The Realty Classroom Podcast Episode 72: Why You Should Build Your Own Franchise!

The Realty Classroom Podcast Episode 72: Why You Should Build Your Own Franchise!

“A Franchise centers around the concept of a system of organization. That organization performs consistently to get a predictable result for the consumer and continues to evolve based on the patterns of the consumer NOT the human discretion of the owner and the organization’s people.”

 

THE REASON RAY KROC BOUGHT THE FIRST HAMBURGER JOINT

What am I talking about? Are you supposed to become the next Ray Kroc of McDonald’s? Yes! Ray Kroc saw something orderly and unique — he wasn’t looking at an ordinary hamburger stand at the first McDonald’s restaurant where he wanted to sell milkshake machines. They were doing things fast, organized and systematic and Ray Kroc said, “That’s the thing!” He made it a franchise and you know the rest of the story. There’s a truth to the way that every business works. Figuring out how the business works leads directly into the next point…

FIGURING OUT WHAT THE CONSUMER WANTS FIRST

You must figure out what the consumer wants FIRST. As a new real estate agent, my advice to you would not be to start by analyzing what established pros are doing. Instead, simply talk to your friends as them what they want in terms of help and guidance in a real estate transaction. “I wish somebody would just tell me X or Y.” Ask the end users who need a house what they want for help. When you look at what they want, you can start to build plans for your franchise. People don’t go to McDonald’s by the billions because it sells the best hamburger in the world; they go because of the consistency and predictability. People go back for the predictable result.

MEMORIALIZING A FORMULAIC APPROACH TO GUIDANCE

Don’t just come up with an infographic with seven steps for buyers on it, or a similar “help” for your business. Memorialize your steps in a booklet and USE IT every time you go through the process. Don’t cheat your own franchise prototype. The benefit of a franchise prototype in real estate is that it provides clarity, guidance and consistent results for the consumer. Make your system as reliable and predictable as the alarm on the fry machine at a McDonald’s. Memorialize, repeat and refine.

ORGANIZING THE BIG PICTURE FRANCHISE

The big picture of the franchise needs to be “chunked up” so we can even grasp it. Take it in steps — marketing, for example. Narrow down your geographic area(s), what’s your message and so on. You’ll have a marketing module in your franchise, a conversion model, a closing module and the past client module.

MEASURING YOUR PERFORMANCE AGAINST THE MODEL

Track everything so that you can measure your own performance against the model. McDonald’s accounts for every dime in every till at the end of the day. Are you able to track the performance of your real estate franchise to that level of precision and predictability?

Take action now!

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