As a small business franchise, you want to see success. You may dream of your franchise becoming a household name, or the go-to in your industry. Growing your franchise business takes careful consideration to minimise risk and maximise rewards at all levels.
Growing your franchise business is not just about defining your bottom line. You want your small business to benefit stakeholders at all levels, from managers to staff, down to the value you deliver to your customers.
Focus on Local
Put your resources into perfecting your franchise in your early locations. Setting up a strong home base is good practice and empowers you to set up new locations with fewer teething problems from the start. Your home base is the perfect place to perfect your business processes and work out any kinks before expansion.
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Avoid Artificial Growth
It’s tempting to accept large investment capital from outside investors. Cash may be king, but small business accountants advise that large outside investment may be less beneficial than building a reputable name in your area. Valuable lessons are learned when you grow steadily and workshop solutions along the way.
For example, if you run an aged care franchise, you want to be sure that your staff are capable, dedicated, and adding value to your customer’s lives. Pumping money into facilities and amenities is obviously a good thing, but it can’t mask poor performance or bad employee behaviour.
Assess the Business Model
If you’ve invested your time and resources into working out the kinks in your early locations, you’ll have amended your business model in doing so. Your early locations are prime real estate for experimenting with new strategies and analysing the results. When you feel confident in the success and sustainability of your current locations, you can be confident in expanding further.
Check out our tips for business growth after COVID-19 and stay ahead of the curve.
Prepare Your Franchisee
Like any project, your franchisee will perform far better if they feel well prepared to run the franchise. Pro Brisbane-based business accountants MSI Taylor advise that you empower your franchisee with a strong business plan to guide strategy, a standard operating procedures manual to guide the day-to-day, attractive marketing materials to promote the new location, and access to any legal documents they may require.
Don’t Set It and Forget It
A business should constantly evolve, adapt to its environment, and implement improvements based on real results. Starting with a strong business model is fantastic, but this model must change over time to remain robust.
Tune in to what your competitors are doing and whether you can adjust your business model to stay competitive without compromising what makes your consumer offering unique.
Engage with Franchisees
Your franchisees are important team members who can contribute creative solutions that may benefit your entire franchise. Nourishing a relationship with your franchisees is vital: you create an ownership mentality that encourages them to give their all to their location.