How to Franchise a Mission-Driven Business and Bet on Yourself w/ Alex DeBiase - Ep. 53

SPEAKER_00 0:10

Today we're joined by Alex DiBias. Alex is the co-founder and leads the franchise development at Creative Kids Movement Network, which brings dance, yoga, and fitness programs into daycares and schools through early childhood education franchises. He brings more than a decade in operations experience and nearly 20 years in the medical device sales. In his words, he's helping women cut the corporate cord and build businesses that matter to them, to their families, and to the children in their communities. Alongside his wife Kate, they are building that network so that owners can own their time and make a real impact. Alex, thanks for being on the show. Happy to be here. So tell me how did it go, the moment where you had said to yourself enough was enough and you got out of uh a long career uh where you'd obviously were in a number of different roles and had a lot of experience uh in that, especially in that the medical sales uh world, uh, to jumping into what you're doing now with your wife Kate.

SPEAKER_01 1:25

Yeah, so the idea was actually spawned uh quite a few years ago now. I think it was 2019 when we initially talked about potentially franchising her business. And um, and then of course 2020 happens and everything kind of got put off. But um I will tell you that my decision the summer of 2024 um to really push my wife to pull the trigger uh was as much age-related, I think, as anything else. You know, we get to a certain point in life and you just realize that, you know, I'm not really doing something I love. And it's not that I didn't uh enjoy what I was doing necessarily. Uh I I do love uh the sales aspect uh um and certainly of what we're doing now, like the training sales piece of it is fun for me still. Uh but you know, selling a root canal device was not exactly what I felt like I should be doing at 55 years old when we made the call. So um so that's that's kind of how I got there. It was probably um, you know, I had a great year the year before. I was president's club the year before, and you know, just spent the next 11 or 12 months asking myself, is this really what I want to be doing with my life? And you know, and I've had this sitting kind of in the back of my mind for years, as I said. And uh and so it just kind of bubbled up and I was like, okay, it's time.

SPEAKER_00 2:56

Well, so yeah. It's so this was your wife Kate's existing business, and then you uh you came on at the point of taking this uh and changing the model into uh to expand into a franchise model. Is that uh is that kind of the point where you came in uh at that that turning point?

SPEAKER_01 3:18

That's that's right. So my wife had been doing this for 26 years already. She she had built the business uh starting in 1998 when she was only 20 years old. You know, she was teaching dance classes at a studio, and one of her friends asked her if she'd come in and and teach at a preschool. And if you know my wife, Kate, she's like super enterprising, always thinking of new ways to to make money, and and uh she's super clever that way. But um she built a business kind of on the side for many years, and uh and it was 2016 when she went full-time, got out of corporate sales herself. And um, you know, I just sat back and I was watching her totally knock it out of the park. And uh and just looking at the business model, it was clear that it was something that could be dropped into any market. And uh and so that's kind of how my wheels got spinning and and you know, over a five or six year period, it was like, okay, let's uh let's see, let's see what's what.

SPEAKER_00 4:22

Explain the business model uh to me, uh uh if you would, a little bit.

SPEAKER_01 4:27

Sure. So uh the business is in essence teaching dance yoga and uh a fitness program to preschoolers and and other school age kids. So it's it's on-site, it's a mobile business, so there's no brick and mortar, and it's all done during the day while the kids are at preschool and the parents are at work.

SPEAKER_00 4:50

Okay, and so um, I mean, for first of all, uh a couple of angles. So I have uh uh my wife and I have two nieces. Uh one is four years old, and for the last two uh two years she's been part of this dance program. And so uh I was surprised at how much I enjoy going to her her dance recitals and uh but also just seeing the benefits for these kids uh you know, as young as you know, two, three years old, all the way up to um I think uh this program in particular went up uh through high school. Um and one, how much they loved being able to uh to just to do something like that. Because I I I don't think a lot of uh a lot of kids are exposed to be able to do that, especially in their normal um you know programmed uh preschool and uh and uh and such. Um but also just from the fact that I and how many how many different studies I've seen come out about the declining rate of children getting into sport and obviously the declining rate of uh you know health across Americans uh and American children. Uh and you know, more kids are inside playing video games than being outside and being active, and so how you know something like what you guys are doing obviously is fighting against that, which is I love, but also um just in involvement in team team sports, you know, we have a rising level of kids being homeschooled and there's more isolation, and and these are you know these kind of uh these kind of things uh seem to be where a lot of lifelong friends can be made and passions can be built. And um and w how how does that play into this uh for for you guys and what was the uh why why focusing on this age group of of children?

