2011 - A New Year & A New Opportunity To Grow Your Business
In your career or your business, you can’t stand still, you need to be growing, all you need is the loss of a client, or cost increases across a range of products and services then suddenly you are on a downhill spiral.
There are many ways to grow your business. Let me list a few of the main ones:
- A new retail outlet
- A new branch
- Moving interstate
- Distributorships
- Appointing agents
- Franchising
- Increase sales
Franchising
To keep this to 60 seconds, I will focus on franchising. Very simply, if you employ the systems, marketing programs and methods required for a franchise, then these same disciplines and processes will work ideally as you expand your business in any form. If your current business has no systems and is not running effectively and efficiently, do not try to expand, otherwise you will expand the problems.
So let me give you a few tips on how you grow a business from a franchising point of view.
The Checklist of Questions to ask:
1. Have you a Proven System?
- Are you able to run a franchise, be it a product or service system – to work with franchisees, and have it all function properly?
- Do you have the supply chain?
- Is your Intellectual property registered?
- Are the manuals in place?
2. How do you provide Ongoing Support?
Once you appoint franchisees, you will need to train them initially, and then provide ongoing regular input into their business.
3. What about Ongoing Training?
This not only involves regular visits by operational support, but requires individual training, and for their staff. It will include workshops throughout the year where franchisees meet together.
4. Can you offer Buying Power & Product Discounts?
A franchise system needs to be able to provide buying power through better prices, or through unique or better quality products at better prices to franchisees.
5. Have you considered Food Safety/Occupational Health and Safety?
These areas will vary according to the type of franchise, but certainly OH&S and work safety issues apply to every industry.
6. What is the Value of the Brand?
The value of the brand grows as a new outlet opens and as you continue to do marketing. This does not happen overnight, and requires patience, persistence and commitment.
Not a Get Rich Quick scheme, but a Good Growth Strategy
Done well, franchising enables you to grow and expand your business, by getting like-minded and passionate people who can support the concept at a local or regional level. You don’t look to franchise your business, just because you want to get quick revenue.
You will need to invest in your business to set up the system, the manuals, the recruitment process, and develop a 5 year plan to show if the franchise concept is going to work for your business over a period of time, including what is required in terms of francisee support for your system.
You also need to develop a financial model showing that a franchisee can make money. You do not show this model to potential franchisees. There are people available who are able to assist you in developing the system, but there is a financial commitment to get the system in place.
The Australian Franchising Code
The franchising code is strongly enforced, by the ACCC. This should not scare you away, but encourage you to do the research, spend the time and effort in getting your system together and then provide the support that is required.
A franchise system and the process and disciplines, will work in developing any type of business whether you just want to open up another branch, another store, appoint distributors or agents. A good site to visit is the Franchise Council of Australia www.franchise.org.au.
Peter Irvine
www.peterirvine.com
Peter is Co-Founder of Gloria Jean’s Coffees, author of "Win In Business", speaker and business consultant.
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