Welcome! All our dear readers to yet another exciting and interesting blog post, unlike other posts , this is a blog post we are compiling on request , we have had requests from franchise owners to suggest some specific growth strategies for franchise businesses. For those of you who are reading us for the first time, we are coaches and consultants working with business owners and entrepreneurs supporting them in bringing clarity to & achieving their business growth goals faster.
Let us begin by understanding what a franchise business is. It is a business model where a larger company, in fact an established company, lets another individual or a group use their brand, identity , proven systems, and other support system. Both the franchise and the larger company or the franchisor are at benefit with this association, the franchise owner gets to use an already established brand, proven systems , all they are responsible for is their daily operations, sales , management , local marketing and bringing business on board. Now this combination of independence and structure definitely brings a unique opportunity to the franchise owner but contrary to the common belief that since systems are established , just need to follow them , need not apply any new strategy, in order to sustain and grow in local markets, franchise businesses also require updated strategies to be applied in an ever evolving market.
We have always believed and repeated almost in all our sessions , anything in business if it does not grow, it dies , same applies here , franchise business growth is essential not only for constant revenue or cash flow but also for the return on investment, unlike other businesses which may or may not depend on initial investment, franchise business owners have a good capital investment as they start hence getting an ROI is essential. And for the Franchisors( Larger/ established company) it is important to apply these strategies to ensure that the franchise owners are supported and they thrive with an equally strong brand presence reinforcing trust among their customers, that way both the franchise and the franchisors stand well in the competitive market and support in the growth of the brand.
Here’s a step by step process to plan growth strategies for your franchisee
Step 1 – Understand your boundaries & Guidelines
Each Franchise comes with a set of guidelines and rules which can never be violated, let that be in branding, marketing, or even sales & footfalls. It is important that we align our growth strategies in line with the company’s guidelines. Now why should we stick to guidelines or rules , not for the sake of franchisor but for the sake of your customers, you have brought in this brand because, this is accepted by the customers in different parts and people would expect the same quality and standards, hence its important to follow the same.
Step 2 – Optimize your Local Marketing
It is important that franchise owners focus on local marketing strategies and support in enhancing local visibility among the communities and groups. Franchisees should look to invest in geo targeted local ads, local SEOs, Google My business profile optimization, sponsoring or associating local community events, tie ups with local influencers, location specific content marketing strategies for all social media handles would definitely help.
Step 3 – Enhance Operational Efficiency
With all the marketing strategies applied consistently over a period of time , it is sure to bring in results and walk in to your unit , online or offline , this will start generating enquiries and leads and prospects and in order to efficiently handle and get the best results it is important to enhance operational efficiency, build repeatable systems, man the steps in the systems, ensure proper internal communications, ensure regular trainings and updation among the team members and sustain their productivity. and use tools as and when needed to fasten the processes and create an exciting impact on the customer.
Step 4- Upsell , Cross Sell & Retain your Customers
Like any other business, undoubtedly sales is the backbone of your business. It is highly important that the sales team or partners handling sales are trained to maintain long term relationship with the client and apply upselling , cross selling techniques and get the customer to keep coming back to you again and again. Because the cost of acquiring a new customer , entering a new market can be really expensive and you will get exhausted and driven down if you keep hunting for new clients each time to achieve your sale target, in most of the businesses 70% of the business either comes from existing customers or through existing customers , so retaining your customers s absolutely essential.
Step 5 – Encourage Support and Peer Learning
The best part of being in a franchise business is that you are not alone in the business, you have the parent company which has already set an example for you to learn and you also have fellow franchise owners. Attending franchise meets, training programmes is crucial for you to stay updated and learn from their experience.
Franchise business growth is not just a dream , but is totally achievable if the business owners are able to strike the right balance between creativity and compliance. Exploring strategies is important but staying committed to franchisor guidelines is also essential at the same time. The key is to be pro active , take initiatives, grow in local markets, associate with people and ensure updation through training & development. If approached with this mindset , franchise business is not just possible but scalable.
