OWNING A SUCCESSFULL EDUCATION FRANCHISE
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1 15 SECRETS TO OWNING A SUCCESSFULL EDUCATION FRANCHISE
2 TABLE OF CONTENTS Introduction Make Informed Business Decisions Optimize Your Resources Don t Cut Costs Hire and Develop Superior Instructors Invest in Technology Establish an Ambitious Company Culture Keep It Consistent Talk to Your Customers Offer Demo Classes Increase Your Online Presence Establish a Rewards System Engage with Your Sales Team Daily Problem Solve for Your Customers Establish Yourself as a Leader in the Industry Measure Your Success
3 INTRODUCTION With the amount of emphasis placed on education and training in today s society, education franchises are more viable businesses than ever before. According to Franchise Help, education franchises make over $40 billion annually. Additionally, education franchises are expected to grow by 5% over the next five years. As a well-established and thriving industry, education franchises are an incredible opportunity for current business owners and budding entrepreneurs. How do you turn your education franchise from an incredible opportunity into a flourishing business that delivers real profits for years? This guide lets you in on 15 secrets of owning a successful education franchise.
4 Some of the sources available to you include: 1 Make Informed Business Decisions Use of fundamental baseline data sets to provide a strong foundation of metrics needed to manage your business on a daily basis Data analysis and benchmarking metrics of actual business results from the entire franchise network can allow use of the data to improve your own performance in the sales, operations, and accounting departments The first secret to owning a successful franchise is to make informed business decisions. While this may seem obvious, many franchisees overlook the resources available to help them make informed decisions about how to allocate their finances or which management technique is best, among other decisions. Use Business Reports (which optimally are provided by your franchisor) and Key Performance Indicators, to learn vital information on how to run your franchise. Beyond hard data, keeping an open mind to the implementation of best practices that have been tested and proven across a variety of franchisees By utilizing the information provided by your franchisor, you can make business decisions based on the experience of the entire franchise instead of starting from scratch and figuring everything out on your own. 2
5 2 Optimize Your Resources By allocating your resources in the most efficient Instead, focus on courses that attract the most way possible, you reduce costs and increase your students to fill your classrooms to maximum profit margin, making your education franchise more profitable. The two most crucial resources capacity, and maximize your return on every classroom you pay for. for education franchises are classrooms and teachers. This same principle applies to teachers and seats within the classroom. Teachers and learning To increase your profit margin with classrooms, methodologies that can instruct a larger number focus on the courses that attract the most of students in one day are worth more than students instead of offering numerous courses to attract a wide variety of students. While offering numerous courses may sound appealing, you are effectively spreading a small number of students throughout multiple classrooms. This increases methodologies and teachers who instruct a small number of students every day. For example, if a teacher instructs 10 students in one day, you only have to pay the teacher for the one day, but you receive payment from 10 students. your costs because you have to pay for more classrooms that aren t running at full capacity. In contrast, your costs are higher for the teacher who instructs a small number of day 3
6 OPTIMIZE YOUR RESOURCES 15 SECRETS TO OWNING A SUCCESSFUL EDUCATION FRANCHISE students every day. For example, imagine a teacher who teaches 2 to 4 students five days a week. Even though the total number of students is the same or double, you still have to pay the teacher five times, increasing your costs and therefore reducing your profit margin. Increase your profit margin by using resources such as your classrooms and teachers efficiently. There is also an alternative to more effectively utilizing your classrooms in today s education industry, simply use them less or don t use them at all and look to downsize your facility upon next lease renewal term. Think virtual classrooms. If you can begin to harness and effectively utilize cloud learning solutions to deliver the same quality training without the need of a high cost classroom, or via a combination of both, thereby reducing the total number of rooms needed at your facility, you may be able to increase your margins further. However, do remember this should not be done at the sacrifice of quality education to the student. There are many options available in the market but carefully review them before making the leap of faith to virtual learning. There are many pitfalls, yet done correctly the benefits to both student (flexibility, reduced travel etc.) and your business (lower overhead, increased margins, etc.) are tangible. 4
7 3 Don t Cut Costs While it s important to optimize your resources, it s also important to avoid the trap of cutting costs. It s tempting to try and cut costs when you don t see profits immediately after you open your business. However, the problem isn t from costs, but rather from a lack of sales. Focus on marketing your education franchise, especially when you first start out, to increase sales, and eventually your profits. Remember, cutting costs is detrimental when you reduce the value of your business to the customer. For example, if you try to cut costs by paying your teachers less or skimping on technology, your students will see that your franchise provides a lower quality of education, which may well impact your sales. This brings us to the next two secrets of owning a successful franchise: hire superior teachers and invest in technology. 5
