The Four Franchise Buying Styles

In the early 1920s, an American psychologist named William Moulton Marston  subscribed to the idea that there are four dominant communication and behavior styles. Marston discovered those who possess similar characteristics also happen to speak, listen, process information, make decisions and produce results in similar fashion,, classifying franchise buyers as the Action Hero, Comedian, Faithful Sidekick and Private Eye.

Action Hero

Action Hero’s are visionary, entrepreneurial, results-oriented and big-picture thinkers.  They are strategic and efficient, pushing for the quickest, easiest and simplest way to produce results. They would buy a franchise because, “It is an efficient use of resources and the quickest and easiest way to achieve my objectives.” They see the franchisor as a strategic partner but would predictably arm wrestle from time to time over issues of control.
Keys to communicating: Get right down to business. State your objectives for the call up front and ask what they are looking to achieve. State a simple agenda and get their buy-in. Implement the “3 B” communications strategy: be good, be brief and be gone.  Have clear follow-up, knowing who does what and by when. Don’t challenge their opinions or they might get argumentative. Instead, ask permission first: “Would you be open to hearing any data contrary to your opinion?”

Comedian

Comedians are outgoing, gregarious, influential, charismatic leaders, personifying the typical sales and marketing personality. They are optimistic and entrepreneurial and work well on a team. They are brilliant at sales and marketing and make work fun. They see the franchisor as a teammate and seek to build deep personal relationships with the franchisor’s staff. They need to align the business with their identity, looking to see themselves in the business.

Keys to communicating: Chit chat. Get to know them as people. Ask personal questions and expect them to ask the same of you. They only do business with friends, so be informal. Have an agenda for every call, but let them zig-zag in the middle. Move quickly. Crack jokes. Ask questions that get them back on agenda as they drift. Put all follow-up action items in writing.   

Faithful Sidekick

Faithful Sidekicks are slow, methodical and data-based decision makers.  Like the Comedians, they are strong relationship builders, but more low-key and better listeners.  They follow processes and systems. They see the franchisor as an “insurance policy,” thinking, “I would rather hit a single or double with a high degree of predictability than hit a homerun but incur more risk.” They are motivated by security and stability, and they want to belong to a larger group.

Keys to communicating: Slow down. Have an agenda for every call with clear action items. They ask many questions and prefer detailed answers, so leave time for these calls. Ask questions to draw them out. They may not volunteer information unless asked. End calls with clear action steps. They take a longer time to make decisions than Comedians or Action Heros. Don’t push them too hard or they will shut down.

 Private Eye

Private Eyes are highly informed, analytical, data-based decision makers. You have to create a solid case as to why the business is unique, profitable, necessary to the customer and sustainable for the long haul. They follow processes and systems to the letter. They are very quality driven and excel in the technical parts of a business. They prefer to work alone.  

Keys to communicating: They move slowly and methodically, collecting reams of data and asking many questions. They are very risk-averse and may appear to be low on trust or lacking confidence. They are professional in their approach, and it is wise to respect that boundary. Don’t try to be “buddy buddy,” as they will see this as unprofessional and that might create a trust issue. Have an agenda for every call.  Follow the agenda closely without jumping around. End meetings with clear action items, detailing who will do what and by when.

Predicting Buying Styles on the Fly

When on a call, listen for speed and pitch. All fast-talking, expressive “headliners” are either Action Heros or Comedians. In face-to-face meetings they talk with their hands. If you encounter a fast talking, expressive headliner, immediately create some professional distance. Action Heros will respect the boundary and engage you formally.  Comedians will cross the boundary by asking you personal questions.

Conversely, if you immediately experience someone as slow talking, more monotone, and who speaks in whole and complete sentences, know you are talking to either a Faithful Sidekick or a Private Eye.

A simple rule of thumb is that franchisee recruiters want to recruit according to their style. However, franchise buyers want to buy according to their style. The best recruiters are masterful at simply letting buyers buy, giving them what they need and how they need it to make an intelligent decision.

