GROWING YOUR SYSTEM
It’s closing
time
In-House or Out?
5 ways to build your sales team
F
BY STEVE OLSON
ifteen years ago, mainstream franchisors wouldn’t think of contracting their recruitment selling
to outside companies. Today’s mindset
has dramatically changed, fueled by
the advent of better technology, communication, intelligence, and tracking
systems. Development offices are now
more commonplace for many brands, allowing franchisors to attract a larger pool
of selling talent, whether as their own
employees or independent sales teams.
If you are a young franchise company
or in the midst of a turnaround effort,
you have choices for developing a highperformance franchise sales program.
I don’t promote one avenue over the
other, because there simply is no single
“best way” for all concepts. The type of
business, franchise program, corporate
resources, leadership philosophies, and
other extenuating circumstances will
influence which road to take. Here are
your choices:
• Do it yourself. This is still the
most popular approach, but it requires
the ability to free yourself from old thinking that may no longer work in the current market. For start-up companies, I
strongly recommend that the founder is
coached by a franchise sales consultant,
and is personally involved in the initial
franchise sales process. Their success
stories, burning passion, and visionary
leadership often excite potential owners
to be part of their ground-floor opportunities. Recruiting the first franchisees
is a valuable learning experience for the
founder. But this is a transitional role as
the founder shifts more focus to growing organizational and support demands.
• Hire an employee. Through industry referrals or franchise headhunters, there is some great talent available.
Depending on your needs, concept, and
budget, there are three tiers of franchise
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talent available at corresponding salary ranges. Be open-minded, and don’t
necessarily turn down a recruitment
pro who doesn’t want to move to your
headquarters. According to the 2015
Annual Franchise Development Report
(AFDR), more than half (55 percent) of
franchisor respondents allowed regional
and home-based offices for their sales
Today’s mindset
has dramatically
changed,
fueled by the
advent of better
technology,
communication,
intelligence, and
tracking systems.
personnel. Sometimes you may discover
talent right in front of you in an existing
employee who may possess skill sets that
can grow into this role through professional coaching and attending some industry sales training programs.
• Outsource to an independent
sales professional. “Hired guns” can
frequently get you off the ground much
faster. There are freelance individual sales
pros who take on a few franchise clients
and are willing to represent them on a
temporary or long-term basis. This immediately provides you with seasoned
talent who should produce sales for you
once they build a pipeline of prospects.
You also have the flexibility to eventually
bring sales in-house should circumstances
prove more favorable.
• Outsource your sales department. Sales development organizations
can take over your entire recruitment
program, from developing your recruiting materials and lead generation plan
to closing franchise deals. The better
firms are highly selective, so don’t be
surprised if you don’t happen to qualify
for their services. Your concept must
have “legs,” a good support team, Item
19 FPRs, and strong franchisee satisfaction. Recruitment budgets and goals
must be reasonable, and your management must be committed to supporting
the sales efforts. Sounds like a tall order,
but with the right representation these
professional firms could help catapult
your franchise into the 2015 spotlight!
Carefully check them out and require
at least 10 of their franchise clients that
can validate their track record.
• Contract franchise sales brokers.
Franchise brokers or “consultants” have
successfully spurred dramatic franchise
growth for new and mature concepts.
These firms generate and screen qualified
prospects, educate them about franchise
ownership, and introduce them to your
concept. If needed, many brokers will
help improve your sales process so you’ll
be more successful in closing deals. You
pay a fee only when you sell one of their
client candidates—a quite hefty amount
I may add, but it can be worthwhile since
you risk no money up front. No deals?
You don’t pay a nickel. Brokers often
require a vetting process and other fees
as well. (Note: Franchise brands should
not depend only on brokers, or you’re
missing out on a majority of prospects
who make contact through online, print,
PR, shows, and other sources).
Our franchising world offers a wealth
of sales and marketing intelligence with
development and staffing options that
were nonexistent years ago. With a viable
concept, good franchisee satisfaction, and
the right resources, you can successfully
grow your franchisee system. Deciding
the right way to get there is always your
million-dollar question! n
Steve Olson is a 30-year franchise veteran
specializing in development performance.
He is the author of the #1 Amazon best-seller,
Grow to Greatness: How to Build a WorldClass Franchise System Faster, available at
www.growtogreatness.net. Reach him at
[email protected].
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