March 29th, 2010
The most consistently successful business is the franchise. Think about it…McDonald’s, The UPS Store, Jiffy Lube, Subway, Great Clips, Super 8, etc. If you want to grow your business, and especially if you want to expand into new locations, you must treat your business the way that franchises do. Which means that you must have business systems!
What is a system? The first definition according to www.dictionary.com is “an assemblage or combination of things or parts forming a complex or unitary whole.” Makes sense, right? Many different tasks or functions make up the whole of your business. It is because of all of these unique ways of doing things that each business is different. It’s like each of us as people - we may look alike, but when you break it down, there are quite a few differences.
It is these differences that we need to build into regular systems and get into a document. Documenting your unique processes is what makes your business something that can function outside of your head…or outside of your employees’ heads. And when you can do that you can take some time off without worrying, expand to new locations, or even franchise. Although it may be a while away, documenting your business systems will also make your company more valuable when you sell it. If someone else can come in and take over your business just the way it is operating now, the value increases dramatically.
You have probably heard the saying, “start with the end in mind.” So even if you’re not going to franchise, pretend that you are and develop systems and an operations manual that is your own. It may take time, but the benefits make it worth every minute.
Tags: document, franchise, operations manual, systems
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December 11th, 2009
We are working with a fantastic client right now. They started their business right out of their garage and have built it into a large, successful local company with phones ringing off the hook. Now that they have experienced this success, how are they planning on capitalizing on it? Franchising.
Franchising can be very profitable - just look at all of the fast food chains out there. However, the reason many companies don’t do it is because they haven’t created a repeatable, turnkey operation. Many companies are only as successful as the productivity of their people that day. If one or several of those people were to leave, the business would crumble.
How can a business create a successful, turnkey operation? Here are a few tips:
- Clear strategy and goals.
- Easy to understand, easy to use operating systems.
- Defined and followed marketing and sales strategy.
- Employee alignment and accountability.
There are many other factors that play into the success of a turnkey operation, but in my opinion, these are the most important. And although they are important…very often they are not in place.
The company that we are working with has seen its share of ups and downs. It has made mistakes and continues to find challenges. The one thing that they do realize however, is that being proactive on these four items is key. They have found partners to help them with each of these and work truly as a partner - learning and improving each day.
They realize that developing their operations manual into systems that are easy to understand and repeatable from the very beginning have paid off in the end. Building their franchise has been less costly and more efficient because of their proactive approach.
Tags: franchise, operations, turnkey
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