Challenge and Reward Yourself when You Own an L&D Franchise
But business ownership is tough and the training industry is saturated with independent consultants and coaches. At some point, they were introduced to the idea of franchise ownership. Here, they found the perfect balance between independence and structure. An intersection of business ownership and being part of a group of like-minded individuals.
Perhaps you are now just beginning your journey. You’re wondering what it is really like to own an L&D franchise, and maybe if you have what it takes. Here are four key things you should know.
1. Credentials & Passion Are Key
Owning a learning & development franchise is different than owning, say, a McDonald’s. In many cases, you’re going to be a sole proprietor, at least for the first few years. This means that you will be building relationships and selling yourself.
Having your own background experience in training, development, human resources, and/or leadership goes a long way in this. You will be able to pull from your background experience to connect with prospects and customers on a deeper level. It will also help validate your offering to potential customers, who will want to know what you bring to the table.
Passion is just as important as credentials for a couple of reasons. Passion pushes you through the long days, the days when you seem to constantly hear “no”, and the days when you just don’t feel like you have the motivation you need.
Finally, it is also critical to your personal and business success. There are people who sell and there are people who provide value. If you aren’t passionate about what you do and what you’re providing to customers, you’re simply selling. When you know that you are making a difference and you’re passionate about sharing that with others, you’re providing value. People can tell the difference when they talk with you.
2. Franchising Productizes L&D For You
Training Magazine names productizing your training service one of the top ten things new business owners need to do to be successful.
Investing in an L&D franchise takes the work out of this element of your business for you. Successful franchises have already established the brand’s core competencies, and developed products and repeatable processes around them. You then get to use the content, tools, scripts, etc. to effectively sell and properly deliver a quality experience to your customers consistently.
3. How Much You’ll Need To Invest
Like any business investment decision, you need to understand how much you need to invest. The cost of franchise ownership goes beyond the franchise fee and royalties. Depending on the franchise, it could also include a technology fee, training fees, and a marketing development fund. You may also need to invest in office supplies, such as a new laptop, desk, business cards, etc.
Developing a financial and business plan before investing in a franchise is just as important as if you were to start an independent business. Think about how much revenue you will need to bring in to cover your monthly business expenses, how much income you will need to make, and how long it will take you to make a profit.
These costs and considerations vary widely by different franchise types. Make sure you pay close attention to the Franchise Disclosure Document (FDD) to ensure you understand what fees are required, and what other franchisees are making if it includes an Item 19.
4. What Does A Day In The Life Look Like?
The L&D franchise model is particularly interesting to senior-level professionals who are looking for a change. This often leads to the question: what does a day in the life look like?
This will vary depending on the stage of your business. In the beginning, you will spend most of your time building lead lists, making sales calls, going to meetings, and networking. You’ll be practicing your sales pitch and presentations, as well as your training classes.
Over time, as you build your business, your focus will shift to servicing your clients. For Crestcom franchisees, this means conducting leadership development training for groups of managers in their local area. For most, this is their favorite part!
At first, you may only have one or two training classes per month. Eventually, you may be able to build that to more. You will also be more focused on getting referrals and testimonials from your clients. Additionally, you will want to focus on up-selling and/or cross-selling existing clients. Both these activities will allow you to more easily and efficiently build your business than just from cold leads.
This is by no means a comprehensive list of everything you need to know about owning an L&D franchise. It covers the most common questions that we hear from people like you. But you likely have many more questions.
Let us help you out! Contact us today and we’d be happy to answer your questions and help guide you as you determine if franchise ownership is right for you. No hard sell, no obligation. Just good, informative conversation.