I am often asked by franchisors and business brokers to provide some insight on closing more candidates. As someone who has talked with hundreds of franchisees and had an average 80% close rate, I know a thing or two about this.
It’s my belief that you have to focus on 3 key areas if you want to close more franchise sales.
- Mindset – both yours and the prospects…
- Positioning – you have to position EVERYTHING…
- Maintaining control – If you want the sale, you have to maintain control…
Understand right out of the box that mindset is CRITICAL! Mindset determines your attitude and influences the decisions and more importantly the actions you take. Key examples of this are the coaches I work with around the world. Some coaches bill out around $1,000 per month for their services while other bill as much as $5,000 per month. They provide the same service, get similar results, and even work with similar demographics. The difference is that one group has a different mindset about the VALUE of the service they provide. The result is that one makes $15,000 per month while the other makes nearly $100,000 per month. Big difference if you ask me.
The second thing you have to focus on is positioning. You have to position EVERYTHING! But if you aren’t sure where to start, I have 5 key areas that I feel are the most important to position. Follow these and then adjust from there.
- Position YOU – Who you are, that you are professional, and that YOU are confident in the process. Prospects look to brokers are leaders in their life and need you step up and lead them through the process.
- Position THE PROCESS – Everyone you encounter will want to know what the process looks like. You don’t have to get into all the details or take 30 minutes to explain this. You just need to outline it so they know what to expect.
- Position YOUR TIME – My time is valuable and $500+ per hour, I don’t want to waste it on people who aren’t serious. I like to think of my time as inventory with a daily shelf life. At the end of the day, I have 8 business hours that will expire no matter what I do. I have to use them wisely.
- Position A BALLPARK INVESTMENT – We all know that buying a business costs money. But what we need to do is bypass the fear of talking about the range of the investment. At a minimum, YOU need to know how much they are willing to invest and if this is worth your time.
- Position THEY WILL MAKE A DECISION – One way or another, YES or NO, we are going to come to a decision. In fact, there are many decisions along the way when buying a franchise. Part of your role as a broker is to get them to make these little decisions that ultimately lead to a sale!
The third and final tip here is maintaining control of the prospect at all times. One of the ways you do this is by working on their mindset and positioning everything along the way. And be ready to reposition anyone at any point in the process. To do this effectively you have to become a master at listening to your prospect and asking powerful questions. I personally like to maintain control by assigning homework with deadlines for everything. So if I tell you to fill out a questionnaire, I want a commitment from you when you will have it done and I let you know that I’m going to follow-up with you. In addition to that, I hold people accountable to what they say they are going to do. You have to step up and say, “You said you would have this done today at 3:00 so that’s why I’m calling you. Is it done?” if not, be willing to ask why . I give one second chance. I reposition how valuable my time is and I simply ask if this is still important to them? One key factor here is that I’m not afraid to walk away. I am concerned about wasting my time and I let them know that.
If you would like more details on any of this information or if you just want to have a discussion about how I can help your business, please email me at Michael@michaellejeune.com or you can give me a ring at 636-577-5005.