I’ve been involved with franchising a large number of companies, finally count over 60. Some from concept and a few where we converted a current business towards the franchised model and i’m really happy to cope with either path with one vital proviso.
The company owner should have an acceptable understanding on what must be done to operate a company effectively – franchised or otherwise.
And regrettably I’ve concluded this really is simpler stated than can be done.
Succeeded, franchising helps to structure a company in order that it has got the best possibility of success because franchising helps you to put some good business practices in position. Systems and cash management being towards the top of their email list. But overall, I’ve discovered that in many companies, there are several aspects about business success which have to be reviewed and without seem business experience, developing a franchise isn’t likely to achieve success.
Focusing on how business works is particularly important, since you, as franchisor, will frequently be training less business savvy-franchisees on effective business practice.
Probably the most helpful way I’ve discovered to consider business success is to check out the stages of economic growth since it is through this journey that lots of learn the need for different business skills needed because they grow.
The Five Stages of economic Growth
In the first 1980’s, the notion that companies grow through defined stages was initially discussed within an article printed in Forbes by Neil C. Churchill and Virginia L. Lewis. The work continues to be reported to describe the significance of fundamental business elements to success.
Before I enter in the 5 stages, there’s an important indicate make.
Companies don’t always will need to go through each stage. You’ll be able to speed through stages into whichever is the goal. The best way to do that is to understand is needed. This is the way the kind of Richard Branson create new companies everyday – Richard may have all his business ducks consecutively before he starts. But his companies require through a few of these stages in order to creating a real business.
The bottom line is fundamental essentials stages
Stage 1 – Existence
This really is usually the start-up stage for just about any business. Without any revenue, the main focus from the business proprietor is acquiring customers and delivering the service or product. Inevitably, the dog owner is certainly working in the industry, frequently alone filling every role. A significant problem is getting enough money to pay for this start-up phase. The process here’s only to stay alive.
Stage 2 – Survival
Right now, the company has shown it’s workable and could be lucrative but it’s still simple in structure. There might be a restricted quantity of employees supervised with a sales director or perhaps a general foreman but neither can make any major decisions individually. They perform rather well-defined orders from the owner.