Start With A Win - Franchise Expert Kim Daly shares her knowledge about growing a business 2 of 2

Episode Date: April 26, 2023

Ever wonder about how franchising works and the secrets of franchising? In this episode of Start With a Win, we talk to franchise expert Kim Daly about franchising, business growth, and overcoming challenges in life.  Episode 2 of 2 Show Outline: Three things a CEO should never say (01:16)Don’t quit…Appreciate the good times by struggling (06:14)Don’t buy your hobby (07:10)When you work on your business you create multi-units and wealth (10:50)Hardest part of running a business (17:33)                 Connect with Kim at: www.kimdaly.tv  Connect with Adam at: https://www.startwithawin.com/ https://www.facebook.com/AdamContosCEO  https://twitter.com/AdamContosCEO  https://www.instagram.com/adamcontosceo/   Listen, rate, and subscribe! Apple Podcasts Spotify Google Podcasts

Welcome to Start With A Win, where we talk franchising, leadership, and business growth. Let's go. And welcome back to Start With A Win. It's Adam Kantos here. This is episode two of two with Kim Daly. Kim is a franchise expert, business coach, and motivational speaker. If you haven't listened to episode one of this, please go back and listen to it. We've been talking about how to build your business as an entrepreneur, as a solopreneur, as a franchisee and franchisors. You need to listen

to this also because this is really important information on how to help your clients grow their business. Kim, let's keep going on this. You just went through some amazing information about, you know, we're digging into the psyche of the entrepreneur, the solopreneur, the franchisee. We talked a little bit about, you know, the freedom that franchising gives. We talked about personal growth and not making excuses, busy versus productive. And those of you that have been following my leadership principles over the past, call it five, six years, you know, I'm a fanatic for productive over busy. And I don't like excuses. Nobody should make excuses. Why? Because, and Kim, I want to,

I want to ask you something here. I break down three components that, um, a CEO, three things a CEO should never say. And I'd love to get your, your take on this. And I can see your face. You're like, oh, tell me. Because you're a CEO, Kim. And we have a lot of solopreneurs, franchise owners, entrepreneurs, things like that, that are CEOs that are on this particular broadcast on Start With a Win. And I want to tell you, everybody, there are three things a CEO can't say. The first one is, I didn't know. I didn't know.

The second one is I didn't know. I didn't know. The second one is nobody told me. And the third one is it's not my fault. Kim, you're laughing. We hear those things a lot in business. I didn't know. Nobody told me. And it's not my fault. If we could eliminate those things from the vocabulary of a business leader, where would we be today? Oh, that's amazing. Give me your take on this. I'm laughing because, I mean, look, we all want it to be somebody else's fault. We all want to be like, I didn't know. You know, we all want to blame something external.

Nobody told me about that. And at times, you know, it may seem like that's actually how it is. But if you're if you really want to be top performing at what you do, because, look, you can be whoever you want to be as a business owner. You just might not be able to break through some of the plateaus you're at unless you're willing to do the deeper work of like going within like the the success in owning a business is always within you already know what to do whether you're willing to own up to it is on you and you know what this is what I tell people when they're validating with other owners you know as part of exploring a franchise, you get to go meet other owners. And I'm like, look, the point of this is not to make or break your decision over what somebody else is doing or more importantly, is not doing at this moment in their business. And that's how

I sort of set up my story of the first eight years and then the last 12 years, because if you had talked to me in the first eight years, I certainly had a truth. I had that truth, but I have a very different truth now. There's one truth in my life and that's God. In business ownership, what I've learned is your truth changes as you mature with experience and wisdom, if you're willing to keep looking for the answers. You know, I created a history-making result 12 years ago. I've spent the last 12 years mastering the art and fully trying to comprehend what I did so I can replicate it and grow it. I've made history, broken my own history again and again. And I'm trying to help other people elevate the entire conversation from the very beginning. As you're entering business ownership, don't come

in like I did. Don't come in like the average person. Come in with a little bit more knowledge so that you from day one are taking ownership of what you're doing rather than falling the victim like so many people do in franchising, looking at the franchisor, whether they're saying it or subtly just waiting for you, Mr. Franchisor, to do this for me. And then when it doesn't work, you're like, well, it's your fault or it's my territory's fault or it's the economy's fault or it's Trump's fault or whoever you want to blame. And all of those things can make a business harder or easier, I suppose. But the reality is there's always a way to work it out. And it happens from within you and from what comes out of you. Like you said in part one, life is happening from me, not to me. You know, you talk about blaming people and whose fault is it that this worked or didn't work.

