Sales help for Franchisees: Overcoming Objections Easily & Quickly
Naz Daud - Owner, CityLocal
Being a successful salesperson isn’t a talent that you are born with. Some people may have the right instincts and personality traits to potentially be good salespeople, but success still depends on learning and putting into practice the right selling techniques. One of the biggest roadblocks to success in business franchise sales is customer objections. When you are not prepared to deal with them, your prospects for successful sales are bleak. If you take the time to learn positive ways of dealing with and overcoming objections, however, you will see obvious financial benefits.
Let’s say that you have a franchise business selling a certain brand of office furniture. You set up an appointment with and then visit a business owner. Your goal is getting him to replace the office furniture he has with what you are selling. You make your presentation to the customer, laying out in detail the benefits of buying and using your office furniture. The business owner’s first response is that he is happy with the furniture that he has, and none of his employees have ever complained. Almost before he finishes saying this, you jump into how the furniture he has now could actually be physically detrimental to his employees. You tell him that he should replace it with the furniture that you are selling if he cares about the people who work for him. You walk out of there without a sale.
In a slightly different scenario, you make your sales pitch to the business owner, detailing positive facts about your office furniture and why it would be beneficial to him and his employees. He tells you that he and his employees are happy with the office furniture that they have and don’t see any reason to spend money on different furniture. You listen intently to his objection. You ask him to clarify what it is that he and his employees like
about the furniture they are using now. You tell him that you can see why he feels the way he does. You go on to explain that a lot of your customers felt that way at first, but when they bought your furniture they found that
there was a significant increase in comfort and decrease in employee injury. You get the sale.
In the second example of dealing with the customer objection, you show that you are truly listening and not simply thinking about the next thing that you’re going to say. You acknowledge his feelings and empathize with them. You ask him to clarify something to show that you want to make sure that you understand what he’s trying to say. You give him examples of others that have felt the same way, and then you go on to show why other customers ended up preferring your office furniture over what they used before. You can see the difference between this kind of positive interaction and respect for the customer’s feelings, and the negative approach in the first example.
When overcoming objections, customers should always be treated with respect, and their feelings should be taken into consideration. When you think of your customers as people and not potential sales, you are leveling the
playing field and creating a positive atmosphere for successful selling.
Naz Daud is the founder of CityLocal. This Franchise Opportunity is for people who would like to work from home and be their own boss – Read more about the CityLocal Franchise Opportunity.
Buying a Franchise : What to Consider
Naz Daud - Owner, CityLocal
There is always risk involved when you are buying a franchise. It does not mean that if the franchiser is well known, you will also be successful. This is the reason why you have to look into several factors before investing. Think of it as an investment that you can make some profit from if you do the right things.
First of all, you should consider the reputation of the company or the franchisor. This involves the reputation of the franchiser, services, training, support, experience and profit potential. The ultimate reason for franchising a business is its brand and profit potential. You should look at the popularity of the company you are franchising with and find out if it has a registered trademark. This is important because you have to make sure that the franchise opportunity is not just an imitation of another person’s ideas.
You should also find out if the services offered by the company meet your target market needs. The experience of the company is important as well. You have to be aware of the length of time it has been operating or working to know how experienced the franchiser is in the business. Sometimes, the franchiser cannot guarantee close handling of the franchisees needs. That is why it is vital to understand the support and assistance that the company gives to its franchisees.
The training offered by the company is very important, since without adequate training you will not only fail to meet the standards of the franchise, but also be inadequately equipped to run your business properly. A failure of a franchiser to properly train you indicates a weakness, and that could be an indicator for you to get out as soon as you can. Your success depends upon the company’s success, and if the company is based on a foundation of poorly trained franchisees, then the future is bleak.
The franchising disclosure document is important, and you should be provided with a copy of that before signing up. This document will give you valuable information regarding the company, including the business background, the names of the executives, the business processes, the franchising system, and the experience of the company in franchising. Such a document also contains information about the history of litigation, costs, bankruptcy, terminations, restrictions, advertising, and current lists of franchisees. So make sure that you read and understand all the franchising disclosure information, since it will enable you to ask the right questions regarding the disclosure, so that you can get proper clarifications before franchising.
After gathering the information regarding the franchiser, you need to look at other important factors such as the location, market, demand, and competition. The location where you plan to establish the business can greatly affect your venture. Your franchising success will depend a lot on this because these other factors are affected by the geographical location of of the business. A sandwich bar might do reasonable lunchtime business in an industrial estate, but very little at other times.
Selection of the location should be strategic and well planned. Visual inspection is needed to find out if there are competitors in the area that offer the same services. Visit the area you have in mind and have walk around. Knowing the nearest franchisees of the same company is also essential because they can also be competitors. The location of your business should be accessible to your target market. Your market research should tell you which types of location are best for your kind of business; you will want somewhere that provides good exposure and best visibility for your business.
