9 Concepts We Can Learn About Franchises From How2Exit's Interview W/ Shannon Wilburn - Co-Founder: Just Between Friends Watch Here E108
Here is what my team and I learned from this interview: (These are notes from team members, writers, sometimes AI, and even listeners who submitted what i learned loosely edited and shared here) - If it seems a bit unrefined, you're reading our notes, so. yeah. -Ron
Concept 1: Shop Smart With Consignment - The backstory
Shopping smartly is a great way to get the items you need while still keeping your budget in check. One of the best ways to do this is to shop with consignment. Consignment shopping is when people bring in gently used items to a store and then the store sells them for a fraction of the original cost. This is a great way to get the items you need without breaking the bank.
Shannon Wilburn is a certified franchise executive and co-founder of Just Between Friends, a national franchise of consignment pop-up stores. She has a unique story about how she got into the consignment business. When she was twelve, her father developed multiple sclerosis and was no longer able to work. This meant that her family had to make drastic changes to their lifestyle, and her parents had to sell their two brand-new cars and move into a rental house.
To make sure that Shannon and her twin sister had enough clothing, her father gave them a clothing budget that they had to stick to. This meant that they had to shop smart and only buy items they truly loved. This is when Shannon and her sister discovered consignment stores and learned how to shop on a budget.
When Shannon moved to Tulsa, Oklahoma with her husband, she knew she wanted to stay home with her kids but they didn't have the money to do so. This is when her mom told her about consignment events, which are pop-up events where families can come together and sell their unused items. She pitched the idea to her friend Devin Tackett and together they planned their first Just Between Friends event in Shannon's living room.
Shannon's story is a great example of shopping smartly with consignment. Consignment stores are a great way to get the items you need without breaking the bank. They are also a great way to support small businesses and help the environment by reusing items that would otherwise be thrown away. So the next time you need to buy something, consider shopping consignment!
I included this as a concept because as economies go up and down, this business model does well, during great economies, they do ok with budget-minded thrifty consumers, and during down economies, they thrive as people need save money.
Concept 2: Surround Yourself With Smart People.
Shannon and her business partner had a great idea to start a consignment store with the goal of helping their friends and family save money. But they didn't have any business experience. What they did have was the willingness to surround themselves with smart people who could help guide them.
They asked for advice from people who had experience in the business and found mentors who could help them make the right decisions. They also sought out advice from lawyers and accountants to help them navigate the legal and financial aspects of their business.
The pair was also willing to take risks and try new things. They moved from Shannon's small living room to a three-car garage and then to the Tulsa Fairgrounds. They took on the challenge of franchising their business and it paid off. By the time Shannon exited the business in December 2022, they had almost 42 million in system-wide sales.
Shannon's story is a great example of the power of surrounding yourself with smart people. Whether you are starting a business, looking for a job, or just trying to figure out life, having the right people in your corner can make all the difference. They can provide advice, support, and guidance that can help you make the best decisions for yourself and your business. So, the next time you are feeling lost or overwhelmed, reach out to the smart people in your life and ask for help.
Concept 3: Organize And Plan Ahead
When it comes to business, it is especially important to have a plan and to be organized. Shannon and her business partner learned this lesson the hard way. In 2010, they sold 30 franchises without having the right infrastructure or processes in place. They did not have a budget, and they were not great at managing cashflow. This led to almost going bankrupt and franchisees leaving.
Shannon and her partner realized that they needed to reorganize the company and focus on the Tulsa business and the franchise system. This allowed them to focus on what they needed to focus on and reach their goal of having highly satisfied, profitable franchisees.
Organizing and planning ahead is an important part of success. It can help you avoid costly mistakes and make sure that you are taking the right steps to reach your goals. It is also important to have the right people in your corner to provide advice and guidance. By doing these two things, you can set yourself up for success.
Concept 4: Efficiently Utilize Fewer People
This is especially true when it comes to running a large event. It takes a lot of planning and coordination to make sure everything runs smoothly. In order to do this, you need to be able to efficiently utilize fewer people. This is what the podcast discussed.
The podcast talked about the Tulsa event, which was a 70,000 square foot sale. It was a seven-day event and took two weeks. To do this, they had to rent the Tulsa fairgrounds for 14 days. During this time, there were drop-off days where families could bring in their items to be inspected and put out on the floor. The event also had pre-sale days and prime-time shopping for anyone who wanted to pay a fee to shop early.
At the end of the event, there was a breakdown process. This is where all of the unsold items were put back into the consignor number order. The consignors then had the choice to come pick up their unsold items or donate them to a local charity. During this process, the Tulsa event had close to a hundred people running it.
It is important to be able to efficiently utilize fewer people when running a large event. This can help save time and money. It also helps to have team leads who have experience in running events and can provide guidance. By having the right people in your corner and planning ahead, you can make sure that your event runs smoothly and efficiently.
Concept 5: Buy A Franchise For Help
One way to ensure that you have the right people in your corner is to buy a franchise. Franchises are businesses in a box and provide you with the necessary materials and guidance to make sure that your event is successful. This includes marketing materials, email campaigns, and collateral material. This can be a huge help in making sure that your event is a success.
Franchises can also provide you with the help of professionals who are certified in event planning. This can be a huge help in making sure that all of the logistics of the event are taken care of. Planning an event can be a very time-consuming and complex task and having a professional on your side can make sure that all of the details are taken care of.
In conclusion, buying a franchise can be a great way to make sure that your event is successful. By having the right people in your corner and planning ahead, you can make sure that your event runs smoothly and efficiently. Additionally, it is important to think outside of the box when it comes to planning events. By utilizing the resources you have, you can create a unique and successful event.