You know what's funny is when stuff works, everybody's like, that was because of me. When stuff doesn't work, they're like, that was because of them. Yeah, it's hilarious, especially. And I mean, we do it too, Adam. I always say, look, I'm not judging you, right? This is a fun conversation because we're just humans. We want to take something off of our plate, something off of our shoulders. We don't want to have to carry around the monkey of failure that we've all experienced.

But here's the reality. You might be overweight and you lose weight. Where is the badge of honor that you were overweight and you succeeded at your weight loss goals? You started a business and it didn't work. I mean, I've started a lot of businesses in my time. And I've started some that didn't work. I've started a lot that did work. And you look at it and go, okay, I own it. I own it. I've made the right decisions and the wrong decisions in business, just like everybody else here has. It's okay to take risk. It's okay to find failure, but don't quit. You know, that's what it comes down to. Yeah. And, and, and how do you, how do you really appreciate the good times if you don't struggle a little bit, right? How do

you really learn? Like, I always say like, people are like, well, you know, how am I going to get that customer to say yes to me? I'm like, well, go out and see what happens and let them say no to you. The fastest way to figure out how to get them to say yes is to hear what they say when they say no, and then re-engineer your sales process to create a yes. But you have to be willing to put yourself in the arena for your goals and your dreams and be willing to go through that growth curve. Totally, totally. Yeah, I got a question for you on franchising. Take a little bit of an off-ramp here. This is an interesting one because we see a lot of people make the wrong decision in franchising where they either say, okay, I want to buy something that's my passion, or my hobby, or something like that. And it

doesn't work because, you know, you've never made money on your hobby generally. And you're not going to start if somebody gives you a system for your hobby, and says, go do it as a business, because you're still like in your mind, it's your hobby, I guess a lot of times, but, um, you know, they, they do this, I want to do my hobby type situation. And the other one is they're like, okay, where's the customers. You know, the, they, they think that if they go open a store, buy something or, you know, turn on the lights to, you know, okay. That little open sign in the neon open sign click yeah and you stand out front and it's a franchise isn't it like as soon as i open my doors people come i love these conversations tell me about those two things or you know maybe some of the other kind of

misnomers in it's starting not just a franchise but a business because you got to work at it. People you, like you said, customer acquisition, number one challenge there's. And Kim, I know you're going to agree to this. There's no problem you can't solve by go getting more going and getting more customers. It's one, 1000%. Yep. So the first part, I mean, so many people come to me again. I'm not I'm not making anybody wrong for where they start when they start thinking about owning a business. If you don't know what what you're going to learn from me, you start with what you know,

you know, so you're brave enough to reach out and say, I think I want to own a franchise. I like fitness. I want to own this or I like the donut. I want to own this. I'm like, OK, so let's just back up and let's talk about why do you want to own a business and what are your goals? So paint a picture of your life for me, three years, five years, 10 years, right? And how do you want this business to play a role in driving those outcomes? So we're going to take the focus off of the widget and more on what this business can create for you.

What you're going to find is that if you start with passion for the widget, it's literally a dead end. It's a black hole. Because if you are never making the kind of money that you want and get the freedoms that you're looking for, not only do you lose your business, but you lose your passion for your hobby. But if you can stay open and find a business opportunity that's a vehicle that's creating the outcome of money that drives quality of life, however that's defined by you, you're going to fall

madly in love with whatever the business does that creates those two outcomes. So that's really where my conversation with every single candidate begins to dispel the myth. Now, that doesn't mean that if you love the gym, I might not bring you a gym. If all of the other characteristics align, then okay. But I can't compromise on what you're really trying to produce through the business because you think you have to be in love with the widget. And sometimes those people, Adam, they go away. They're just not a fit for my process. But my feeling is even if they do end up investing in franchise, which my feeling is they probably never invest in anything. Those are the kind of people that say, I looked and I

