Is Today's Job Market Hurting Your Franchise Placements?
"The Uninitiated" vs. Active Entrepreneurs!
April 2019 The U.S. Unemployment Rate is 3.8%! Currently there are more jobs than people seeking employment.
Should you be focusing on the unemployment market for your next placement?
We've been hearing a lot lately about the impact of today's labor market on franchise placements. And we've lived through tight labor markets and drastic underemployment or unemployment scenarios throughout the years. Many of your clients who ultimately want their old jobs back are optimistic that they'll be gainfully employed in their chosen field again. Their phone is ringing with employment offers, which will delay or even change their decision to invest in a franchise.
Historically a strong job market presents some unique challenges for strong referrals to franchisors. Here's why:
If you've been helping people review their options in franchising for more than 3 or 4 years, you've felt the impact of the labor market. When your candidate's phone is ringing with job offers, it can be challenging to get them to focus on pursuing their long-term dream. It can be even harder if that candidate never even took any initiative to start their franchise search in the first place, but instead merely answered their phone and agreed to "learn more". We call them the "Uninitiated"--these people's primary goal is to get their jobs back. They're good people, have time to talk, and are really looking for steady income, health insurance, paid vacation days, etc.
The "Uninitiated" are those people who have posted their resume online and were cold called about their "options". They received a promising call about their future options and are asked if they'd consider owning their own business. They really want their old job back and took the call expecting to learn about a steady paycheck. Then they were asked if they'd be "open minded to learning more". They have the time and who wouldn't be open minded to learning more? Especially if they are unemployed.
The challenge with these types of candidates is that their phone is ringing and their emails are alerting them to actual jobs-the only thing that many of these "leads" are really looking for. Their ultimate goal is really just want health insurance, a steady salary, a retirement plan, etc. and are now getting the interview calls they truly desire, which is great for them, but it is perhaps slowing down your placements if you are relying on job seekers. Again, these people are looking for their salaried position back--with all the trimmings of working for someone else.
And many of these candidates are willing to "wait and see" as these job offers or interview requests come in.
Conversely, the "Initiated" are those candidates that took the important first steps (on their own) to learn more about their options in franchising for their local market. They've done some research and have asked to be contacted and want to learn more-verses simply agreeing to being open-minded or willing to learn more from a telemarketing call. From our 16+ years experience, if someone isn't even willing to start their research process themselves, they may lack the motivation to make it through the entire discovery process-especially when their phone is ringing with job offers. Not everyone falls into this category, but it is a real factor if you're relying on job seekers to become entrepreneurs for your next placement.
At Franchise Farm we work with the Initiated--those who have actually asked to be contacted on their own without having to have the idea of investing $50,000 to $500,000 pitched to them as an alternative to what they actually are looking for. True entrepreneurs rarely need to be "sold" on learning more--they are people of action and have started their search for their next business without being prompted to give up their goals, because their goal is already entrepreneurship!
We'd love to speak with you about our programs and the difference you'll see in working with the "initiated".
April 2019 The U.S. Unemployment Rate is 3.8%! Currently there are more jobs than people seeking employment.
Should you be focusing on the unemployment market for your next placement?
We've been hearing a lot lately about the impact of today's labor market on franchise placements. And we've lived through tight labor markets and drastic underemployment or unemployment scenarios throughout the years. Many of your clients who ultimately want their old jobs back are optimistic that they'll be gainfully employed in their chosen field again. Their phone is ringing with employment offers, which will delay or even change their decision to invest in a franchise.
Historically a strong job market presents some unique challenges for strong referrals to franchisors. Here's why:
- People with a long work history often have them for a good reason--they aren't natural entrepreneurs.
- Long-term corporate warriors typically get health insurance, 401K, and a host of other benefits that they value and need.
- Many people looking for employment are happy to talk about some options. They often do so while they are actually looking for a steady paycheck vs. investing their savings into a franchise. And they are seeing results from their job search.
If you've been helping people review their options in franchising for more than 3 or 4 years, you've felt the impact of the labor market. When your candidate's phone is ringing with job offers, it can be challenging to get them to focus on pursuing their long-term dream. It can be even harder if that candidate never even took any initiative to start their franchise search in the first place, but instead merely answered their phone and agreed to "learn more". We call them the "Uninitiated"--these people's primary goal is to get their jobs back. They're good people, have time to talk, and are really looking for steady income, health insurance, paid vacation days, etc.
The "Uninitiated" are those people who have posted their resume online and were cold called about their "options". They received a promising call about their future options and are asked if they'd consider owning their own business. They really want their old job back and took the call expecting to learn about a steady paycheck. Then they were asked if they'd be "open minded to learning more". They have the time and who wouldn't be open minded to learning more? Especially if they are unemployed.
The challenge with these types of candidates is that their phone is ringing and their emails are alerting them to actual jobs-the only thing that many of these "leads" are really looking for. Their ultimate goal is really just want health insurance, a steady salary, a retirement plan, etc. and are now getting the interview calls they truly desire, which is great for them, but it is perhaps slowing down your placements if you are relying on job seekers. Again, these people are looking for their salaried position back--with all the trimmings of working for someone else.
And many of these candidates are willing to "wait and see" as these job offers or interview requests come in.
Conversely, the "Initiated" are those candidates that took the important first steps (on their own) to learn more about their options in franchising for their local market. They've done some research and have asked to be contacted and want to learn more-verses simply agreeing to being open-minded or willing to learn more from a telemarketing call. From our 16+ years experience, if someone isn't even willing to start their research process themselves, they may lack the motivation to make it through the entire discovery process-especially when their phone is ringing with job offers. Not everyone falls into this category, but it is a real factor if you're relying on job seekers to become entrepreneurs for your next placement.
At Franchise Farm we work with the Initiated--those who have actually asked to be contacted on their own without having to have the idea of investing $50,000 to $500,000 pitched to them as an alternative to what they actually are looking for. True entrepreneurs rarely need to be "sold" on learning more--they are people of action and have started their search for their next business without being prompted to give up their goals, because their goal is already entrepreneurship!
We'd love to speak with you about our programs and the difference you'll see in working with the "initiated".
| Bureau of Labor Report |