By Joe Mathews, CEO of Franchise Performance Group

How2Franchise News Story

 

Let us hold your hand through the world of franchising

Living Portraits Franchise

Post-Brexit Franchising Advice from the Experts

March 31, 2017
Prime Minister Teresa May triggered Article 50 on Wednesday, the 29th of March, officially beginning proceedings for the United Kingdom to leave the European Union.
Over the next two years, the United Kingdom and the 27 countries of the European Union will negotiate deals on international trade, including access and restrictions to the free market, amongst numerous other issues.
While it is certainly not an instantaneous exit, businesses in the UK are looking ahead to what this means for them and their livelihood. There’s no denying that there is uncertainty swirling around the value of the pound, the upcoming divorce negotiations, and the future relationship between the UK and the EU, but after all, it is the British way to keep calm and carry on, so there is no need to panic.
There’s also no need to cast aside your plans to franchise your business or scrap the idea of opening a franchise.
Franchise Direct spoke to several franchise consultants about the advice they’re offering their clients now that Brexit is underway. Many expressed positive aspects for businesses, particularly those with international aims and those in the tourism industry. Hear what they have to say below!
Post-Brexit Franchising Advice from the Experts

“We are helping a lot of companies to franchise internationally, and despite all the negatives we are finding a British brand is very well-received, especially in the Middle East and Asia. A lower sterling can only help the franchise be more attractive. My advice to franchisors is to be confident in their service or product; the world is a lot smaller today and there are countless opportunities outside Europe.” —Rod Hindmarsh, How2Franchise

“We are in the process of designing a new franchise in the tourism sector, which we believe will be very positively affected by the UK’s current exchange rates favouring visitors to the UK. Positive exchange rates for UK exporters are all good news, but don’t necessarily filter down directly to a single unit franchisee. For those in the hotel sector, tourism, or any connected line of business, a better exchange rate — in addition to encouraging visitors to the UK — will discourage domestic customers from holidaying or travelling elsewhere, which means more money is spent in the UK rather than abroad. That can only be good news for those franchises in this sector.” –Andy Cheetham, Lime Licensing Group

“Potential franchisees are investing for the next five years; it is intended to be a long-term, renewable, relationship — life-changing for them. Once they have made a decision to get on with it, my advice would be they should press ahead on the basis that Brexit, itself, will not affect many businesses in the UK who are buying and selling with other UK citizens. If the business they are buying into is dependent on an international supply chain that could genuinely be affected by Brexit, of course they should ask questions to satisfy themselves that they would be protected in the event that an alternative supplier had to be found locally.
“One point to consider for them, I suggest, is that the nature of the concept they are investing into should be one that is sustainable through all types of economic weather. If they are going into something which is in a fashion or fad or has reliance on people’s discretional/marginal spending, then it would be important for them to be linked with a brand that is strong in its market with positive reviews from clients, as those are the ones that are likely to continue more readily through temporary downturns.

“In our view the most important concerns for potential franchisors, potential franchisees and those going overseas is simple – the business system should be proven profitable and resilient. These features carry businesses through challenges, come what may. Franchising remains a great way to do business.” –Nick Williams, Ashton’s Franchise Consulting

Post by Anne Rowan

Every Child Matters Franchise

Serving the franchise industry for 20 years

Taking the first tentative steps on the road to franchising can be somewhat daunting.  This is where we can help you franchise your business with our step by step approach – a strategy How 2 Franchise have fine-tuned throughout the course of our career spanning over 20 years in the world of franchising.  Our experience allows us to teach you the best methods and structures whilst avoiding the most common pitfalls and mistakes.

 

We can support you in every aspect of franchising. If you are thinking of franchising your business, we can complete most of the work on your behalf, or you can save costs and purchase our D.I.Y professional franchise template documents.  This Includes Everything You Need To ‘Franchise My Business’.

We will sculpt and shape the idea you have for your business, inform you of all the costs and steer you away from the many pitfalls.  We Do The Work For You – 95% of the franchising work is carried out by our team, leaving you to focus on your core business.

Find out more here or contact How2Franchise direct below. 

https://www.workingmums.co.uk/top-franchise-awards/sponsors-top-franchise-awards/how2franchise/

5 Reasons In-Person Meetings Still Matter

Here are five reasons:

1.Reduced distractions

How many times have you attended a virtual meeting only to be sidetracked by incoming emails from your colleagues or boss?  I am guilty; we all are. It is simply unavoidable.  
A recent InterCall survey found that of the 340 marketers surveyed, only 62 percent said they would log on from their office. Yet, more than a quarter of respondents were attending from bed (14 percent), their car (9 percent) or from the beach or swimming pool (5 percent)!