SPEAKER_01 7:01

Well, I mean, you really did a nice job of outlining exactly why. Um I can tell you that uh you know how we grew up, and and I'm much older than you are, but you know, we were outside all the time. We I barely had anything called a video game, right? I mean, I remember when Pong first came out, you know, that's that's how far back I go. So um, you know, it was really I I think Kate was the one who realized just how important these programs were, and I will tell you that you know, she's got certifications and all kinds of stuff, children's fitness and a variety of yoga certifications. And then of course she's got 28 years teaching this age group. And, you know, one thing became clear to her a long time ago, which was you know, exactly as you laid it out, the kids are are you know obese and and sedentary and and and so the programs went from I think when Kate started this, just teaching a dance class, right? So it was an extracurricular activity or curricular in this case, but it was just an activity, right? It was a class. And over the years, she's built the curriculum to you know add in real health and wellness benefits and and it and it goes from you know, obviously balance and coordination and and and all that stuff, but you know, emotional regulation and motor skills, fine motor skills, and and there's a lot of cognitive stuff going on. So kids that that start these programs early, you know, do better academically too. And there's a lot of that stuff woven into our programs. So it's not just an enrichment program, it's it's truly built to address exactly what you just laid out.

SPEAKER_00 8:41

Awesome. No, that's yeah, I mean, that's amazing. I uh my wife and I do not have kids yet, but um that's uh hopefully coming up pretty soon uh in the next year or so is uh is the plan anyway. Um and so um you know and that you know with that coming up uh hopefully soon, and then also just uh us being uh you know pretty recent uh auntie and uncle. Um I've I've been doing a lot more thinking uh about uh this kind of stuff and about how I would raise my, you know, how we how we would raise our kids and uh you know what kind of environments would we put them in and and stuff like that. And and uh certainly for me, you know, I I I'm from New Zealand and I came over to the US uh to play a sport. So like and I've always loved physical activity uh and been always been very interested in health and wellness, and and so this stuff is always uh of a high interest to me as well, and and um and so this is uh this is very interesting and top of mind for me, um, and just what I've been thinking about a lot recently. But then how does uh with the franchise model now how does that work? Who is it the your partner with existing daycares? Is it the daycares or the preschools they become they they start uh they get a franchise uh of or is it a a different um someone else becomes the franchise that then uh that gets layered into the daycare?

SPEAKER_01 10:28

Yeah, so it's it's exactly the same model as we have here in in upstate New York, um, where the owner uh or the franchisee in this case in the other markets, they actually go out and they build relationships with their local preschools and schools uh to get classes set up in in those sites. And that's um that's pretty much how it's done. And and we've got a couple of different models where there are uh some of our franchisees actually still work full-time and they're doing this uh on the side, kind of the way Kate built it initially, and then eventually when it starts to uh ramp up and and drive enough revenue, you know, the plan is for some of them to quit their job and actually do this full-time. Um and then we have others that quit their jobs already and just hopped right in full-time. And uh, but in essence, um it's a it's an owner or an owner operator in each market who builds and runs the business in their market.

SPEAKER_00 11:32

I love that for a couple of reasons, but I think the it's it feels like that opens up a big opportunity for uh aspiring entrepreneurs or people who don't even really know that that's something that is possible for them to enter in um in a way that like you said, they could quit their jobs and go in full-time with it, or they could do it uh as something like supplementary or on the side as it builds up and grows, and then have the decision to make that transition, which obviously you know, especially with franchise models, you know, people typically will think about you know fast food franchises or gym franchises, and it's like that's you there's no part-time uh with those, right? It's um is is that an accurate um interpretation that that's that's the reality of of how people can get uh get involved in this in this being like a lower barrier of entry or and a different uh a different point of entry for for new entrepreneurs?

