All successful businesses today are defined by how strategy informs and drives the commercial, operational, legal, technology, brand, marketing and recruitment requirements. Developing a sustainable franchise network requires a multi-disciplinary, systems approach to deliver those requirements.
How a business structures itself – how it finds, services and retains its customers, how it boosts sales, lowers costs, improves profitability and scales for growth – is driven fundamentally by strategy. Broadly that strategy will define your objectives, work out what you need to do to achieve them and the method you will use to prioritise the tasks. It also determines how they will be implemented and importantly, how you will track and measure your performance. One of the first questions clients consider when thinking of franchising is: how do I know if my business is able or ready to be franchised? Virtually any business or service can be franchised.
As a broad guideline you need to meet most of the following criteria. A proven business concept: your product or service works and you’ve built a loyal customer base. A profitable business: you have financial records (P&Ls, budgets) to measure and track your performance. Well-established operations: you have reliable functioning systems and processes. A defined point of difference in the market: your customers can differentiate you from your competitors. You may also have opened a second or more outlets, so you know the business is replicable. Whatever strategy you consider – and franchising is one – most businesses in expansion mode face issues of scalability, access to capital, on-going infrastructural development, the recruitment and retention of good staff, rising wages and complex workplace relations.
Increasing market share in the face of increased competition and building significant enterprise value for future succession and exit planning are also significant. Assessing the feasibility of all of your longer-term options to sustainable business growth is about determining the ideal strategy for building enterprise value: what your company is worth. The objective of a business is to create a customer. We leverage our understanding of the customer’s decision criteria, market requirements and the commercial and legal processes to establish optimal profitability for your existing business.
We consider how this will translate to a franchise network and determine the best expansion strategy to drive your business’ performance. This underpins your brand’s promise to create the compelling value proposition that not only attracts customers but will ultimately draw franchisees to join your network. Understanding that a franchise is a system that requires a systems approach is fundamental. Our multi-disciplinary team defines where strategy intersects with the commercial, operational, legal, technology, brand, marketing and recruitment requirements of developing and operating a sustainable franchise.
Working with you, we identify the critical issues and opportunities that impact profitability, sales and brand equity. We work with you to uplift your current operation’s performance as we undertake together the step-by-step process of building your franchise network and teaching you to become a successful franchisor.