looked and I never found the right one. The right one doesn't exist. There's more than one ways. Once you're clear on where, why you're using, you know, what you want from the business, then you can use a lot of different businesses to create the outcome. And I want to, you know, speaking of businesses, I want to jump into next the, uh, the principles of multi-unit ownership. Oh, I love this one because you, you want to see people creating real wealth. I mean, substantial wealth. You get into the multi-unit franchise conference, MUFC, or you look at people who own 2, 3, 5, 20, 30, 100 franchise locations. And a lot of them, a lot of these multi-unit owners started as immigrants into the US and started, they bought

one and they're like, okay, it's profitable. Let's buy another. Okay, that's profitable. Now let's buy two. Now those are profitable. Now you got four. Okay, my cousin's moving here. All right, let's get another one.

They can manage that one or they can run that one. Okay, now we got five. Wow, next thing you know, they have 20 because they start scaling. And now they're not working in their business. They're working on their business. Talk to me a little bit about multi-unit ownership and how you've seen people build wealth by growing and expanding and franchising. And by the way, folks, not just the same brand, but a lot of people start crossing brands, you know, multi-brands. Generally, you can't have two competing brands,

but you can have two in a restaurant space or you can have, you know, you can have multiples in the same area because, you know, people eat three times a day. They're not going to eat a chicken sandwich three times a day. So, you know, you got a variety here of opportunity. Kim, give us some flyover on your perspective. Love it. So the wealth is always created through scale, just like in real estate, right? If you're going to go flip homes, it's not about flipping one. It's about being able to leverage your time and flip many or have many rooftops if you're a long-term real estate property owner. So the same thing will be true in a franchise. So in a franchise, when I'm building a model for somebody,

we talk about the scale can be created by revenue per team or revenue per truck, like a 1-800-GOT-JUNK or revenue per location. And they're all good. They all get you to an outcome, but they're used by different people with different skill, right? If you have revenue per team, that's a heavy labor model. So you better like HR. If you're looking for a little bit less HR, maybe something with equipment. And also if you're looking for a depreciable asset, the heavy equipment can also create nice tax advantage from the beginning. But it's really just understanding that it will never be about one. So if you're looking at that yoga studio, that's your dream business. The reality is it's probably two or three of those that's going to make you the kind of money that you really are

trying to make. And I mean, I can say that without even knowing who I'm talking to, right? But when we really understand your money in and your money out conversation, it's almost never about one. But the idea is that with the leverage of a franchise, in the right franchise, you should be able to come in working on your business rather than in your business, even from day one. So example, if you are in a yoga studio, you're not a yoga instructor. You're managing yoga instructors. You are focused on the strategy, the marketing, customer acquisition, customer experience, hiring culture among your yoga instructors, right? And then you're focused on multi-unit growth. So when I'm working with

a candidate, we begin with the end. So we funnel out and say, do you see yourself as a multi-unit operator? How many years do you want to do it in 10 as a multi-unit operator? How many years? Do you want to do it in 10 years? Do you want to do it in three years? And then we're going to back end you in because I want you, if you have multi-units in your mind, I want you to commit to those multiple units upfront. To think that you're going to buy one, come back six months later and another territory right next door is going to be open, not going to happen, right?

So you have to have that vision and you're not going to, you're still going to build one store at a time, but you're going to come in with that multi-store mentality because also the most important thing that happens for you as the owner is you stop looking to any one location and instead you're looking at the diversified portfolio as the total ROI. And that's always going to be a safer value proposition for you. And it's way safer for the franchisor. They much prefer to have fewer franchisees with bigger businesses than onesie, onesie, onesie, onesie. Some of my franchisors, once they get past a certain number of units, they won't even sell a single anymore. No offense, but because those owners become a little bit too time consuming and they're looking for someone who has more of that empire building mentality, a little more

money, who's really looking to build something substantial because that's just, it's more inspiring from the beginning for everybody. Right. And it, it, it builds security for the brand. Obviously, um, you, you know, you've got, uh, multi-unit owners, you have multiple multi-unit owners, you have brand strength growing and those multi-unit owners basically become like mini franchise ores where they're looking at how do I connect tighter with my community? How do I build a greater environment for my employees? You know, it gives upward mobility to employees, which is great. You know, you can, instead of having a single store manager, you can have a GM for multiple locations.