SPEAKER_01 12:43

Yeah, so uh with it being a mobile model, there's no studio space, there's no rent, you're you're working out of your home office, and you go out and you make calls on site, you go and teach the classes on site, so um it is a much lower cost, certainly than fast food, right? Um and uh and and the flexibility in the model, I think, is what's really attractive to to people who have come on board. You know, there are those, like I said, who who went in full time. Um and you know, that's not uh um that's not the most flexible, right? You you don't have a job and this is it, you know, you you literally cut the cord and and dive right in. Um and it takes you know, it takes some time, obviously, to build up enough revenue to start taking income and all the rest of that stuff. So um, but the flexibility to be able to, you know, keep a job and and build. And you know, we have some that um we have a a woman in Little Rock, Arkansas, who uh she has a uh a work from home job, and she literally has outpaced I don't even know how many, like six or seven franchisees that started many months before her, and she caught them and is you know driving more revenue already. It's uh it's remarkable what can be done with the right operator, even on the side.

SPEAKER_00 14:14

Who is the uh who is the right operator? Like who is the that ideal operator fit? Is it because I can I like I can uh think of kind of multiple different people just from what I found uh you know learnt already uh from you and I see like one pathway, it's like it's mothers, like which this is I mean, seems like this is like you'd think that uh a lot of you know stay-at-home moms probably have not thought that entrepreneurship was still something that they could pursue uh uh in something that, you know, I don't know. I all the moms that I know uh seem to be pretty good dance teachers for their toddlers uh as well. Uh but what is yeah, what is that ideal operator?

SPEAKER_01 15:14

Do you is or is there well, so that I honestly there's a couple of things that are ideal to have. Um it would be, you know, in the best case scenario, they have sales experience. They're coming from, you know, even if they're stay-at-home moms, maybe they they you know left the workforce for a period of time and they've they've had some sales experience. That seems to be um the one big indicator of success, is if you have some sales experience. Um, but you know, when you talk about actual profile, uh, it's just like you say, moms, and we have we have a couple of stay-at-home moms. Um, we have uh some that have been in high-powered uh fashion um you know, corporate jobs in New York City, and then we've got uh um other um high-powered corporate and banking types. Um, but there's also uh a lane for uh education. We have um we have a couple that have you know theater backgrounds and and actually uh come came out of one one came right out of pub uh Boston public schools, and uh and she's doing absolutely fantastic. So I think there's there's to your point, there's a lot of different profiles, but it's uh you know, it comes down to that that personality that that you know is not afraid to hustle and build a business. And it's it can be um it can be really frustrating and hard for those that that don't have that experience in the early days, because you know, it is a heavy sales role to begin with. And once they get the classes going and they're teaching classes and they're building the relationships, the business really will grow, you know, kind of on its own. Uh, but in the early days, uh it it does require a a lot of banging on doors.

SPEAKER_00 17:07

Gotcha. And so obviously, um I want to shift back to when uh you took that leap. And um obviously you had the sales background that was uh a huge asset that you you brought and a lot of experience in that realm, um, different industry, but still. Um what what kind of uh what kind of things did you go through uh leading up to making the decision and then actually making the decision uh to to make that jump, especially, you know, I I feel like uh entrepreneurs that I talk to who who started their journey uh after already having a very successful career in something else are the ones that found it the most difficult to leave it. Uh, you know, you people talk about like the golden handcuffs um and leaving that certainty for something that is completely uncertain. Uh how much of that applied to you and and what kind of what what what did you have to go through and in this process?

SPEAKER_01 18:19

Well, I'll tell you the the golden handcuffs thing is real, right? I mean, it it it took me several months, actually. We've been talking about it a long time, but it was really the last probably year, sometime in 2023, I think, uh, when it started to bubble up again. But um, you know, for me, I've just always been one of those people that kind of can see what's possible in a way that that I don't think the average person thinks of things that way. You know, like I think the average person, you know, they they can kind of see what's the worst that can happen, and I must see the what's the best that can happen sort. And that's just kind of how I've always been in my life. And so when the decision was made, um, was it hard? Has it been scary? Has it been ridiculously costly? It's all those things, right? But I I feel like um, and I've heard people refer to this as seeing around corners, right? And I'm like, you know, I don't think seeing around corners is really seeing around corners. It's just that when you get to a certain point in your life and you've had enough life's experience and enough work experience, you start to see what's possible, you know, because you've seen a lot of these things develop, um, you know, either through friends or family members, and you know that, you know what, when I put my foot on the gas, I think I can I can make this happen. And uh, and so it was not as scary for me personally, much more so for my wife, for sure. Um, and it's just uh, you know, it's just kind of a worldview, you know.

