Do you want to launch your business and accelerate expansion through the franchising model? If you are already in business, read on to find out how to evaluate your company’s strengths and opportunities. Businesses at all stages will benefit from following these five simple steps to evaluate your company:
Step 1: Ask others to help you identify opportunities and challenges
You’ve put your heart, soul and life savings into building your business and you’ve begun to expand through franchising. If you want to set your business up to scale effectively, you have to assess the strength of your business and you need others to help ensure your assessment is accurate. As a proud and passionate franchisor, it can be difficult to identify all weaknesses and challenges objectively, even if you receive some feedback from your team and franchisees. If a nagging question hovers in your mind and you continuously ask yourself (and your team), “Are we doing enough?” - then seeking others’ consultation may be an ideal solution for you.
So who do you ask? Start by interviewing your team, some of your franchisees or create a franchise advisory board to seek opinions from your most-vested stakeholders. This exercise can be difficult if you are not prepared to hear positive and negative feedback, however, it is essential. The key is to listen, evaluate the feedback and prioritize the action items your team can take and manage along with your on-going system support, quarterly and annual goals.
If you uncover a “crack” in the foundation, seek additional input from other franchisors or entrepreneurs you trust to pinpoint the most meaningful initiatives to overcome challenges and scale your system.
Step 2. Use metrics to diagnose your business
Many franchise systems don’t recognize small downward or upward trends until those aspects of your operation present a serious problem. These metrics will vary across brands and industries though starting with same-store sales, customer retention and repeat rates, and employee turnover are universally helpful to identify trends and ignite changes, if needed.
For successful franchise systems, maintaining a leg up on the competition or proactively updating tools or processes may also be a good enough reason to seek help.
Step 3. Use a third-party for an unbiased evaluation of your franchise
Let's be honest. It is extremely difficult to assess your company's growth, profitability and sustainability - especially in today's ever-changing business world. But, what if we could? Wouldn't you want to know how you could improve?
Start by honestly answering the “tough questions” about your business using your team’s and franchise owners’ feedback. We know that business founders have been building their business for years, and it can be difficult to disassociate the stakeholders from the day-to-day ideology and reflect through a holistic lens. An impartial appraisal is hard to find - that’s why Franworth invested time and resources in crafting a confidential self assessment that measures the seven critical, functional areas of every successful franchise system.
Step 4. Know Your Limits. Avoid the Consequences.
If you give yourself great marks in all areas, you're not really thinking about how you can improve. Conversely, confidentially rating the functional areas of your franchise business identifies your key growth opportunities.
Invest in people, but most importantly, invest in the right people. Quickly hiring an in-house team of franchise experts is cost prohibitive for many franchisors. Also, specific, practical, “how-to” training and tools can be hard to find. This creates a resource gap. Franworth knows about these gaps by scaling our Portfolio Brands. Franworth now offers the Shared Resource Platform to help coach franchisors and share franchise tools, processes and best practices in an efficient, cost-effective and flexible way, and at every stage in your franchise’s journey.
Step 5. Take Action.
As you can see, unbiased consultancy from a team of functional and franchising experts can be very valuable. If you assume consultancy is “expensive” or “unproductive,” there are options that drive even start-up brands to take action and start benefiting from a team of experts sooner than you thought. Franworth’s Professional Services Division has the right people who have successfully launched and scaled franchise brands. By taking our confidential franchisor needs assessment now, you can quickly identify immediate and serious gains. This blog post and the complimentary assessment are both FREE so invest your time now in your business - the findings will help you recognize the difference between success or failure!
Whether you are a thriving franchise organization or an emerging brand, you should make an active decision to learn more about your business.
Once you complete this quiz, your intelligent Franchise Resource Score will consolidate the key functional areas of your business and identify key growth opportunities. The lower the score, the higher potential you have to improve your franchise system.