When attending an in-person event those innate virtual distractions are removed for participants. Also, it may sound odd, but the peer pressure of the other attendees in the room helps to keep attention on speakers.

2.Beyond the content

When event-goers pony up cash, invest time and take a flight to attend; they’re committed. And these attendees are more likely to take part in breakout sessions, post-event dinners and other networking events, leading to a more involved and complete experience.

Related: These 5 Mistakes Make Meetings a Huge Time Waste

When meetings are held in-person, there is a unique opportunity to get creative and leave a lasting impression about your brand and company culture. A live experience means that attendees can engage multiple senses that just cannot be duplicated with a computer.

3.Comfort zone eliminated

There is something invigorating about being in a room full of people who are as excited to talk about the same topic as you are. It can renew attendees’ excitement and focus about the topic of discussion.

Attendees are physically in a room with others that have the same learning goal but different backgrounds. This allows for meaningful relationships to grow beyond their industries.

4. Networking hurdles removed

Behind the screen is a not an effective place to meet people. The hurried nature of online events may help attendees “meet” a larger number of people, but the virtual world allows for less quality time to interact with others. 

An article, which recently appeared in Psychology Today, suggests that too much time behind a screen could hinder people’s ability to recognize emotions — a vital tool for building successful social relationships.

5. Let’s keep this ‘off the record’

When attending an in-person event, there is an opportunity to speak more freely in one-on-one situations. There is also a heightened sense of trust when meeting with someone in person vs. just speaking online — and less of a chance something will be taken out of context.

The next time you consider whether there is enough room on the budget to meet in person, consider these points. While the time and cost is a greater investment, it is worth exploring to reach the goals your organization is looking to achieve.

3 Signs You Need to Pivot

With any business or marketing effort, there’s always the chance of falling short. No venture is perfect in its first iteration. In fact, some of today’s most famous companies built their current incarnations off former failures — companies such as Twitter, Instagram, Foursquare and Groupon all owe their success to major pivots.

Another well-known example is AT&T. The company’s Bell Labs research had already invented mobile phone technology by the 1960s. AT&T could have cornered the market on wireless, but its research mistakenly indicated that the trend would never catch on significantly. In 1984, when AT&T divested the Bell System in an antitrust suit, it essentially gave away the technology in favor of long-distance service, believing wireless would stay confined to a small market.

AT&T rectified that mistake in 1994 by acquiring McCaw Cellular, and now it’s one of the three top brands in U.S. wireless. Wireless is AT&T’s most profitable sector, but the company’s second chance at the technology cost $12.6 billion.

 

Many entrepreneurs don’t have the capital to afford such a miscue, but they have the same tendency to bet too much or too little on products or services, which can lead to hard failures.

Here are three surefire ways to recognize when to pivot and determine how to make a successful change:

1. That little stomach tickle

Everyone knows the funny feeling that arises in the pit of the stomach when something’s wrong. When smart, experienced marketers get that feeling, they should pay attention. Malcolm Gladwell’s book “Blink” chronicles just how often our gut instinct proves to be right.

I once had a client who was marketing a commodity product at insanely high premiums, and it wasn’t getting any traction. He knew his product offered no extra value but was determined to stick to his revenue projections despite his instincts. The venture didn’t end well.

2. A lack of customer enthusiasm

Most companies today are driven to market fast and early, and products and campaigns rarely receive the ideal prelaunch testing. So it’s extremely important to get close to the point of the spear — the crux of the customer purchase decision — before products hit shelves. It’s easy to fall into the trap of focusing on what you’d like to sell rather than what people would like to buy. Whenever I see any business (including my own) heading that direction, I try my best to curb that impulse.

Is this product different? Will people pay for it? These answers should be no-brainers for business owners and team members alike. If anyone has trouble responding, the product isn’t ready for market. In that same vein, ventures can’t be only about the product; the rollout has to be executable and worth the marketing costs. Think realistically about distribution, product promotion and communications.

