Are you a Meerkat or an Ostrich

by Howard Williams, Senior Franchise Development Consultant, Howarth Franchising Group

In the current economic climate, are you a Meerkat or an Ostrich?

According to some, the Meerkat got its name when early Dutch settlers to South Africa could not decide whether this strange little creature was Dog, Cat or Monkey and eventually decided that it was more Cat or “Meerkat” than anything else.

The Ostrich, the largest living species of bird is mythically famous for burying its head in the sand when confronted with danger although in reality, when faced with danger, what they do is drop to the ground and pretend to be a pile of muck or simply, run away.

Anyway, what’s all this got to do with you?  Well, recognising whether you are a Meerkat or an Ostrich is very important.  If you want to get through, you might need to ape the little chap but don’t worry, I’m not moving on to yet another species!

However, think Meerkat and you should think keen, canny, opportunistic and pragmatic and that’s exactly what’s needed to survive in the tough climate it lives in – it’s like they’ve been through the SWOT analysis and come through with their very successful colony life ethic.

Of course, franchisors also need to make the most out of the current climate.  Right now, people are being made redundant, many more are feeling the threat of redundancy and some are just sick and tired of the whole corporate lifestyle – especially when they can see the pressure on the guys at the top and some of them are the guys at the top feeling the pressure.  From the franchising perspective, this is a time when there are many individuals looking to take control of their own future to overcome the uncertainty.  Many do not want to simply find another job – not least of all, because it’s not simple and they would love to start their own business.  The problem is, either they don’t know how to, or are not sure what sort of business they want to run and of course, this is where you as the Franchisor can and will benefit.

So, how can you make like a Meerkat and take full advantage?

Assuming your core business is sound and riding the storm, you need to recognise the opportunity and attack it with some marketing and PR effort.  Increase the stories of local successes to generate more interest.  Re-visit the marketing spend and make sure you are spending your money wisely.  If one sector of the media is proving to generate more interest, divert more spend in that direction and reduce or stop spend elsewhere.  Now is the time to make sure you really do get more bang for your buck.

Next, be ready - preparation is essential, so make sure you have a full armoury of up to date and relevant recruitment materials and also that you are up to speed with what is going on in your own business.  It is no good selling franchises when you are quoting old or out of date statistics – especially now.  Now is the time to conduct a thorough review of your recruitment processes and re-work it to meet the current climate so you can be slick, well presented and credible.

Never overlook that the lenders are a key part of your franchise proposition, as without them, you need franchisees with 100% cash so keep them in the loop.  Make sure the lenders are fully up to date with what’s happening and your current results.  The last thing you need is to get that elusive next franchisee past the commitment stage only to find out the bank is out of touch and starts making negative noises.  Get face to face with the Franchise teams at your favoured banks and make sure they know where you are and why your proposition is still a great one.

Keep a keen eye on current issues – both in your sector, but especially in franchising.  If the franchisors competing for your target franchisees are in the press for good or for bad reasons, make sure you know about it.  Be ready to answer questions from franchisees and to use these little nuggets of information to your full advantage.  You will be suitably and impressively well informed and this will provide additional comfort to your prospects.

Finally, make sure you have in place the most effective and timely processes for following through on all interest in your proposition.  Don’t waste your investment by letting good prospects get away.  What you need right now is good, qualified applicants who want to talk to you – not stories about the ones that got away.

At Howarth, a big part of our work at the moment is advising franchisors and their teams on ways to fine tune their current processes in order to optimise on the opportunities the current climate presents.  We are also seeing increased attendance on the courses run by our Franchise Training Centre as franchisors increasingly seek to improve the effectiveness and fill the knowledge gaps of their support staff.  Our Franchise Support Centre is expanding capacity as more and more franchisors hand over the initial parts of their recruitment process to guarantee effective and timely follow through and to ensure they only talk to fully qualified, quality prospective franchisees.  What this tells us and what it should tell you, is that the competition is heating up.  Many franchisors are upping their game and of course, if you want to win through, you will have to up your game too.

The alternative?  You could of course mimic the Ostrich and make like a mound of dirt or simply run away.  What is it to be – Fight or Flightless bird tactics?

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