The Impact of a Minority Government on Franchising?
In the aftermath of the General Election in the UK that returned a minority Government many franchisors will be wondering if the political instability of a hung parliament will have any impacts on the potential recruitment of franchisees to their systems. It’s a tough question to answer and with the Institute of Directors (www.iod.com ) announcing their latest poll of 700 business leaders citing a dramatic drop in confidence following the election it could cause concern for franchisors.
However, history often shows us that an economy that is not as vibrant as we might like, can be a cause for optimism in franchise systems. With an economy that is stuttering with uncertainty many individuals take stock of what they can personally do to secure their future. Whilst indeed many people will hunker down and seek to weather the storm and ‘see what happens’ there are also a sufficient number of people that evaluate what they can do to make sure that they do not become a victim of events outside their control. Now is the time to be bold in your messaging and go to market with a positive strategy to tease out those people that want to control their future and not be controlled by external events. Many franchise systems offer certainty in an uncertain market as they may be working in sectors that will benefit from the current economic cycle. Speaking to those individuals that are contemplating a change in direction, or at least those that are open to the idea of doing something for themselves at this time, can mean that your system can continue to thrive no matter what happens with the political system in the coming months and years.
The franchise systems we work with at Franchise Top 10, recognise the need to speak to people early in their thought processes about a business venture and nurture that talent over a period of time. Franchise recruitment should be a business strategy, not a tactical event as it takes time to recruit the best people to your system. As we approach the second half of the year you should be planning your recruitment for Q4 2017 and beyond as the typical cycle of 3-6 months that a franchise prospect takes to materialise means that if your sales funnel does not have your Q3 targets in them by now you are potentially going to have a barren Q3 performance in terms of franchise recruitment.