and a franchise attorney. They can provide helpful guidance to help you make the RIGHT decision for you!
One of the best franchise consultants I know has a great acronym for the word FEAR. What fear represents is:
There is nothing to FEAR!
F – False
E – Evidence
A – Appearing
R – Real
I am in the franchise consulting and brokerage business. What that means is I am compensated by franchisors to sell their system to people who want to own a franchise. Most believe those in the industry are nothing more than sales people. This is the part where those who are more cynical folks chime in and say…
“Hey? Franchise Consulting? Franchise Consultant? Franchise Broker? … You’re nothing but a sales person motivated by commissions!”
Regrettably a number of people in our industry do fit into the category and primarily focus on selling, and while I am not hear to defend franchise consulting and brokerage, I would add there are a lot of good professionals who add a great deal of value to both their clients and industry as a whole.
In fact, while franchise consulting is sales, the practice is more coaching oriented. Our biggest challenge is addressing people’s natural fear of change, as most clients are making a transition from employee to business owner. While fear is a natural part of our psyche, it’s important to not let it lead to INDECISION.
Take a deeper look into the acronym FALSE EVIDENCE APPEARING REAL. The important distinction is false evidence. If you find yourself becoming indecisive about a franchise investment and are looking for some guidance, here’s a helpful strategy.
Acknowledge the fear and determine if it’s real. Here are a few questions that might help:
Why do you want to own a franchise?
What is driving you to want to own your own business?
What type of income does your business need to generate?
What types of resources are available to fund the business?
What excites you about owning a business?
Do you have an additional income streams?
Do you believe this franchise system can generate the income you need?
Is your family, spouse, or partner supportive of your decision?
What are your biggest fears in owning a business?
Let’s face it there is risk in any business. That’s one of the reasons I like the last question. It makes you think about fear. If you take this approach, what you might find is the fear subsides. This allows you to think pragmatically and make a more informed decision.
The purpose of these steps is not to force a sale or force a purchase. In fact, the art of closing a client is helping someone make the RIGHT decision for them. Even if that decision is not to make the purchase. In the case of franchise ownership, it’s certainly NOT for everyone. What’s important is to not let fear become paralyzing. This leads to frustration and indecision… some people call this “analysis paralysis”. If you find yourself in this position, consider the above referenced questions. They just might be helpful in overcoming the fear and making a more informed decision.
Man… It’s the “what ifs?” killing you… nothing else… There’s virtually nothing gained from them other than increased stress; which is something we don’t need more of.
I am an eternal optimist. I realize there are consequences regarding any decision I make. I always tend to do the classic “cost-benefit analysis”. My mind is programmed to think that way… I accept the possibility of a bad decision. I am totally comfortable if things don’t work out. It’s an empowering feeling of freedom. It keeps me moving forward…
If there’s one thing I can’t stand it’s the analysis paralysis of people who lack the capability of making a decision… I also abhor those who cannot accept a bad decision for what it is… nothing more… You see, while it’s important to learn from a bad decision. You cannot keep looking back. You have to let go and “move on”.
If you find yourself caught in the “what ifs”… ask yourself why you are tossing and turning so much… Look at the decision you are trying to make…
Do the potential benefits exceed the costs?
What is the worst that could happen? And … more importantly… What’s the PROBABILITY of the worst thing happening? Chances are it’s so low it’s not worth the worry…
Lastly, if the worst did in fact happen… Could you handle it? I’m pretty sure you could…
If your stuck in the “what ifs” … Try the above mentioned approach… I think with a little practice you’ll become more comfortable in making decisions and will soon enjoy the empowering feeling and comfort that comes with the ability to make them without worry….
Why do we seem to be so critical of mistakes? It sometimes seems ingrained in us to view mistakes as a problem rather than a natural part of our development or…growing pains. As a business owner mistakes can be costly and painful (Yes I am speaking from experience J), however, my feeling is mistakes should be embraced as an opportunity to learn…
Reminds of a classic TV series...
A noted exception…
Now repetition of the same mistake is another issue… That needs to be dealt with, and if you’re a business owner, it regrettably may require the termination of an employee. If you have experienced this first hand, it may reveal a flaw in your company’s hiring or training processes… It can be an expensive lesson you don’t want repeated, yet still an opportunity to learn…
Let them take risks…
Here’s some more food for thought regarding mistakes and employee management… I always encourage those who work for me to take risks. I do this because I believe it’s the most effective way to develop talent. Employees are valuable assets that work best when given opportunity. I don’t want to micro-manage, nor do I want to be surrounded by “yes men or yes women”. I want them to have the freedom to take chances… to learn… and develop their skills.
