Episode Transcript
[00:00:06] Welcome back to Create Wealth Through Franchising and Kim Daly tv.
[00:00:11] So today I want to talk about building wealth through a franchise. There's a lot of people out there that have invested in a franchise, a perfectly good franchise, for that matter, that are not building wealth or the life of their dreams. I want to give you three reasons why I believe you can own a perfectly good franchise and still not build wealth. Before we get into the three reasons, though, I want to say this.
[00:00:37] Your franchise was never designed to build wealth for you.
[00:00:43] Let me say that again. Your franchise was never designed to build wealth for you.
[00:00:50] You, as the operator of that business, are the one who is enormously responsible for the wealth that is generated through a franchise. There is an implication in franchising that if I invest in the right brand with the right systems and the right location or the right territory, that I'm going to magically be successful.
[00:01:15] And that's why I believe there are many people out there who've invested in a franchise who are not massively successful simply because they don't understand the word ownership.
[00:01:30] That is what I call ownership.
[00:01:34] O W E D E R S H I P Where you believe you were owed something by your franchisor. It was the brand, it was a location, it was the marketing.
[00:01:45] Something other than me was supposed to make me successful.
[00:01:51] Well, I'm here to tell you the business itself is simply the vehicle.
[00:01:57] The driver of the vehicle is the one responsible for the performance of that vehicle. Now, here's the good news. If you do a few certain things, you can turn around a situation where you're not building wealth and start building wealth. And. And if you're out there and you haven't yet invested in a franchise because you're worried about not building wealth, well, lean in because I'm going to give it away. I'm going to tell you three primary reasons you're not building wealth. So if you want to build wealth, you're going to do the opposite of these.
[00:02:34] Okay, so the first reason I believe you can own a franchise and not build wealth is you haven't yet defined what wealth is.
[00:02:44] This one seems a little bit obvious, but it's not.
[00:02:48] When you work with me as your franchise consultant. This is where we begin. I have every candidate start with a goals and dreams worksheet. I don't want to talk about what you think your perfect business is until I understand why you want a business and what you want out of the business.
[00:03:06] So this kind of zooms out and takes the emotion out of investing in the business and makes it logical. There's a lot of people who go and invest in a franchise because they love the taste of the food, they love the workout. They would love to be a customer in that business. And so that's their whole rationale. But what if that business doesn't align to your definition of wealth?
[00:03:32] What if your definition of wealth is working Monday through Friday, no nights, no weekends and holidays, and the business that you emotionally love is open nights, weekends, and holidays?
[00:03:43] What if you have a skill set that makes you feel really good? Let's say it's employing people and managing teams of people, and that's what you enjoy doing in your business. But you invest in a business that doesn't create any jobs.
[00:04:00] So you may make money, but do you feel wealthy as a business owner? Do you really feel satisfied and successful in that business where the primary thing that motivates you is creating jobs and managing people and helping other people thrive under your leadership?
[00:04:17] So to explore a franchise before you've identified what goals and dreams you have for this business and how you would define feeling wealthy through this franchise is totally the cart before the horse.
[00:04:36] You have to begin with your own definition of wealth. Is wealth just money? Is it money and time? Is it working with your spouse? Is it having a certain quality of life, freedom and flexibility in your schedule? Is it working locally in your local area? Is it bringing your kids into the business? Is it building an asset that creates a tax shelter because you have another business where you don't have a tax shelter? These are all things that I've heard people say over 20 years of being a franchise consultant and guiding thousands of people down this path. And, oh, by the way, I'm also a franchisee. I've also built wealth through my franchise. And those are some of the reasons that I enjoy franchising, because I have met my definition of wealth. One of my primary definitions of wealth is waking up to inspire people. That is something I have aspired to do since I was 15 years old, and I told my dad, I want to be a motivational speaker. And my dad looked at me like, I don't know how to help you do that, but life has a way of working itself out. I stumbled into this thing called franchise consulting, which everybody thought was a deviation from my life path of going to medical school.
[00:05:53] And I ended up exactly where I always said I wanted to be at 15. I wanted to wake up and inspire people and motivate people. That is a solid definition of wealth for Kim Daly. That makes me Feel passionate and happy and wealthy every single day. But what is it for you?
[00:06:14] You need to spend some time with yourself and really define wealth. I guarantee it's more than money.
[00:06:22] So that's the first reason I believe there's a lot of people who are invested in perfectly good franchises who are not building wealth because they don't even know what wealth is. Or they invested in a franchise because it was a great trend. They loved the product, but it didn't align to their own definition of what wealth would feel like and be like and mean to them.
[00:06:48] So before you invest in a franchise, take some time and do that. If you've already invested in the franchise and you don't have those definitions, now is the time to do it. The clarity that you have will give you a vision.
