Chief Change Officer - James Hilovsky: Guiding NBA and NFL Athletes Through the Bridge of Sports and Franchising – Part Two

Episode Date: December 7, 2024

In this second episode of the two-part series, James Hilovsky delves deeper into the mindset and qualities required for success in franchising. Drawing on his extensive experience, James highlights the flip side of athletic traits—how passion and ego can sometimes derail franchisees, but how the right systems and guidance can bring them back on track. He shares insights into why franchising isn’t just about following a playbook but also about owning your business and betting on yourself. For corporate professionals and non-athletes, James emphasizes the importance of overcoming fear, finding the right franchise fit, and partnering with a supportive franchisor. Packed with actionable advice, this episode is a must-listen for anyone ready to take the leap into franchising and build something truly their own. Key Highlights of Our Interview: When Ego Enters the Game “For highly successful athletes, ego can become a stumbling block. In their circle, they’re often surrounded by ‘yes’ people—but in franchising, the system is the boss.” Coachable or Combative? “Not every athlete thrives in a franchise model. If they’re resistant to coaching or feel they don’t need the franchise system, they might be better suited for entrepreneurship.” From Control to Chaos “Athletes transition from highly controlled environments to the unpredictable world of business. Education and mindset shifts are crucial to navigate these new challenges.” The Athlete’s Advantage: Resilience “Athletes are no strangers to failure. In baseball, hitting .300 is a win—despite failing seven out of ten times. That resilience becomes a powerful tool in business.” The Franchisor as a Partner “Your franchisor should be more than a brand—they’re your business partner. Look for one that offers strong support and aligns with your vision for success.” _________________________ Connect with us: Host: Vince Chan | Guest: James Hilovsky  Chief Change Officer: Make Change Ambitiously. Experiential Human Intelligence for Growth Progressives Global Top 3% Podcast on Listen Notes World's #1 Career Podcast on Apple Top 1: US, CA, MX, IE, HU, AT, CH, FI, JP 2.5 Millions+ Downloads 50+ Countries

Hi everyone, welcome to our show Chief Change Officer. I'm Vince Chen, your ambitious human host. Our show is a modernist community for change progressives in organizational and human transformation from around the world. Today at our studio, we welcome James Hilovsky from Riverside in South Tent, California. Hilofsky from Riverside in South Tent, California. James runs a unique franchise consulting business, primarily serving retired athletes from the NBA and NFL who are starting new chapters in their lives as franchisees. He also helps regular people with their franchise businesses.

James believes that using his expertise in franchising to change lives and livelihoods of families and future generations is a dream come true endeavor. I haven't been a franchisee or franchisor myself, but I do have experience with the franchise business. Many years ago, when my parents immigrated to Canada with zero local experience and connections, they ventured into franchising to make a living. Despite the hardships, using franchising as a means

to fulfill the dream of becoming immersed and settled in the community was life-changing. So I have great respect for franchising as a business model that can positively transform lives. Let's discover how James has used franchising for the greater good for both athletes and everyday people. When you look back at these examples where you acted as the advisor and matchmaker, helping them figure out the plans and goals, what are the three qualities that stand out in these successful individuals?

These qualities could be skill, mindsets, psychological traits, or something related to the sports they play. Can you name some key qualities that are common and contra-bill to success in franchising for these athletes? I would say the one and most important quality that athletes bring to the table when it comes to franchising is they are able to take a risk. And what I mean by that, when you get into business for yourself, you're taking a risk and you're betting on yourself. A lot of people have a problem with, Hey, I'm going to step out of the box, do something

different and it's going to be risky. And the athletes are very good at being able to take that risk because at the end of the day, their whole lives, they've bet on themselves. They've used their training and all the skills that they've done ever since they were a child. And it's all been about, Hey, I'm good. I can do this. I'm going to bet on myself much like jumping into business.

It's betting on yourself and taking that risk. And most every athlete has the ability to go out and say, yeah, I have the confidence and I'm going to bet on myself. So I would say that is the number one out there. Number two, the other one that is really good for a franchise system is an athlete is usually really receptive to coaching. So in business, when you're going to get into any business, you're going to have to take coaching and be able to apply that.

