The following article includes insights from ProfitKeeper by PrimePay’s Director of Business Analytics, Eddie Goitia, a franchise expert and industry veteran with a strong track record in delivering client-centric strategies that can create growth and exceptional client loyalty.
Despite an economic downturn due to the COVID-19 pandemic, franchise businesses are expected to continue growing and potentially reach pre-pandemic levels of economic output by the end of 2021, according to the International Franchise Association (IFA). In that same report, the IFA reveals that overall, in 2020, franchise businesses generated $670 billion in economic activity in the United States (U.S.), accounting for 3% of the total nominal Gross Domestic Product (GDP), and in 2021, franchise contribution to the economy is predicted to rise by 7%.
In your role as a franchise owner, you are part of a sector that has a big economic influence. In part one of PrimePay’s franchise series, we covered some of the best practices to implement within your franchise from day one. In this post, we’ll discuss how you can improve your efforts in driving business growth for your franchise, how you can find qualified individuals to add to your team, and how to contribute to your franchise’s overall success.
Adopt a growth mindset
A consistent theme in franchising success is working to expand in size and value. Franchisors want to improve their workforce's capability and expand their competitive footprint. When it comes to franchisees, to truly accomplish growth, you must learn how to cultivate a growth mentality at work.
In working with several franchise brands, I’ve learned that most franchisees are trying to satisfy two main goals: Drive business and build the customer base. In order to execute these two objectives successfully, in addition to having a growth mindset, franchisees should have specific “Business Driver Plans” in place to attract and retain happy customers.
When implementing plans to drive business growth, a good place to start is to ask yourself the following questions:
- How much of your budget are you prepared to spend on your “Business Driver Plan”? This budget should include a list of priorities to attract customers.
- What programs do you have in place to retain customers? Many great franchisors have programs already in place and ready to be implemented. Connect with them and initiate discussions around best practices for incorporating these programs into your franchise location(s).
- Do you have a customer loyalty program? If so, is it set up in advance of opening? Are you actively using everything your franchisor has provided to you to build your customer base?
- When trying to attract customers, ask yourself: What are your brands? You must turn your customers into brand advocates for your franchise by becoming their brand.
In addition to asking yourself the above questions, consider the following:
- Build awareness: Start building awareness of your franchise the moment you know its opening launch date. One way to build awareness is to use digital social media platforms to announce your business and to build anticipation.
- Connect with other franchisees: Your franchisor knows the programs that drive growth and franchisee success. Use those programs and learn from your fellow franchisees. Talk to a fellow franchisee that has been open in the last two years and learn about their drivers.
Build a powerful team.
Franchisees share a common desire to start and run their own business. Many of the obstacles that come with running a franchise are the same as they are for any other business, one of which is building a powerful team.
However, it can be difficult to attract top talent to add to your staff, and today’s tight labor market adds an additional layer of difficulty. Nevertheless, it’s critical that you have a staffing plan in place.
Below are a few thoughts to keep in mind when attracting top talent, training your staff, and retaining them:
- A phrase that I stand by is that you must “fulfill the brand promise.” How you attract top talent and maintain the employee experience is a significant piece in fulfilling that promise. As such, it is helpful to have a hiring platform that meets the lifecycle of the employee which includes the attraction, recruitment, retention, training and development, offboarding of employees, benefits offerings, and more. Put as much emphasis on onboarding and proper workforce management tools as you do in picking your location.
- Culture starts with how and who you hire. Have your customer’s best interest in mind when choosing candidates. Put yourself in your customer’s shoes and come up with your own list of questions that compliment the customer service model of your business. Taking the time to ask the right questions makes a huge difference. It is critical to always ensure you are in compliance with labor laws. If you are ever unsure if you are in compliance, seek professional legal guidance.
- Training is vital to the overall morale and employee experience as it allows employees to expand their knowledge base and enhance their job abilities, which in turn improves productivity and retention. Regardless of the expense of employee training, if it is done correctly and consistently, the return on investment is significant. Train your people, check in with your people, and continuously offer training and development to your people. You may have heard it before, and you'll read it here: Learning never stops. Make this a practice and it could translate into a better bottom line.
- Another important piece of the puzzle when it comes to your employee’s experience is trust. Employees are more likely to stay with a company if they trust their employer, and feel trusted in return.
Franchises play a vital role in the U.S. economy. And to achieve long-term success in the industry, you must adopt a growth mindset, and prioritize your people. The two work together to achieve a franchise's two main goals of driving growth and expanding its customer base.
Interested in reading additional franchise tips and best practices? Check out the following previous PrimePay blogs and enjoy!
- Part 1 of this series: Our Expert’s Point of View - Best Practices to Implement Within Your Franchise From Day One
- How Do I Use Franchise Analytics for Business Growth?
- Veteran Entrepreneurs: Get the Most Out of An Effective Franchise Model
ProfitKeeper by PrimePay is here to support you.
The process of collecting and analyzing data does not have to be manual. With ProfitKeeper by PrimePay, franchisors can take advantage of the cloud-based software to automate financial tasks that can help increase profits.
Imagine a service that not only does the work for you but ensures the data is accurate and useful: That’s ProfitKeeper by PrimePay.
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