[00:07:03] And from that vision you will be able to be more effective and in your action in the business. And effective action will absolutely lead you to wealth in the money sense. There's a lot of business owners out there who are very busy, but they're not productive.
[00:07:22] They're busy but not productive because they don't have clear goals, because they haven't reverse engineered those goals, because they don't know how to show up and perform every day in order to be inching their business forward to toward a quarterly goal or an annual goal.
[00:07:39] So having a clear definition of what wealth is gives you a foundation from which to select the right franchise to help you get that definition of wealth. And then once you are a business owner, having a definition of what wealth is helps align your day to day actions to your definition of wealth. So you can check that off and say, I feel wealthy even if I'm not yet making the kind of money I'm doing, the things that make me happy and that I know I will be effective and productive in, and those actions will lead me to making money. The second reason that you could own a perfectly good franchise and not be building wealth is because you are not consistent in, in your follow through.
[00:08:30] So let's go right to a farmer who plants a garden. Does the farmer plant seeds today and then look for a harvest tomorrow? Absolutely not.
[00:08:40] So why then, as business owners do we believe that we can throw our doors open on day one, which is when we're planting seeds and then be looking to reap a harvest? There's a lot of people out there that are trying to make money too fast, fast in their business, and they don't understand the law of reaping and sowing. This is a fundamental law of the universe. We do not plant and reap at the same time. There is a period where those seeds are germinating in the ground. They're building a root system, and from that root system, the sprout will come through the ground. Now, depending on how big the that plant is going to be, the root system may have to go deep down.
[00:09:26] So in your franchise, you may have different customers that come to you at different speeds of time. You may have a residential customer that's raising their hand because you're spend money on digital marketing. But you may have to go out and plant seeds into the community, networking with people who are coming in contact with the homeowner and, and those referral sources will end up being your best referral sources, where your best leads come from, your highest tickets come from. So you can get easily satisfied with marketing leads for fast cash. But the really big money that you're really looking for, the one that's sustainable, the one that you're more in control of, comes from planting seeds through your networking events. And then in due season, the those seeds will reap a harvest. But there's a lot of franchisees out there that are not doing the networking that they need to do to plant those seeds, to build that root system that will return to them a great harvest in the future. They're looking for this instant cash. I want instant gratification. Well, we all do, but that's not reality. When you own a business, we're not trading our time for money. We're not saying, okay, you know, I'm putting in this money and effective tomorrow, I need to make this salary.
[00:10:49] There's a lot of people out there, though, that are exploring franchises, trying to make that statement true. Well, how quickly can I replace my salary? That's the only way I can do this. Go get a job.
[00:11:02] That's not what we're doing. When we own a business, we're building cash flow that we own and control for our future. Now, the future doesn't have to be three to five years, but it's not going to be the first 30 days of building a business, because more than likely, even if the business is positively cash flowing within 30 days, you're going to want to reinvest that money back into the business to take it to the next level.
[00:11:28] And this is the conversation that you need to have with your franchisor during your due diligence and then validate that out with franchise owners before you say yes to the franchise. If you've already invested in the franchise, I'm sorry, To tell you if you're not making money, it could be because you're looking too quickly for cash that isn't matured from your business. Now, the other thing that you may be doing is taking action in your business, but not being effective with that action. This is something I spend a lot of time talking about with my Zee Suite students, because the energy behind the action is what actually produces the result. This is why two franchisees can own the same franchise with the same system, the same training, the same tools, the same technology, and create two very different results. Because one of the owners is perfectly aligned. Because they feel positive and optimistic and they're confident and they deliver leadership and trust with every sales call they go out on.
[00:12:38] And the other owner with the same systems, tools and training and technology has doubts, doesn't deliver leadership, doesn't deliver confidence.
[00:12:47] Well, in every sales environment, most of the sale is happening in the invisible.
[00:12:56] As humans, we are amazing at reading people's energy.
[00:13:00] People don't hear what you say, they feel what you feel.
[00:13:06] So the tone of your voice, the inflection in your voice, the speed of your voice, it all gives away what you're thinking about as you're talking.
[00:13:17] And the customer can feel that.
[00:13:20] So two different franchise owners who have two different stories running in their head. One franchise owner who is loaded with fear and negativity and worry and doubt is giving off that energy, while the same owner is positive and confident and delivering trust and leadership and closing sales like this.
[00:13:44] So your alignment to your belief in what you're doing is, is going to determine how effective you are. There are students in the Zee Suite who come in and they're like, I'm doing everything my franchisor told me to do, and yet I don't have any money in my bank.
[00:14:02] So the first thing we address is their thoughts and feelings about what they're doing.
[00:14:09] Because how you think and feel is the determining factor to how effective you are in your sales role, in your leadership role. And the most amazing thing is once you become aware that it's not what you say, it's how you say it. It's the tone in which you say it. It's the vibe you're giving off.