If you’re a business owner with employees; I encourage you to give your employees room to be creative and encourage them to take risks. Yes they may make mistakes. Identify them quickly and reward and encourage them to work through the challenges. Manage and mentor, the benefits far outweigh the costs in terms of scale, happier employees and flexibility…
Don’t assign blame…
Too often we look to “assign blame” when a mistake is made. While it might give us a false sense of security, a better approach is to accept it for what it is and learn from it. If you take that approach, you will cultivate a stronger corporate culture and better position your company for the future… While they may be painful at times, thus the… “Growing Pains”… In the long run they’re well worth it!
Imagine this scenario. Dude is backing into a tight parking space between two cars. He asks his Bro to help back him in.
"Dude... How much room do I have?"
Dude Driving Car: “Hey… Bro… How much space do I have?”
Bro Helping Out: “Ahh… A little bit”
Dude Driving Car: “Bro (with sarcasm). Is that a little bit…two feet? … a little bit two inches? What the hell do you mean… a little bit.”
Bro Helping Out: “Ah sorry Dude… you got about three feet”
Dude Driving Car: “Thanks Bro.”
You could probably repeat that scene everyday. Someone asks a question and or is looking for assistance… We try to help but fail to clearly define the answer in terms they can understand. The result? Added confusion and sometimes frustration.
Take the example above…
Dude needs help from Bro. He asks how much room is left so he doesn’t bump his car into another. Bro responds… “a little bit”. While Bro understands what “a little bit” means to him, Dude has no idea and thus… the sarcastic reply.
You see “a little bit” is a relative term and all of us have a separate meaning for it. While that’s all well and good, it’s not specific enough as we all have our own definition of what that means…
So how do we avoid this problem? Be specific…
How much room do I have? …Two feet
How much time until we meet? …10 minutes
When do we have to leave? …At 5pm
Taking this approach eliminates any misinterpretation… it’s clear… DEFINITIVE. Most of our problems can usually be traced back to miscommunication. Eliminating the relative aspect of our communication can not only simplify things… but reduce potential issues… Think about it.
If you’ve had the pleasure of seeing the movie “Up in the Air”, let me tell you… I can relate. Regrettably I never had the experience of Captain Sam Elliot sitting next to me and thanking me for years of great service… Be that as it may, after 750,000 over seven years, I knew pilots and flight attendants on a first name basis… I’m not kidding .
When you fly a lot for business you quickly learn the importance of efficiency. You’re rarely at a desk, you’re totally mobile and get accustomed to chaos. It’s an added layer of complexity and stress that can make your tasks A LOT more challenging. The key to your productivity is to transform “chaos”… into what I call “organized chaos”.
As I became accustomed to frequent travel, I quickly became exceptionally organized. I had a system to follow to make sure I was able to organizedmy travel, pack my suitcase, plan my meals and established reservations at hotels. I could plan a 10 day business trip in 6 to 8 cities in less than 1 hour, packing included… Best of all limit the stress.
I also had the challenge of managing work flow. At first I had no assistance, over time I got support; yet I still had to respond to clients, manage my deal pipeline, address management concerns and generate revenue. I was RARELY off the phone and RARELY in my own office… unless you count Starbucks… Despite these challenges I still found time to pursue my passions, take vacations, spend time with my family and have fun.
The funny thing was, despite my crazy schedule, my colleagues at work who did not have to travel always seemed less productive. It wasn’t due to effort, but a lack of organization. They didn’t have the same challenges I had and thus could afford to be a little less organized.
Organization is one of the pillars to business success. I spend most of my time creating ways and methods of doing things quicker and more effectively. You see, it’s not how hard you work, but how smart you work. If you find yourself in the common predicament where you’re overwhelmed, here are a few tips that can help you get organized.
Have a “To do list”. This does not mean have sticky notes all over with reminders… hardly. During a quiet time, usually Friday afternoons for me. Write a list of tasks for the week and when you plan on completing them. Make your list LONG. Keep in mind, you don’t have to complete everything. If you don’t finish something. Move it to the following week.
Schedule time for yourself. Make time to exercise, spend time with your family, see a movie. You need a healthy release. You can’t have success without balance. If you find yourself saying you don’t… it’s an excuse.
Accept the breakdowns. Let’s face it, things will go wrong. The deal will fall through. The client will get mad. The employee will call in sick. When facing a breakdown, don’t spend more than 5 minutes stressing or worrying about it. Keep the energy forward.
If you lose focus… go back to the “to do list” prioritize what needs to get done. For business owners I always say, start with the task that will generate revenue the fastest. Money pays the bills..
