This virtual Fireside Chat was sponsored by Workiz in spring 2021- catch the replay in the YouTube video below!
Start by managing your time effectively as a franchisor
Red likes to pick a “Word of the Year” in his personal life and his 2021-themed word of the year is “Time.” His themed word for the company is “Admire” as they become the most admired organization in franchising from the vendor/supplier standpoint.
Red loves improving franchise systems, but it starts with the leaders that run them. Here are his top 5 tips for managing time as a busy leader:
- Take care of yourself
- Set & focus on your top priorities and say ‘no’ often
- Delegate your eeaknesses- eliminate your gaps so your organization can run smoothly
- Evaluate your habits & routines- become obsessed with what truly matters
- Structure your work environment- create the office atmosphere that you desire because life is short!
Hire the best and create a winning culture
Red definitely knows the importance of hiring the best and developing a winning company culture. As we leave the pandemic behind, it can be tough to find great talent in home-service industries. Many businesses complain that they aren’t seeing enough skilled tradespeople in this day and age. Red believes that there are good employees out there, just waiting to be hired!
- Here are his top 10 tips for hiring great employees and finding new franchise talent:
- Network and connect with people at events
- Build the “Know, Like, Trust” factor with all connections
- Utilize LinkedIn to your advantage
- Write powerful job descriptions
- Conduct reference checks and always get feedback from former employers
- Share examples of the culture during the recruiting process- stories tell and facts sell!
- Be a team player as a leader- Red believes that franchisees don’t care how much you know until they know how much you care. Empower the people on your team to also foster an awesome culture.
- Hold people accountable and get them in the right seats- sometimes you might have to make tough decisions if it isn’t a fit, constantly evaluate
- Do what’s right.
- There’s no culture if you’re not profitable- you’ve got to have the right people to help you reach profitability because, without that, there is no business!
Avoid these mistakes when growing your franchise
These are the top mistakes that Red sees Zors make frequently as they attempt to scale their franchise business.
Mistake #1: From what Red has seen in his 25+ years of experience, he’s found that the initial franchise fee is usually pretty low- get it up there so that you can grow wisely.
Mistake #2: Not including very thorough & detailed resale obligations- these rules and communication flow should be outlined in Franchisee Training and their Operations Manual. In Red’s opinion, it would be wise to start planning for resales from day one.
Mistake #3: Not treating your Franchise Disclosure Document (FDD) as a Sales tool- it can definitely be your friend if you build it correctly.
Mistake #4: Not understanding how much it takes to get to royalty self-sufficiency- Red has seen that it takes a lot of work, a lot of moving parts, and a lot of money to reach the point of self-sufficiency. He advises new franchisors to realize that this state of the business might be a lot further down the road than you might think!
Mistake #5: Not updating and tracking updates to the Operations Manual- use technology to your advantage and keep these up to date for the success of your system.
Mistake #6: Not vetting out each and every applicant- stay away from awarding a franchise to “just anyone.”
Mistake #7: Not joining the industry-leading organizations such as IFA and IFPG- these are highly supportive communities helping build the industry and grow each system effectively.
Know your key points
- Positive Validation- This is a critical key to awarding any franchise especially post-pandemic. Many buyers are asking “How were the franchisees supported during COVID?” Be sure that you can answer these questions positively and effectively.
- Unit Level Economics- get those handled and support each location’s growth.
- Scalability- Ask yourself, “Can the Zee scale it on their own?” Get multi-unit friendly to allow the Zee to serve multiple markets, territories, or zip codes so that they can expand.
- Semi-Passive- Have a plan to help Zees become more flexible for those who don’t want to be 100% full-time.
- Extreme Support- Ongoing communication with your Zees matters.
- Fresh Concepts- Get the Zees involved in training, validation, and optimizing your model on the frontlines.
- Private Equity- Is your brand acquiring more brands? Are there more brands available for your Zees to purchase?
We hope these tips will help you and your franchise thrive in 2021 and beyond! Check out Workiz for a free 7-day trial and 30% off your first 3 months by visiting https://www.workiz.com/trailblaze/.
Red Boswell brings over 25 years of executive leadership in many areas of franchising, marketing, and entrepreneurship. Jordan Tait is a Partner at Trailblaze Partners.