With regard to finance, the cost of the franchise should be well analyzed. Is franchising the ideal route to entry? Can you earn back your investment in a shorter span of time? You need to know how long the return of your investment is. You should also expect additional overhead costs when franchising because earning back your investment usually takes more than a year. This means that you will be spending more before you actually start making profit. There are also other expenses to consider such as the rent, supplies, utilities, and the payroll. Therefore, make sure that you have the necessary funds to sustain the business, so that you will not have to face the risk of bankruptcy.
With all these being considered, costs and benefits of franchising a business should be thoroughly analyzed before making a decision. Some of the factors mentioned above are disregarded by people when they go into franchising, but in order to be successful in the franchising business, you have to consider all these factors and make the necessary effort to ensure that they are in line with your business goals.
Given that you have done your homework and market research, there is no reason why you should not join all those others that are successfully operating a franchise business.
Naz Daud is the founder of CityLocal. This Franchise Opportunity is for people who would like to work from home and be their own boss – Read more about the CityLocal Franchise Opportunity.
Cash Management Tips for Franchise Businesses
Naz Daud - Owner, CityLocal
In today’s unhealthy economy, one can’t help but wonder how small franchise businesses can effectively achieve cash management. In fact, even medium scale and large scale business are struggling to cut back on their expenditure during the current economic situation.
Everyone is tightening their belts, both customers and consumers. Imagine the consequences if no one wanted to purchase goods other than the essentials. What will happen to the restaurant industry? What will happen to the retail industry, particularly those marketing electronics and those gadgets that people can manage without? It’s not just a matter of reducing expenses. Small franchise businesses need to survive and compete with the lower prices that are offered by their competitors, and good cash management is a must.
Here are some tips to help you to save money and manage your business and cash flow. These will also help individuals to better manage their home expenses.
1. Energy Consumption
Electricity is an expense we can’t avoid, but if you are able to keep your energy consumption lower than normal, you can save a fair amount of money. One way to save energy is through the use of laptop computers. Sure, they can be more expensive than desktop computers, but imagine the great savings you’ll get when it comes to energy consumption. A laptop or notebook computer consumes around 90 percent less energy than desktop computers. Most small businesses use computers, and if these are replaced with laptops when the time comes, energy expenditure will be less. The more computers your business uses, the more money you will save.
2. Telephone Costs
The telephone is essential to all small businesses, whether franchised or otherwise, and many use mobiles as well as land lines. Check up on your monthly plan and negotiate a better deal. As competition is increasing, many businesses are stuck on a deal they started off with, and if they renegotiate they can save a lot of money. Use mobiles only where necessary since they are significantly more expensive to use than land lines. Good cash management involves keeping a close eye on communications costs, especially those that are non-essential.
If you use multiple telephone lines in your business, consider VoIP as an alternative. This can allow you to make huge savings, particularly if you have more than one location for your business. Skype offers a completely free service between Skype users, and it is less expensive than normal to phone non-Skype users.
3. Save on Your Ink
Ink for printers can be another expensive item, particularly when calculated over a year. Try to go paperless and print only what is essential. Use recycled cartridges or buy in bulk to save money. Printer sharing on a network can save on the cost of the hardware and also on ink!
4. Save on Lighting
Most people turn off the lights in their homes when they leave the room, but strangely they rarely do so at work. Make a point of doing so. Switching to energy-efficient light bulbs can save a lot of money over a year.
5. Use the Internet
Small businesses should use the internet as much as possible. It is amazing how many tasks can be carried out online, including business calls, sales calls, online business conferencing, video conferencing, live meetings, instant messaging, seminars and so on.
Owning a small franchise business involves almost constant communication with customers, suppliers and other employees. This can be expensive, particularly if it involves travel. It is just as easy to communicate online as by telephone, and video conference is cheaper than a transatlantic flight! Online seminars can be arranged for training purposes, and advertising costs can be slashed through online advertising. Websites are becoming easier and cheaper to put up with every day that passes. The internet offers many opportunities for you to improve your cash management and improve your overall cash flow.
6. Assess your Office Space
Perhaps you have too much office space and you can afford to let some of it out until you have expanded enough to need it. If you are renting, share the rent with another small business that only needs a desk or two.
7. Bulk Buying
A lot depends on your cash flow situation, but it is sometimes cheaper to purchase office items on a quarterly rather than a weekly or monthly basis. This is particularly true if bulk discounts overcome the problem of tying up your capital in stock. You will save on delivery charges, but make sure that you budget the use of such supplies, since there is sometimes a temptation to use more materials or supplies when stocks are higher than normal.
Although times might seem bad, those with the ability and desire to make savings will come through in a much stronger position than small business owners who do nothing. Don’t let that be you, and by following these seven cash management tips for small businesses, you should be able to make significant savings.
Naz Daud is the founder of CityLocal. This Franchise Opportunity is for people who would like to work from home and be their own boss – Read more about the CityLocal Franchise Opportunity.