So, I mean, it's really a cool way. You talked about empire builders. It's a cool thing to be part of. Yeah. And you have leverage. The last thing I'll say is, you know, if you do own three stores in a geographical area, well, you could run one radio ad and not care where they go. If you have a massage envy and you own three and over here, every hour that you're open, you're booked, but you have another

one, three miles down the road, you can send your overflow. Well, look, we also own that location. Would you be willing to cross town and go there? You can move your therapist around, right? So, oh, someone's out sick today. You can shift things around. You just have much greater control over your entire environment and customer. And to your point of franchisees owning multiple brands, even there are some parent organizations now in franchising where, you know, they're looking to acquire multiple franchises that cater to the same demographic. So like not too many people know that the same people that started Massage Envy started European Wax. It's the same customer. They started Orange Theory. It's the same customer. So you learn one customer and that

demographic, that avatar, and you can own three different brands, but you could cross promote all of your businesses to that one customer because it's in many cases, the same customer. And that creates the ultimate leverage, right? Becomes easier to scale your wealth without the hurdle of having to learn a whole nother customer base. Right. I mean, what's the hardest part about running a business? It's gathering customers. I mean, period.

That's the hardest part. And when you own multiple franchises in the same space or in the same community, you get to network with those customers in order to build them as lifelong customers in all of your brands or all of your locations. And that's the beauty of franchising as well. They know what they're getting from this one to this one, or they know what they're getting from franchise owner to franchise owner. And I wanted to touch on this real quick before we wrap up the show, but I have a question for you. Where can people find you online, your YouTube channel, your social media, things like you. Where can people find you online, your YouTube channel,

your social media, things like that? Where can they look you up at? I love it. Please go to Kim Daly, D-A-L-Y.TV. That's my YouTube channel. I'm on all the socials, but every single piece of video content I've ever created is on my YouTube channel. You can find me on Apple and Spotify on my audio only and Instagram and Facebook and LinkedIn. But the YouTube channel, KimDaily.tv has it all and then some. So please go there. And then from there, if you're interested to learn more about my free service, because it is totally free. I don't think we've said that. You never pay me any money for all the work I'll do for you. then all of my contact information is right there on kimdaily.tv. Awesome. Thanks, Kim. Now I have a question about franchising, and this is really

important to me because I think this is an integral part of franchising and it's the word community. So, you know, being a franchise owner means you're part of your community. I know a guy who cleans out trash cans as a franchise and people are like, Oh, he cleans out trash. It's a great business. It's fantastic. It's, you know, yeah, totally. So, um, and you know, it's, it's like the person who picks up dog poop or the person that, another great business. Yeah. Uh, power washing. I mean, there, there are a lot of really, really good businesses out there and you might go,

Oh, not exactly like white collar, but I'll tell you what they make, they make a lot more money than a lot of white collar people that I know. So, um, you know, they, but they're part of their community. They're deeply embedded in their community. It's like your mail, you know, your mail carrier. I mean, I know mine. I leave cards and candy and gifts and whatever else. And I know my Amazon driver. And I know my UPS driver. And we have a little basket of goodies for them at the door. But if you think about this as, OK, how do I, as a franchise owner, connect with my community,

which that's where you're going to get your customers. Franchise owner is from your community. What advice do you have for the people on the show here? Oh my gosh, it's so good. Like I would love to have a masterclass that just taught networking and people think, oh, it's BNI. It's so not BNI, right? Like the other day, I take golf lessons and my golf instructor partnered up with like a CrossFit, kind of a mom and pop CrossFit place. And, you know, it's springtime here in New Hampshire.