8 4 15 SECRETS TO OWNING A SUCCESSFUL EDUCATION FRANCHISE Hire and Develop Superior Instructors Many education franchises have a great facility and curriculum. While these are important considerations, so many other education businesses already have top-notch facilities and curricula. What will really separate you from your competition is hiring and developing superior instructors. We ve all had a teacher who has inspired us and they may even be the reason why you want to own an education franchise. These are the kinds of teachers you want to hire. Superior teachers attract more students and more students per teacher increases profit margins, as we saw earlier. To find and keep better teachers, offer a dynamic learning environment, provide new avenues of delivering their knowledge as the traditional classroom method of teaching is being outpaced by newer forms of delivery, and offer continual knowledge development in the form of paid learning time. Teachers by default have a passion for sharing their knowledge, so it makes sense to give them company time to grow that knowledge. If an instructor is teaching every single business day possible, they will tire and find little personal time to expand their knowledge or even be able to keep up with their industry s trends. Determine a ratio of time taught to time developing their skills, e.g. 90/10 or other, which allows your main resource to stay ahead of their peers. A great start is to consider the various levels of certification/qualifications for your industry, then provide company time to allow your trainers a chance to prepare for and pass the necessary exams. A training company that value s its key knowledge source will be well served over time by investing in said knowledge source. Finally, do not forget the age old money/bonus factor and look to reward those teachers who retain and attract more students. Offer higher pay for teachers who have proven to be phenomenal, engaging, and willing to grow their knowledge. Phenomenal teachers are essential and can t be replaced. By hiring and developing superior teachers for your education facility, your business is sure to take off. 6
9 5 Invest in Technology Technology is often put on the nice to have list instead of on the need to have list because it can prove an expensive investment. However, technology is one of the best ways to set your business apart from your competition. When students pay for an education, they expect for their education experience to be up-to-date, and this includes technology not only within the class, but also technology within the context of the business environment. Corporate companies sending their employees and professional aged students are buying training from you as an education business, not from an academic institution. They demand and expect cutting-edge solutions. This is especially important if your education franchise focuses on teaching English Language skills. Since technology has become such an integral part of our life, there is a high demand for spoken, reading and written English skills in the workforce and many millennials are very adept at using technology to drive or assist their learning. One does not need to look far to see many education franchises offering these kinds of technology supported/assisted English Language courses to appeal to this market. However, if your technology used in delivering technical courses isn t up-to-date, your students will leave disappointed and feeling like they have just trained with another me too training company. While your competition is cutting corners and unwilling to invest in technology, or utilize technology to invest in advanced delivery, you can easily surpass them simply by finding ways to truly use technology to teach English Language. Either invest yourself or find solutions in the market that can be utilized in your education business. Technology is meant to be disruptive. 7
10 6 Establish an Ambitious Company Culture Your franchisor will have a proven business model. However, your franchise is still your business and you can have an incredible influence on its culture. In an education franchise, it s vital to create an ambitious company culture because every employee is accountable for the business s success. For example, your teachers are accountable for the business s success because they are the ones who directly interact with the students and affect how your customers view the franchise. Your sales team is accountable for the company s success because they generate new students which lead to increased profits. If any part of your education franchise breaks down, the entire business will suffer. To establish this culture you need to set the tone from day one and encourage an atmosphere of learning and growth when employees are initially recruited. Every employee should know that they are working together to create an environment of learning and fun so that they and the business can succeed. You should take a hands on approach to running your business. You need to be involved in every aspect of your business so you can set the tone and inspire your employees if they become burned out and discouraged. 8
11 Keep It Consistent 7Once you establish an ambitious company culture and find a system that works, stick to it. Your employees and customers will appreciate a consistent atmosphere. Consistency creates clear expectations, and clear expectations lead to fewer problems. Fewer problems means better business, especially in the long run. 9
12 8 Talk To Your Customers Consistency is great, but if your customers are complaining, you need be able to make adjustments. According to Forbes, one of the primary reasons businesses fail within the first five years is because the franchise isn t in touch with its customers. When education franchises don t know what their students want or are upset about, students stop coming to that franchise to learn. The key to rectifying this situation is simply to talk to your students. According to Kristin Smaby, author of Being Human is Good Business, When customers share their story, they re not just sharing pain points. They re actually teaching you how to make your product, service, and business better. When talking to your students, learn why your students are in the particular course and why they or the company they represent may want/need them to attend additional training. Does the individual student need to become better at English Language for their studies, their career prospects, or just for general use? Does their organization have internal issues or English skills missing that your training can correct? How can your education franchise fulfill these individual and organizational requirements? By actively talking and listening to your students in class (and talking and listening to the decision makers that send their employees to training), you will be better equipped to address their individual and organizational needs. In addition, your students will notice if you take the time to listen to them, and remain loyal to your business for years. You never know when the current student in your facility is the next parent, friend, colleague to send their family and friends, or even the next manager/director or even business owner with multiple staff learning needs. 10
13 You now know the first 8 secrets to owning and running a successful education franchise. The next 7 steps will teach you how to effectively market your education franchise. 11 New Horizons Computer New Horizons Learning English Centers 3