So again, anything that in this case, the franchisor will tell an athlete. They will take that to heart and they will try a hundred percent to implement, implicate what, implement what the, what the franchisor has told the athlete to do, much like when they were playing, like the coach says, you need to run a five-hour out and turn near turn here and they work on that. So it's being able to take that, take that risk, take that coaching and apply it. And then really another thing that athletes are really good at and not just business, but they're really able to go out and, and be leaders.

So some athletes lead by example, and naturally in the field, and other athletes are vocal leaders, but they all have some sort of leadership kind of quality, even though they're a part of a team, they have that leadership quality. And so they are able to, they're able to take that risk. They're able to take that coaching, but then they're also able to lead their team

or their employees or whatever the case may be into the franchise system that they're able to facilitate and go, okay, it's all on my shoulders. I've got the coaching. I know how to set up the business and now I'm going to be able to lead and I'm going to be able to put my right players in the position they need to be in to be successful in the business. So those are just really just three that really just come off the top of my mind that athletes are exceptional about.

Sure. Leadership quality, of course, being a strong team player and having a risk-taking mindset. In fact, leadership has many elements, but basically, it's about being a team player, a risk taker, and being coachable. In sports, they always have coaches.

When you talk about coaching, it reminds me of the scenario in venture and entrepreneurship, especially in tech ventures. In the past, when I talked to investors or venture capitalists, I asked them what kind of entrepreneurs or founders you'd like to invest in or admire. One quality they mentioned was being coachable. They explained that some founders might be very smart and passionate, but if they are not receptive to coaching, it's a problem. These founders may resist advice, fail to learn from mistakes, and ignore experienced voices. This is what investors mean by being coachable. I can totally relate to that when you mentioned the coachability of athletes. Yes, absolutely. They're very good now. Now the

flip side of that, it sometimes could be athletes are very, they're very coachable. They're very passionate. Like we were talking about now, sometimes in a franchise system, if they're very, yes, they may be coachable, but they may be passionate. So maybe the, and remember they're used to taking risks. So the flip side could be is, okay, they've been showing how to do the business. They're in the business. They're in the business. They're passionate about it, but now maybe they're going to go a little bit off the tracks because they think that in my speed in this play, I can make it better.

Like on the field, sometimes that they might improvise on that. So they might take it a little bit. Okay. I get it. I know. So they might take it a little bit. Okay, I get it. I know. And they just will have this sometimes be invincible and I could go out the

rails and take my business this way. And that's where the franchise system is really great. Cause the franchise or we'll go, you're going off the rails here. Let's turn it back in and take it back to get, let's get back on the road there. We put the guard rails up for a reason and let's get back on the road. So sometimes that passion could lead to maybe slipping out of the system a little bit. And much like a manager that or on a team, the franchise or we'll take it and take them back to center. Sometimes an athlete so good at those, they go a little bit too far, but the franchisor will always put them back on track.

of Psy, what traits could counteract success in franchising and leadership? Really, basically what we said, it also could be if they go a little bit too far, but the ego is definitely, that's a great way to put it, the ego could get them into trouble. And especially the more famous athletes or the ones that have had more success on the field. They have typically much bigger egos and there's not a lot of people in once you're dealing with the athlete that's dealt with a lot of success. You got to understand too in their circle, there's not a lot of people that will be, no, it's always going to be, yeah, you're right. You did, you did the greatest thing and you're good at this.

And so there's not going to be many people that will say no to him in their circle, him or her. And the great thing about a free anti-zor, they're looking out just for the business. They don't care who this, what he's done on the field or her. And it's, let's get back to center So ego is definitely one that has to be held in check and then there are athletes that we even when they played that they sometimes had some problems with coaching and

There would be times when I can talk with an athlete and if I felt that they really had really great egos or they were not going to be coachable. Maybe franchising is not for them. Maybe entrepreneurship is, but maybe a franchise is not a good fit if I hear the words, why don't I just do this franchise on my own? Why can't I just take that business model and just do it on my own? I don't need their help. Because I would want to do it this way and I could do it much better and I could do it cheaper and why pay those royalties? Then it's okay let's

have this conversation and let's talk about that. Let's talk about why a franchise is successful because they've hit all the potholes. They've set up the the business. They've done this from day one. So if you start out on your own, you're going to make those mistakes and maybe some of the mistakes you make are not going to be recoverable and you'll lose your whole investment. You get into franchise because they know they have a proven system. They've been through and made mistakes that you would make into your

business and it would save you thousands of dollars or even save your business than if you went off on your own. And that the responses be, I still think I could do it better on my own and I don't need to pay these fees and just think I could do it. And that's a person that probably athlete or not does not fit into the franchise model. Yeah, I can tell from your explanation that when Netflix transitioned into the business world, whether as franchisees or then alone entrepreneurs, ego can be a risk.