[00:14:29] People's results change dramatically. It's why inside the Zee Suite, I have students who go from 20% closing ratios to 80% closing ratios in two, three, four weeks. And I'm not giving them any new scripts.
[00:14:45] In fact, I'm telling them to let go of the script, step out of their head and step into Their heart. Show up to serve people, show up to listen, to serve them by listening and meeting them where they're at. Instead of walking into a sales call to get something, walk into a sales call to give something. That's a very different energy. And that energy changes everything about how effective you will be.
[00:15:11] So if you own a franchise and you're not very effective at your closing ratios, perhaps we should have a conversation about how I can help you in the Zee suite. This is absolutely one thing that will be why you can own a perfectly good franchise and absolutely not be building wealth. And it's a simple thing to correct once you understand how energy works.
[00:15:34] And the results can change dramatically and quickly. And the third reason that you could own a perfectly good franchise and still not be building wealth is because you've decided to stop growing as a business owner. So what do I mean by that? Well, a business is only going to grow to the level of its operator. You as the operator, have to want to continue to grow. Your business is your adult playground to learn in, to grow in, to expand yourself in. And if you've hit sort of a limit to how much you're willing to grow and you're not willing to become a leader who can take a business from 1 million to 2 million, who's willing to go from, I understand how to operate two stores, but I want to operate five stores, your business is not going to grow. It's that plain and simple. Now, there's a lot of people out there who are trying to use hustle and grind and, and are, are really working themselves hard for that growth. And you can do that. It's very linear. It's at the cost of your health, at the cost of your nervous system, the cost of your marriage. We've all heard those horror stories. And I'm sure that if you want a definition of wealthy, it's to maintain your health, maintain your marriage, and to be able to grow at a pace that allows you to still feel wealthy. Well, there is an effortless way to achieve growth, but it's with you growing you, it's not focusing on the business, it's you focusing on you, your daily thoughts and how those thoughts create the feelings inside your body and then how those feelings motivate you to take action. And what kind of action.
[00:17:13] There's effective action and then there's busy action. So this one is sort of a culmination of one and two. So in one, we talked about how the business is the vehicle, but you're the operator of that vehicle. And in two, we talk about how the owner has to be effective in what they do and consistent in the things that drive the greatest result, not just being busy.
[00:17:36] So this one number three is really the culmination of one and two.
[00:17:41] Business ownership is all about you leveling up to you. This is why when people say, well, I want to invest in a business, but I want to be passive, it doesn't work because the business reflects the owner. If the owner has multi million dollar dreams and aspires to build the wealth inside of them, that can support multimillion dollar dreams and the leadership skill that can support multimillion dollar dreams and the business will have the capacity to grow to multimillion dollar dreams.
[00:18:12] But if you, as the owner are saying, I just want the business to perform, but I don't want to have to to grow in any way. I don't want to have to stretch myself. I don't want to put in any effort, well, the business isn't going to grow. And I know you may be thinking, Kim, that's pretty much common sense. But common sense is not so common because I've been listening to people for over 20 years and I'm not judging.
[00:18:35] There's a lot of people out there who believe the franchise itself is what makes you rich. Which is why I started this episode by telling you the franchise is not designed to make you wealthy. You are the one who makes you wealthy. You use the vehicle, you flow money through the vehicle. You scale the vehicle to multiple teams, multiple trucks, or multiple locations. And that's how wealth is created. But the wealth is ultimately created for first in your mindset, in your clarity, in your alignment to your actions.
[00:19:08] And all of that equals ownership.
[00:19:13] There's people out there that believe the franchise owed me.
[00:19:18] And that is the fastest way to never build wealth in a franchise. But the minute that you step into that driver's seat and you say, I want to be the owner of this, whatever it takes, I want to own it. These are my goals, these are my dreams. I'm going to follow this plan, I'm going to execute, I'm going to continue to grow. I'm going to be resilient, I'm going to be tenacious, I'm going to be persistent.
[00:19:47] That's how you build wealth through a franchise. That's how you build wealth no matter what you're doing in this franchise world, no different.
[00:19:57] So if you're out there and you're ready to figure out, well, what's the right vehicle for my definition of wealth, I would love to be your franchise consultant. Please follow the link in the description below right now. And if you're out there as a franchisee and you're not building wealth, but the ideas I've posed here about alignment, about the energy behind the action you take are intriguing to you. I would love to talk to you about the work that we do inside the Zee Suite where franchisees are leveling up to themselves every day and dramatically and quickly changing the results they're producing in their business. Nothing external to you has to change in order for you to actually build wealth and the life of your dreams and I will prove it to you. Follow the link in the description below right now because I can't wait to meet you. Thank you for watching this video until the end. If you enjoy my podcast, please share it with somebody that may also enjoy it. Please don't forget to like subscribe and leave me a five star review and I'll see you in the next episode.