SPEAKER_00 19:56

Yeah, no, and I mean the uh I like to I call that uh the eternal optimist uh personality, which are my favorite type of people to talk to. I I love eternal optimists uh because it's you can see you can see things through two like through the two lenses, and it's like I'd rather look at things through the half full versus half empty. Um and because I I'm just I'm a big believer in uh you know the positive things that flow from being positive about something, even if like you know, uh you know, I think one of the big the best skills for uh that an entrepreneur can can have and learn to be able to be comfortable with is changing their mindset from seeing things that they otherwise would have seen as negative to actually this is I'm grateful for this thing happening because of all of the things I'm gonna learn and how how much I'm gonna grow from it, rather than just seeing the short-term uh you know negative outcome that it might bring right now. Um and so um that is uh, you know, if for all the entrepreneurs and founders that I've talked to uh over the years, um the ones that I see have the the most success are those eternal optimists. Um and then with you, all right, making the jump wasn't that difficult for you to do. Um, because you could see what's possible. Now you're in it every day, you and Kate, and you're building this. Where do you want to take it? How big, how much reach do you guys want this to have?

SPEAKER_01 21:51

I you know, I think we have kind of three year goals, five year goals, and I think that um, you know, the three year place we want to be is about 75 franchises. And we'd love to get to more like 150 and five. And And it's uh I do think it's possible. There's just so many moving parts that we're still learning about. Um franchising is a is a very unique industry, and um, and and while we've we feel like we we have done fairly well, there's just uh there's just an incredible amount to learn and and and we have to be um we have to be things that we never were before. You know what I mean? Like I was a sales guy, and now I have to learn about you know automation and and text message, uh, you know, AI bots. I'm like, I don't even know what the hell these things are. And uh and it's and both Kate and I have had to really learn so many different things, and it's um uh it's been fascinating, but but it feels like it's not as fast as we'd like it to be. You know what I mean? Because of all the the learning and um the the legal stuff and the the regulations and you know there's just it's just it's a it's a whole different animal. And even after now being in it for about a year and a half, um, you know, I feel like we're a good year and a half away from having a really good handle on on how to meet our goals.

SPEAKER_00 23:30

Uh can you go a little bit deeper into the uh this what exactly uh the feeling is of uh it not you know not moving as fast as you guys would like, which because I I think this is a uh you know a common thing uh that a lot of entrepreneurs go through. Uh it never moves as fast as you wish it would. But uh is there like what uh is there certain parts uh that feel like uh they're slower uh or you know, kind of holding the other growth back than than others?

SPEAKER_01 24:09

Yeah, I mean it's it's this it's a very common bottleneck and it's called the pipeline. You know, it's it's generating leads is uh is by far the whole game, real really, you know, like if you don't have a good lead flow, uh it's obviously hard to to move those leads into becoming franchisees. And so, you know, just m the way I've always operated in my sales career is you know, just throw the net out wider and and you know dig a little harder. Um and and that's how I built a pipeline, and that's not how this industry works. You know, you're you're finding people that that to be honest, uh were somewhat like we were. I mean, we were fearful to some extent, um, cuz we knew it was going to be a huge investment and and a massive like life change and all that. Um but the people that we're trying to get our hands on as potential franchisees are you know people who have the golden handcuffs, as you put it. You know, they've got you know education, health care, they've got they've got uh you know a good paycheck. And and while they don't love what they're doing, and that's why we're talking to them, um it's it's a it's a huge leap for people to to you know pay for a franchise and and and take a chance. And uh and so I you know if there's one thing that keeps us from really moving at the pace we want, it's it's it's lead generation.