But Beyond Ego is also about figuring out what kind of risks they want to take and what costs they are willing to incur. By costs, I don't just mean money, but also learning curves and other challenges. To me, franchising is a more controllable type of business venture, because like you said, the system is established, risks are calculatable, and there is a track record. In contrast, starting a new business from scratch is riskier. If you are a creative type of athlete, you might want to start something on your own from the ground up. In that case, are you ready to take that kind of risk? Are you ready to step up and make the best use of your leadership skills? Different personalities and risk tolerance levels come into play during this transition.

Let me play Devil's Evacate for a moment. While you argue that the transition from sportsmanship to franchise leadership has many similarities and seems like a perfect fit, there are hidden areas to consider. In sports world, everything is clear cut and measurable. For example, in swimming, one of my favorite sports, you know who wins the gold medal because it's the person who finishes the fastest. The timing technology is sophisticated and precise, leaving no ambiguity.

In the business world, however, while we have financial goals and key performance indicators, there are many hidden risks and ambiguities, especially when dealing with people, partners, and employees. Afflecks are trained in controlled environments. But when they move into less controlled business environments, even within franchising, they face uncertainties. How do you help Aff help athletes make this transition?

Does it involve mindset shifts, education, or more coaching? What do you think? Yeah, very, very education. You look at an athlete and you think of business and everything that we've talked about. But one thing really we haven't really hit on is in business, when you're going to go through a struggle period, like you're saying, maybe there's so many moving parts where, you know, that you're struggling with maybe finding the right employees, or you're struggling with the day-to-day operations.

And you do know that you can turn to the franchisor for help and all that. But one thing that athletes are another really good trait that they have that's really great in business is they're used to failure. Now, not every athlete succeeds at every game. Not every game's played great and not, they're going to go through ups and downs and baseball, if you're a 300 year old, that's outstanding. That means you failed seven times out of 10. So the athletes are used to failure. So it's one of those where if your business is in a slump, it's okay.

I've been used to this before. I've had a slump. I've had a shooting slump. I've got a hitting slump. I know that this will pass. It's how did I get myself in my athletic career? How did I get myself out of this slump? Or what did I do?

I draw back to that. I went back to my coach helped me out. I just had to go to get laser focused and put maybe some extra time in to get myself out of the slump. So that mindset for a failure of the athlete, I think is super important in business when the, when all, like you're saying, all those moving parts might be going awry the athlete is used to failure and has a really great history of being able to pull him or herself

out of that. Yeah I think this tolerance for failure is very important. It's not something non-EVLICs are typically trained for. Speaking of non-EVLICs, this might be a good point for us to step back and look at the bigger picture. Earlier, you mentioned starting your business around the COVID period, when everyone was stuck at home and started developing different perspectives on their careers and lives. Now, we are back to normal, but the world has changed and is still changing with technology

and other moving factors. A lot of uncertainties with layoffs, corporate downsizing, inflation, etc. In this kind of environment, you probably get a lot of inquiries from regular people about whether franchising could be the next chapter of their lives. So I have two related questions for you. First, for non-athletes listening, who may not have the athletic background, what advice

would you give them for making this decision? What factors should they consider? Second, given the uncertainties in the economy and other factors, when people want to start a new chapter in their lives, they feel the urge, the pressure to do so quickly, which comes with risks. James, you are a nice and credible person, but that could be others in your business who are not as trustworthy as you. So once these regular people decide to move into this new world of franchising? How can they be smarter about figuring out who to work with and what kind of business to get into?

Yeah, that's a great question and I do work with a lot of non-athletes, just great people that have been in corporate America and corporate America has turned their back on them and laid them off, or they're just always just will go. I've worked all this time and I really want to have something on my own. So those are the big thing. Remember I said the best thing about the athletes are they don't really that that fear of being able to step out, they don't have that. The non-athlete, sometimes that fear could be overwhelming. And it is a, just look at what you want to take that shot that that's out there to bet on yourself and to get into a business of your own and time is short.

