The Dealmaker in a Franchise Business
by Louis Germishuys, Founder and CEO of Galito’s
As an entrepreneur and franchisor you are often called in to assume a number of different business roles –
- administrator and
- sales manager for example in additional to
- overall strategist.
As a result, depending on the business requirements, you could be wearing a different hat – and one of those is:
The ideal dealmaker
Dealmakers not only close deals – but they build empires. However, being a dealmaker is challenging and something that you need to work at – as while you may possess a natural charisma, there is more to deals than a winning smile. It requires a balance of a number of components that not only take the business growth requirements into perspective, but also the broader relationship to ensure it’s a win-win all round.
The dealmaker’s ability
In fact, understanding the other side is critical. It is something that takes time and effort but is certainly worth the investment. Whether it is a partner you want on board, or an investment you require, knowing what you are up against, what their pain points are and what solutions you bring to the table ensures you are able to speak ‘their language’ and bring a fresh approach – which is often lacking. Too often, businessmen enter negotiations with not only a limited view, but a one-sided opinion – which means common ground cannot be established.
‘Own’ your franchise! – you make the rules
No one knows your market better than you do – and sometimes negotiations don’t go the way you had hoped – and that’s okay. The important thing is that you do what is right for your business. Stand with integrity and sometimes that means ‘no deal’. Investors and franchisees should be selected not based on how deep their pockets are, but rather in terms of their passion and shared vision – which goes a long way in ensuring success.
Weaknesses and threats
One of the biggest stumbling blocks is emotion. Good deals are never made with emotion at the centre – and those that do, are likely to fail. Good deals are those that look at the numbers, the statistics and the future opportunities. They are also the ones that ensure integrity and a vested interest are foundational blocks to the numbers. These are the deals that work – the ones that last. And while you are passionate about your brand, don’t let emotions cloud your judgement. It is for this reason that you prepare and plan, and then prepare and plan again, to ensure that the ROI as well as that you are creative and flexible in your approach but unwavering in your foundational values.
Every deal is different
Successful expansion is often a result of organic growth and a by-product of relationships and joint ventures. You cannot use a cookie cutter model for deals. Every deal and every relationship is different and as such, it’s essential that you understand this before entering into negotiations. However with all the preparation in the world, successful deal-making takes practice and the only way to start is to jump in and get your feet wet. This also means you are going to fail – it’s inevitable as you learn to be a dealmaker. Don’t be disheartened – it happens to the best of us. Keep going till you get it right.
One last piece of advice
Be prepared to work hard. Take advice and learn as you go – and remember to always follow your dream.