SPEAKER_00 25:48

That's no, and that's it, that's interesting too, because obviously like what you you know uh what you're selling is not a a widget or a medical device or a software subscription that someone can cancel. Uh this is a very this is this is an investment uh and this is a long-term commitment, and this is uh you know, this is something that is deeply tied to emotion, and uh there's gonna be a lot uh a roller coaster of different emotions for uh for the you know the people that you're trying to to sell to. Um and so I can imagine that the sales cycles are gonna be a lot longer than uh you meet someone and then end of the day they could have converted into a sale. Uh I'm imagining a much, much longer. And you you used the word that uh pipeline, which uh uh a really good friend of mine, Brian LaFramento, he has a company uh and uh and he just released a book last year um where he goes over his uh his operate framework. And uh I no longer use the word marketing because the his framework uh breaks it down, and pipeline is is the P in operate, you know, the outreach and then pipeline. And so like now I that shifted. Uh he's the you you're saying pipeline, he's the only other person that I uh ever hear use that use that word. Um and so it stood out because pipeline now is something that I think about and talk about every day, and it's something that uh you know I know a lot of us entrepreneurs are um are trying to figure out uh how to build a better pipeline. Uh but then you know with that pipeline comes it's not just getting leads in the door, then it's also you know, there's the how do you how do you build your pipeline so that you are getting the right leads in the door? How do you qualify uh you know the balance between overqualifying and then uh and having fewer people come through, or underqualifying and then being flooded with a lot of people who are not your I uh your ICP. Uh and then I think the biggest part of pipeline that is dropped is by b businesses you know across the board. Doesn't matter what industry, it's common in our professional services, uh clients, uh, construction, uh trades, logistics, you name it, there's an under-emphasis on the the nurturing of people who enter your pipeline and how many opportunities are dropped because it's it almost seems like all the emphasis is placed on getting people to enter the top of the funnel, and then that's where it it kind of ends, and then it's all kind of lost in between. How do you how do you guys how how do you look at uh that full kind of pipeline uh for you guys and uh how you nurture people who come through? Because I can imagine I would imagine, and maybe this is completely wrong, but um knows today it uh I feel like a lot of people who are not uh are nose today who enter your pipeline really might a l a big portion of them could be not ready yet and being able to keep them in the pipeline and because you know there's some that it's like um if there are no, then there are no uh there probably gonna be a no in a year from now. But I feel like this is because of the how big of an emotional decision and this being an investment, uh that's where you actually can benefit from the compounding effect of the no's now are actually gonna uh will resurface later uh as kind of resurface leads. Uh have you seen the same kind of uh same kind of thing in your experience with this so far?

SPEAKER_01 30:39

Yeah, uh I I will tell you it's funny you mentioned the uh qualification and getting too many or not enough, and and I feel like that's one area where we have finally rounded the corner where you know our landing pages and the questions we ask uh help drive some better leads. And while it's not as many as you'd like, um they're a little bit better. But um it's funny, uh, you know, pipeline. I I have in our our learning management system for our franchisees a document called uh Pipeline Management, and it's something I spent quite a bit of time on. It's not uh a full-length book, but it's I bet it has a lot of elements in there that that your friend talks about. Um you know, we're we're pretty uh low-key. We because there's so much fear associated with making a big investment and giving up the golden handcuffs and all that, um, we try not to push people very hard. And you can you can tell when a no is a no. You know, I um I was only it's probably like three or four years ago, I had a uh a former uh leader uh turn me onto a book, and I think it was called something to the effect of uh get to the no. And you know, we we we pretty much know what a no is, you know what I mean? But we we see that there's a lot of not right nows or not yet. And uh and so we just keep them um, you know, when you use the word nurture, it's a good way to put it, and we do it via emails. Occasionally we'll kick out a text message, but generally speaking, uh we just keep people on an on an email list, and then you know, if we get to a certain time where maybe we're gonna offer a discount um on the franchise to try and goose uh some sales, um, we'll put those people back on a reactivation text list. And and and I've seen those bubble up, you know, the the not now's bubble up and and um there's a couple of them in the pipeline right now that look like you know they could happen before the end of the year. Um so so yeah, we it's just you know basic email uh outreach and and occasionally um you know we'll we'll do some text messages to keep in touch with people. Um but we try to, you know, we tell everybody going in, um we're we're low pressure, you know, there's a lot of people in this industry, and we we you know we're part of uh some broker network groups, and so we get to see some presentations from some of the fast food groups and these other um you know more traditional franchise models. And uh and and it's it's almost comical. You know, they're they're uh I don't know, it's just we I I was never that type of sales guy that you know put the pressure on and be all slick and all the rest of that. It was you know more about trying to find people who are a good fit for what I was selling, and that's pretty much you know what we do today, too. So it's um yeah, so we're we're definitely not pushy in that that nurture uh stage to get people moving further into the pipeline.