And I would say, I wish I would have done this many years prior. And I would say, I think most of my clients, when they come from corporate America and they get into their business, they see the freedom that they have. They see the potential for generational wealth of building their business that they just, they say the same thing. I should have done this a lot sooner for sure. So being able to take that leap of faith and take the shot and bet on yourself, I think is one for the non-athlete too. That's the biggest part that, that we'd be out there to make that decision.

And it just is, I would just advise anyone if you're thinking about that too, really take that shot and bet on yourself. And then the other part of the question is who to work with. I would always say, don't really go on your own looking at websites and putting inquiries into franchise, a franchise, because you don't really know much about that franchise. And if you're not used to looking at franchises, you need to know the steps. Um, Hey, we're going to look at a franchise.

Let's, we also have to look at FDD. That's a franchise disclosure document that the franchise sends out to you. So we need to know how to read that. And then how do you, if you're on your own, how do you make sure this is a good franchise? You ask the franchise or, Hey, let me talk to franchisees in the system. Cause they're going to be the ones that are going to validate, validate the system and verify it. And really I would say to pick someone up, I would always look for working with a franchise broker and you just would have to talk with them and just see if they're going to be a fit for you.

I would also look, if you're looking at a franchise broker, go, Hey, what's your website? And maybe looked at some of their LinkedIn posts and get a feel of kind of what type of person they are. My particular self, I work with my clients and I do what's right for my client of what industry they want to be into. I'm going to give you my advice and give you my, all my knowledge. But at the end of the day, we got to find you the fit. And, and, uh, what, what I try to do is show you the options that are out there.

And what I also would say when you're looking at a franchise or look for one that's going to give you the best support. Because again, a lot of people think in a franchise world, I just have to put my money in and I'm good. No, it's your business. It's your asset. You have to run your business to make it successful. The franchise or with all their systems, if you don't follow it, you're not going to be successful at the end of the day. It's up to you to make the business grow. And really what you want to look for in a franchisor is one,

they're going to be your business partner, make sure they're a great business partner. And two, are you, do you feel like you're going to get great support? And then the rest really is up to you taking those systems and putting them into place. That would be my advice. So a lot of due diligence is needed, really hands-on due diligence, before jumping into investing a chunk of money. It's not just the financial investment, also the time and hope you're putting into potentially creating something that could be generationally relevant for your children and yourself in the future, whether you are in your pre-retirement or retirement life.

So much stick on hand. To wrap up our interview, I was wondering, James, when you look back at helping both athletes and non-athletes, what's the most fulfilling impact you've found yourself making in this business? Of course, building a successful business is important, but I'm curious about the impact you're most proud of in these four years. I really would just say the opportunity for every client

that I come across that we figure out a path of business ownership and a path of giving a shot to generational wealth in there. So for me, the fulfillment is of helping non-athletes and athletes find the right fit and find the right match. And the best thing is I didn't even know a franchise like this existed. And I would have never have thought to even look at a franchise with this,

but it's a perfect franchise for me. To me, that's the most rewarding thing is when a client signs a deal with the franchise. Just that excitement that they have, knowing that they're on this new journey. And I just feel so good knowing that I've helped them in a small bit of finding that right match and that, that success is just giving them that entrepreneur spirit. Cause once you're an entrepreneur, you probably will stay an entrepreneur.

So it's very fulfilling. Great. Thank you so much, James. Thanks for your time and all the insights. Like any other major change in life, career changes, including franchising, can be incredibly fulfilling. It is a rewarding journey, not just for you as the facilitator, but for both sides of the business equation. facilitator, but for both sides of the business equation. I hope that every listen to this show feels inspired.

If you're considering franchising, talk to James or other credible experts and do thorough due diligence. About the business and about yourself is a big decision, but it can be a worthwhile one. Absolutely, yes, totally worthwhile and life-changing. Thank you so much for joining us today. If you like what you heard, don't forget, subscribe to our show,

leave us top rated reviews, check out our website, and follow me on social media. I'm Vince Chen, your ambitious human host. Until next time, take care.