The golfers are going to be looking to get their body in shape to swing a golf club. So he, the golf instructor, partnered up with the workout place. So the workout place has the people who might also play golf. You want to get your swing in shape. So they're cross promoting like in a like in a little eight-week segment. Things like if you're a gym owner, not just opening your doors and expecting people want to work out and come in. It's going out and creating opportunity in the community, like going to a road race and

giving out a free pass, right? You're going to redeem a certain percentage of those or even going to a pet walk, right? People that are doing something active outside, well, there's a chance that some of those people might want to come and try out your club. So it's thinking outside of the box on an ongoing basis. These types of activities, they don't necessarily always produce a one-to-one like my effort to a return, it's it again it's with consistent focus right you're just consistently thinking about how could I benefit other how could other people benefit from what I'm offering how could I find those people how could I be the one to initiate and reach out going into a company and saying hey if you get three or five people

well we'll offer you like a discount, a corporate discount on what you do. Or, you know, going to the radio station. Again, I always pick on the gym because it's easiest for people to visualize. But, you know, finding somebody who needs to lose weight, who's influential, you know, in radio or social media. And then having them post their journey as they're doing it and giving to that person for free for some amount of time. Like it's out of the box thinking I have a lot of HGTV-ish type franchises, home remodeling. And I'm like, look, think about the visual, the before and after in creating an Instagram wall. Because if you get one woman, right, who's excited about her before and after,

and she has a huge following of friends in the community. She's on the PTA. She's, you know, driving all the kids to the sports, right? One really active mom can change your life in the HGTV space, right? So the franchisor isn't necessarily going to teach you how to do these things. They might have some ideas, but this is where your creative, you know, energy can go. And if you're not creative, you find somebody who is, you know, hire somebody who has that skill to think about it. And just little by little, just always be looking and acting on trying to create that community

beyond your four walls or beyond your territory. Totally. And you talk about network. You and I have both heard this phrase over and over again, your network is your net worth. And it's so true. And I'm going to give you a magic wand here for building your network, people in your business. And I know a lot of people here are in real estate, you're the magic wand. Franchisees, go find the number one real estate agent in your community and take them to lunch. Okay? They know everybody. Everybody. And real estate people, if you see a franchisee, take them to lunch because they also know everybody. So when you start combining these things together and who knows who, and the average person

knows like 100 people, the reality is the average real estate agent has like 2,000 to 5,000 people in their phone, their contact list. The average franchisee who's been around for a little period of time, if they're collecting business customer information, which they likely are, they know a ton of people also, real estate agents. Let's bring the businesses together and work in our communities because those are both community-based businesses. So Kim Daly, franchise expert, business coach, motivational speaker. I have a question that I ask everybody on Start With A Win, and that's, how do you start your day with a win? I personally start my day in quiet meditation. Once the kids leave for school, if I do not have my 15 to 30 minutes of,

sometimes it's just literally quiet meditation. Sometimes it's an actual meditation. I'm an avid reader. Sometimes it's if I'm reading like a really good book about, you know, whether it's the way that I think or the way that I speak or influencing people like a good business book, it might be just time in a book. But I'm usually audible in books like when I walk my dogs or I'm at the gym. So mostly for me, the best way to start my day really is less talking and a little more listening to my intuition, to God, and just sort of setting my intention and my mind on what am I trying to create today, feeling grateful. I love to feel grateful for the blessings that I have because then I come to my work to serve rather

than to get. And it changes the way that I approach every single call. You know, I could come and get very aggressive with people that, you know, know nothing about franchising, go on one week of calls with franchisors and then come back and tell me all the reasons these companies that I've worked with for 20 years don't work, right? I mean, I've done this for so long, I could get very aggressive. Sometimes I want to. But if I've centered myself in the morning, I have to understand that I'm here to serve them and they just don't know what they don't know. In my job, the reason franchisors pay me is to help these people through those misconceptions that head trash and see how much I can open their mind to the

possibilities. And if I can't, I can't. But so I think that's for me, that's the best advice I give to myself and would give to anybody else. Awesome. Everybody be sure to check out Kim Daly online and Kim thank you for being on Start With a Win thanks for joining us on Start With a Win be sure to like and subscribe to this episode and share it with your friends also be sure to check out Adam on YouTube Adam Canto CEO as well as on all the social media platforms and don't forget Start With a Win