Concept 6: Foster Collaboration And Innovation
One way to ensure success is to foster collaboration and innovation within the franchise. By bringing together the collective brain power of franchise owners, you can come up with creative solutions to any issues that may arise. This is especially true during times of crisis, such as the COVID-19 pandemic. By forming task forces and utilizing the resources available to them, franchise owners can come up with innovative solutions to keep their events running.
Another way to foster collaboration and innovation is through masterminds and peer groups. By having franchise owners meet on a regular basis, they can exchange ideas and come up with creative solutions to any issues that may arise. Additionally, many franchises offer scholarships for innovative ideas that can be implemented system-wide. This allows franchise owners to have the resources to try out their ideas and see if they can be successful.
Finally, platform companies are becoming increasingly popular in the franchise world. By buying up smaller franchises, platform companies can leverage the collective resources and knowledge of the companies to create a larger and more successful business. This allows for more collaboration and innovation, as the companies can work together to create a more successful product.
Ultimately, fostering collaboration and innovation within a franchise is key to its success. By utilizing the resources available to them, franchise owners can come up with creative solutions to any issues that may arise and create a successful event. Additionally, platform companies are becoming more and more popular, allowing for more collaboration and innovation within the franchise world. By fostering collaboration and innovation, franchise owners can create a successful and unique event.
Concept 7: Sell To A Franchisee, Not PE
Shannon Williams is a prime example of how selling to a franchisee, instead of a PE firm, can lead to success. Shannon was the owner of a successful franchise, Just Between Friends, and knew that she needed to replace herself in order to ensure its success. She hired an advisory board and then a president to help with the process. However, her husband contracted COVID in October of 2020, putting a strain on Shannon’s ability to lead the franchise. This led to Shannon’s decision to sell the franchise to her largest-performing franchisee.
This decision to sell to a franchisee, instead of a PE firm, was the best decision for Shannon. By selling to a franchisee, Shannon was able to ensure that the franchise would be in good hands and that it would continue to be successful. Additionally, the franchisee was familiar with the franchise, meaning that they were more likely to be successful in running it. This is in contrast to selling to a PE firm, which would have been unfamiliar with the franchise and may not have been able to bring the same level of success.
The decision to sell to a franchisee, instead of a PE firm, is a decision that more franchise owners should consider. By selling to a franchisee, franchise owners can ensure that the franchise will continue to be successful and that it will be in good hands. Additionally, the franchisee is more likely to be familiar with the franchise, meaning that they are more likely to be successful in running it. Therefore, selling to a franchisee is a great decision for any franchise owner looking to ensure the success of their franchise.
Concept 8: You Can Stay Involved In Your Brand
However, there is one key point that all franchise owners should consider when selling to a franchisee: You can stay involved in the brand. Selling the franchise does not mean that the franchise owner has to walk away from the franchise. In fact, staying involved in the franchise can be beneficial for both the franchisee and the franchise owner.
For example, in the case of Just Between Friends, a franchise owner sold the franchise to a franchisee but stayed involved in the brand. The franchise owner stayed on as a brand ambassador and co-founder, advising the leadership and providing historical context to their decisions. This helped the franchisee to be successful in running the franchise, while also allowing the franchise owner to stay involved in the brand.
Staying involved in the brand can be beneficial for both the franchisee and the franchise owner. For the franchisee, having the franchise owner stay involved can provide valuable insight and advice that can help the franchisee to be successful in running the franchise. For the franchise owner, staying involved in the brand can help to ensure that the franchise is successful and that it is in good hands. Additionally, staying involved in the brand can also provide the franchise owner with a sense of pride and accomplishment.
Therefore, when selling a franchise, franchise owners should consider staying involved in the brand. Staying involved in the brand can be beneficial for both the franchisee and the franchise owner, and can help to ensure the success of the franchise.
Concept 9: Seek Help From Experts
When it comes to running a business, it can be difficult to navigate the complexities of the industry, especially if you are a new business owner. It is important to seek help from experts who can provide guidance and advice. This is why it is important for business owners to have access to a network of experts, such as a franchise advisory council, which can provide valuable insights and advice.
Having access to a network of experts can be beneficial in many ways. For example, it can provide business owners with valuable advice on how to best manage their business and how to make the most of their resources. Additionally, it can provide business owners with insight into the industry and help them to identify potential opportunities and pitfalls. Furthermore, it can provide business owners with a sounding board for their ideas and help them to make informed decisions.
It is also important for business owners to seek help from experts when it comes to franchising. Franchising can be a complex process, and it is important for franchise owners to understand the legal, legislative, marketing, operations, and development aspects of franchising. Having access to a network of experts can help franchise owners to make informed decisions and ensure that their franchise is successful.
Surrounding yourself with smart people is one of the most important steps a business owner can take to ensure the success of their business. As Shannon Wilburn, a business coach, explains, having access to people with expertise and knowledge can help business owners to make informed decisions and navigate the learning curve that comes with owning a business. By surrounding yourself with people who are smarter than you, you can learn from their experience and gain insight into areas of your business that you may not have considered.
Having a network of advisors and mentors can also be beneficial in helping business owners to identify their weaknesses and strengths. By understanding your weaknesses, you can hire people to do the tasks that you are not as strong in. Wilburn also recommends that business owners find a way to give back in their business, as this can be a great way to make your business purpose-filled and to give back to the community.
Overall, it is important for business owners to surround themselves with smart people in order to ensure the success of their business. By having access to a network of experts, business owners can learn from their experience, identify their weaknesses and strengths, and make informed decisions. Additionally, finding a way to give back can be beneficial in creating a purpose-filled business.
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