Don’t make an issue when there isn’t one. I had a former business partner who would constantly worry about things that didn’t happen. This cost him time and productivity. Worry is a waste. It achieves nothing and costs everything.
If you start to focus your energy on organization in your business… in time, productivity will INCREASE. In fact, you will soon discover you can likely accomplish things in a week that you never thought possible. Get accustomed to the practice… it takes time. Remember… “DON’T WORK HARDER… WORK SMARTER.”
To me there is nothing more annoying than a relative term. Take the word “EXPENSIVE”, it has different meanings for different people and thus, IMHO… is totally useless. Another thing about the word is the negative connotation associated with it… It implies that you can never obtain it… check out this video to learn more about my feelings about the concept….
I have made a number of posts regarding the word “busy”… If you’re interested in reading them please click here and enjoy.
If you’re curious, yet pressed for time, I’ll paraphrase my feelings on the word…Frankly…I HATE IT. To quote Mr. Udall (The character played by Jack Nicholson in “As Good as if Gets”)…
“I am using the word hate here.” … One of my favorites by the way…
When we use the phrase… “I’m busy” it projects negativity. It’s likely interpreted by others as:
I can’t handle things.
You’re not important.
I’m over my head.
You get the point….
I don’t think we mean that when we say “I’m busy”. Nor do I think we’re actually incompetent (there are a few exceptions here ). The problem is, if someone calls us and we say… “I’m busy”, they hear and feel the negative energy. If you’re ever in that predicament, and are tied up on project, try this approach…
“Thanks for calling. I am in a middle of something but you’re call is important to me. Is it possible for us to catch up later today or tomorrow?”
This is what we want to say but since we’re pressed for time. Unfortunately we default to… “I’m Busy”
When I think about this concept it always resonates so I decided to take it one step further. Let me ask you, is being “busy” a bad thing? If you think about it, it’s not. I find this dichotomy interesting. You can say to someone your busy… and it’s bad… but if you’re lucky enough to be busy (especially given recent economic events)…it’s good.
Do you find that interesting? I do. I used to work for a company, a rather large Wall Street firm with thousands of employees. Our group had over 100 people working as a team. When the financial markets crashed, we went from 100 people to ZERO… Think about that…
Fortunately most have landed with new jobs or have moved on to greener pastures. There are still, however, are a few yet to find something new… let’s call them the “un-busy”.
If I look back on each day, I am always happiest when I’m busy. I feel needed, responsible, I have stuff going on and making it happen. The day FLIES by. There are plenty of people out there who can only DREAM of that problem. The next time you’re stressed and have a lot of stuff going on…be thankful… it’s actually a great position to be in. Think about it…
Don't Try To Understand Social Media and Networking
Understanding Can Limit Opportunity
There is a giant world of opportunity with “social media”. Everyone talks about it, yet to most people it’s a void. We want to participate; yet a lack of understanding holds us back. Our brains are programmed to understand. How can it help us? How can it help our business? Therein lies the downside. Our desire for understanding backfires and limits the opportunity.
Change Your Way of Thinking
Focus Understanding Can Limit Opportunity
I recently read a book about physics called The Dancing Wu Li Masters. The author, Gary Zukav, wrote about some of the complex theories of physics and explains them for the layman. He discusses quantum physics, particle theory and the theory of relativity among other things. Despite his efforts, some of the ideas were tough to grasp these ideas, as they’re a little “out there”. One concept, however, resonated with me. At the turn of the 19th century, physicists felt there wasn’t much left to discover. They felt they had explained everything based on their way of thinking at the time. A few bold thinkers like Albert Einstein, among others begged to differ. They felt there was more to discover and continued researching more ideas.
Eliminate Preconceived Notions
It was there willingness to go against the grain that leads to extraordinary breakthroughs. The basis of their discoveries was an acceptance to eliminate the need to understand. You see, in order to break through, they had to eliminate any preconceived notions of how things should happen and simply accept what happened. This is the essence of why we become hesitant in using social media. We get trapped in the notion of how it can work, without accepting the fact that it does work.
Build Relationships - New Opportunties
Embrace The Results
A few months ago I started leveraging social media as a means to build both personal and business relationships. When I started I admittedly knew nothing about it but simply accepted it would work. I spoke with experts in the field and formulated a strategy. In time I started to get results. It was slow, methodical, but I kept at it and soon recognized its power. Social media is where the market is going. When I started, I understood nothing about it yet was willing to accept what it gave me. Like some of the great scientists of the past, I eliminated the need to understand and simply just did. I am certainly glad I did.
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