SPEAKER_00 33:51

No, that's awesome. Uh no, I I love that approach uh to sales in general, just because that's probably why uh I'm having a great conversation with you uh because of my intolerance usually of uh salespeople. Uh I you know, just and you know, when I started my company, that's the first thing I uh had to figure out was all right, how do I make sales not feel like sales? Meaning, how do I not come across like the used car salesman that I hate talking to? Uh and uh and I'd imagine too, like with once someone's in your pipeline and they're you know not right now or they're on the fence. I mean, even just seeing uh, you know, like the the uh the story of the the lady in Little Rock who's been crushing it, uh hearing success stories is gonna give people FOMO. Uh to also be like, oh wow, like this is you know, it's it's kind of social proof, it's evidence of oh wow, like that is actually possible. And because I think it kind of loops back to what you were saying at the beginning, uh, which really this is it's a matter of trying to show people what is really possible, uh and you know, and proof uh and sharing those those wins and those success stories uh uh is a big part of that, I think, um, which is awesome. But Alex, we we finish every show with the same question. Uh so I'm gonna ask you, what is your one trade secret, whether it be in business or in life?

SPEAKER_01 35:39

Well, we've talked an awful lot about that. Uh, when we talk about mindset, um you know, the the what's possible mindset, and uh um that is definitely what I would say is a differentiator uh for for people trying to do something like what we're in the middle of doing. And and you know, um I don't want to like be slapping ourselves on the back at this moment because you know we have a long climb to be what I would consider successful. Um but uh but the only way these things happen, um and and any success, I think, for that matter, is uh it comes down to belief. Uh and uh and you gotta you gotta be able to kind of see it and believe in it and and and not allow the peripheral stuff to knock you off your game. And that's uh that's that's kind of what my life motto is, and and it's not not just work. Um you know, it's the same same thing. I've got three boys and uh um and all three boys are are well three boys, they're 24, 22, and 19 now, but um really hardworking guys and and um and you know uh I I like to think that it's that example that that I've set and that me and my wife have set for them uh that that helps drive them.

SPEAKER_00 37:06

That's amazing. Uh I love that. Um thank you, Alex. So um if people want to get in touch with you, if people are interested in seeing whether this maybe is the what they've been waiting for, looking for, uh, or something that uh they want to just find out more information about, where's the best place for people to reach you and to uh to learn more about what you guys are doing?

SPEAKER_01 37:34

Yeah, you can go right to the website at ckmovementnetwork.com. Um and if you're interested in the franchising piece of it, uh it's just slash franchise and and you can go right to the franchise page. And there's um there's a form on there to fill out with some questions. And you know, like I said earlier, the the questions are qualifying questions. Um, but you know, if uh if you have some experience anywhere in your past with dance, yoga, or fitness, and you're not afraid to work with young kids because that's also a really important piece of this. Um and you're not afraid to bang on doors. Uh this could be a really nice next chapter for the right person.

SPEAKER_00 38:17

Awesome. Well, um, we will put all the links in the show notes uh for the website uh and um uh the exact links to where they can go for each thing uh and how to how to reach you and to contact you and learn more. But Alex, thank you so much, man. This was uh I really enjoyed getting to getting to know you and learning about what you're building. Uh I love this. Uh I can't wait to watch uh as you guys expand your impact and keep growing and having all of the success uh that you guys are having. Awesome. Well, thanks, Jerome.

SPEAKER_01 38:52

I appreciate it very much and uh and look forward to seeing this all wrapped up in a nice little package.