14 9 Offer Demo Courses One of the best ways to market your education franchise is to let first-time customers attend a sit-in/audit of a real course, or a demo of your virtual online learning or, if possible, a portion of a real course for free. According to Marketing Metrics, these students are 60 70% more likely to return and pay for your services after attending one of your classes. Think about it, would you buy a car from a dealer that would not allow you to test drive their vehicle for sale? 12
15 10 Increase Your Online Presence Technology has become an integral part of life. Instead of calling a friend and asking for a reference, most people simply go to Google to find the service they re looking for. This makes search engine optimization (SEO), search engine marketing (SEM), and social media marketing (SMM) more important than ever before. To increase your online presence and utilize SEO, SEM, and SMM, write blogs using keywords users would use to find services like yours; encourage students to post reviews on your Facebook page; tweet about new courses your education franchise is offering. Increasing your online presence will go a long way in attracting new students to your education franchise. 13
16 11 Establish a Rewards System A thriving sales team is vital to any business, but it is especially important to an education business. Knowledge isn t a tangible product so it is difficult for potential customers to see the value of investing in an education. In order to effectively sell this intangible product, your sales team needs to constantly nurture and develop their skills. To better utilize your sales team, establish a rewards system. For example, the most successful education franchises offer a reward to the sales representatives who generate their own leads in the form of the company s inbound leads. Sales representatives who fail to generate their own leads don t receive any leads generated by the franchisee s or franchisor s inbound marketing solutions. This system creates an upward spiral for better sales representatives while creating a downward spiral for less successful sales representatives, eventually eliminating them. By establishing a rewards system, you consistently eliminate unprofitable employees and keep only the best, which builds an exceptional sales and marketing team that your competition can t compete with. Look for Sales staff looking to run a business, within your business. 14
17 12 Establishing Engage with Your Sales Team Daily a rewards system only works if you truly know what s going on with the sales team. Become an active part of your sales team and engage with them on a daily basis so you know immediately when problems arise. This way you can address problems quickly and ensure that your sales team is always improving rather than deteriorating. By actively engaging with your sales team daily, you will notice when their skills start to atrophy. 15
18 13 Problem Solve for Your Customers One way to help your sales team be effective is to encourage them to solve the problems your customers are having. Many customers think that they are getting by just fine on their own and that they don t need additional training. However, by identifying a specific problem that can be solved with additional education, your sales team can show customers how much doing nothing is really costing them, and how much additional education will help them. Many people need to speak better English for their studies, career, current job, or just in general to be globally connected; as do corporations. What if the customer knows that additional training and education will solve their problems, but they just can t spare the time for their employees to receive this training? This is a common problem for businesses because many companies spread a few employees across a wide range of responsibilities in an effort to do more with less. One way you can help your sales team solve this problem is by offering flexible courses. Offer more flexible times for courses, or allow students to inform you when they can train, and provide the training to them on their schedule, not yours. Or even offer temporary satellite training locations where your courses can be taught, as well as virtual learning that provides both flexibility and the local convenience (students can train from home or office) in one. This provides more opportunities for your customers, and helps them overcome the challenge of limited time. 16
19 14 15 SECRETS TO OWNING A SUCCESSFUL EDUCATION FRANCHISE Establish Yourself as a Leader in the Industry Write and publish articles that solve your client s engagement with the English Language and provide insights into the opportunities to be globally connected. By publishing information that is helpful with prestigious websites such as and sharing these articles to potential customers via , LinkedIn, and other social media, you will set yourself up as a leader in the industry. By being a leader in the industry, more people will respect you and the name of your business will spread. When businesses and individuals eventually need education and training, your education franchise will be the first that comes to mind. 17
20 15 Measure Your Success Have you ever heard the old saying, You can t manage what you don t measure? You ll never know if your franchise is flourishing or desiccating if you don t measure your progress. How many students have returned after taking a demo or audit class? How much has web traffic increased after you established your online presence? How effective is your rewards system in motivating your sales team? Once you measure your success, compare your education franchise to your competition, which may be difficult without industry insight. Certainly, comparing your results against other franchisees in your network can be accomplished via franchisor reporting. You ll never know where you are surpassing industry standards and where you are falling short if you don t compare yourself to others. When you see areas where you could improve, you can make changes that will positively influence the success ofyoureducation franchise. 18
21 Now you know a few secrets to owning a successful education franchise. You know how to successfully establish and run your franchise by making informed decisions, optimizing your resources, resisting the temptation to cut costs, hiring superior instructors, investing in technology, establishing an ambitious company culture, keeping things consistent, and talking to your customers. You also know how to effectively market your education franchise by offering audit or demo classes, increasing your online presence, establishing a rewards system for your sales team, engaging with your sales team daily, problem solving for your customers, and establishing yourself as a leader in the industry. Finally, you know to measure your success so you can see where you need to improve. With all of this knowledge, you re ready to own your own education franchise. We hope this information is helpful, and that perhaps we can be a franchise you consider in the near future Falls Corporate Center, Suite 408 West Conshohocken, PA
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