Issue Date:  March 2009, Posted On: 3/13/2009

Franchises turn to business coaches for boost

In good economic times, franchise systems want to aggressively grow their companies, increase the number of new franchise locations, and maximize their opportunities. Conversely, in bad economic times, they don't want to lose what they've worked so long and hard to create – they want to minimize their losses by retaining and improving the performance of their existing locations. 

With a softening economy, tight credit and prospective franchise buyers having less access to personal wealth (shrinking 401(k) and home equity), franchise systems are focusing less on new unit growth and more on existing unit retention and effectiveness.   To help achieve this better unit performance, franchisors have turned to outside business coaching services.

During these challenging times, now more than ever, both franchisors and franchisees are “open minded” to seeking business coaching help. For franchisees, like all human beings, they are driven to seek pleasure and avoid pain.  In good times, they want the pleasure of more – more customers, more sales, more stores and more money.  In bad times, they want to avoid the pain of fewer customers, less sales, less stores and less money.

As the economy worsens, that fear of loss in the minds of franchisees strengthens and they are willing to ask for help. Economic storm clouds have served as a huge wake-up call for many franchisees to get their act together – to become more focused, effective and strategic. While it’s always more advisable to work on the leaky roof or foundation when it's sunny, the black storm clouds have motivated franchisees in droves to seek out business coaches and their proven and guaranteed coaching processes. 

Overall, business coaching has been validated as one of the most effective and permanent methods to improve the mindsets, behavior and results of franchise owners. 

Bottom line, it helps franchisees achieve greater success and satisfaction by transforming them to think and act like strategic business owners. It helps them with “between the ears” types of issues and to overcome limiting beliefs, bad habits, and bad business practices. The process helps franchise owners learn to run a business, be better leaders and managers and think and behave more strategically – and make more money working fewer hours. They are given the structure and discipline on a regular basis to think, create an action plan, and then receive on-going accountability to stay on track.

Franchisors have also begun to embrace business coaching and have awoken to the fact that business coaching is supplemental to and in full alignment with their existing training and support systems. There are no conflicts or competing interests. That is why they are sponsoring, endorsing and rolling-out national coaching programs at a brisk pace for their franchise communities. For many franchise systems, business coaching is the “missing link” in total franchise support and development. Unlike technical training and support, business coaching focuses of the overall growth and development of franchisees into true business owners. All aspects of business are tackled from sales to marketing, leadership to employee management, business systems to business planning.

In turn, business improves and performance skyrockets.

National franchise systems such as Fresh Coat (interior painters) and Home Helpers (non-medical senior care) have rolled out national coaching programs to their communities and are seeing among those participating, an increase in franchisee satisfaction, performance, collaboration, unit growth, and better overall recruitment and retention.

While business coaching is fast becoming an accepted best practice for many franchise systems, it is still new enough to the industry that a few explanations may be in order:

•Coaching vs. consulting – Coaching is a process of empowerment and self-discovery for the client; consulting is a process of telling clients what to do.

•Training vs. coaching – Training is an event whereas coaching is an on-going process with built-in accountability. Accountability ensures that mindsets and behaviors change for the better.

•On-going – For example, The Growth Coach program is year-round and consists of eight quarterly modules over a two-year period.

•Behavioral-based – The Growth Coach process helps change the way franchisees think and act, thus ensuring significant, lasting and positive change. For the business to grow, the owner must grow. 
 Strategic – Franchise owners are hard-working and have lots of energy but sometimes they need to be reminded to work “on” the business and not just “in” the business. They need to be focused on high-value, high-return tasks.

•Confidential – What happens in a coaching session stays there – trust is key.

•Collaboration – For private group coaching sessions, franchise owners get to collaborate, bond and share best practices with their peers.

•Strategic Plan – Every session the franchisee leaves with greater clarity about where they are going, a customized action plan to get there, and on-going accountability to stay on track so results are achieved.

When the economy gets a bit tougher, the competition gets a bit tougher, and franchisees get a wake-up call to get a bit tougher themselves. They instinctively know it's time to prepare more (fix the leaky roof) and listen to an objective adviser or coach who will help them face reality, decide on strategic changes that need to be made, help put a focused action plan together, and then provide on-going accountability to drive results.

With a softening economy, everything is on the line.

There is no coasting, no taking things for granted, no easy wins. Now is not the time to be complacent or go into denial. Franchisees, like athletes, need to step up their game, get focused, and execute their game plan if they want to avoid getting beat. 

Regardless of when an owner seeks to benefit from business coaching, in good times or bad, out of inspiration or desperation, the important thing is they get help. Whether they are seeking the pleasure of more or preventing the pain of less, the good news is they come to work on themselves, on their business and on their personal life. Business coaching is always a good form of insurance. After all, being prepared, focused, strategic and effective is never a bad thing.

Daniel Murphy is founder of The Growth Coach, a business coaching franchise system, which was ranked as a “Top 10 Fastest-Growing Franchise” in 2007 and 2008 by Entrepreneur Magazine. He is also the author of “Becoming a Strategic Business Owner.”