3. The digital team’s alarm

By 2020, 85 percent of customer relationships will involve no human-to-human contact, yet only 5 percent of marketing teams have a fully automated system for handling leads. In today’s marketing world, it’s essential to set up digital-marketing response mechanisms to assess customer interest and determine if a pivot is necessary. Digital and email formats both offer analytic tools that provide excellent campaign information and help lay out ROI.

In this data-driven environment, if you fail, fail quickly. Though every campaign will fail to some degree, the key is isolating that defeat and pivoting toward success as early as possible — before more money and resources are wasted.

Why banks like to lend to franchise buyers

The pre-proven nature of franchising makes it a far safer bet for lending than stand-alone business start ups, a fact recognised by the Bank of Ireland and many other high street banks who offer specialist advice for prospective franchisees

 

Bank of Ireland Business Banking is committed to working closely with new and existing customers to enable them to develop and grow their chosen franchising business.

Margaret Nolan is Business Manager at Bank of Ireland Business Banking, which has 600 experienced business bankers in over 270 branches nationwide, which are available to support the franchisor and franchisee in any aspect of lending for a franchise.

There are currently over 270 different business format franchises in Ireland generating turnover of 2 billon euros and employing in excess of 25,000 people. These statistics prove the importance of franchising in our economy where continuing sector growth presents opportunities for people who wish to own their own business and work for themselves but not by themselves.

The combination of a strong franchise with a proven track record and an ambitious franchisee makes good business sense from a banking point of view. Failure rates for new franchise businesses are much lower than independent start ups making them a much more attractive lending prospect. A proven track record of operating profitably in the Irish market through a pilot operation should be strong enough for both a bank and the potential franchisee to be comfortable with the investment.

Bank of Ireland Business Banking recognises that franchising has become an integral part of our economy, which has experienced exceptional growth in recent years and as such we understand the importance and development potential of this sector in Ireland. For these reasons Bank of Ireland Business Banking is committed to working closely with new and existing customers to enable them to develop and grow their chosen franchising business. A lender will expect a potential franchisee to provide a portion of the total investment costs as equity, ranging from 30 per cent for established franchises to 50 per cent in the case of new franchises. The lending package can be a combination of asset finance, term debt and overdraft facilities. Bank of Ireland Business Banking can fund up to 70 per cent of set up costs for franchisees and the package can be a mix of all of the above products.

The costs involved in buying into a franchise can be a mixture of initial start up costs and ongoing costs. These costs can vary from thousands to hundreds of thousands of euros, depending on the type of franchise – whether it involves ‘a man in a van’ or a retail outlet. The initial start up costs can be broken down into: the deposit, initial franchise fee, premises/vehicle leasing costs; and working capital. The ongoing costs can include either a fixed monthly fee (payable irrespective of turnover) or a royalty fee (dependent on turnover) plus an advertising fee, to support the brand through marketing activities. When assessing a business proposal from a potential franchisee, Bank of Ireland Business Banking will review the proposal in as much detail as any other business. A detailed business plan will be required outlining:

• Detailed information regarding the particular franchise and its franchisor.
• Market and industry analysis – detailed market research supports the proposal.
• The competition and how many like businesses operate in the market.
• Personal information about you and your own business background.
• Financial assessment outlining the costs of setting up, your contribution, how much you wish to borrow and what security you have to offer. Also a set of financial projections, cash flow forecasts and profit & loss projections should be included.
• Business assessment: is this a good business concept, tried and tested and proven by a profitable pilot operation?

Together with the detailed business plan, the lender will expect that the potential franchisee has done their homework, has a deep understanding of how the business works and is ambitious and enthuastic about the concept. It is also important that the potential franchisee has approached existing franchisees to ensure that a good franchisor/franchisee relationship exists, which offers high quality support and ongoing training. A well researched local marketing plan must be in place to attract customers. Security can also be required by the bank dependent on the amount borrowed and how much is being invested as equity.

It is important that independent legal advice on the legal agreement is sought before signing. This agreement should outline the obligations of the franchisor to the franchisee, and also the obligations of the franchisee to the franchisor. It is important that professional advice is obtained from a solicitor familiar with franchising